[Image] Scudder Balanced Fund Profile [Image]
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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
November 15, 1996
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1. What Are The Fund's Objectives?
Scudder Balanced Fund seeks a balance of growth and income from a
diversified portfolio of equity and fixed income securities. The Fund
also seeks long-term preservation of capital through a
quality-oriented investment approach designed to reduce risk.
2. What Does The Fund Invest In?
The Fund invests in a diversified portfolio of equity and fixed-income
securities issued by medium- to large-sized domestic companies with
annual revenues or market capitalization of at least $600 million and
which, in the opinion of the Fund's investment adviser, Scudder,
Stevens & Clark, Inc., offer above-average potential for price
appreciation. The Fund will, on occasion, adjust its mix of
investments among equity securities, bonds and cash reserves. In
reallocating investments, the Fund's adviser weighs the relative
values of different asset classes and expectations for future returns.
Shifts between stocks and fixed-income investments are expected to
occur in generally small increments. Normally 50% to 75% of the Fund's
assets will be invested in common stocks and other equity investments
which include preferred stocks, warrants and securities convertible
into common stocks. At least 65% of the value of the Fund's common
stocks will be of issuers which qualify, at the time of purchase, for
one of the three highest equity earnings and dividends ranking
categories of Standard & Poor's (A+, A, or A-) or, if unrated, are
judged to be of comparable quality by Scudder.
To enhance income and stability, the Fund will normally invest 25% to
50% of its net assets in investment-grade fixed-income securities. At
least 75% of the value of the Fund's debt securities will be
high-grade: rated Aaa, Aa and A by Moody's Investors Service, Inc. or
AAA, AA and A by S&P, or, if unrated, of equivalent quality as
determined by the adviser. The Fund may invest in a broad range of
corporate bonds and notes, convertible bonds and preferred and
convertible preferred securities.
The Fund may invest in foreign securities that are similar to its
domestic holdings.
3. What Are The Risks Of Investing In The Fund?
The Fund is designed as a conservative long-term investment program
that is intended, generally, to have less risk than a Fund investing
exclusively in common stocks. Nonetheless, movements in the stock and
bond markets 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. You incur principal risk when you invest
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 a balance of
growth and income, long-term preservation of capital 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 risk 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 Balanced 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 (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 year ended December 31,
1995, during which Scudder maintained the total annualized expenses
of the Fund at not more than 1.00% of average daily net assets. Had
Scudder not done so, total operating expenses would have amounted to
1.40%, including 0.70% for management fees. Scudder will continue
this expense maintenance until April 30, 1997.
Investment management fee (after waiver) 0.30%
12b-1 fees None
Other expenses 0.70%
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Total Fund operating expenses 1.00%
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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 $32 $55 $122
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 since it commenced
operations on January 4, 1993, assuming reinvestment of all
distributions. Performance is historical and may not be indicative of
future results. Total return and principal value will fluctuate.
A BAR CHART WAS INSERTED HERE. THE CAPTION AND DATA FROM THIS CHART ARE
LISTED BELOW:
Total returns for years ended December 31:
1994 -2.39%
1995 26.48
BAR CHART ENDS HERE
The Fund's Average Annual Total Return
for the period ended September 30, 1996
One Year 13.20%
Life of Fund 9.38
If the adviser had not maintained the Fund's expenses, average annual
total return for the one year and life of Fund periods would have been
lower.
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 Valerie F. Malter is responsible for the Fund's
investment strategy and daily operation. Ms. Malter joined Scudder in
1995 and has 10 years of experience as an analyst covering a wide
range of industries, and three years of portfolio management
experience focusing on the stocks of companies with medium- to
large-sized market capitalizations. Bruce F. Beaty, Portfolio Manager,
specializes in the quality growth discipline of equity investing.
Prior to joining Scudder in 1991, Mr. Beaty spent 11 years in the
securities brokerage business. Michael K. Shields, Portfolio Manager,
joined the Fund in May 1995. Mr. Shields has been a portfolio manager
on other equity funds at Scudder since joining the firm in 1992, and
has 14 years of experience in finance and banking. Portfolio Manager
William M. Hutchinson heads up the Fund's fixed-income investment
strategy and security selection. Mr. Hutchinson, who has been with the
Fund since its introduction and Scudder since 1986, has over 20 years
of investment experience.
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 current minimum initial investment is
$1,000 ($500 for IRA's). Effective January 1, 1997, the minimum
initial investment will be $2,500 ($1,000 for IRA's), 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. After
January 1, 1997, a shareholder 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 dividend distributions in April, July,
October and December. Capital gains distributions, if any, will be
made 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 a shareholder has owned shares.
Short-term capital gains and any other taxable income distributions
are taxable as ordinary income. A portion of dividends from ordinary
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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Contact Scudder
