497K 1 k020117inv_scg.txt DEUTSCHE SMALL CAP GROWTH FUND Deutsche Asset Management [DB Logo] Summary Prospectus | February 1, 2017 Deutsche Small Cap Growth Fund CLASS/Ticker A SSDAX T SSDVX C SSDCX R SSDGX R6 SSDZX INST SSDIX S SSDSX
Before you invest, you may want to review the fund's prospectus, which contains more information about the fund and its risks. You can find the fund's prospectus, Statement of Additional Information (SAI) and other information about the fund online at deutschefunds.com/ mutualpros. You can also get this information at no cost by e-mailing a request to service@db.com, calling (800) 728-3337 or asking your financial advisor. The prospectus and SAI, both dated February 1, 2017, as supplemented, are incorporated by reference into this Summary Prospectus. INVESTMENT OBJECTIVE The fund seeks long-term capital growth. FEES AND EXPENSES OF THE FUND These are the fees and expenses you may pay when you buy and hold shares. You may qualify for sales charge discounts if you and your immediate family invest, or agree to invest in the future, at least $50,000 in Class A shares in Deutsche funds or if you invest at least $250,000 in Class T shares in the fund. More information about these and other discounts and waivers is available from your financial professional and in Choosing a Share Class in the prospectus (p. 40) and Purchase and Redemption of Shares in the fund's SAI (p. II-16). SHAREHOLDER FEES (paid directly from your investment)
A T C R R6 INST S ---------- ---------- --------- ------ ------ ------ ----- Maximum sales charge (load) imposed on purchases, as % of offering price 5.75 2.50 None None None None None ------------------------ ---- ---- -- ------ ------ ------ --- Maximum deferred sales charge (load), as % of redemption proceeds None None 1.00 None None None None ------------------------ ------ ----- ---- ------ ------ ------ --- Account Maintenance Fee (annually, for fund account balances below $10,000 and subject to certain exceptions) $ 20 None $20 None None None $20 ------------------------ ------- ----- ---- ------ ------ ------ ---
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a % of the value of your investment)
A T C R R6 INST S --------- --------- --------- --------- ---------- ---------- ---------- Management fee 0.65 0.65 0.65 0.65 0.65 0.65 0.65 --------------------- ---- ---- ---- ---- ---- ---- ---- Distribution/service (12b-1) fees 0.24 0.25 1.00 0.50 None None None --------------------- ---- ---- ---- ---- ----- ----- ----- Other expenses1 0.48 0.45 0.49 0.54 0.31 0.34 0.51 --------------------- ---- ---- ---- ---- ----- ----- ----- TOTAL ANNUAL FUND OPERATING EXPENSES 1.37 1.35 2.14 1.69 0.96 0.99 1.16 --------------------- ---- ---- ---- ---- ----- ----- ----- Fee waiver/expense reimbursement 0.20 0.18 0.22 0.27 0.04 0.07 0.24 --------------------- ---- ---- ---- ---- ----- ----- ----- TOTAL ANNUAL FUND OPERATING EXPENSES AFTER FEE WAIVER/ EXPENSE REIMBURSEMENT 1.17 1.17 1.92 1.42 0.92 0.92 0.92 --------------------- ---- ---- ---- ---- ----- ----- -----
(1) "Other expenses" for Class T are based on estimated amounts for the current fiscal year. The Advisor has contractually agreed through January 31, 2018 to waive its fees and/or reimburse fund expenses to the extent necessary to maintain the fund's total annual operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest expenses) at ratios no higher than 1.17%, 1.17%, 1.92%, 1.42%, 0.92%, 0.92% and 0.92% for Class A, Class T, Class C, Class R, Class R6, Institutional Class and Class S, respectively. The agreement may only be terminated with the consent of the fund's Board. EXAMPLE This Example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the fund's operating expenses (including one year of capped expenses in each period for each class) remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1
YEARS A T C R R6 INST S ------- -------- -------- -------- -------- -------- -------- -------- 1 $ 687 $ 366 $ 295 $ 145 $ 94 $ 94 $ 94 -- ----- ----- ----- ----- ----- ----- ----- 3 965 650 649 506 302 308 345 -- ----- ----- ----- ----- ----- ----- ----- 5 1,264 954 1,129 892 527 540 615 -- ----- ----- ----- ----- ----- ----- ----- 10 2,110 1,818 2,455 1,975 1,174 1,207 1,388 -- ----- ----- ----- ----- ----- ----- -----
You would pay the following expenses if you did not redeem your shares:
YEARS A T C R R6 INST S ------- -------- -------- -------- -------- -------- -------- -------- 1 $ 687 $ 366 $ 195 $ 145 $ 94 $ 94 $ 94 -- ----- ----- ----- ----- ----- ----- ----- 3 965 650 649 506 302 308 345 -- ----- ----- ----- ----- ----- ----- ----- 5 1,264 954 1,129 892 527 540 615 -- ----- ----- ----- ----- ----- ----- ----- 10 2,110 1,818 2,455 1,975 1,174 1,207 1,388 -- ----- ----- ----- ----- ----- ----- -----
PORTFOLIO TURNOVER The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover may indicate higher transaction costs and may mean higher taxes if you are investing in a taxable account. These costs are not reflected in annual fund operating expenses or in the expense example, and can affect the fund's performance. Portfolio turnover rate for fiscal year 2016: 50%. PRINCIPAL INVESTMENT STRATEGY MAIN INVESTMENTS. Under normal circumstances, the fund invests at least 80% of its assets, determined at the time of purchase, in stocks and other securities with equity characteristics of US smaller capitalization companies. For purposes of this 80% investment limitation, the term assets is defined as net assets, plus the amount of any borrowings for investment purposes, and the small capitalization equity universe is defined as the bottom 20% of the total domestic equity market capitalization (at the time of initial investment), using a minimum market capitalization of $10 million. As of December 31, 2016, companies in which the fund typically invests have a market capitalization range of between $9 million and $10.5 billion. The fund may also invest in other types of equity securities such as preferred stocks or convertible securities. The fund may invest up to 20% of its assets in the stocks of non-US companies, including those in emerging markets, and large capitalization stocks. MANAGEMENT PROCESS. In choosing stocks, portfolio management focuses on individual security selection rather than industry selection. Portfolio management uses an active process that combines financial analysis with company visits to evaluate management and strategies. Company research is significant to the investment process. Portfolio management uses a "bottom-up" approach to picking securities, focusing on stocks that it believes have superior growth prospects and above average intermediate to long-term performance potential. Portfolio management emphasizes individual selection of small company stocks across all economic sectors, early in their growth cycles and which portfolio management believes to have the potential to be the blue chips of the future. Portfolio management generally seeks companies it believes have a leading or dominant position in their niche markets, a high rate of return on invested capital and the ability to finance a major part of future growth from internal sources. Portfolio management also looks for estimated above-average growth in revenues and earnings and a balance sheet that portfolio management believes can support this growth potential with sufficient working capital and manageable levels of debt. Portfolio management follows a disciplined selling process that seeks to lessen risk, and will normally sell a stock when its price reaches portfolio management's expectations, portfolio management believes there is a material change in the company's fundamentals, other investments offer better opportunities or in an effort to readjust the weighted average market capitalization of the fund. SECURITIES LENDING. The fund may lend securities (up to one-third of total assets) to approved institutions. MAIN RISKS There are several risk factors that could hurt the fund's performance, cause you to lose money or cause the fund's performance to trail that of other investments. The fund may not achieve its investment objective, and is not intended to be a complete investment program. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. STOCK MARKET RISK. When stock prices fall, you should expect the value of your investment to fall as well. Stock prices can be hurt by poor management on the part of the stock's issuer, shrinking product demand and other business risks. These may affect single companies as well as groups of companies. In addition, movements in financial markets may adversely affect a stock's price, regardless of how well the company performs. The market as a whole may not favor the types of investments the fund makes, which could affect the fund's ability to sell them at an attractive price. To the extent the fund invests in a particular capitalization or sector, the fund's performance may be affected by the general performance of that particular capitalization or sector. SMALL COMPANY RISK. Small company stocks tend to be more volatile than medium-sized or large company stocks. Because stock analysts are less likely to follow small companies, less information about them is available to 2 Deutsche Small Cap Growth Fund SUMMARY PROSPECTUS February 1, 2017 investors. Industry-wide reversals may have a greater impact on small companies, since they may lack the financial resources of larger companies. Small company stocks are typically less liquid than large company stocks. GROWTH INVESTING RISK. As a category, growth stocks may underperform value stocks (and the stock market as a whole) over any period of time. Because the prices of growth stocks are based largely on the expectation of future earnings, growth stock prices can decline rapidly and significantly in reaction to negative news about such factors as earnings, the economy, political developments, or other news. SECURITY SELECTION RISK. The securities in the fund's portfolio may decline in value. Portfolio management could be wrong in its analysis of industries, companies, economic trends, the relative attractiveness of different securities or other matters. FOREIGN INVESTMENT RISK. The fund faces the risks inherent in foreign investing. Adverse political, economic or social developments could undermine the value of the fund's investments or prevent the fund from realizing the full value of its investments. In June 2016, citizens of the United Kingdom approved a referendum to leave the European Union (EU), creating economic and political uncertainty. Significant uncertainty exists regarding the timing of the United Kingdom's anticipated withdrawal from the EU and the effects such withdrawal may have on the United Kingdom, other EU countries and the global economy. Financial reporting standards for companies based in foreign markets differ from those in the US. Additionally, foreign securities markets generally are smaller and less liquid than US markets. To the extent that the fund invests in non-US dollar denominated foreign securities, changes in currency exchange rates may affect the US dollar value of foreign securities or the income or gain received on these securities. EMERGING MARKETS RISK. Foreign investment risks are greater in emerging markets than in developed markets. Investments in emerging markets are often considered speculative. FOCUS RISK. To the extent that the fund focuses its investments in particular industries, asset classes or sectors of the economy, any market price movements, regulatory or technological changes, or economic conditions affecting companies in those industries, asset classes or sectors may have a significant impact on the fund's performance. SECURITIES LENDING RISK. Any decline in the value of a portfolio security that occurs while the security is out on loan is borne by the fund and will adversely affect performance. Also, there may be delays in recovery of securities loaned or even a loss of rights in the collateral should the borrower of the securities fail financially while holding the security. LIQUIDITY RISK. In certain situations, it may be difficult or impossible to sell an investment and/or the fund may sell certain investments at a price or time that is not advantageous in order to meet redemption requests or other cash needs. Unusual market conditions, such as an unusually high volume of redemptions or other similar conditions could increase liquidity risk for the fund. PRICING RISK. If market conditions make it difficult to value some investments, the fund may value these investments using more subjective methods, such as fair value pricing. In such cases, the value determined for an investment could be different from the value realized upon such investment's sale. As a result, you could pay more than the market value when buying fund shares or receive less than the market value when selling fund shares. OPERATIONAL AND TECHNOLOGY RISK. Cyber-attacks, disruptions, or failures that affect the fund's service providers or counterparties, issuers of securities held by the fund, or other market participants may adversely affect the fund and its shareholders, including by causing losses for the fund or impairing fund operations. PAST PERFORMANCE How a fund's returns vary from year to year can give an idea of its risk; so can comparing fund performance to overall market performance (as measured by an appropriate market index). Past performance may not indicate future results. All performance figures below assume that dividends and distributions were reinvested. For more recent performance figures, go to deutschefunds.com (the Web site does not form a part of this prospectus) or call the phone number included in this prospectus. Class T is a new class of shares and therefore does not have a full calendar year of performance available. For Class T shares, performance is based on the historical performance of Institutional Class shares adjusted to reflect the higher expenses and applicable sales charges of Class T. CALENDAR YEAR TOTAL RETURNS (%) (Class A) These year-by-year returns do not include sales charges, if any, and would be lower if they did. Returns for other classes were different and are not shown here. [BAR GRAPHIC OMITTED HERE] [BAR GRAPHIC DATA] 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 5.63 -50.39 39.93 29.69 2.67 11.08 44.19 2.44 -2.51 8.56
RETURNS PERIOD ENDING BEST QUARTER 25.24% June 30, 2009 WORST QUARTER -32.52% December 31, 2008
3 Deutsche Small Cap Growth Fund SUMMARY PROSPECTUS February 1, 2017 AVERAGE ANNUAL TOTAL RETURNS (For periods ended 12/31/2016 expressed as a %) After-tax returns (which are shown only for Class A and would be different for other classes) reflect the historical highest individual federal income tax rates, but do not reflect any state or local taxes. Your actual after-tax returns may be different. After-tax returns are not relevant to shares held in an IRA, 401(k) or other tax-advantaged investment plan.
CLASS 1 5 10 INCEPTION YEAR YEARS YEARS ------------ --------- ---------- --------- CLASS A before tax 6/28/2002 2.32 10.36 4.80 ------------------------------ ---------- ----- ----- ---- After tax on distribu- tions 2.32 9.16 4.16 After tax on distribu- tions and sale of fund shares 1.31 8.39 3.88 ------------------------------ ---------- ----- ----- ---- CLASS T before tax 2/1/2017 5.80 11.10 5.14 ------------------------------ ---------- ----- ----- ---- CLASS C before tax 6/28/2002 7.76 10.84 4.63 ------------------------------ ---------- ----- ----- ---- INST CLASS before tax 12/20/2004 8.91 12.07 5.79 ------------------------------ ---------- ----- ----- ---- CLASS S before tax 12/20/2004 8.87 11.95 5.68 ------------------------------ ---------- ----- ----- ---- RUSSELL 2000 (Reg. TM) GROWTH INDEX (reflects no deduc- tion for fees, expenses or taxes) 11.32 13.74 7.76 ------------------------------ ---------- ----- ----- ----
CLASS 1 SINCE INCEPTION YEAR INCEPTION ----------- --------- ---------- CLASS R before tax 5/1/2012 8.32 9.74 ------------------------------ --------- ----- ----- RUSSELL 2000 (Reg. TM) GROWTH INDEX (reflects no deduc- tion for fees, expenses or taxes) 11.32 12.16 ------------------------------ --------- ----- ----- CLASS R6 before tax 8/25/2014 8.95 4.03 ------------------------------ --------- ----- ----- RUSSELL 2000 (Reg. TM) GROWTH INDEX (reflects no deduc- tion for fees, expenses or taxes) 11.32 6.62 ------------------------------ --------- ----- -----
MANAGEMENT INVESTMENT ADVISOR Deutsche Investment Management Americas Inc. PORTFOLIO MANAGER(S) JOSEPH AXTELL, CFA, MANAGING DIRECTOR. Portfolio Manager of the fund. Began managing the fund in 2006. RAFAELINA M. LEE, MANAGING DIRECTOR. Portfolio Manager of the fund. Began managing the fund in 2008. PURCHASE AND SALE OF FUND SHARES MINIMUM INITIAL INVESTMENT ($)
AUTOMATIC UGMAS/ INVESTMENT NON-IRA IRAS UTMAS PLANS ----------------- -------------- -------- ------------------ A T C 1,000 500 1,000 500 ------- ----- --- ----- --- R None N/A N/A N/A -- ----- ---- ----- ---- R6 None N/A N/A N/A -- ----- ---- ----- ---- INST 1,000,000 N/A N/A N/A -- --------- ---- ----- ---- S 2,500 1,000 1,000 1,000 -- --------- ----- ----- -----
For participants in all group retirement plans for Class A, T, C and S shares, and in certain fee-based and wrap programs approved by the Advisor for Class A, C and S shares, there is no minimum initial investment and no minimum additional investment. For Section 529 college savings plans, there is no minimum initial investment and no minimum additional investment for Class S shares. In certain instances, the minimum initial investment may be waived for Institutional Class shares. There is no minimum additional investment for Class R, Class R6 and Institutional Class shares. The minimum additional investment in all other instances is $50. TO PLACE ORDERS MAIL New Accounts Deutsche Asset Management PO Box 219356 Kansas City, MO 64121-9356 Additional Investments Deutsche Asset Management PO Box 219154 Kansas City, MO 64121-9154 Exchanges and Deutsche Asset Management Redemptions PO Box 219557 Kansas City, MO 64121-9557 EXPEDITED MAIL Deutsche Asset Management 210 West 10th Street Kansas City, MO 64105-1614 WEB SITE deutschefunds.com TELEPHONE (800) 728-3337, M - F 8 a.m. - 7 p.m. ET TDD LINE (800) 972-3006, M - F 8 a.m. - 7 p.m. ET
The fund is generally open on days when the New York Stock Exchange is open for regular trading. Initial investments must be sent by mail. You can make additional investments or sell shares of the fund on any business day by visiting our Web site, by mail, or by telephone; however you may have to elect certain privileges on your initial account application. If you are working with a financial advisor, contact your financial advisor for assistance with buying or selling fund shares. A financial advisor separately may impose its own policies and procedures for buying and selling fund shares. Class T shares are only available through certain financial intermediaries. Class R and Class R6 shares are generally available only to certain retirement plans, which may have their own policies or instructions for buying and selling fund shares. Institutional Class shares are generally available only to qualified institutions. Class S shares are only available to a limited group of investors. 4 Deutsche Small Cap Growth Fund SUMMARY PROSPECTUS February 1, 2017 TAX INFORMATION The fund's distributions are generally taxable to you as ordinary income or capital gains, except when your investment is in an IRA, 401(k), or other tax-advantaged investment plan. Any withdrawals you make from such tax- advantaged investment plans, however, may be taxable to you. PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES If you purchase the fund through a broker-dealer or other financial intermediary (such as a bank), the fund, the Advisor, and/or the Advisor's affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the fund over another investment. Ask your salesperson or visit your financial intermediary's Web site for more information. No such payments are made with respect to Class R6 shares. To the extent the fund makes such payments with respect to another class of its shares, the expense is borne by the other share class. 5 Deutsche Small Cap Growth Fund SUMMARY PROSPECTUS February 1, 2017 DSCGF-SUM