<PAGE>
Deutsche Asset Management
Mutual Fund
Prospectus
April 30, 2000
As Revised December 15, 2000
Investment
Equity 500 Index
formerly BT Investment Equity 500 Index Fund
[Like shares of all mutual funds, these securities have not been approved or
disapproved by the Securities and Exchange Commission nor has the Securities and
Exchange Commission passed upon the accuracy or adequacy of this prospectus. Any
representation to the contrary is a criminal offense.]
(Deutsche Bank Group logo)
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Equity 500 Index Investment
Overview of Equity 500 Index
04 Goal
04 Core Strategy
04 Investment Policies and Strategies
04 Principal Risks of Investing in the Fund
05 Who Should Consider Investing in the Fund
06 Total Returns, After Fees and Expenses
07 Annual Fund Operating Expenses
A Detailed Look at Equity 500 Index
08 Objective
08 Index Investing Versus Active Management
08 Strategy
08 Principal Investments
09 Investment Process
09 Risks
10 Management of the Fund
11 Calculating the Fund's Share Price
12 Dividends and Distributions
12 Tax Considerations
12 Buying and Selling Fund Shares
16 Financial Highlights
<PAGE>
OVERVIEW
of Equity 500 Index Investment
Goal: The Fund seeks to match, as closely as possible, before expenses, the
performance of the Standard & Poor's 500 Composite Stock Price Index (the "S&P
500 Index"), which emphasizes stocks of large U.S. companies.
Core Strategy: The Fund invests in a statistically selected sample of the
securities found in the S&P 500 Index.
Investment Policy and Strategies
The Fund is a feeder fund that invests all of its assets in a master portfolio
with the same investment objective as the Fund. The Fund, through the master
portfolio, seeks to replicate, before expenses, the risk and return
characteristics of the S&P 500 Index. The Fund will invest primarily in common
stocks of companies that compose the S&P 500, in approximately the same
weightings as the S&P 500. The Fund may also use stock index futures and
options.
FOOTNOTE: The S&P 500 Index is a well-known stock market index that includes
common stocks of 500 companies from several industrial sectors representing a
significant portion of the market value of all stocks publicly traded on the New
York Stock Exchange. Stocks in the S&P 500 Index are weighted according to their
market capitalization (the number of shares outstanding multiplied by the
stock's current price).
Principal Risks of Investing in the Fund
An investment in the Fund could lose money, or the Fund's performance could
trail that of other investments. For example:
. Stocks could decline generally or could underperform other investments.
. Returns on large U.S. companies' stock, in which the Fund invests, could trail
the returns of stocks of medium or small companies. Each type of stock tends
to go through cycles of overperformance and underperformance in comparison to
the overall stock market.
. The Fund may not be able to mirror the S&P 500 Index closely enough to track
its performance for a number of reasons, including the Fund's cost to buy and
sell securities, the flow of money into and out of the Fund, and the
underperformance of stocks selected by us.
. The Fund could suffer losses if its futures and options positions are not well
correlated with the securities for which they are acting as a substitute or if
the Fund cannot close out its positions.
<PAGE>
Who Should Consider Investing in this Fund
You should consider investing in the Fund if you are seeking capital
appreciation over the long term, exposure to the U.S. equity market as
represented by larger companies, and investment returns that track the
performance of the S&P 500 Index. There is, of course, no guarantee that the
Fund will realize its goal.
You should not consider investing in the Fund if you are pursuing a short-term
financial goal, seeking regular income and stability of principal, cannot
tolerate fluctuations in the value of your investments, or seeking to outperform
the S&P 500 Index.
The Fund by itself does not constitute a balanced investment program. It can,
however, afford exposure to investment opportunities not available to an
investor in small- and medium-sized company stocks. Diversifying your
investments may improve your long-run investment return and lower the volatility
of your overall investment portfolio.
An investment in the Fund is not a bank deposit and is not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other government agency.
<PAGE>
Total Returns, After Fees and Expenses
The bar chart and table on this page can help you evaluate the potential risk
and rewards of investing in the Fund by showing changes in the Fund's
performance year to year. The bar chart shows the Fund's actual return for each
full calendar year since the Fund began selling shares on December 31, 1992 (its
inception date). The table compares the Fund's average annual return with the
S&P 500 Index over the last calendar year, the last five calendar years and
since the Fund's inception. The S&P 500 Index is a model, not an actual
portfolio. An index is a group of securities whose overall performance is used
as a standard to measure investment performance. It does not factor in the costs
of buying, selling and holding stock -- costs that are reflected in the Fund's
results.
Year-by-Year Returns
(each full calendar year since inception)
[bar chart]
<TABLE>
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<S> <C> <C> <C> <C> <C> <C>
9.53% 1.15% 37.15% 22.83% 33.02% 28.57% 20.59%
-------------------------------------------------------------------------------------------------------------------------
1993 1994 1995 1996 1997 1998 1999
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
Since inception, the Fund's highest return in any calendar quarter was 21.36%
(fourth quarter 1998) and its lowest quarter was -9.88% (third quarter 1998).
Past performance offers no indication of how the fund will perform in the
future.
PERFORMANCE FOR PERIOD ENDED DECEMBER 31, 1999
Average Annual Returns
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
Since Inception
1 year 5 years (December 31, 1992)
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Equity 500 Index Investment 20.59% 28.29% 21.24%
------------------------------------------------------------------------------------------------------------
S&P 500 Index 21.04% 28.56% 21.53%
------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ANNUAL FUND OPERATING EXPENSES
(expenses paid from Fund assets)
The Annual Fees and Expenses table to the right describes the fees and expenses
that you may pay if you buy and hold shares of Equity 500 Index Investment.
Expense Example. The example below illustrates the expenses incurred on a
$10,000 investment in the Fund. It assumes that the Fund earned an annual return
of 5% over the periods shown, the Fund's operating expenses remained the same
and you sold your shares at the end of the period.
You may use this hypothetical example to compare the Fund's expense history with
other funds./1/ The example does not represent an estimate of future returns or
expenses. Actual costs may be higher or lower.
/1/ Information on the annual operating expenses reflects the estimated expenses
of both the Fund and the Equity 500 Index Portfolio, the master portfolio in
which the Fund invests its assets. (A further discussion of the relationship
between the Fund and the master portfolio appears in the "Organizational
Structure" section of this prospectus.)
/2/ The investment adviser and administrator have agreed, for a 16-month period
from the Fund's fiscal year end of December 31, 1999, to waive their fees and
reimburse expenses so that total expenses will not exceed 0.25%.
/3/ For the first year, the expense example takes into account fee waivers and
reimbursements.
ANNUAL FEES AND EXPENSES
<TABLE>
<CAPTION>
-------------------------------------------------------------------
Percentage of Average
Daily Net Assets/1/
-------------------------------------------------------------------
<S> <C>
Management Fees 0.05%
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Distribution and Service (12b-1) Fees None
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Other Fund Operating Expenses 0.31%
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Total Fund Operating Expenses 0.36%
-------------------------------------------------------------------
Less: Fee Waiver or Expense Reimbursement (0.11)%/2/
-------------------------------------------------------------------
Net Expenses 0.25%
-------------------------------------------------------------------
</TABLE>
Expense Example/3/
<TABLE>
<CAPTION>
---------------------------------------------------------------------
1 year 3 years 5 years 10 years
---------------------------------------------------------------------
<S> <C> <C> <C>
$26 $105 $191 $445
---------------------------------------------------------------------
</TABLE>
<PAGE>
A detailed look
at Equity 500 Index Investment
Objective
The Fund seeks to match, as closely as possible (before the deduction of
expenses), the performance of the S&P 500 Index, which emphasizes stocks of
large U.S. companies.
The Fund invests for capital appreciation, not income; any dividend and interest
income is incidental to the pursuit of its objective. While we give priority to
matching the Index's performance, we cannot offer any assurance of achieving
this objective. The Fund's objective is not a fundamental policy. We must notify
shareholders before we change it, but we do not require their approval to do so.
Index Investing Versus Active Management
Active management involves the investment adviser buying and selling securities
based on research and analysis. Unlike a fund that is actively managed, an index
fund tries to match, as closely as possible, the performance of a target index
by holding either all, or a representative sample, of the securities in the
index. Indexing appeals to many investors for the following reasons:
. indexing provides simplicity because it is a straightforward market-matching
strategy;
. index funds generally provide diversification by investing in a wide variety
of companies and industries;
. an index fund's performance is predictable in that the fund's value is
expected to move in the same direction, up or down, as the target index;
. index funds tend to have lower costs because they do not have many of the
expenses of actively managed funds such as research, and index funds usually
have relatively low trading activity and therefore brokerage commissions tend
to be lower; and
. index funds generally realize low capital gains.
Strategy
To attempt to match the risk and return characteristics of the S&P 500 Index as
closely as possible, the Fund invests in a statistically selected sample of the
securities found in the S&P 500 Index, using a process known as "optimization."
This process selects stocks for the Fund so that industry weightings, market
capitalizations and fundamental characteristics (price-to-book ratios, price-to-
earnings ratios, debt-to-asset ratios and dividend yields), closely match those
of the securities in the S&P 500 Index. Over the long term, we seek a
correlation between the performance of the Fund, before expenses, and the S&P
500 Index of 98% or better. A figure of 100% would indicate perfect
correlation.
Principal Investments
Under normal circumstances, the Fund intends to invest at least 80% of its
assets in stocks of companies included in the S&P 500 Index and in derivative
instruments, such as futures contracts and options, that provide exposure to the
stocks of companies in the S&P 500 Index. The Fund's securities are weighted to
attempt to make the Fund's total investment characteristics similar to those of
the S&P 500 Index as a whole. We may exclude or remove any S&P stock from the
Fund, if we believe that the stock is illiquid or that the merit of the
investment has been impaired by financial conditions or other extraordinary
events. The Fund may also hold up to 20% of its assets in short-term debt
securities, money market instruments and in derivative instruments, such as
futures contracts and options, that provide exposure to the stocks of companies
in the S&P 500 Index.
<PAGE>
Futures and options are considered derivatives because they "derive" their value
from a traditional security (like a stock or bond), asset or index. The Fund
intends to buy futures in anticipation of buying stocks.
Investment Process
In an effort to run an efficient and effective strategy, the Fund uses the
process of "optimization," a statistical sampling technique. First, the Fund
buys the stocks that make up the larger portions of the Index's value in roughly
the same proportion as the Index. Second, smaller stocks are analyzed and
selected based on liquidity. In selecting smaller stocks, we try to match the
industry and risk characteristics of all of the smaller companies in the S&P 500
Index. This approach attempts to maximize the Fund's liquidity and returns while
minimizing its costs.
FOOTNOTE: Futures and options on futures contracts are used as a low-cost method
of gaining exposure to a particular securities market without investing directly
in those securities. The Fund also invests in derivatives to keep cash on hand
to meet shareholder redemptions or other needs while maintaining exposure to the
stock market.
FOOTNOTE: Portfolio Turnover. The portfolio turnover rate measures the
frequency that the Fund sells and replaces the value of its securities within a
given period. Historically, this Fund has had a low portfolio turnover rate.
Risks
Below we set forth some of the prominent risks associated with investing in
general, with index investing and with investing in large-cap stocks.
Primary Risks
Market Risk. Deteriorating market conditions might cause an overall weakness in
the market that reduces the absolute level of stock prices in that market,
including stocks held by the Fund.
Tracking Error. There are several reasons that the Fund's performance may not
track the Index exactly:
. Unlike the Index, the Fund incurs administrative expenses and transaction
costs in trading stocks.
. The composition of the Index and the stocks held by the Fund may occasionally
diverge.
. The timing and magnitude of cash inflows from investors buying shares could
create balances of uninvested cash. Conversely, the timing and magnitude of
cash outflows to investors selling shares could require ready reserves of
uninvested cash. Either situation would likely cause the Fund's performance to
deviate from the "fully invested" Index.
Futures and Options. The Fund may invest, to a limited extent, in stock index
futures or options, which are types of derivatives. The Fund will not use these
derivatives for speculative purposes or as leveraged investments that magnify
the gains or losses of an investment. The Fund invests in derivatives to keep
cash on hand to meet shareholder redemptions or other needs while maintaining
exposure to the stock market. Risks associated with derivatives include:
. the derivative is not well correlated with the security for which it is
acting as a substitute;
. derivatives used for risk management may not have the intended effects
and may result in losses or missed opportunities;
. and the risk that the Fund cannot sell the derivative because of an
illiquid secondary market.
<PAGE>
Secondary Risk
Pricing Risk. We value securities in the Fund at their stated market value if
price quotations are available and, if not, by the method that most accurately
reflects their current worth in the judgment of the Board of Trustees. This
procedure implies an unavoidable risk, the risk that our prices are higher or
lower than the prices that the securities might actually command if we sold
them. If we have valued the securities too highly, you may end up paying too
much for Fund shares when you buy. If we underestimate their price, you may not
receive the full market value for your Fund shares when you sell.
Information Regarding the Index
The Fund and the Portfolio are not sponsored, endorsed, sold or promoted by S&P.
S&P makes no representation or warranty, express or implied, to the owners of
the Fund or the Portfolio or any member of the public regarding the advisability
of investing in securities generally or in the Fund and the Portfolio
particularly or the ability of the S&P 500 Index to track general stock market
performance. S&P's only relationship to the Fund and Portfolio is the licensing
of certain trademarks and trade names of S&P and of the S&P 500 Index, which is
determined, composed and calculated without regard to the Fund or Portfolio. S&P
does not guarantee the accuracy and/or completeness of the S&P 500 Index or any
data included therein.
S&P makes no warranty, express or implied, as to the results to be obtained by
the Fund or the Portfolio, to owners of the Fund or the Portfolio, or to any
other person or entity from the use of the S&P 500 Index or any data included
therein. S&P makes no express or implied warranties, and expressly disclaims all
such warranties of merchantability or fitness for a particular purpose or use
with respect to the S&P 500 Index or any data included therein.
Management of the Fund
Deutsche Asset Management is the marketing name for the asset management
activities of Deutsche Bank A.G., Deutsche Fund Management, Bankers Trust
Company, DB Alex. Brown LLC, Deutsche Asset Management, Inc. and Deutsche Asset
Management Investment Services Limited.
Board of Trustees. The Fund's shareholders, voting in proportion to the number
of shares each owns, elect a Board of Trustees, and the Trustees supervise all
the Fund's activities on their behalf.
Investment Adviser. Under the supervision of the Board of Trustees, Bankers
Trust Company, with headquarters at 130 Liberty Street, New York, NY 10006, acts
as the Fund's investment adviser. The investment adviser makes the Fund's
investment decisions and assumes responsibility for the securities the Fund
owns. It buys and sells securities for the Fund and conducts the research that
leads to the purchase and sale decisions. The Fund paid the investment adviser a
fee of 0.075% of the Fund's average daily net assets for its services in the
last fiscal year. As of March 15, 2000, the Fund will pay 0.05% of its average
daily net assets for investment advisory services.
As of December 31, 1999, Bankers Trust had total assets of approximately $270
billion under management. Bankers Trust is dedicated to servicing the needs of
corporations, governments, financial institutions and private clients and has
invested retirement assets on behalf of the nation's largest corporations and
institutions for more than 50 years. The scope of the firm's capability is
broad--it is a leader in both the active and passive quantitative investment
disciplines and maintains a major presence in stock and bond markets worldwide
<PAGE>
Other Services. Bankers Trust provides administrative services -- such as
portfolio accounting, legal services and others -- for the Fund. In addition,
Bankers Trust -- or your service agent -- performs the functions necessary to
establish and maintain your account. In addition to setting up the account and
processing your purchase and sale orders, these functions include:
. keeping accurate, up-to-date records for your individual Fund account;
. implementing any changes you wish to make in your account information;
. processing your requests for cash dividends and distributions from the Fund;
. answering your questions on the Fund's investment performance or
administration;
. sending proxy reports and updated prospectus information to you; and
. collecting your executed proxies.
Service agents include brokers, financial advisors or any other bank, dealer or
other institution that has a sub-shareholder servicing agreement with Bankers
Trust. Service agents may charge additional fees to investors only for those
services not otherwise included in the Bankers Trust servicing agreement, such
as cash management or special trust or retirement-investment reporting.
Organizational Structure. The Fund is a "feeder fund" that invests all of its
assets in a "master portfolio," the Equity 500 Index Portfolio. The Fund and
the master portfolio have the same investment objective. The master portfolio is
advised by Bankers Trust. The master portfolio may accept investments from other
feeder funds. The feeders bear the master portfolio's expenses in proportion to
their assets. Each feeder can set its own transaction minimums, fund-specific
expenses and other conditions. This arrangement allows the Fund's Trustees to
withdraw the Fund's assets from the master portfolio if they believe doing so is
in the shareholder's best interests. If the Trustees withdraw the Fund's assets,
they would then consider whether the Fund should hire its own investment
adviser, invest in a different master portfolio, or take other action.
Calculating the Fund's Share Price
We calculate the daily price of the Fund's shares (also known as the "Net Asset
Value" or "NAV") in accordance with the standard formula for valuing mutual
fund shares at the close of regular trading on the New York Stock Exchange every
day the Exchange is open for business.
The formula calls for deducting all of the Fund's liabilities from the total
value of its assets -- the market value of the securities it holds, plus its
cash reserves -- and dividing the result by the number of shares outstanding.
We value the securities in the Fund at their stated market value if price
quotations are available. When price quotations for a particular security are
not readily available, we determine their value by the method that most
accurately reflects their current worth in the judgment of the Board of
Trustees. You can find the Fund's daily share price in the mutual fund listings
of most major newspapers.
<PAGE>
FOOTNOTE: The Exchange is open every week, Monday through Friday, except when
the following holidays are celebrated: New Year's Day, Martin Luther King, Jr.
Day (the third Monday in January), Presidents' Day (the third Monday in
February), Good Friday, Memorial Day (the last Monday in May), Independence Day
(July 4/th/), Labor Day (the first Monday in September), Thanksgiving Day (the
fourth Thursday in November) and Christmas Day.
Dividends and Distributions
Dividends, if any, are paid quarterly. Capital gains will be distributed at
least annually. We automatically reinvest all dividends and any capital gains,
unless you tell us otherwise.
Performance Information
The Fund's performance can be used in advertisements that appear in various
publications. It may be compared to the performance of various indices and
investments for which reliable performance data is available. The Fund's
performance may also be compared to average, performance rankings, or other
information prepared by recognized mutual fund statistical services.
Tax Considerations
The Fund does not ordinarily pay income taxes. You and other shareholders pay
taxes on the income or capital gains from the Fund's holdings. Your taxes will
vary from year to year, based on the amount of capital gains distributions and
dividends paid out by the Fund. You owe the taxes whether you receive cash or
choose to have distributions and dividends reinvested. Distributions and
dividends usually create the following tax liability:
Transaction Tax Status
----------- ----------
Income dividends Ordinary income
Short-term capital gains distributions Ordinary income
Long-term capital gains distributions Capital gains
Every year the Fund will send you information on the distributions for the
previous year. In addition, if you sell your Fund shares you may have a capital
gain or loss.
Your sale of shares owned Capital gains or losses
more than one year
Your sale of shares owned Gains treated as ordinary income;
for one year or less losses subject to special rules
The tax considerations for tax deferred accounts or non-taxable entities will be
different.
Because each investor's tax circumstances are unique and because the tax laws
are subject to change, we recommend that you consult your tax advisor about your
investment.
BUYING AND SELLING FUND SHARES
Contacting the Mutual Fund Service Center of Deutsche Asset Management
<PAGE>
By Phone 1-800-730-1313
By Mail Deutsche Asset Management Service Center
P.O. Box 219210
Kansas City, MO 64121-9210
By Overnight Mail Deutsche Asset Management Service Center
210 West 10th Street, 8th floor
Kansas City, MO 64105-1716
Our representatives are available to assist you personally Monday through
Friday, 9:00 a.m. to 7:00 p.m., Eastern time each day the New York Stock
Exchange is open for business. You can reach the Deutsche Asset Management
Service Center's automated assistance line 24 hours a day, 7 days a week.
Minimum Account Investments
Initial purchase: Minimum amount:
A standard account $2,500
A retirement account $ 500
An automatic investment plan account $1,000
Subsequent Purchase:
A standard account $ 250
A retirement account $ 100
An automatic investment plan account $ 100
Account balance:
Non-retirement account $1,000
Retirement account None
The Fund and its service providers reserve the right to, from time to time, at
their discretion, waive or reduce the investment minimums.
How to Open Your Fund Account
By Mail: Complete and sign the account application that accompanies this
prospectus. (You may obtain additional applications by calling the
Deutsche Asset Management Service Center.) Mail the completed
application along with a check payable to Equity 500 Index Investment
--1662 to the Deutsche Asset Management Service Center. The addresses
are shown under "Contacting the Mutual Fund Service Center of Deutsche
Asset Management"
By Wire: Call the Deutsche Asset Management Service Center to set up a wire
account.
Please note that your account cannot become activated until we receive a
completed application via mail or fax.
If this is your first investment through a tax-sheltered retirement plan, such
as an IRA, you will need a special application form. This form is available to
from your service agent, or by calling the Retirement Service Center at 1-800-
730-1313.
Two Ways to Buy and Sell Shares in Your Account
MAIL:
<PAGE>
Buying: Send your check, payable to the Fund, to the Deutsche Asset Management
Service Center. The addresses are shown in this section under "Contacting the
Mutual Fund Service Center of Deutsche Asset Management." Be sure to include the
fund number and your account number (see your account statement) on your check.
Please note that we cannot accept starter checks or third-party checks. If you
are investing in more than one fund, make your check payable to "Deutsche Asset
Management Funds" and include your account number, the names and numbers of the
funds you have selected, and the dollar amount or percentage you would like
invested in each fund.
Selling: Send a signed letter to the Deutsche Asset Management Service Center
with your name, your fund number and account number, the fund's name, and either
the number of shares you wish to sell or the dollar amount you wish to receive.
You must leave at least $1,000 invested in your account to keep it open. Unless
exchanging into another Deutsche Asset Management fund, you must submit a
written authorization to sell shares in a retirement account.
WIRE:
Buying: You may buy shares by wire only if your account is authorized to do so.
Please note that you or your service agent must call the Deutsche Asset
Management Service Center at 1-800-730-1313 to notify us in advance of a wire
transfer purchase. Inform the Deutsche Asset Management Service Center
representative of the amount of your purchase and receive a trade confirmation
number. Instruct your bank to send payment by wire using the wire instructions
noted below. All wires must be received by 4:00 p.m. Eastern time the next
business day.
Routing No.: 021001033
Attn: Deutsche Asset Management/ Mutual Funds
DDA No.: 00-226-296
FBO: (Account name)
(Account number)
Credit: Equity 500 Index Investment--1662
Refer to your account statement for the account name, number and fund number.
Selling: You may sell shares by wire only if your account is authorized to do
so. For your protection, you may not change the destination bank account over
the phone. To sell by wire, contact your service agent or the Deutsche Asset
Management Service Center at 1-800-730-1313. Inform the Deutsche Asset
Management Service Center representative of the amount of your redemption and
receive a trade confirmation number. The minimum redemption by wire is $1,000.
We must receive your order by 4:00 p.m. Eastern time to wire your account the
next business day.
Important Information about Buying and Selling shares.
. You may buy and sell shares of a fund through authorized service agents as
well as directly from us. The same terms and conditions apply. Specifically,
once you place your order with a service agent, it is considered received by
the Deutsche Asset Management Service Center. It is then your service agent's
responsibility to transmit the order to the Deutsche Asset Management Service
Center by the next business day. You should contact your service agent if you
have a dispute as to when your order was placed with the fund. Your service
agent may charge a fee for buying and selling shares for you.
. You may place orders to buy and sell over the phone by calling your service
agent or the Deutsche Asset Management Service Center at 1-800-730-1313. If
you pay for shares by check and the check fails to clear, or if you order
shares by phone and fail to pay for them by 4:00 p.m. Eastern time the next
business day, we have the right to cancel your order, hold you liable or
charge you or your account for any losses or fees a fund or its agents have
incurred. To sell shares you must state whether you would like to receive the
proceeds by wire or check.
<PAGE>
. After we or your service agent receive your order, we buy or sell your shares
at the next price calculated on a day the New York Stock Exchange is open for
business.
. We accept payment for shares only in U.S. dollars by check, bank or Federal
Funds wire transfer, or by electronic bank transfer. We do not accept starter
or third-party checks.
. The payment of redemption proceeds (including exchanges) for shares of a fund
recently purchased by check may be delayed for up to 15 calendar days while
we wait for your check to clear.
. We process all sales orders free of charge.
. Unless otherwise instructed, we normally mail a check for the proceeds from
the sale of your shares to your account address the next business day and no
later than seven days.
. We reserve the right to close your account on 30 days' notice if it fails to
meet minimum balance requirements for any reason other than a change in
market value.
. If you sell shares by mail or wire, you may be required to obtain a signature
guarantee. Please contact your service agent or the Deutsche Asset Management
Service Center for more information.
. We remit proceeds from the sale of shares in U.S. dollars (unless the
redemption is so large that it is made "in-kind").
. We do not issue share certificates.
. Selling shares of trust accounts and business or organization accounts may
require additional documentation. Please contact your service agent or the
Deutsche Asset Management Service Center for more information.
. During periods of heavy market activity, you may have trouble reaching the
Deutsche Asset Management Service Center by telephone. If this occurs, you
should make your request by mail.
. We reserve the right to reject purchases of Fund shares (including exchanges)
for any reason. We will reject the purchases if we conclude that the
purchaser may be investing only for the short-term or to profit from day to
day fluctuations in the Fund's share price.
. We reserve the right to reject the purchases of Fund shares (including
exchanges) or to suspend or postpone redemptions at times when both the New
York Stock Exchange and the Fund's custodian are closed.
. Account Statements and Fund Reports: We or your service agent will furnish
you with a written confirmation of every transaction that affects your
account balance. You will also receive monthly statements reflecting the
balances in your account. We will send you a report every six months on your
fund's overall performance, its current holdings and its investing
strategies.
. Exchange Privilege. You can exchange all or part of your shares for shares of
another Deutsche Asset Management mutual fund up to four times a year (from
the date of your first exchange). When you exchange shares, you are selling
shares in one fund to purchase shares in another. Before buying shares
through an exchange, you should be sure to obtain a copy of that fund's
prospectus and read it carefully. You may complete exchanges over the phone
only if your account is authorized to do so. You will receive a written
confirmation of each transaction from the Deutsche Asset Management Service
Center or your service agent.
Please note the following conditions:
. The accounts between which the exchange is taking place must have the same
name, address and taxpayer ID number.
. You may make the exchange by phone, if your account has the exchange by
phone feature, letter or wire.
. If you are maintaining a taxable account, you may have to pay taxes on the
exchange.
Special Shareholder Services
To help make investing with us as easy as possible, and to help you build your
investment, we offer the following special services. You can obtain further
information about these programs by calling the Deutsche Asset Management
Service Center at 1-800-730-1313.
. Regular Investments: You can make regular investments of $100 or more
automatically from you checking account bi-weekly, monthly, quarterly, or
semi-anually.
. Regular Withdrawals: You can arrange regular monthly, quarterly, semi-annual
and annual sales of shares in your account. The minimum transaction is $100,
and the account must have a balance of at least $10,000 to qualify.
<PAGE>
The table below provides a picture of the Fund's financial performance for the
past five years. Certain information selected reflects financial results for a
single Fund share. The total returns in the table represent the rate of return
that an investor would have earned on an investment in the Fund, assuming
reinvestment of all dividends and distributions. This information has been
audited by PricewaterhouseCoopers LLP, whose report, along with the Fund's
financial statements, is included in the Fund's annual report. The annual report
is available free of charge by calling the Deutsche Asset Management Service
Center at 1-800-730-1313.
Financial Highlights
<TABLE>
<CAPTION>
For the Years Ended December 31,
1999 1998 1997 1996 1995
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:/1/
-------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 155.96 $ 124.95 $ 99.06 $ 82.92 $ 62.16
-------------------------------------------------------------------------------------------------------------
Income from Investment Operations
-------------------------------------------------------------------------------------------------------------
Net Investment Income 1.98 1.84 1.81 1.80 1.74
-------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized
Gain on Investment and Futures
Transactions 29.81 33.55 30.59 16.98 21.18
-------------------------------------------------------------------------------------------------------------
Total from Investment Operations 31.79 35.39 32.40 18.78 22.92
-------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
-------------------------------------------------------------------------------------------------------------
Net Investment Income (1.94) (1.84) (1.78) (1.80) (1.74)
-------------------------------------------------------------------------------------------------------------
Net Realized Gains from
Investment and Futures
Transactions -- (2.54) (4.73) (0.84) (0.42)
-------------------------------------------------------------------------------------------------------------
In Excess of Net Realized Gain (2.33) -- -- -- --
-------------------------------------------------------------------------------------------------------------
Total Distributions (4.27) (4.38) (6.51) (2.64) (2.16)
-------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 183.48 $ 155.96 $ 124.95 $ 99.06 $ 82.92
-------------------------------------------------------------------------------------------------------------
Total Investment Return 20.59% 28.57% 33.02% 22.83% 37.15%
-------------------------------------------------------------------------------------------------------------
Supplemental Data and Ratios:
-------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000s
omitted) $1,036,354 $860,584 $637,401 $451,762 $277,140
-------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
-------------------------------------------------------------------------------------------------------------
Net Investment Income 1.18% 1.33% 1.59% 2.05% 2.38%
-------------------------------------------------------------------------------------------------------------
Expenses After Waivers,
Including Expenses of
the Equity 500 Index Portfolio 0.25% 0.25%/2/ 0.25% 0.25% 0.25%
-------------------------------------------------------------------------------------------------------------
Expenses Before Waivers,
Including Expenses of
the Equity 500 Index Portfolio 0.39% 0.43% 0.46% 0.47% 0.48%
-------------------------------------------------------------------------------------------------------------
Decrease Reflected in Above
Expense Ratio Due to Fees
Waivers or Expenses
Reimbursements 0.14% 0.18% 0.21% 0.22% 0.23%
-------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate/3/ 13% 4% 19% 15% 6%
-------------------------------------------------------------------------------------------------------------
</TABLE>
_____________________
/1/ Per share amounts for the years ended December 31, 1995 through December 31,
1997 have been restated to reflect a 1:6 reverse stock split effective September
4, 1997.
/2/ Effective May 6, 1998, the administrator contractually agreed to receive
fees from the portfolio only to the extent of the lesser of 0.005% or the amount
that brings the total annual operating expenses as a percentage of the
portfolio's average daily net assets up to 0.08%.
/3/ The portfolio turnover rate is the rate for the master portfolio in which
the Fund invests its assets.
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<PAGE>
[BACK COVER]
Additional information about each Fund's investments is available in the Fund's
annual and semi-annual reports to shareholders. In the Fund's annual report, you
will find a discussion of the market conditions and investment strategies that
significantly affected the Fund's performance during its last fiscal year.
You can find more detailed information about each Fund in the current Statement
of Additional Information, dated April 30, 2000, which we have filed
electronically with the Securities and Exchange Commission (SEC) and which is
incorporated by reference into this Prospectus. To receive your free copy of the
Statement of Additional Information, the annual or semi-annual report, or if you
have questions about investing in a Fund, write to us at:
Deutsche Asset Management Service Center
P.O. Box 219210
Kansas City, MO 64121-9210
or call our toll-free number:
1-800-730-1313
You can find reports and other information about each Fund on the EDGAR Database
on the SEC website (http://www.sec.gov), or you can get copies of this
information, after payment of a duplicating fee, by electronic request at
[email protected] or by writing to the Public Reference Section of the SEC,
------------------
Washington, D.C. 20549-0102. Information about each Fund, including its
Statement of Additional Information, can be reviewed and copied at the SEC's
Public Reference Room in Washington, D.C. For information on the Public
Reference Room, call the SEC at 202-942-8090.
Equity 500 Index Investment Cusip #055847107
BT Pyramid Mutual Funds 1662PRO (12/00)
811-6576
Distributed by:
ICC Distributors, Inc.
