Scudder (logo)
August 14, 1996
Dear Scudder Investor,
We're pleased to announce that Scudder Growth and Income Fund's Board of
Trustees has voted to change the Fund's management fee schedule to help
shareholders benefit from economies of scale provided by the Fund's growth.
The prospectus supplement on the reverse side is formal notice of changes
in Scudder Growth and Income Fund's management fee schedule that was voted on
and approved by the Fund's Board of Trustees on August 13, 1996.
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 help 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)
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Scudder (logo)
Scudder Growth and Income
Fund
Supplement to Prospectus
Dated May 1, 1996
On August 13, 1996, the Fund's Board of Trustees approved a new Investment
Management Agreement, which reduced the management fee payable to the Adviser on
assets in excess of $3 billion. The complete fee schedule is:
Annual Investment
Average daily net assets Management fee rate
- ------------------------ -------------------
First $500 million 0.60 of 1%
Exceeding $500 million 0.55 of 1%
Exceeding $1 billion 0.50 of 1%
Exceeding $1.5 billion 0.475 of 1%
Exceeding $2 billion 0.45 of 1%
Exceeding $3 billion 0.425 of 1%
The effect of this graduation is that increases in the Fund's net assets will
result in a lower annual fee rate and decreases in the Fund's net assets will
result in a higher annual fee rate.
As of August 13, 1996, the effective date of the new Investment Management
Agreement, the Fund's net assets were approximately $3.5 billion.
August 14, 1996
