[Image] Scudder 21st Century Growth Fund Profile
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The fund profile, a supplement to the full prospectus, is designed as
an easy-to-read summary of fund risks, fees, and objectives. You can
click on any question to link to the Fund's prospectus and get more
information on that topic. Or, if you wish, you can proceed directly
to the Fund's prospectus. Once you have read the prospectus and
considered your investment goals, you can proceed to a Scudder Funds
application.
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Fund Profile
February 1, 1998
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1. What Is The Fund's Objective?
Scudder 21st Century Growth Fund seeks long-term growth of capital by
investing primarily in the securities of emerging growth companies
poised to be leaders in the 21st century.
2. What Does The Fund Invest In?
The Fund generally invests in equity securities, including common
stocks (which normally comprise at least 80% of assets) and
convertible securities, of relatively small or little-known companies,
commonly referred to as emerging growth companies, with market
capitalization typically below $750 million. The Fund's investment
manager, Scudder Kemper Investments, Inc. believes these companies are
well-positioned for above-average earnings growth and/or greater
market recognition and offer significant opportunity for capital
appreciation. Emerging growth companies are those with the ability, in
the Adviser's opinion, to expand earnings per share by at least 15%
per annum over the next three to five years at a minimum. The adviser
allocates the Fund's investments among many companies and different
industries in the U.S. and abroad.
3. What Are The Risks Of Investing In The Fund?
Emerging growth companies entail higher risk due to their smaller
size; relative age; limited product lines; distribution channels;
financial resources; possible lack of managerial depth and experience;
and dependence on key personnel. Further, there is typically less
publicly available information for smaller companies. Also, because
small companies normally have fewer shares outstanding and these
shares trade less frequently than those of large companies, it may be
more difficult for the Fund to buy and sell significant amounts of
such shares without an unfavorable impact on prevailing market prices.
Their securities are often traded over-the-counter and thus the prices
of these securities are often more volatile than those of larger
companies. Small companies may also be more vulnerable to adverse
general market or economic developments than large companies.
In addition, the Fund is managed as an aggressive stock fund.
Movements of the stock market will affect the Fund's share price,
which is likely to vary from day to day. The value of your investment
may decline as a result of declines in the overall stock market or in
the types of securities held in the Fund's portfolio. You incur
principal risk because your shares, when sold, may be worth more or
less than what you paid for them.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking long-term growth
of capital and:
o plan to hold your investment for the longer term (at least 5
years or more),
o can tolerate share price volatility with little or no current
income,
o have or plan to have other investments for the benefit of
diversification, and
o understand the risks of investing in emerging growth companies.
5. What Are The Fund's Expenses And Fees?
There are two kinds of expenses that a shareholder may incur, directly
or indirectly, by investing in a mutual fund. These types of expenses,
as they relate to Scudder 21st Century Growth Fund are:
Shareholder transaction expenses --
Expenses charged directly to your account for various transactions.
Please note that there is a $5 service fee if you request redemption
proceeds via wire.
Sales Commission None
Commissions to Reinvest Dividends None
Deferred Sales Charge None
Redemption Fee Payable to the Fund 1.00% *
Exchange Fee Payable to the Fund 1.00% *
Annual Fund operating expenses (after expense maintenance) --
Expenses paid by the Fund before it distributes its net investment
income, expressed as a percentage of the Fund's average daily net
assets. Figures below are for the fiscal period September 9, 1996
(commencement of operations) to August 31, 1997, during which the
Adviser maintained the total annualized expenses of the Fund at not
more than 1.75% of average daily net assets. Had the Adviser not
done so, total operating expenses would have amounted to 3.52%,
including 1.00% for management fees. The Adviser will continue to
waive and/or reimburse all or portions of their fees until December
31, 1998.
Investment management fee (after waiver) 0.00%
12b-1 fees None
Other expenses (after reimbursements) 1.75%
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Total Fund operating expenses (after waiver and 1.75%
reimbursements) =====
* Imposed only on redemptions or exchanges of shares held less than
one year.
Example:
Assuming a 5% annual return and redemption at the end of each
period, the total expenses relating to a $1,000 investment would be:
1 Year 3 Years 5 Years 10 Years
$18 $55 $95 $206
This example assumes reinvestment of all dividends and distributions
and that the total Fund operating expenses listed above remain the
same each year. This example should not be considered a representation
of past or future expenses or return. Actual Fund expenses and return
vary from year to year and may be higher or lower than those shown.
6. How Has The Fund Performed Historically?
The Fund commenced operations on September 9, 1996. Performance is
historical and is no guarantee of future results. Total return and
principal value will fluctuate.
THE PRINTED DOCUMENT CONTAINS A BAR CHART HERE.
BAR CHART TITLE: Total returns for years ended December 31:
BAR CHART DATA:
1997 9.74%
One Year Life of Fund
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The Fund's Average Annual Total Return
for the period ended December 31, 1997 9.74% 6.05%*
If the adviser had not maintained the Fund's expenses, total return
would have been lower.
7. Who Manages The Fund?
The Fund's investment adviser is Scudder Kemper Investments, Inc., one
of the nation's most experienced investment firms. The Fund is managed
by a team of Scudder Kemper investment professionals, who each play an
important role in the Fund's management process.
Lead Portfolio Manager Peter Chin has responsibility for the Fund's
day-to-day management and investment strategies. Mr. Chin has 23 years
of research and portfolio management experience, primarily in small
company growth stocks.
8. How Can I Invest?
To make it easy for you to open an account, you may invest by mail,
phone, fax, or in person. The minimum initial investment is $2,500,
except that shareholders my open an account with at least $1,000 if an
automatic investment plan of $100/month is established. Scudder
retirement plans and certain other accounts have similar or lower
minimum share balance requirements. A shareholder who maintains a
nonfiduciary account balance of less than $2,500 without establishing
an automatic investment plan, will be assessed an annual fee of
$10.00, payable to the Fund. Retirement accounts and certain other
accounts will not be assessed the $10.00 charge. You may also exchange
Fund shares within the Scudder Family of Funds.
9. How Can I Redeem Shares?
You may redeem shares at the current share price on any business day
by telephone, fax, or mail. There is a 1% fee retained by the Fund,
which is imposed only on redemptions or exchanges of shares held less
than one year.
10. When Are Distributions Made?
The Fund typically makes distributions in November or December. You
may elect to receive distributions in cash or have them reinvested in
additional shares of the Fund.
Generally, dividends from net investment income are taxable to
shareholders as ordinary income. Long-term capital gains
distributions, if any, are taxable as long-term capital gains
regardless of the length of time shareholders have owned their shares.
Short-term capital gains and any other taxable income distributions
are taxable as ordinary income. A portion of such dividends from net
investment income may qualify for the dividends-received deduction for
corporations.
11. What Services Does Scudder Provide?
As a shareholder, you'll enjoy:
o professional service from representatives who can answer your
questions and execute your transactions
o automated toll-free touchtone access to account information,
share prices and yields, and to perform transactions
o Scudder's quarterly shareholder newsletter, Scudder Perspectives
o regular, informative reports about the performance of your Fund
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[Image]Scudder Kemper wants you to make informed investment decisions.
This Fund Profile contains key information about the Fund. If you
would like more information before you invest, please consult the
Fund's accompanying prospectus. For details about the Fund's holdings
or recent investment strategies, please review the Fund's most recent
annual or semiannual report. The reports are free and may be ordered
by calling 1-800-225-2470.
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