KEMPER EQUITY FUNDS -- GROWTH STYLE
SUPPLEMENT TO PROSPECTUS
DATED FEBRUARY 1, 1999
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CLASS I SHARES
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KEMPER AGGRESSIVE GROWTH FUND
KEMPER BLUE CHIP FUND
KEMPER GROWTH FUND
KEMPER SMALL CAPITALIZATION EQUITY FUND
KEMPER TECHNOLOGY FUND
KEMPER TOTAL RETURN FUND
KEMPER VALUE+GROWTH FUND
The above funds currently offer four classes of shares to provide investors with
different purchasing options. These are Class A, Class B and Class C shares,
which are described in the funds' prospectus, and Class I shares, which are
described in the prospectus as supplemented hereby. When placing purchase
orders, investors must specify for which class of shares they are ordering.
Class I shares are available for purchase exclusively by the following
categories of institutional investors: (1) tax-exempt retirement plans (Profit
Sharing, 401(k), Money Purchase Pension and Defined Benefit Plans) of Scudder
Kemper Investments, Inc. ("Scudder Kemper") and its affiliates and rollover
accounts from those plans; (2) the following investment advisory clients of
Scudder Kemper and its investment advisory affiliates that invest at least $1
million in a fund: unaffiliated benefit plans, such as qualified retirement
plans (other than individual retirement accounts and self-directed retirement
plans); unaffiliated banks and insurance companies purchasing for their own
accounts; and endowment funds of unaffiliated non-profit organizations; (3)
investment-only accounts for large qualified plans, with at least $50 million in
total plan assets or at least 1000 participants; (4) trust and fiduciary
accounts of trust companies and bank trust departments providing fee-based
advisory services that invest at least $1 million in a fund on behalf of each
trust; and (5) policy holders under Zurich-American Insurance Group's collateral
investment program investing at least $200,000 in a fund; and (6) investment
companies managed by Scudder Kemper that invest primarily in other investment
companies. Class I shares currently are available for purchase only from Kemper
Distributors, Inc. ("KDI"), principal underwriter for the funds, and, in the
case of category 4 above, selected dealers authorized by KDI. Share certificates
are not available for Class I shares.
February 1, 1999
<PAGE>
The primary distinctions among the classes of each fund's shares lie in their
initial and contingent deferred sales charge schedules and in their ongoing
expenses, including asset-based sales charges in the form of Rule 12b-1
distribution fees. Class I shares are offered at net asset value without an
initial sales charge and are not subject to a contingent deferred sales charge
or a Rule 12b-1 distribution fee. Also, there is no administrative services fee
charged to Class I shares. As a result of the relatively lower expenses for
Class I shares, the level of income dividends per share (as a percentage of net
asset value) and, therefore, the overall investment return, typically will be
higher for Class I shares than for Class A, Class B and Class C shares.
The following information supplements the indicated sections of the prospectus.
PAST PERFORMANCE
The charts and tables contained in the accompanying prospectus provide some
indication of the risks of investing in the funds by illustrating how the funds
have performed from year to year, and comparing this information to a broad
measure of market performance. Of course, past performance is not necessarily an
indication of future performance. Additional financial information for those
funds which currently have Class I shares outstanding is set forth below.
Average Annual Total Returns -- Class I shares
For periods ended Inception
December 31, 1998 One Year Life of Class of Class
----------------- -------- ------------- --------
Kemper Blue Chip Fund 15.77% 23.25% 11/22/95
Russell 1000 Index 27.02% 27.16% 11/30/95
The Russell 1000 Index is an unmanaged capitalization weighted price only index
comprised of the largest capitalized U.S. companies whose common stocks are
traded in the United States. This large capitalization market oriented index is
highly correlated with the S&P 500 Stock Index.
For periods ended Inception
December 31, 1998 One Year Life of Class of Class
----------------- -------- ------------- --------
Kemper Growth Fund 14.68% 17.93% 7/3/95
Kemper Technology Fund 43.91% 22.79% 7/3/95
Kemper Total Return Fund 16.79% 17.85% 7/3/95
Russell 1000 Growth Index 38.71% 30.54% 6/30/95
The Russell 1000 Growth Index is an unmanaged index comprised of common stocks
of larger U.S. companies with greater than average growth
<PAGE>
orientation and represents the universe of stocks from which "earnings/growth"
money managers typically select.
For periods ended Inception
December 31, 1998 One Year Life of Class of Class
----------------- -------- ------------- --------
Kemper Small (2.62)% 13.00% 7/3/95
Capitalization Equity Fund
Russell 2000 Index (2.55)% 11.67% 8/31/95
The Russell 2000 Index is an unmanaged capitalization weighted price only index
which is comprised of 2000 of the smallest stocks (on the basis of
capitalization) in the Russell 3000 Index.
EXPENSE INFORMATION
This information is designed to help you understand the fees and expenses that
you may pay if you buy and hold shares of the funds.
Shareholder fees: Fees paid directly from your investment.
<TABLE>
<CAPTION>
Maximum
Sales Maximum
Charge Deferred
(Load) Sales Maximum Sales
Imposed on Charge Charge (Load)
Purchases (Load) (as Imposed on
(as a % of a % of Reinvested
offering redemption Dividends/ Redemption Exchange
price) proceeds) Distributions Fee Fee
------ --------- ------------- --- ---
<S> <C> <C> <C> <C> <C>
Kemper Aggressive None None None None None
Growth Fund
Kemper Blue Chip None None None None None
Fund
Kemper Growth Fund None None None None None
Kemper Small None None None None None
Capitalization
Equity Fund
Kemper Technology None None None None None
Fund
Kemper Total Return None None None None None
Fund
Kemper Value+Growth None None None None None
Fund
</TABLE>
<PAGE>
Annual fund operating expenses: Expenses that are deducted from fund assets.
<TABLE>
<CAPTION>
Total
Annual
Fund
Management Distribution Other Operating
Fee (12b-1) Fees Expenses* Expenses*
--- ------------ --------- ---------
<S> <C> <C> <C> <C>
Kemper Aggressive Growth Fund 0.65% None 0.24% 0.89%
Kemper Blue Chip Fund 0.56% None 0.12% 0.68%
Kemper Growth Fund 0.54% None 0.11% 0.65%
Kemper Small Capitalization 0.36% None 0.12% 0.48%
Equity Fund
Kemper Technology Fund 0.55% None 0.12% 0.57%
Kemper Total Return Fund 0.53% None 0.11% 0.64%
Kemper Value+Growth Fund 0.72% None 0.18% 0.90%
</TABLE>
* Estimated for Kemper Aggressive Growth Fund and Kemper Value+Growth
Fund since no Class I shares were issued as of their most recent fiscal
year ends.
Example
This example is to help you compare the cost of investing in a 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 example
is hypothetical: actual fund expenses and returns vary from year to year, and
may be higher or lower than those shown.
Fees and expenses if you sold shares after:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Kemper Aggressive Growth Fund $91 $284 $493 $1,096
Kemper Blue Chip Fund $69 $218 $379 $847
Kemper Growth Fund $66 $208 $362 $810
Kemper Small Capitalization $49 $154 $269 $604
Equity Fund
Kemper Technology Fund $68 $214 $373 $835
Kemper Total Return Fund $65 $205 $357 $798
Kemper Value+Growth Fund $92 $287 $498 $1,107
<PAGE>
FINANCIAL HIGHLIGHTS
No financial information is presented for Class I shares of Kemper Aggressive
Growth Fund and Kemper Value+Growth Fund since no Class I shares were issued as
of the respective fiscal years of the funds.
Kemper Blue Chip Fund
November
22, 1995 to
Year ended October 31, October 31,
CLASS I 1998 1997 1996
- -----------------------------------------------------------------------------
Per share operating performance
Net asset value, beginning of period $17.72 17.18 15.30
- ------------------------------------------------------------------------------
Income from investment operations:
Net investment income .21 .32 .36
- -----------------------------------------------------------------------------
Net realized and unrealized gain 1.19 3.58 2.96
- -----------------------------------------------------------------------------
Total from investment operations 1.40 3.90 3.32
- -----------------------------------------------------------------------------
Less dividends:
Distribution from net investment .25 .23 .24
income
- -----------------------------------------------------------------------------
Distribution from net realized 2.19 3.13 1.20
gain
- -----------------------------------------------------------------------------
Total dividends 2.44 3.36 1.44
- -----------------------------------------------------------------------------
Net asset value, end of period $16.68 17.72 17.18
- -----------------------------------------------------------------------------
Total return (not annualized) 8.53% 26.89 21.89
- -----------------------------------------------------------------------------
Ratios to average net assets (annualized)
Expenses .68% .70 1.31
- -----------------------------------------------------------------------------
Net investment income 1.23% 1.56 1.33
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
Kemper Growth Fund
July 3 to
Year ended September 30, Sept. 30,
CLASS I 1998 1997 1996 1995
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period $15.60 17.26 16.09 14.80
- -------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .05 .08 .19 .03
- -------------------------------------------------------------------------------------
Net realized and unrealized gain (1.68) 2.61 2.74 1.26
(loss)
- -------------------------------------------------------------------------------------
Total from investment operations (1.63) 2.69 2.93 1.29
- -------------------------------------------------------------------------------------
Less dividends:
Distribution from net investment -- -- .08 --
income
- -------------------------------------------------------------------------------------
Distribution from net realized gain 2.09 4.35 1.68 --
- -------------------------------------------------------------------------------------
Total dividends 2.09 4.35 1.76 --
- -------------------------------------------------------------------------------------
Net asset value, end of period $11.88 15.60 17.26 16.09
- -------------------------------------------------------------------------------------
Total return (not annualized) (11.45)% 20.51 20.19 8.72
- -------------------------------------------------------------------------------------
Ratios to average net assets (annualized)
Expenses .65% .70 .64 .59
- -------------------------------------------------------------------------------------
Net investment income .30% .43 1.08 .92
- -------------------------------------------------------------------------------------
<PAGE>
Kemper Small Capitalization Equity Fund
July 3 to
Year ended September 30, Sept. 30,
CLASS I 1998 1997 1996 1995
- -------------------------------------------------------------------------------------
Per share operating performance
Net asset value, beginning of $8.07 7.05 7.15 6.27
period
- -------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income -- .01 .01 --
- -------------------------------------------------------------------------------------
Net realized and unrealized (1.87) 1.58 .94 .88
gain (loss)
- -------------------------------------------------------------------------------------
Total from investment (1.87) 1.59 .95 .88
operations
- -------------------------------------------------------------------------------------
Less distribution from net .81 .57 1.05 --
realized gain
- -------------------------------------------------------------------------------------
Net asset value, end of period $5.39 8.07 7.05 7.15
- -------------------------------------------------------------------------------------
Total return (not annualized) (24.82)% 24.89 16.76 14.04
- -------------------------------------------------------------------------------------
Ratios to average net assets
(annualized)
Expenses .48% .53 .66 .79
- -------------------------------------------------------------------------------------
Net investment income (loss) .04% .17 .16 (.14)
- -------------------------------------------------------------------------------------
Kemper Technology Fund
July 3 to
Year ended October 31, October 31,
CLASS I 1998 1997 1996 1995
- -------------------------------------------------------------------------------------
Per share operating performance
Net asset value, beginning of $13.19 13.20 14.64 12.72
period
- -------------------------------------------------------------------------------------
Income from investment operations:
Net investment loss (.02) (.04) (.07) (.02)
- -------------------------------------------------------------------------------------
Net realized and unrealized gain .83 2.14 .76 1.94
- -------------------------------------------------------------------------------------
Total from investment operations .81 2.10 .69 1.92
- -------------------------------------------------------------------------------------
Less distribution from net realized 2.14 2.11 2.13 --
gain
- -------------------------------------------------------------------------------------
Net asset value, end of period $11.86 13.19 13.20 14.64
- -------------------------------------------------------------------------------------
Total return (not annualized) 8.44% 17.23 8.06 15.09
- -------------------------------------------------------------------------------------
Ratios to average net assets
(annualized)
Expenses .67% .74 .76 .65
- -------------------------------------------------------------------------------------
Net investment loss (.12)% (.27) (.49) (.33)
- -------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Kemper Total Return Fund
July 3 to
Year ended October 31, October 31,
CLASS I 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period $11.33 11.27 10.61 10.07
- ------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income .34 .36 .32 .10
- ------------------------------------------------------------------------------------------------
Net realized and unrealized .77 1.55 1.23 .52
gain (loss)
- ------------------------------------------------------------------------------------------------
Total from investment 1.11 1.91 1.55 .62
operations
- ------------------------------------------------------------------------------------------------
Less dividends:
Distribution from net investment income .35 .36 .39 .08
- ------------------------------------------------------------------------------------------------
Distribution from net realized gain 1.55 1.49 .50 --
- ------------------------------------------------------------------------------------------------
Total dividends 1.90 1.85 .89 .08
- ------------------------------------------------------------------------------------------------
Net asset value, end of period $10.54 11.33 11.27 10.61
- ------------------------------------------------------------------------------------------------
Total return (not annualized) 10.98% 19.40 15.64 6.21
- ------------------------------------------------------------------------------------------------
Ratios to average net assets (annualized)
Expenses .64% .71 .72 .61
- ------------------------------------------------------------------------------------------------
Net investment income 3.12% 3.22 3.09 2.97
- ------------------------------------------------------------------------------------------------
</TABLE>
SPECIAL FEATURES
Shareholders of a fund's Class I shares may exchange their shares for (i) shares
of Zurich Money Funds -- Zurich Money Market Fund if the shareholders of Class I
shares have purchased shares because they are participants in tax-exempt
retirement plans of Scudder Kemper and its affiliates and (ii) Class I shares of
any other "Kemper Mutual Fund" listed in the prospectus. Conversely,
shareholders of Zurich Money Funds -- Zurich Money Market Fund who have
purchased shares because they are participants in tax-exempt retirement plans of
Scudder Kemper and its affiliates may exchange their shares for Class I shares
of "Kemper Mutual Funds" to the extent that they are available through their
plan. Exchanges will be made at the relative net asset values of the shares.
Exchanges are subject to the limitations set forth in the prospectus.
