SCUDDER
INVESTMENTS(SM)
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Scudder Select 500 Fund
Scudder Select 1000 Growth Fund
Supplement to Prospectus dated July 1, 2000
On October 2, 2000, this prospectus will offer two classes of shares of each
fund to provide investors with different purchase options. The two classes are:
Class S and Class AARP. Each class has its own important features and policies.
In addition, as of the date noted above, all existing shares of Scudder Select
500 Fund and Scudder Select 1000 Growth Fund will be redesignated Class S shares
of their respective funds. Class AARP shares have been especially designed for
members of the American Association of Retired Persons ("AARP").
<PAGE>
From July 1, 2000 to August 27, 2000, the following information replaces the
information in the "How Much Investors Pay" section on page 5 of the prospectus:
Scudder Select 500 Fund
This fund has no sales charge or other shareholder fees. The fund does have
annual operating expenses, and as a shareholder you pay them indirectly.
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Fee Table
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Shareholder Fees (paid directly from your investment) None
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Annual Operating Expenses (deducted from fund assets)
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Management Fee 0.70%
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Distribution (12b-1) Fee None
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Other Expenses* 1.29%
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Total Annual Operating Expenses 1.99%
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Expense Reimbursement 1.24%
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Net Annual Operating Expenses** 0.75%
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* Includes costs of shareholder servicing, custody, accounting services and
similar expenses, which may vary with fund size and other factors.
** By contract, expenses are capped at 0.75% through 6/30/2001.
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Expense Example
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Based on the costs above (including one year of expenses contractually capped at
0.75%), this example is designed to help you compare this fund's expenses to
those of other mutual funds. The example assumes operating expenses remain the
same and that you invested $10,000, earned 5% annual returns, reinvested all
dividends and distributions and sold your shares at the end of each period. This
is only an example; your actual expenses will be different.
1 Year 3 Years 5 Years 10 Years
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$77 $504 $958 $2,217
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In the event that the proposed acquisition by the Scudder Select 500 Fund of the
Scudder Tax Managed Growth Fund (currently scheduled for August 27, 2000) does
not occur, this information replaces the information in the current prospectus
until further notice.
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<PAGE>
From July 1, 2000 to October 1, 2000, the following information replaces the
information in the "How Much Investors Pay" section on page 10 of the
prospectus:
Scudder Select 1000 Growth Fund
This fund has no sales charge or other shareholder fees. The fund does have
annual operating expenses, and as a shareholder you pay them indirectly.
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Fee Table
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Shareholder Fees (paid directly from your investment) None
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Annual Operating Expenses (deducted from fund assets)
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Management Fee 0.70%
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Distribution (12b-1) Fee None
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Other Expenses* 1.67%
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Total Annual Operating Expenses 2.37%
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Expense Reimbursement 1.61%
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Net Annual Operating Expenses** 0.76%
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* Includes costs of shareholder servicing, custody, accounting services and
similar expenses, which may vary with fund size and other factors.
** By contract, expenses are capped at 0.75% through 6/30/2001. Net annual
operating expenses, excluding interest, to average net assets would have
been 0.75%.
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Expense Example
--------------------------------------------------------------------------------
Based on the costs above (including one year of expenses contractually capped at
0.75%), this example is designed to help you compare this fund's expenses to
those of other mutual funds. The example assumes operating expenses remain the
same and that you invested $10,000, earned 5% annual returns, reinvested all
dividends and distributions and sold your shares at the end of each period. This
is only an example; your actual expenses will be different.
1 Year 3 Years 5 Years 10 Years
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$78 $585 $1,119 $2,582
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<PAGE>
From July 1, 2000, to July 13, 2000, the following information supplements the
"Main Risks To Investors" section on page 7 of the prospectus:
Scudder Select 1000 Growth Fund
The Board of Trustees of the fund has approved, subject to shareholder approval,
a change to the fund's classification under the Investment Company Act of 1940.
The fund is currently classified as "diversified" and the change will make the
fund "non-diversified." A fund that is classified as diversified may not, with
respect to 75% of total assets, invest more than 5% of total assets in the
securities of a single issuer or invest in more than 10% of the outstanding
voting securities of such issuer. A non-diversified fund is not required to
comply with this provision of the Investment Company Act.
Because a non-diversified fund may invest in securities of relatively few
issuers, it involves more risk than a diversified fund since any factors
affecting a given company could affect performance of the fund to a greater
degree.
Proxy materials relating to the proposed change were mailed to the fund's
shareholders in April. A Special Meeting of Shareholders to vote on the proposed
change is expected to be held on July 13, 2000.
July 1, 2000
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