Scudder Capital Growth Fund
Supplement to Prospectus
dated February 1, 1995
The following text replaces the section entitled By telephone order under
"Transaction information" on page 13.
By telephone order. Existing shareholders may purchase shares at a certain
day's price by calling 1-800-225-5163 before the close of regular trading
on the New York Stock Exchange (the "Exchange"), normally 4 p.m. eastern
time, on that day. Orders must be for $10,000 or more and cannot be for an
amount greater than four times the value of your account at the time the
order is placed. You must include with your payment the order number given
at the time the order is placed. A confirmation with complete purchase
information is sent shortly after your order is received. If payment by
check or wire is not received within three business days, the order is
subject to cancelation and the shareholder will be responsible for any loss
to the Fund resulting from this cancelation. Telephone orders are not
available for shares held in Scudder IRA accounts and most other Scudder
retirement plan accounts.
The following text replaces the section entitled A team approach to investing
under "Shareholder benefits" on page 16.
A team approach to investing
Scudder Capital Growth Fund is managed by a team of Scudder investment
professionals who each play an important role in the Fund's management
process. Team members work together to develop investment strategies and
select securities for the Fund's portfolio. They are supported by Scudder's
large staff of economists, research analysts, traders and other investment
specialists who work in Scudder's offices across the United States and
abroad. Scudder believes its team approach benefits Fund investors by
bringing together many disciplines and leveraging Scudder's extensive
resources.
Lead Portfolio Manager Kathleen T. Millard assumed responsibility for the
Fund's day-to-day management in 1995. Ms. Millard, who joined Scudder in
1991, has been involved in the investment industry since 1983 and has
worked as a portfolio manager since 1986. Portfolio Manager Steven P.
Aronoff focuses on equity research for the Fund. Mr. Aronoff joined Scudder
in 1969 and has 27 years of experience in stock research and investing.
Julia D. Cox, Portfolio Manager, lends expertise in the sectors of
technology and banking. Ms. Cox, who joined the Fund's team in 1984, has
been involved in the investment industry since 1969.
June 7, 1995 PS49-2A-65
SFD49SU1
MIS49PS
<PAGE>
June 7, 1995
Dear Scudder Investor,
The prospectus supplement on the reverse side is formal notice of a change
in Scudder's policy concerning the purchase of shares by telephone order and of
a change in Scudder Capital Growth Fund's portfolio management team.
Investors who purchase shares by telephone will now have three business
days to pay for a purchase, instead of the previous time limit of seven business
days. This new deadline is part of a new securities industry standard that
mandates settlement of all securities trades within three business days. The
Securities and Exchange Commission implemented this new deadline, called "T+3,"
to enhance the stability of U.S. financial markets by reducing the amount of
outstanding debt among financial firms due to transaction activity.
In addition, we welcome Kathleen T. Millard as Lead Portfolio Manager of
Scudder Capital Growth Fund's portfolio management team. Ms. Millard joins
Portfolio Managers Steven P. Aronoff and Julia D. Cox. Portfolio Manager William
F. Gadsden will now be focusing on his role as Lead Portfolio Manager of AARP
Capital Growth Fund at Scudder.
If you have any questions about these changes, please call us at
1-800-225-2470 between 8 a.m. and 8 p.m. eastern time, Monday through Friday. We
will be happy to assist you.
Sincerely,
/s/David S. Lee
David S. Lee
President, Scudder Investor Services, Inc.
This letter is for explanatory purposes and is not part of the prospectus
supplement on the reverse side.
(over, please)
