Supplement to the  currently  effective  Statements  of  Additional  Information
("SAIs") for the fund listed below:

DWS Balanced Fund

--------------------------------------------------------------------------------

The following  information  replaces  information  contained in the  "Investment
Policies and Techniques"  section of the Fund's SAIs, which reflects the removal
of the Fund's current policy limits on its currency exposure to 10% of its total
assets:

Currency  Transactions.  The Fund  may  engage  in  currency  transactions  with
Counterparties  in order to hedge,  or manage the risk of the value of portfolio
holdings  denominated in particular  currencies against fluctuations in relative
value and to enhance return.  Currency  transactions  include  forward  currency
contracts,  exchange listed currency futures, exchange listed and OTC options on
currencies, and currency swaps. A forward currency contract involves a privately
negotiated  obligation to purchase or sell (with delivery generally  required) a
specific  currency at a future date,  which may be any fixed number of days from
the date of the contract agreed upon by the parties,  at a price set at the time
of the contract. A currency swap is an agreement to exchange cash flows based on
the notional  difference among two or more currencies and operates  similarly to
an  interest  rate  swap,  which is  described  below.  The Fund may enter  into
currency transactions with Counterparties which have received (or the guarantors
of the obligations  which have received) a credit rating of A-1 or P-1 by S&P or
Moody's, respectively, or that have an equivalent rating from a NRSRO or (except
for OTC currency  options) are determined to be of equivalent  credit quality by
the Advisor.

The  Fund's   dealings  in  forward   currency   contracts  and  other  currency
transactions such as futures,  options, options on futures and swaps may be used
for enhancing return or for hedging  involving  either specific  transactions or
portfolio  positions except as described below.  Transaction hedging is entering
into a currency  transaction  with respect to specific  assets or liabilities of
the Fund,  which will generally arise in connection with the purchase or sale of
its portfolio securities or the receipt of income therefrom. Position hedging is
entering  into  a  currency  transaction  with  respect  to  portfolio  security
positions denominated or generally quoted in that currency.

The Fund generally will not enter into a transaction to hedge currency  exposure
to an  extent  greater,  after  netting  all  transactions  intended  wholly  or
partially to offset other transactions,  than the aggregate market value (at the
time of entering into the  transaction)  of the securities held in its portfolio
that are denominated or generally  quoted in or currently  convertible into such
currency, other than with respect to proxy hedging or cross hedging as described
below.

The Fund may also  cross-hedge  currencies  by  entering  into  transactions  to
purchase or sell one or more  currencies  that are  expected to decline in value
relative to other  currencies to which the fund has or in which the fund expects
to have portfolio exposure.

To reduce  the  effect of  currency  fluctuations  on the value of  existing  or
anticipated holdings of portfolio securities,  the Fund may also engage in proxy
hedging.  Proxy  hedging  is often  used when the  currency  to which the Fund's
portfolio is exposed is difficult to hedge or to hedge against the dollar. Proxy
hedging  entails  entering into a commitment or option to sell a currency  whose
changes in value are  generally  considered  to be  correlated  to a currency or
currencies in which some or all of the Fund's  portfolio  securities  are or are
expected  to be  denominated,  in  exchange  for US  dollars.  The amount of the
commitment  or  option  would not  exceed  the  value of the  Fund's  securities
denominated in correlated currencies.  Currency transactions involve some of the
same risks and  considerations as other  transactions with similar  instruments.
Currency  transactions  can  result  in  losses  to the  Fund  if  the  currency
fluctuates  in value  to a degree  or in a  direction  that is not  anticipated.
Further,  there  is the risk  that the  perceived  correlation  between  various
currencies may not be present or may not be present  during the particular  time

<PAGE>

that the Fund is engaging in proxy  hedging.  If the Fund enters into a currency
transaction,  the Fund  will  comply  with the  asset  segregation  requirements
described below.

The following  information  supplements the disclosure in the "Management of the
Funds"  section  of  the  Fund's   Statement  of  Additional   Information  upon
shareholder approval of the Sub-Advisory Agreement:

Subadvisor to DWS Balanced Fund

Deutsche Asset Management  International  GmbH ("DeAMi"),  an investment advisor
registered  with  the  US  Securities  and  Exchange  Commission,  will  be  the
subadvisor to the Fund upon shareholder  approval of the sub-advisory  agreement
(the "Sub-Advisory Agreement"). The Sub-Advisory Agreement will be submitted for
approval  by  shareholders  at a  shareholder  meeting  to be held in the  first
quarter of 2008. DeAMi,  Mainzer Landstrasse  178-190,  60325 Frankfurt am Main,
Germany,  will render  investment  advisory and management  services to the Fund
pursuant  to the terms of the  Sub-Advisory  Agreement  between  DeAMi and DIMA.
DeAMi is an affiliate of DIMA and a  subsidiary  of Deutsche  Bank AG. Under the
terms of the  Sub-Advisory  Agreement,  DeAMi  will  manage the  investment  and
reinvestment  of a  portion  of the large cap  value  allocation  of the  Fund's
portfolio and will provide such  investment  advice,  research and assistance as
DIMA may, from time to time, reasonably request.

DIMA will pay a fee to DeAMi for serving as subadvisor to the Fund at the annual
rates shown below:

Assets                                      Sub-Advisory Fee
Managed by DeAMi (in Euros)                 (as a % of average daily net assets)
---------------------------                 ------------------------------------

(euro)0 - (euro)250 million                            0.300%
(euro)250 million - (euro)500 million                  0.200%
(euro)500 million - (euro)1 billion                    0.120%
(euro)1 billion - (euro)2.5 billion                    0.080%
(euro)2.5 billion - (euro)5 billion                    0.055%
(euro)5 billion - (euro)25 billion                     0.035%
(euro)25 billion - (euro)50 billion                    0.025%
over (euro)50 billion                                  0.015%

The Sub-Advisory  Agreement provides that DeAMi will not be liable for any error
of judgment or mistake of law or for any loss suffered by the Fund in connection
with  matters  to  which  the  Sub-Advisory  Agreement  relates,  except  a loss
resulting from willful misconduct,  bad faith or gross negligence on the part of
DeAMi in the  performance  of its duties or from reckless  disregard by DeAMi of
its obligations and duties under the Sub-Advisory Agreement.


               Please Retain This Supplement for Future Reference



January 14, 2008