[Image] Scudder Income 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
July 1, 1997
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1. What Is The Fund's Objective?
Scudder Income Fund seeks a high level of income, consistent with the
prudent investment of capital, through a flexible investment program
emphasizing high-grade bonds.
2. What Does The Fund Invest In?
The Fund invests primarily in a broad range of high-grade,
income-producing securities such as corporate bonds and government
securities. The Fund may invest, from time to time, in municipal
obligations. Proportions among the types of securities vary, depending
on the prospects for income related to the outlook for the economy and
the securities markets, the quality of available investments, the
level of interest rates and other factors. It is a policy of the Fund
to allocate investments among industries and companies. The majority
of the Fund's assets are usually invested in intermediate- and
long-term fixed-income securities. By focusing on an intermediate- and
long-term securities, the Fund offers investors willing to accept
greater principal risk the possibility of earning a higher rate of
income than is generally available from funds investing in short-term
or money market securities. However, the Fund has the flexibility to
invest in securities within any maturity range and has consistently
held investments with short and intermediate maturities as well as
long maturities.
Under normal market conditions, the Fund will invest at least 65% of
its assets in securities rated within the three highest quality rating
categories of Moody's Investors Service, Inc. (Aaa, Aa, and A) or
Standard & Poor's (AAA, AA and A), or if unrated, in bonds judged by
the Fund's investment adviser, Scudder, Stevens & Clark, Inc. to be of
comparable quality at the time of purchase. The Fund may invest up to
20% of its assets in debt securities rated lower than Baa or BBB, or
if unrated, of equivalent quality as determined by the adviser, but
will not purchase bonds rated below B by Moody's or S&P or their
equivalent.
3. What Are The Risks Of Investing In The Fund?
The Fund's share price fluctuates with changes in interest rates and
market conditions. The potential for price fluctuation is generally
greater for funds investing in long-term securities. You incur
principal risk when you invest because your shares, when sold, may be
worth more or less than what you paid for them.
The Fund may hold unrated securities and securities rated below
investment-grade (i.e., "junk bonds"). These securities carry a
greater risk of default, can entail greater price volatility and
involve a higher degree of speculation with respect to the payment of
principal and interest than securities rated investment-grade. In
addition, the lack of a liquid secondary market for these securities
may make it difficult for the Fund to dispose of these securities at
the time it wishes to and to obtain accurate market quotations.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking a high level of
income and:
o plan to hold your investment for several years,
o can tolerate fluctuations in share price, and
o have or plan to have other investments for the benefit of
diversification.
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 Income 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 December 31,
1996.
Investment management fee 0.61%
12b-1 fees None
0.37%
Other expenses ------
0.98%
Total Fund operating expenses ====
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. Total return and
principal value will fluctuate. The Fund's 30-day net annualized SEC
yield on June 30, 1997 was 5.88%.
THE ORIGINAL DOCUMENT CONTAINS A BAR CHART HERE
BAR CHART TITLE: Total Returns for years ended December 31:
BAR CHART DATA:
1987 .74%
1988 8.91
1989 12.75
1990 8.32
1991 17.32
1992 6.74
1993 12.58
1994 -4.43
1995 18.54
1996 3.41
The Fund's Average Annual One Year Five Years Ten Years
Total Return for the period ------------------------------------
ended June 30, 1997 8.03% 7.28% 8.65%
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 William M. Hutchinson has been responsible for
the Fund's day-to-day operations and overall investment strategy since
he joined Scudder in 1986. Mr. Hutchinson has over 20 years of
investment experience. Stephen A. Wohler, Portfolio Manager, joined
the team in 1994 and is also responsible for implementing the Fund's
strategy. Mr. Wohler has over 17 years' experience managing
fixed-income investments and has been with Scudder since 1979.
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 may 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 an
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 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 shareholders have owned shares.
Short-term capital gains and any other taxable income distributions
are taxable as ordinary income.
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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