INVESTMENT TRUST, N-30D, 1998-12-21

INVESTMENT TRUST
N-30D, 1998-12-21

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Scudder
Large Company Growth Fund

Annual Report
October 31, 1998

Pure No-Load(TM) Funds

A fund seeking long-term growth of capital through investment primarily in the
equity securities of large U.S. growth companies.

A pure no-load(TM) fund with no commissions to buy, sell, or exchange shares.

SCUDDER (logo)

<PAGE>

Scudder Large Company Growth Fund

- --------------------------------------------------------------------------------
Date of Inception: 5/15/91 Total Net Assets as of Ticker Symbol: SCQGX
10/31/98: $502.16 million
- --------------------------------------------------------------------------------

o Scudder Large Company Growth Fund's (the "Fund") 18.86% total return for the
12 months ended October 31, 1998 placed it in the top 22% of the 945 growth
funds ranked by Lipper Analytical Services.

o Large-cap growth stocks were the best performing sector of the U.S. stock
market in this period, creating a favorable investment environment for the Fund.

o Fund management continues to select individual companies whose consistent
earnings growth, recognizable brand franchises, and strong management will allow
them to prosper in any economic environment.

Table of Contents

3 Letter from the Fund's President 17 Financial Highlights
4 Performance Update 18 Notes to Financial Statements
5 Portfolio Summary 21 Report of Independent Accountants
6 Portfolio Management Discussion 22 Tax Information
9 Glossary of Investment Terms 24 Officers and Trustees
10 Investment Portfolio 25 Investment Products and Services
14 Financial Statements 26 Scudder Solutions

2 - Scudder Large Company Growth Fund

<PAGE>

Letter from the Fund's President

Dear Shareholders,

The past twelve months have been a time of extraordinary volatility in the
global financial markets. As the Pacific Basin, Russia, and, to a lesser extent,
Latin America were gradually engulfed by the economic crisis in the developing
countries, the durability of growth in the United States was also called into
question. Although worried investors liquidated stocks of all sizes in response
to the uncertainty, many large, liquid growth stocks were able to hold on to a
significant portion of their gains from the first half of the year. In difficult
market conditions, firms that have demonstrated consistent growth and solid
business plans are often favored over investments with less predictable
prospects. By investing in such companies, Scudder Large Company Growth Fund was
well positioned for the market correction, posting a strong performance for the
twelve-month period ended October 31, 1998.

For those of you who are interested in new Scudder products, we recently
introduced the Scudder Tax Managed Growth Fund, investing in medium- to large-
sized U.S. companies, and Scudder Tax Managed Small Company Fund, which invests
in stocks of small U.S. companies. Using a combination of quantitative and
fundamental research, the funds focus on companies with strong earnings growth,
reasonable valuations, and favorable risk profiles. Both funds strive to
maximize after tax returns by systematically taking into account the tax
implications of portfolio transactions and seeking to offset capital gains by
realizing losses when appropriate.

Thank you for your continued investment in Scudder Large Company Growth
Fund. If you have any questions about your investment, please call Scudder
Investor Information at 1-800-225-2470, or visit our Web site at
www.scudder.com.

Sincerely,

/s/Daniel Pierce

Daniel Pierce
President,
Scudder Large Company Growth Fund

3 - Scudder Large Company Growth Fund

<PAGE>

Performance Update as of October 31, 1998

- ----------------------
Fund Index Comparisons
- ----------------------
Total Return
---------------------------------------------------
Period Ended Growth of Average
10/31/98 $10,000 Cumulative Annual
---------------------------------------------------
Scudder Large Company Growth Fund
---------------------------------------------------
1 Year $ 11,886 18.86% 18.86%
5 Year $ 22,737 127.37% 17.85%
Life of Fund* $ 31,265 212.65% 16.50%
---------------------------------------------------
Russell 1000 Growth Index
---------------------------------------------------
1 Year $ 12,463 24.63% 24.63%
5 Year $ 27,033 170.33% 21.99%
Life of Fund* $ 33,273 232.73% 17.58%
---------------------------------------------------
* The Fund commenced operation on May 15, 1991.
Index comparisons begin May 31, 1991.

- ------------------------------
Growth of a $10,000 Investment
- ------------------------------

THE PRINTED DOCUMENT CONTAINS A LINE CHART HERE
CHART DATA:

Russell 1000 Scudder Large Company
Growth Index Growth Fund

5/91* 10000 10000
'91 10350 10894
'92 11469 12252
'93 12308 13169
'94 12974 13220
'95 16768 16364
'96 20463 19553
'97 26696 25192
'98 33273 29943

Yearly periods ended October 31

The Russell 1000 Growth Index is an unmanaged capitalization-weighted price
index of the 1000 largest U.S. growth companies traded on the NYSE, AMEX, and
Nasdaq. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees or expenses.

- ---------------------------------
Returns and Per Share Information
- ---------------------------------

THE PRINTED DOCUMENT CONTAINS A BAR CHART HERE
ILLUSTRATING THE FUND TOTAL RETURN (%) AND
INDEX TOTAL RETURN (%)

CHART DATA:

Yearly periods ended October 31
<TABLE>
<CAPTION>
1991* 1992 1993 1994 1995 1996 1997 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value $ 13.65 $ 15.30 $ 16.42 $ 16.17 $ 18.44 $ 21.19 $ 25.10 $ 28.17
- ------------------------------------------------------------------------------------------------------------------------------------
Income Dividends $ -- $ .03 $ .03 $ .08 $ .15 $ .14 $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Gains Distributions $ -- $ .02 $ -- $ .24 $ 1.09 $ .60 $ 1.77 $ 1.46
- ------------------------------------------------------------------------------------------------------------------------------------
Fund Total Return (%) 13.75 12.47 7.49 .39 23.78 19.49 28.84 18.86
- ------------------------------------------------------------------------------------------------------------------------------------
Index Total Return (%) 8.66 10.82 7.31 5.40 29.23 22.05 30.46 24.63
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

On March 1, 1997, the Fund adopted its current name. Prior to that date, the
Fund was known as the Scudder Quality Growth Fund. All performance is
historical, assumes reinvestment of all dividends and capital gains, and is not
indicative of future results. Investment return and principal value will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than when purchased. If the Adviser had not maintained the Fund's expenses, the
total returns for the life of Fund would have been lower.

4 - Scudder Large Company Growth Fund
<PAGE>

Portfolio Summary as of October 31, 1998

- ----------------
Asset Allocation
- ----------------

A graph in the form of a pie chart appears here, illustrating the exact data
points in the table below.

Equity Holdings 97%
Cash Equivalents 3%
--------------------------------------
100%
--------------------------------------

The Fund remains fully invested in domestic, large-cap
growth stocks.

- ------------------------------
Sectors
(Excludes 3% Cash Equivalents)
- ------------------------------

A graph in the form of a pie chart appears here, illustrating the exact data
points in the table below.

Health 21%
Technology 19%
Consumer Staples 16%
Consumer Discretionary 13%
Media 8%
Financial 7%
Manufacturing 7%
Service Industries 4%
Durables 4%
Communications 1%
--------------------------------------
100%
--------------------------------------

An unstable economic environment made the strong earnings
growth in the technology and healthcare sectors particularly
attractive.

- ---------------------------
Ten Largest Equity Holdings
(32% of Portfolio)
- ---------------------------

1. Microsoft Corp.
Producer of computer operating
systems software
2. General Electric Corp.
Leading producer of electrical
equipment
3. Intel Corp.
Producer of semiconductor memory
circuits
4. Pfizer, Inc.
International healthcare company
5. Home Depot., Inc.
Building materials and home
improvement products
6. Philip Morris Companies Inc.
Tobacco, food products and
brewing company
7. Lucent Technologies, Inc.
Designer of public and private
computer networks
8. Cisco Systems, Inc.
Manufacturer of computer network
products
9. Merck & Co. Inc.
Leading drug manufacturer
10. Coca-Cola Co., Inc.
International soft drink company

The Fund's top holdings demonstrate a large focus on large,
well-managed U.S. companies.

For more complete details about the Fund's investment portfolio, see page 10.
A quarterly Fund Summary and Portfolio Holdings are available upon request.

5 - Scudder Large Company Growth Fund

<PAGE>

Portfolio Management Discussion

In the following interview, Valerie F. Malter and George P. Fraise, portfolio
managers of Scudder Large Company Growth Fund, discuss the market environment
and the Fund's current investment strategy.

Q: The year ended October 31, 1998 was characterized by unusually high
volatility. What happened?

A: Quite a lot. After roaring ahead in the first half of 1998, stocks tumbled in
the third quarter, posting their worst three-month return since Saddam Hussein
invaded Kuwait in the third quarter of 1990. Remarkably, the summer began with
investors still lauding the "Goldilocks Economy"; the ideal combination of
strong growth and low interest rates provided the basis for a 23.27%
year-to-date return in the unmanaged S&P 500 Index at its peak on July 17. The
rosy outlook soon began to darken, however, following a series of events that
cast doubt on the stability of the global financial system. First, the Russian
government announced a simultaneous debt moratorium and currency devaluation on
August 17, which sparked a chain reaction throughout the global financial
markets. Foremost among the areas affected was Latin America, where investors
liquidated financial assets on fears that Brazil would be forced to devalue its
currency. Next, and even closer to home, came the bailout of the hedge fund Long
Term Capital Management, igniting fears that U.S.-based lending institutions
would suffer from exposure to risky derivatives and margin-lending activities.
The combination of these events caused investors to reassess their views on the
U.S. economy, leading to a flight of capital from stocks into the relative
safety of U.S. Treasuries. Although the selloff reached a crescendo in
mid-September, the stock market rebounded following consecutive quarter point
rate cuts by the U.S. Federal Reserve. A broad-based rally followed the Fed's
decision, and the S&P 500 posted a stellar 8.13% return in October.

Q: How did the Fund perform in this market environment?

A: Until September, our portfolio of large, liquid growth stocks held up well,
despite relatively high valuations in this sector. Through August, large-cap
growth stocks continued to outperform large-cap value stocks as equity investors
sought heavily-traded, established companies with reliable earnings histories.
Against this backdrop, the Fund returned 18.86% for the twelve-month period,
trailing the 21.99% return of the unmanaged S&P 500 Index and the 24.63% return
of the unmanaged Russell 1000 Growth Index. In relation to its peers the Fund
performed very well, finishing in the top 22% of the 945 growth funds ranked by
Lipper Analytical Services.

In an environment where market leadership was extremely narrow, diversified
equity mutual funds such as Scudder Large Company Growth Fund were
disadvantaged. Whereas the unmanaged indices weight their holdings according to
market capitalization, we strive to control risk by investing in a well
diversified portfolio. While this approach can lead to short-term
underperformance, we believe that in the long run our strategy of active risk
management can add substantial value for shareholders of the Fund.

6 - Scudder Large Company Growth Fund

<PAGE>

Q: What was your approach to managing the portfolio over the twelve months?

A: Even when markets are as volatile as they have been this year, we adhere to
our strategy of using fundamental research to make portfolio decisions on a
stock-by-stock basis. Our objective is to generate long-term growth by selecting
well established companies with the strongest competitive positions from each
sector of our growth stock universe. When considering each individual stock, we
look for strength in such fundamental traits as the quality of management, the
presence of a recognizable brand franchise, and the ability to deliver
consistent earnings growth in any economic environment. Additionally, we strive
to find companies that have minimal debt and solid balance sheets,
characteristics that are gaining importance as deflationary forces become more
prevalent. In general, we believe that firms with such traits have the ability
to control their own destinies, unlike more cyclical or commodity-oriented
businesses that simply react to prices set in the world market. By constructing
the portfolio in this manner, we strive to limit the impact of short-term
fluctuations in the economy.

Q: In what sectors did you find such companies?

A: Technology and healthcare are examples of two industries where we hold stocks
that are well positioned to maintain high growth rates. Among technology
companies, our strategy of focusing on the premier franchises in software,
hardware, the internet, and networking and telecommunications equipment has paid
off. As the year progressed, less competitive firms began to report earnings
disappointments, while the leaders, such as Cisco Systems, did not. Cisco is a
prime example of a stock that was well positioned to benefit from the preference
for large growth companies that took place this summer. A company that has
demonstrated consistent earnings growth and domination within the market for
routing equipment, Cisco held up relatively well through the downturn, then
rebounded sharply when the market recovered in October. In the healthcare
sector, exposure to U.S. pharmaceutical companies with strong new product sales
also had a positive impact on Fund performance. Sales of prescription drugs, a
non-discretionary item, are not impacted by changes in economic conditions.

Q: What were some of the investments that detracted from Fund performance?

A: Some of our bellwether holdings, such as Coca-Cola, Gillette, and Procter &
Gamble, suffered declines following the preannouncement of earnings that fell
below expectations. These warnings led investors to sell not only these
companies, but also other multinational firms so much of which are held within
the Fund. While we eliminated our holding in Gillette because of its slowing
growth rate, we maintained our positions in Coke and P&G on the belief that
sales volume slowdowns at those companies are only a temporary phenomenon.

The negative announcements from multinationals generally led investors to draw
what we believe were mistaken conclusions about other sectors of the market.
Media stocks, such as Clear Channel Communications, Outdoor Systems, and Omnicom
were negatively impacted by fears of reduced spending by multinational firms,
although in reality their sales are strong and prices for billboard space and

7 - Scudder Large Company Growth Fund

<PAGE>

radio ad time have remained stable. In the retailing sector, stock prices
weakened on the fear that a recession would crimp the spending of U.S.
consumers. This concern has so far proven unfounded, as consumer confidence is
high and new auto sales, a key indicator of spending habits, are strong. We
remain confident that we hold the stocks of the best companies in the media,
retail, and consumer products sectors.

Q: What is your outlook for domestic growth stocks?

A: In the months ahead, it is reasonable to expect further volatility in the
stock market as investors adjust to slowing global growth. While the Federal
Reserve's proactive decision to cut interest rates should prove beneficial to
the domestic economy, it is also likely that the Asian financial crisis will
exert a further drag on multinational firms. In times such as these, when the
investment picture is murky and corporate earnings are under pressure, the
importance of maintaining the disciplined approach of investing in companies
that we believe can provide sustainable growth is paramount. Going forward, we
will continue to make long-term investments in companies that are the
best-equipped to cope with further surprises in the global economy.

Scudder Large Company
Growth Fund: A Team Approach to Investing

Scudder Large Company Growth Fund is managed by a team of Scudder Kemper
Investments, Inc. (the "Adviser") professionals, each of whom plays an
important role in the Fund's management process. Team members work together to
develop investment strategies and select securities for the Fund's portfolio.
They are supported by the Adviser's large staff of economists, research
analysts, traders, and other investment specialists who work in our offices
across the United States and abroad. We believe our team approach benefits
Fund investors by bringing together many disciplines and leveraging our
extensive resources.

Lead Portfolio Manager Valerie F. Malter joined the Adviser in 1995 and is
responsible for the Fund's investment strategy and daily operation. Valerie
has 11 years of experience as an analyst covering a wide range of industries,
and four years of portfolio management experience focusing on the stocks of
companies with medium- to large-sized market capitalizations. George Fraise,
Portfolio Manager, joined the Fund and the Adviser in 1997 and has 10 years of
experience in the financial industry.

8 - Scudder Large Company Growth Fund

<PAGE>
Glossary of Investment Terms

CYCLICAL COMPANIES Companies whose earnings fluctuate with the
business cycle. Cyclical industries include steel,
cement, paper, machinery, and autos.

CURRENCY DEVALUATION A significant decline of a currency's value
relative to other currencies, such as the U.S.
dollar, typically resulting from the cessation of a
country's central bank intervention in the currency
markets. For U.S. investors who are investing
overseas, a devaluation of a foreign currency can
reduce the total return of their investment.

DERIVATIVE A contract whose value is based on the performance
of an underlying financial asset. Derivatives afford
leverage, and can be used in an effort to enhance
returns or protect a portfolio. Derivatives can also
experience significant losses if the underlying
security moves contrary to the investor's
expectations.

GROWTH STOCK Stock of a company that has displayed greater than
average earnings growth and is expected to increase
profits in the future. Stocks of such companies
usually trade at a higher price relative to earnings
(a higher p/e ratio) and exhibit greater price
volatility.

LIQUIDITY A characteristic of an investment or an asset
referring to the ease of convertibility into cash
within a reasonably short period of time.

MARKET CAPITALIZATION The value of a company's outstanding shares of
common stock, determined by multiplying the
number of shares outstanding by the market price. The
universe of publicly traded companies is frequently
divided into large-, medium-, and
small-capitalizations.

VALUE STOCK A company whose stock price does not fully reflect
its intrinsic value, as indicated by
price-to-earnings ratio, price-to-book ratio, or
some other valuation measure, relative to the
industry or the market overall. Value stocks tend to
display less price volatility and higher dividend
yields.

VOLATILITY The tendency of a security, commodity, or market to
rise and fall in price over time. Volatility is
inherent in almost all investments but differs in
degree from investment to investment and from market
to market. While offering higher returns, stock
funds are considered to be higher risk due to their
larger variations in price.

(Sources: Scudder Kemper Investments, Inc.; Barron's Dictionary of Finance and
Investment Terms)

9 - Scudder Large Company Growth Fund

<PAGE>

Investment Portfolio as of October 31, 1998

<TABLE>
<CAPTION>
Principal Market
Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Repurchase Agreements 3.4%
- ------------------------------------------------------------------------------------------------------------------------------
Repurchase Agreement with State Street Bank and Trust Company dated 10/30/1998,
5.4%, to be repurchased at $17,208,740 on 11/2/1998, collateralized by a ------------
$15,445,000 U.S. Treasury Note, 7.5%, 5/15/2002 (Cost $17,201,000) .................... 17,201,000 17,201,000
------------

<CAPTION>
Shares
- ------------------------------------------------------------------------------------------------------------------------------
Common Stocks 96.6%
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Consumer Discretionary 12.2%
Department & Chain Stores 11.2%
Consolidated Stores Corp.* .............................................................. 322,300 5,297,806
Costco Companies, Inc.* ................................................................. 111,100 6,304,925
Dayton Hudson Corp. ..................................................................... 212,200 8,991,975
Home Depot, Inc. ........................................................................ 356,400 15,503,400
Rite Aid Corp. .......................................................................... 203,300 8,068,469
Wal-Mart Stores, Inc. ................................................................... 169,100 11,667,900
------------
55,834,475
------------
Hotels & Casinos 1.0%
Royal Caribbean Cruises Ltd. ............................................................ 185,600 5,173,600
------------
Consumer Staples 15.4%
Alcohol & Tobacco 2.8%
Philip Morris Companies, Inc. ........................................................... 271,300 13,870,213
------------
Food & Beverage 6.6%
Coca-Cola Co., Inc. ..................................................................... 187,100 12,652,637
H.J. Heinz Co. .......................................................................... 172,700 10,038,187
Interstate Bakeries Corp. ............................................................... 120,200 3,012,512
Kroger Co. .............................................................................. 133,300 7,398,150
------------
33,101,486
------------
Package Goods/Cosmetics 6.0%
Colgate-Palmolive Co. ................................................................... 121,400 10,728,725
Estee Lauder Companies "A" .............................................................. 123,200 8,077,300
Procter & Gamble Co. .................................................................... 124,500 11,064,938
------------
29,870,963
------------
Health 20.7%
Health Industry Services 2.2%
McKesson Corp. .......................................................................... 81,900 6,306,300
Total Renal Care Holdings, Inc.* ........................................................ 200,400 4,909,800
------------
11,216,100
------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

10 - Scudder Large Company Growth Fund
<PAGE>

<TABLE>
<CAPTION>
Market
Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Medical Supply & Specialty 3.3%
Arterial Vascular Engineering, Inc.* .................................................... 140,300 4,314,225
Medtronic Inc. .......................................................................... 189,600 12,324,000
------------
16,638,225
------------
Pharmaceuticals 15.2%
Bristol-Myers Squibb Co. ................................................................ 103,300 11,421,106
Eli Lilly & Co. ......................................................................... 118,198 9,566,650
Johnson & Johnson ....................................................................... 70,200 5,721,300
Merck & Co., Inc. ....................................................................... 98,000 13,254,500
Pfizer, Inc. ............................................................................ 166,200 17,835,338
Schering-Plough Corp. ................................................................... 77,200 7,941,950
Warner-Lambert Co. ...................................................................... 128,300 10,055,513
------------
75,796,357
------------
Communications 1.6%
Telephone/Communications
MCI WorldCom, Inc.* ..................................................................... 144,800 8,000,200
------------
Financial 6.8%
Banks 1.1%
First Union Corp. ....................................................................... 91,400 5,301,200
------------
Insurance 5.7%
Allstate Corp. .......................................................................... 162,400 6,993,350
American International Group, Inc. ...................................................... 117,488 10,015,809
MBIA, Inc. .............................................................................. 87,100 5,323,987
UNUM Corp. .............................................................................. 143,500 6,376,781
------------
28,709,927
------------
Media 7.6%
Advertising 3.4%
Omnicom Group, Inc. ..................................................................... 156,400 7,732,025
Outdoor Systems, Inc.* .................................................................. 414,987 9,155,651
------------
16,887,676
------------
Broadcasting & Entertainment 4.2%
Clear Channel Communications, Inc.* ..................................................... 274,900 12,525,131
Univision Communication, Inc.* .......................................................... 293,000 8,643,500
------------
21,168,631
------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

11 - Scudder Large Company Growth Fund
<PAGE>

<TABLE>
<CAPTION>
Market
Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Service Industries 3.7%
EDP Services 1.2%
America Online Inc. ..................................................................... 46,700 5,933,818
------------
Miscellaneous Commercial Services 1.5%
Modis Professional Services, Inc.* ...................................................... 432,100 7,615,763
------------
Miscellaneous Consumer Services 1.0%
Service Corp. International ............................................................. 142,500 5,076,563
------------
Durables 3.7%
Telecommunications Equipment
Ascend Communications, Inc.* ............................................................ 100,400 4,844,300
Lucent Technologies Inc. ................................................................ 169,700 13,607,818
------------
18,452,118
------------
Manufacturing 6.7%
Chemicals 1.2%
Monsanto Co. ............................................................................ 151,900 6,170,938
------------
Diversified Manufacturing 5.5%
General Electric Co. .................................................................... 222,700 19,486,250
Textron, Inc. ........................................................................... 108,100 8,039,938
------------
27,526,188
------------
Technology 18.2%
Computer Software 6.5%
Computer Associates International, Inc. ................................................. 127,300 5,012,437
Microsoft Corp.* ........................................................................ 209,500 22,180,813
PeopleSoft Inc.* ........................................................................ 236,500 5,010,844
------------
32,204,094
------------
EDP Peripherals 1.1%
EMC Corp.* .............................................................................. 88,200 5,677,875
------------
Electronic Data Processing 3.2%
Dell Computer Corp.* .................................................................... 155,400 10,198,125
Sun Microsystems, Inc.* ................................................................. 97,100 5,656,075
------------
15,854,200
------------
Office/Plant Automation 2.7%
Cisco Systems, Inc.* .................................................................... 215,925 13,603,275
------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

12 - Scudder Large Company Growth Fund
<PAGE>

* Non-income producing security.

(a) The cost for federal income tax purposes was $378,395,727. At October 31,
1998, net unrealized appreciation for all securities based on tax cost was
$122,061,584. This consisted of aggregate gross unrealized appreciation
for all securities in which there was an excess of market value over tax
cost of $130,690,977 and aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over market value of
$8,629,393.

The accompanying notes are an integral part of the financial statements.

13 - Scudder Large Company Growth Fund
<PAGE>

Financial Statements

Statement of Assets and Liabilities

as of October 31, 1998
<TABLE>
<S> <C> <C>
Assets
- ----------------------------------------------------------------------------------------------------------------------------
Investments, at market (identified cost $377,595,660) ................ $ 500,457,311
Cash ................................................................. 317
Receivable for investments sold ...................................... 1,366,942
Receivable for Fund shares sold ...................................... 1,191,731
Dividends and interest receivable .................................... 144,645
----------------
Total assets ......................................................... 503,160,946
Liabilities
- ----------------------------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed ..................................... 580,294
Accrued management fee ............................................... 248,116
Other payables and accrued expenses .................................. 176,730
----------------
Total liabilities .................................................... 1,005,140
-------------------------------------------------------------------------------------------
Net assets, at market value $ 502,155,806
-------------------------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------------------------------------------------------
Net assets consist of:
Unrealized appreciation (depreciation) on investments ................ 122,861,651
Accumulated net realized gain (loss) ................................. 30,997,412
Paid-in capital ...................................................... 348,296,743
-------------------------------------------------------------------------------------------
Net assets, at market value $ 502,155,806
-------------------------------------------------------------------------------------------
Net Asset Value
- ----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share
($502,155,806 / 17,828,773 outstanding shares of beneficial
interest, $.01 par value, unlimited number of shares ----------------
authorized) ........................................................ $28.17
----------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

14 - Scudder Large Company Growth Fund
<PAGE>

Statement of Operations

year ended October 31, 1998

<TABLE>
<S> <C> <C>
Investment Income
- ----------------------------------------------------------------------------------------------------------------------------
Income:
Dividends (net of foreign taxes withheld of $10,896) ................. $ 3,138,823
Interest ............................................................. 847,982
----------------
3,986,805
Expenses:
Management fee ....................................................... 2,478,112
Services to shareholders ............................................. 1,378,899
Custodian and accounting fees ........................................ 92,194
Trustees' fees and expenses .......................................... 46,890
Reports to shareholders .............................................. 79,000
Auditing ............................................................. 35,733
Legal ................................................................ 13,284
Registration fees and other expenses ................................. 75,714
----------------
4,199,826
-------------------------------------------------------------------------------------------
Net investment income (loss) (213,021)
-------------------------------------------------------------------------------------------

Realized and unrealized gain (loss) on investment transactions
- ----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from investments ............................ 31,321,568
Net unrealized appreciation (depreciation) on investments
during the period .................................................. 35,342,915
-------------------------------------------------------------------------------------------
Net gain (loss) on investment transactions 66,664,483
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 66,451,462
-------------------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

15 - Scudder Large Company Growth Fund
<PAGE>

Statements of Changes in Net Assets

<TABLE>
<CAPTION>
Years Ended October 31,
Increase (Decrease) in Net Assets 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations:
Net investment income (loss) ............................... $ (213,021) $ (125,567)
Net realized gain (loss) on investments .................... 31,321,568 19,434,917
Net unrealized appreciation (depreciation) on
investments during the period ............................ 35,342,915 42,639,713
---------------- ----------------
Net increase (decrease) in net assets resulting from
operations ............................................... 66,451,462 61,949,063
---------------- ----------------
Distributions to shareholders from:
Net realized gains from investment transactions ............ (16,858,738) (17,790,946)
---------------- ----------------
Fund share transactions:
Proceeds from shares sold .................................. 297,954,229 131,500,078
Net asset value of shares issued to shareholders in
reinvestment of distributions ............................ 16,409,785 17,272,174
Cost of shares redeemed .................................... (149,865,907) (126,119,027)
---------------- ----------------
Net increase (decrease) in net assets from Fund share
transactions ............................................. 164,498,107 22,653,225
---------------- ----------------
Increase (decrease) in net assets .......................... 214,090,831 66,811,342
Net assets at beginning of period .......................... 288,064,975 221,253,633
---------------- ----------------
Net assets at end of period ................................ $ 502,155,806 $ 288,064,975
---------------- ----------------
Other Information
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Fund shares
Shares outstanding at beginning of period .................. 11,477,024 10,441,357
---------------- ----------------
Shares sold ................................................ 11,101,198 5,688,934
Shares issued to shareholders in reinvestment of
distributions ............................................ 667,879 850,846
Shares redeemed ............................................ (5,417,328) (5,504,113)
---------------- ----------------
Net increase (decrease) in Fund shares ..................... 6,351,749 1,035,667
---------------- ----------------
Shares outstanding at end of period ........................ 17,828,773 11,477,024
---------------- ----------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

16 - Scudder Large Company Growth Fund
<PAGE>

Financial Highlights

The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.

<TABLE>
<CAPTION>
Years Ended October 31,
1998(a) 1997(a) 1996(a) 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------
Net asset value, beginning of period ........................ $ 25.10 $ 21.19 $ 18.44 $ 16.17 $ 16.42
------------------------------------------------------------
Income from investment operations:
Net investment income (loss) ................................ (.02) (.01) .08 .11 .16
Net realized and unrealized gain (loss) on investments ...... 4.55 5.69 3.41 3.40 (.09)
------------------------------------------------------------
Total from investment operations ............................ 4.53 5.68 3.49 3.51 .07
------------------------------------------------------------
Less distributions from:
Net investment income ....................................... -- -- (.14) (.15) (.08)
Net realized gains on investment transactions ............... (1.46) (1.77) (.60) (1.09) (.24)
------------------------------------------------------------
Total distributions ......................................... (1.46) (1.77) (.74) (1.24) (.32)
------------------------------------------------------------
------------------------------------------------------------
Net asset value, end of period .............................. $ 28.17 $ 25.10 $ 21.19 $ 18.44 $ 16.17
------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Total Return (%) ............................................ 18.86 28.84 19.49 23.78 .39
Ratios and Supplemental Data
Net assets, end of period ($ millions) ...................... 502 288 221 173 113
Ratio of operating expenses net, to average
daily net assets (%) ...................................... 1.19 1.21 1.07 1.17 1.25
Ratio of net investment income (loss) to average
daily net assets (%) ...................................... (.06) (.05) .41 .71 .96
Portfolio turnover rate (%) ................................. 54.1 67.9 68.8 91.6 119.7
</TABLE>

(a) Based on monthly average shares outstanding during the period.

17 - Scudder Large Company Growth Fund

<PAGE>
Notes to Financial Statements

A. Significant Accounting Policies

Scudder Large Company Growth Fund (formerly Quality Growth Fund) (the "Fund") is
a diversified series of the Investment Trust (the "Trust") (formerly Scudder
Investment Trust). The Trust is organized as a Massachusetts business trust and
is registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company.

The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which require the use of management estimates.
The policies described below are followed consistently by the Fund in the
preparation of its financial statements.

Security Valuation. Portfolio securities which are traded on U.S. or foreign
stock exchanges are valued at the most recent sale price reported on the
exchange on which the security is traded most extensively. If no sale occurred,
the security is then valued at the calculated mean between the most recent bid
and asked quotations. If there are no such bid and asked quotations, the most
recent bid quotation is used. Securities quoted on the Nasdaq System, for which
there have been sales, are valued at the most recent sale price reported on such
system. If there are no such sales, the value is the most recent bid quotation.
Securities which are not quoted on the Nasdaq System but are traded in another
over-the-counter market are valued at the most recent sale price on such market.
If no sale occurred, the security is then valued at the calculated mean between
the most recent bid and asked quotations. If there are no such bid and asked
quotations, the most recent bid quotation shall be used. Money market
instruments purchased with an original maturity of sixty days or less are valued
at amortized cost. All other securities are valued at their fair value as
determined in good faith by the Valuation Committee of the Board of Trustees.

Repurchase Agreements. The Fund may enter into repurchase agreements with
certain banks and broker/dealers whereby the Fund, through its custodian,
receives delivery of the underlying securities, the amount of which at the time
of purchase and each subsequent business day is required to be maintained at
such a level that the market value, depending on the maturity of the repurchase
agreement, is equal to at least the repurchase price.

Federal Income Taxes. The Fund's policy is to comply with the requirements of
the Internal Revenue Code, as amended, which are applicable to regulated
investment companies and to distribute all of its taxable income to its
shareholders. Accordingly, the Fund paid no federal income taxes and no federal
income tax provision was required.

Distribution of Income and Gains. Distributions of net investment income are
made annually. During any particular year net realized gains from investment
transactions, in excess of available capital loss carryforwards, would be
taxable to the Fund if not distributed and, therefore, will be distributed to
shareholders annually. An additional distribution may be made to the extent
necessary to avoid the payment of a four percent federal excise tax. Earnings
and profits distributed to shareholders on redemption of Fund shares ("tax
equalization") may be utilized by the Fund, to the extent permissible, as part
of the Fund's dividends paid deduction on its federal income tax return.

The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax regulations
which may differ from generally accepted accounting principles. The differences
primarily relate to investments in certain securities sold at a loss. As a
result, net investment income (loss) and net realized gain (loss) on investment
transactions for a reporting period may differ significantly from distributions
during such period. Accordingly, the

18 - Scudder Large Company Growth Fund
<PAGE>

Fund may periodically make reclassifications among certain of its capital
accounts without impacting the net asset value of the Fund.

The Fund uses the identified cost method for determining realized gain or loss
on investments for both financial and federal income tax reporting purposes.

Other. Investment security transactions are accounted for on a trade date basis.
Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis.

B. Purchases and Sales of Securities

For the year ended October 31, 1998, purchases and sales of investment
securities (excluding short-term investments) aggregated $322,531,099 and
$183,782,084, respectively.

C. Related Parties

Effective December 31, 1997, Scudder, Stevens & Clark, Inc. ("Scudder") and The
Zurich Insurance Company ("Zurich"), an international insurance and financial
services organization, formed a new global investment organization by combining
Scudder's business with that of Zurich's subsidiary, Zurich Kemper Investments,
Inc. As a result of the transaction, Scudder changed its name to Scudder Kemper
Investments, Inc. ("Scudder Kemper" or the "Adviser"). The transaction between
Scudder and Zurich resulted in the termination of the Fund's Investment
Management Agreement with Scudder. However, a new Investment Management
Agreement (the "Management Agreement") between the Fund and Scudder Kemper was
approved by the Trust's Board of Trustees and by the Fund's Shareholders. The
Management Agreement, which was effective December 31, 1997, is the same in all
material respects as the corresponding previous Investment Management Agreement,
except that Scudder Kemper is the new investment adviser to the Fund.

Under the Management Agreement with Scudder Kemper, the Fund pays the Adviser a
fee equal to an annual rate of 0.70% of the Fund's average daily net assets,
computed and accrued daily and payable monthly. As manager of the assets of the
Fund, the Adviser directs the investments of the Fund in accordance with its
investment objectives, policies, and restrictions. The Adviser determines the
securities, instruments, and other contracts relating to investments to be
purchased, sold or entered into by the Fund. In addition to portfolio management
services, the Adviser provides certain administrative services in accordance
with the Management Agreement. For the year ended October 31, 1998, the fee
pursuant to these agreements amounted to $2,478,112, of which $248,116 was
unpaid at October 31, 1998.

On September 7, 1998, Zurich Insurance Company ("Zurich"), majority owner of the
Adviser, entered into an agreement with B.A.T Industries p.l.c. ("B.A.T")
pursuant to which the financial services businesses of B.A.T were combined with
Zurich's businesses to form a new global insurance and financial services
company known as Zurich Financial Services. Upon consummation of the
transaction, the Fund's investment management agreement with Scudder Kemper was
deemed to have been assigned and, therefore, terminated. The Board of Trustees
of the Fund has approved a new investment management agreement with Scudder
Kemper, which is substantially identical to the former investment management
agreement, except for the dates of execution and termination. The Board of
Trustees of the Fund will seek shareholder approval of the new investment
management agreement through a proxy solicitation that is currently scheduled to
conclude in mid-December.

19 - Scudder Large Company Growth Fund
<PAGE>

Scudder Service Corporation ("SSC"), a subsidiary of the Adviser, is the
transfer, dividend paying and shareholder service agent for the Fund. For the
year ended October 31, 1998, the amount charged to the Fund by SSC aggregated
$626,382, of which $58,000 was unpaid at October 31, 1998.

The Fund is one of several Scudder Funds (the "Underlying Funds") in which the
Scudder Pathway Series Portfolios (the "Portfolios") invest. In accordance with
the Special Servicing Agreement entered into by the Adviser, the Portfolios, the
Underlying Funds, SSC, SFAC, STC, and Scudder Investor Services, Inc., expenses
from the operation of the Portfolios are borne by the Underlying Funds based on
each Underlying Fund's proportionate share of assets owned by the Portfolios. No
Underlying Funds will be charged expenses that exceed the estimated savings to
each respective Underlying Fund. These estimated savings result from the
elimination of separate shareholder accounts which either currently are or have
potential to be invested in the Underlying Funds. At October 31, 1998, the
Special Servicing Agreement expense charged to the Fund amounted to $253,762.

Scudder Trust Company ("STC"), a subsidiary of the Adviser, provides
recordkeeping and other services in connection with certain retirement and
employee benefit plans invested in the Fund. For the year ended October 31,
1998, the amount charged to the Fund by STC aggregated $411,592, of which
$32,000 was unpaid at October 31, 1998.

Scudder Fund Accounting Corporation ("SFAC"), a subsidiary of the Adviser, is
responsible for determining the daily net asset value per share and maintaining
the portfolio and general accounting records of the Fund. For the year ended
October 31, 1998, the amount charged to the Fund by SFAC aggregated $62,799, of
which $11,007 was unpaid at October 31, 1998.

The Fund pays each of its Trustees not affiliated with the Adviser $4,800
annually plus specified amounts for attended board and committee meetings. For
the year ended October 31, 1998, Trustees fees and expenses aggregated $46,890.

20 - Scudder Large Company Growth Fund
<PAGE>

Report of Independent Accountants

To the Trustees of the Investment Trust and the Shareholders of Scudder Large
Company Growth Fund:

In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Scudder Large Company Growth Fund
(the "Fund") at October 31, 1998, the results of its operations for the year
then ended and the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 1998 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.

PricewaterhouseCoopers LLP
Boston, Massachusetts
December 10, 1998

21 - Scudder Large Company Growth Fund
<PAGE>

Tax Information

The Fund will mail shareholders IRS Form 1099-Div in late January, summarizing
all taxable distributions paid for 1998.

The Fund paid distributions of $1.24 per share from net long-term capital gains
during its fiscal year ended October 31, 1998, of which 24.2% represented 20%
rate gains. Pursuant to section 852 of the Internal Revenue Code, the Fund
designates $33,000,000 as capital gain dividends for the year ended October 31,
1998.

22 - Scudder Large Company Growth Fund

<PAGE>
This Page
intentionally
left blank.

23 - Scudder Large Company Growth Fund

<PAGE>
Officers and Trustees

Daniel Pierce*
President and Trustee

Henry P. Becton, Jr.
Trustee; President and General
Manager, WGBH Educational
Foundation

Dawn-Marie Driscoll
Trustee; Executive Fellow, Center
for Business Ethics, Bentley
College; President, Driscoll
Associates

Peter B. Freeman
Trustee; Corporate Director and
Trustee

George M. Lovejoy, Jr.
Trustee; President and Director,
Fifty Associates

Wesley W. Marple, Jr.
Trustee; Professor of Business
Administration, Northeastern
University, College of Business
Administration

Kathryn L. Quirk*
Trustee; Vice President and
Assistant Secretary

Jean C. Tempel
Trustee; Managing Partner,
Technology Equity Partners

Bruce F. Beaty*
Vice President

Philip S. Fortuna*
Vice President

William F. Gadsden*
Vice President

Jerard K. Hartman*
Vice President

Robert T. Hoffman*
Vice President

Thomas W. Joseph*
Vice President

Valerie F. Malter*
Vice President

Thomas F. McDonough*
Vice President and Secretary

John R. Hebble*
Treasurer

Caroline Pearson*
Assistant Secretary

*Scudder Kemper Investments, Inc.

24 - Scudder Large Company Growth Fund

<PAGE>
Investment Products and Services

The Scudder Family of Funds+++
- --------------------------------------------------------------------------------
Money Market
- ------------
Scudder U.S. Treasury Money Fund
Scudder Cash Investment Trust
Scudder Money Market Series--
Prime Reserve Shares*
Premium Shares*
Managed Shares*
Scudder Government Money Market Series--
Managed Shares*

Tax Free Money Market+
- ----------------------
Scudder Tax Free Money Fund
Scudder Tax Free Money Market Series--
Managed Shares*
Scudder California Tax Free Money Fund**
Scudder New York Tax Free Money Fund**

Tax Free+
- ---------
Scudder Limited Term Tax Free Fund
Scudder Medium Term Tax Free Fund
Scudder Managed Municipal Bonds
Scudder High Yield Tax Free Fund
Scudder California Tax Free Fund**
Scudder Massachusetts Limited Term Tax Free Fund**
Scudder Massachusetts Tax Free Fund**
Scudder New York Tax Free Fund**
Scudder Ohio Tax Free Fund**
Scudder Pennsylvania Tax Free Fund**

U.S. Income
- -----------
Scudder Short Term Bond Fund
Scudder Zero Coupon 2000 Fund
Scudder GNMA Fund
Scudder Income Fund
Scudder Corporate Bond Fund
Scudder High Yield Bond Fund

Global Income
- -------------
Scudder Global Bond Fund
Scudder International Bond Fund
Scudder Emerging Markets Income Fund

Asset Allocation
- ----------------
Scudder Pathway Conservative Portfolio
Scudder Pathway Balanced Portfolio
Scudder Pathway Growth Portfolio
Scudder Pathway International Portfolio

U.S. Growth and Income
- ----------------------
Scudder Balanced Fund
Scudder Dividend & Growth Fund
Scudder Growth and Income Fund
Scudder S&P 500 Index Fund
Scudder Real Estate Investment Fund

U.S. Growth
- -----------
Value
Scudder Large Company Value Fund
Scudder Value Fund***
Scudder Small Company Value Fund
Scudder Micro Cap Fund

Growth
Scudder Classic Growth Fund***
Scudder Large Company Growth Fund
Scudder Development Fund
Scudder 21st Century Growth Fund

Global Equity
- -------------
Worldwide
Scudder Global Fund
Scudder International Value Fund
Scudder International Growth and Income Fund
Scudder International Fund++
Scudder International Growth Fund
Scudder Global Discovery Fund***
Scudder Emerging Markets Growth Fund
Scudder Gold Fund

Regional
Scudder Greater Europe Growth Fund
Scudder Pacific Opportunities Fund
Scudder Latin America Fund
The Japan Fund, Inc.

Industry Sector Funds
- ---------------------
Choice Series
Scudder Financial Services Fund
Scudder Health Care Fund
Scudder Technology Fund

Preferred Series
- ----------------
Scudder Tax Managed Growth Fund
Scudder Tax Managed Small
Company Fund

Retirement Programs and Education Accounts
- --------------------------------------------------------------------------------

Retirement Programs
- -------------------
Traditional IRA
Roth IRA
SEP IRA
Keogh Plan
401(k), 403(b) Plans
Scudder Horizon Plan**+++ +++
(a variable annuity)

Education Accounts
- ------------------
Education IRA
UGMA/UTMA

Closed-End Funds#
- --------------------------------------------------------------------------------
The Argentina Fund, Inc.
The Brazil Fund, Inc.
The Korea Fund, Inc.
Montgomery Street Income Securities, Inc.
Scudder Global High Income Fund, Inc.
Scudder New Asia Fund, Inc.
Scudder New Europe Fund, Inc.
Scudder Spain and Portugal Fund, Inc.

For complete information on any of the above Scudder funds, including management
fees and expenses, call or write for a free prospectus. Read it carefully before
you invest or send money. +++Funds within categories are listed in order from
expected least risk to most risk. Certain Scudder funds may not be available for
purchase or exchange. +A portion of the income from the tax-free funds may be
subject to federal, state, and local taxes. *A class of shares of the Fund.
**Not available in all states. ***Only the Scudder Shares of the Fund are part
of the Scudder Family of Funds. ++Only the International Shares of the Fund are
part of the Scudder Family of Funds. +++ +++A no-load variable annuity contract
provided by Charter National Life Insurance Company and its affiliate, offered
by Scudder's insurance agencies, 1-800-225-2470. #These funds, advised by
Scudder Kemper Investments, Inc., are traded on the New York Stock Exchange and,
in some cases, on various other stock exchanges.

25 - Scudder Large Company Growth Fund

<PAGE>

Scudder Solutions
<TABLE>
<CAPTION>

Convenient ways to invest, quickly and reliably:
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Automatic Investment Plan QuickBuy

A convenient investment program in which money is Lets you purchase Scudder fund shares
electronically debited from your bank account monthly to electronically, avoiding potential mailing delays;
regularly purchase fund shares and "dollar cost average" money for each of your transactions is
-- buy more shares when the fund's price is lower and electronically debited from a previously designated bank
fewer when it's higher, which can reduce your average account.
purchase price over time.*

Automatic Dividend Transfer Payroll Deduction and Direct Deposit

The most timely, reliable, and convenient way to Have all or part of your paycheck -- even government
purchase shares -- use distributions from one Scudder checks -- invested in up to four Scudder funds at
fund to purchase shares in another, automatically one time.
(accounts with identical registrations or the same
social security or tax identification number).

* Dollar cost averaging involves continuous investment in securities regardless of price
fluctuations and does not assure a profit or protect against loss in declining markets.
Investors should consider their ability to continue such a plan through periods of low price
levels.

Around-the-clock electronic account service and information, including some transactions:
- ------------------------------------------------------------------------------------------------------------------------------
Scudder Automated Information Line: SAIL(TM) -- Scudder's Web Site -- www.scudder.com
1-800-343-2890
Scudder Electronic Account Services: Offering
Personalized account information, the ability to account information and transactions, interactive
exchange or redeem shares, and information on other worksheets, prospectuses and applications for all
Scudder funds and services via touchtone telephone. Scudder funds, plus your current asset allocation,
whenever you need them. Scudder's Site also
provides news about Scudder funds, retirement
planning information, and more.

Retirees and those who depend on investment proceeds for living expenses can enjoy these convenient,
timely, and reliable automated withdrawal programs:
- ------------------------------------------------------------------------------------------------------------------------------
Automatic Withdrawal Plan QuickSell

You designate the bank account, determine the schedule Provides speedy access to your money by
(as frequently as once a month) and amount of the electronically crediting your redemption proceeds
redemptions, and Scudder does the rest. to the bank account you previously designated.

Distributions Direct

Automatically deposits your fund distributions into the
bank account you designate within three business days
after each distribution is paid.

26 - Scudder Large Company Growth Fund
<PAGE>

Mutual Funds and More -- Brokerage and Guidance Services:
- ------------------------------------------------------------------------------------------------------------------------------
Scudder Brokerage Services Scudder Portfolio Builder

Offers you access to a world of investments, A free service designed to help suggest ways investors like
including stocks, corporate bonds, Treasuries, plus you can diversify your portfolio among domestic and global,
over 8,000 mutual funds from at least 150 mutual as well as equity, fixed-income, and money market funds,
fund companies. And Scudder Fund Folio(SM) provides using Scudder funds.
investors with access to a marketplace of more than
800 no-load funds from well-known companies--with no Personal Counsel from Scudder(SM)
transaction fees or commissions. Scudder
shareholders can take advantage of a Scudder Developed for investors who prefer the benefits of no-load
Brokerage account already reserved for them, with funds but want ongoing professional assistance in
no minimum investment. For information about managing a portfolio. Personal Counsel(SM) is a highly
Scudder Brokerage Services, call 1-800-700-0820. customized, fee-based asset management service for
individuals investing $100,000 or more.

Fund Folio funds held less than six months will be charged a fee for redemptions. You can buy
shares directly from the fund itself or its principal underwriter or distributor without
paying this fee. Scudder Brokerage Services, Inc., 42 Longwater Drive, Norwell, MA 02061.
Member SIPC.

Personal Counsel From Scudder(SM) and Personal Counsel(SM) are service marks of and represent a
program offered by Scudder Investor Services, Inc., Adviser.

For more information about these services, call a Scudder representative at 1-800-225-5163
- ------------------------------------------------------------------------------------------------------------------------------
Additional Information on How to Contact Scudder:
- ------------------------------------------------------------------------------------------------------------------------------
For existing account services and transactions Please address all written correspondence to
Scudder Investor Relations -- 1-800-225-5163 The Scudder Funds
P.O. Box 2291
For establishing 401(k) and 403(b) plans Boston, Massachusetts
Scudder Defined Contribution Services -- 02107-2291
1-800-323-6105
Or Stop by a Scudder Investor Center

For information about The Scudder Funds, including Many shareholders enjoy the personal, one-on-one service of
additional applications and prospectuses, or for the Scudder Investor Centers. Check for an Investor Center near
answers to investment questions you -- they can be found in the following cities:
Scudder Investor Relations -- 1-800-225-2470 Boca Raton Chicago San Francisco
[email protected] Boston New York

</TABLE>

27 - Scudder Large Company Growth Fund
<PAGE>
About the Fund's Adviser

Scudder Kemper Investments, Inc., is one of the largest and most experienced
investment management oganizations worldwide, managing more than $230 billion in
assets globally for mutual fund investors, retirement and pension plans,
institutional and corporate clients, insurance companies, and private family and
individual accounts. It is one of the ten largest mutual fund companies in the
United States.

Scudder Kemper Investments has a rich heritage of innovation, integrity, and
client-focused service. In 1997, Scudder, Stevens & Clark, Inc., founded 79
years ago as one of the nation's first investment counsel organizations, joined
the Zurich Group. As a result, Zurich's subsidiary, Zurich Kemper Investments,
Inc., with 50 years of mutual fund and investment management experience, was
combined with Scudder. Headquartered in New York, Scudder Kemper Investments
offers a full range of investment counsel and asset management capabilities,
based on a combination of proprietary research and disciplined, long-term
investment strategies. With its global investment resources and perspective,
the firm seeks opportunities in markets throughout the world to meet the needs
of investors.

Scudder Kemper Investments, Inc., the global asset management firm, is a member
of the Zurich Group. The Zurich Group is an internationally recognized leader in
financial services, including property/casualty and life insurance, reinsurance,
and asset management.

This information must be preceded or accompanied by a current prospectus.

Portfolio changes should not be considered recommendations for action by
individual investors.

SCUDDER

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