AMERICAN CENTURY MUTUAL FUNDS, INC.
PROSPECTUS SUPPLEMENT
Select * Heritage * Growth
Ultra * Vista
Investor Class * Institutional Class * Advisor Class
SUPPLEMENT DATED JULY 20, 1998
Prospectus dated March 1, 1998 (revised March 13, 1998)
The following paragraphs are added under the heading "Management" found on page
26 of the Investor Class Prospectus, page 30 of the Institutional Class
Prospectus and page 26 of the Advisor Class Prospectus.
RICHARD S. WELSH, Portfolio Manager, joined American Century in August 1994
as an Equity Research Analyst and was promoted to Investment Analyst in January
1997. In May 1998, he was promoted to Portfolio Manager. Prior to joining
American Century, Mr. Welsh served as Equity Research Analyst for Brown Brothers
Harriman & Company. He is a member of the team that manages Select.
GREGORY J. WOODHAMS, Portfolio Manager, joined American Century in September
1997 as an Investment Analyst. In May 1998, he was promoted to Portfolio
Manager. Prior to joining American Century, Mr. Woodhams served as Vice
President and Director of Equity Research for Texas Commerce Bank, a subsidiary
of Chase Manhattan Bank. He is a member of the team that manages Growth.
The following new section is added after the section "Transfer and
Administrative Services" found on page 28 of the Investor Class Prospectus, page
31 of the Institutional Class Prospectus and page 27 of the Advisor Class
Prospectus.
YEAR 2000 ISSUES
Many of the world's computer systems currently cannot properly recognize or
process date-sensitive information relating to the Year 2000 and beyond. The
funds and the manager depend upon the computer systems of various service
providers, including the transfer agent, for their day-to-day operations.
Inadequate remediation of the Year 2000 problem by these service providers and
others with whom they interact could have an adverse effect on the funds'
operations, including pricing, securities trading and settlement, and the
provision of shareholder services.
The transfer agent, in cooperation with the manager, has assembled a team of
information technology professionals who are taking steps to address Year 2000
issues with respect to its own computers and to obtain satisfactory assurances
that comparable steps are being taken by the funds' and the manager's other
major service providers and vendors. The key phases of the remediation plan
include: an inventory of all internal systems, vendor products and services and
data providers (substantially completed in 1997); an assessment of all systems
for date reliance and the impact of the century rollover on each (substantially
completed with respect to critical systems in early 1998); and the renovation
and testing of affected systems (targeted for completion with respect to
critical systems by the end of 1998). The manager will pay for the remediation
effort with revenues from its management fee, so that the funds will not
directly bear any of the cost.
In light of these remediation efforts, the funds do not anticipate a material
adverse impact on their business or operations. However, there can be no
assurance that the remediation plan will be sufficient and timely or that
interaction with other noncomplying computer systems will not have a material
adverse effect on the funds' business, operations or financial condition.
In addition, the issuers of the securities in which the funds invest may have
Year 2000 computer problems. Although the media and various regulatory agencies
have focused a great deal of attention on the need for issuers to assess and
remediate these problems, their failure to do so could hurt the funds'
performance.
[american century logo(reg.sm)]
American
Century(reg.tm)
P.O. Box 419200
Kansas City, Missouri
64141-6200
1-800-345-2021 or 816-531-5575
SH-SPL-13453 9807
