Scudder Growth and Income Fund
Supplement to Prospectus
Dated March 1, 1999
Scudder Growth and Income Fund (the "fund") currently offers two classes of
shares to provide investors with different purchase options. The two options
are: Scudder shares and Class R shares. Class R shares are described in this
supplement to the prospectus.
Class R shares are available for purchase by participants of certain
employer-sponsored retirement plans. Class R shares currently are available for
purchase through certain financial intermediaries as well as third-party
providers and other entities. Share certificates are not available for Class R
shares.
The following information supplements the following indicated sections of the
prospectus:
Past performance
As Class R shares do not have a full calendar year of performance, no past
performance data is provided. However, the chart and table on page 3 of the
prospectus show how the total returns for the fund's Scudder shares have varied
from year to year, which may give some idea of risk. Scudder shares are not
offered in this supplement to the prospectus but have substantially similar
returns because the shares are invested in the same portfolio of securities and
the annual returns would differ only to the extent that the classes have
different expenses.
August 1, 1999
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Fee and expense information
The following information is designed to help you understand the estimated fees
and expenses that you may pay if you buy and hold Class R shares of the fund.
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Shareholder fees: Fees paid directly from your investment.
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Maximum sales charge (load) imposed on purchases (as % of NONE
offering price)
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Maximum deferred sales charge (load) NONE
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Maximum sales charge (load) imposed on reinvested NONE
dividends/distributions
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Redemption fee (as % of amount redeemed, if applicable) NONE*
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Exchange fee NONE
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Annual fund operating expenses (expenses that are deducted from fund assets):
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Management fee 0.44%
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Distribution (12b-1) and service fees 0.00%**
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Other expenses 0.69%***
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Total annual fund operating expenses 1.13%
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* If you wish to receive your redemption proceeds via wire, there is a $5 wire
service fee. For additional information, please refer to "About Your
Investment -- Exchanges and redemptions."
** The Class R shares are subject to a Rule 12b-1 and Administrative Services
Plan (the "Plan"), which allows for payment of a fee of up to 0.25% for
distribution- related services. Currently, the fund's Board of Trustees (the
"Board") has not authorized payment under the Plan. The Board, however, may
authorize payment under the Plan at any time. If payment under the Plan is
authorized, the administrative services fee described below would be
reduced.
*** Includes an administrative services fee of 0.25% in addition to other class
specific expenses, such as transfer agent and certain registration fees,
which amounts may vary with class size and other factors. Because the
inception date of the Class R shares is August 1, 1999, "Other expenses" are
estimated based upon the amounts incurred by the Scudder shares of the fund
during the fiscal year ended December 31, 1998.
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Example
This example is intended to help you compare the cost of investing in Class R
shares of the fund with the cost of investing in other mutual funds.
This example illustrates the impact of the above fees and expenses on an account
with an initial investment of $10,000, based on the expenses shown above. It
assumes a 5% annual return, the reinvestment of all dividends and distributions
and "annual fund operating expenses" remaining the same each year. The expenses
would be the same whether you sold your shares at the end of each period or
continued to hold them.
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One Year $ 116
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Three Years $ 360
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Five Years $ 623
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Ten Years $1,375
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Distributions
Dividends and other distributions in the aggregate amount of $10 or less are
automatically reinvested in shares of the same fund unless you request that such
policy not be applied to your account.
Financial highlights
As Class R is a new class of the fund, no financial highlight data is available.
Transaction information
Share price
Net asset value per share is calculated separately for each class of the Fund
and is calculated by dividing the value of the total fund assets attributable to
a class, less all liabilities attributable to that class, by the total number of
shares of that class outstanding. Market prices are used to determine the value
of the fund's assets. If market prices are not readily available for a security
or if a security's price is not considered to be market indicative, that
security may be valued by another method that the Board or its delegate believes
accurately reflects fair value. In those circumstances where a security's price
is not considered to be market indicative, the security's valuation may differ
from an available market quotation.
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To the extent that the fund invests in foreign securities, these securities may
be listed on foreign exchanges that trade on days when the fund does not price
its shares. As a result, the net asset value of the fund may change at a time
when shareholders are not able to purchase or redeem their shares.
Purchases
To open an account
Class R shares are available only through employer-sponsored retirement plans.
Please consult your plan administrator or plan representative for more
information on how to purchase shares.
To buy additional shares
Please consult your plan administrator or plan representative for more
information on how to purchase shares.
Exchanges and redemptions
To exchange shares
Shareholders of Class R shares may exchange their Class R shares only for shares
of funds authorized for exchange by the applicable plan. Please consult your
plan administrator or plan representative for more information concerning
exchanges of shares.
To sell shares
Please consult your plan administrator or plan representative for more
information on how to sell your shares.
