[Image] Scudder Capital 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
January 1, 1997
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1. What Is The Fund's Objective?
Scudder Capital Growth Fund seeks to maximize long-term capital growth
through a broad and flexible investment program.
2. What Does The Fund Invest In?
The Fund is free to invest in a wide range of marketable securities
which the Fund's investment adviser, Scudder, Stevens & Clark, Inc.
believes offer the potential for long-term, above-average growth.
The Fund invests principally in common stocks, and consistent with its
objective of long-term capital growth, preferred stocks. The Fund
looks for companies whose securities appear to present a favorable
relationship between market price and opportunity. Market
misconceptions, temporary bad news, and other factors may cause a
security to be out of favor in the stock market and to trade at a
price below its potential value. These "undervalued" securities can
provide the opportunity for above-average market performance.
The Fund's investment flexibility enables it to pursue investment
value in all sectors of the stock market, including: companies that
generate or apply new technologies, new and improved distribution
techniques or new services; companies that own or develop natural
resources; companies that may benefit from changing consumer demands
and lifestyles; foreign companies; companies whose earning's growth is
projected at a pace well in excess of the average (growth companies);
and companies whose earnings are temporarily depressed and are
currently out of favor with investors.
The Fund may invest up to 20% of its assets in debt securities rated
below investment-grade (i.e., below Baa by Moody's Investors Service,
Inc. or below BBB by Standard & Poors) or their equivalents, as
determined by the adviser.
3. What Are The Risks Of Investing In The Fund?
The Fund may involve above-average stock market risk. Investment in
common stocks, particularly "undervalued" stocks, carries the risk
that their prices may not rise to a level reflective of Scudder's
valuation. In addition, movements of the stock market will affect the
Fund's share price, which may vary from day to day. Other risk factors
are that 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, and that in rising markets the types of stocks
emphasized in the Fund may underperform other sectors of the stock
market. You incur principal risk when you invest because your shares,
when sold, may be worth more or less than what you paid for them.
Furthermore, the Fund's holdings in unrated securities and securities
rated below investment-grade (i.e., "junk bonds") carry a greater risk
of default and more price volatility than securities rated
investment-grade. Securities rated C by Moody's or D by S&P may be in
default with respect to payment of principal and interest.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking capital growth
and:
o plan to hold your investment for several years,
o can tolerate fluctuations in share price,
o have or plan to have other investments for the benefit of
diversification, and
o understand the risks of stock market investing.
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 Capital Growth Fund are:
Shareholder transaction expenses --
Expenses charged directly to your account for various transactions.
Sales Commission None
Commissions to Reinvest Dividends None
Redemption Fee None
Exchange Fee None
Annual Fund operating expenses --
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 year ended September 30,
1995.
Investment management fee 0.67%
12b-1 fees None
Other expenses 0.31%
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Total Fund operating expenses 0.98%
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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
$10 $31 $54 $120
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.
Please note that there is a $5 service fee if you request redemption
proceeds via wire.
6. How Has The Fund Performed Historically?
This chart shows how the Fund has performed over the past 10 years,
assuming reinvestment of all distributions. Performance is historical
and may not be indicative of future results.
THE ORIGINAL DOCUMENT CONTAINS A BAR CHART HERE.
BAR CHART TITLE: Total returns for years ended December 31:
BAR CHART DATA: 1986 16.58%
1987 -0.73
1988 29.71
1989 33.80
1990 -16.98
1991 42.96
1992 7.09
1993 20.07
1994 -9.87
1995 31.65
1996 19.55
The Fund's Average Annual Total Return
for the period ended December 31, 1996
One Year 19.55%
Five Years 12.77%
Ten Years 14.07%
7. Who Manages The Fund?
The Fund's investment adviser is Scudder, Stevens & Clark, Inc., a
leading provider of U.S. and international investment management for
clients throughout the world. The Fund is managed by a team of Scudder
investment professionals who each play an important role in the Fund's
management process.
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. Lois R.
Friedman, Portfolio Manager, joined the Fund in 1995 and Scudder in
1994 and has eight years of experience as an equity analyst.
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
($1,000 for IRAs), except that shareholders may open a regular account
with a minimum of $1,000 if an investment program of at least
$100/month is established. A shareholder with a non-fiduciary account
who maintains an account balance of less than $2,500 without
establishing an investment program, may be assessed an annual fee of
$10.00, payable to the Fund. You may also exchange Fund shares free of
charge 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.
10. When Are Distributions Made?
The Fund typically makes dividends and capital gains distributions, if
any, in 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 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 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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