AMERICAN CENTURY MUTUAL FUNDS, INC.
PROSPECTUS SUPPLEMENT
Select * Heritage * Growth
Ultra * Vista
Investor Class * Institutional Class * Advisor Class
SUPPLEMENT DATED AUGUST 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. Because
this may impact the computer systems of various American Century-affiliated and
external service providers for the funds, American Century formally initiated a
Year 2000 readiness project in July 1997. It involves a team of information
technology professionals assisted by outside consultants and guided by a
senior-level steering committee. The team's goal is to assess the impact of the
Year 2000 on American Century's systems, renovate or replace noncompliant
critical systems and test those systems. In addition, the team has been working
to gather information about the Year 2000 efforts of the funds' other major
service providers. Although American Century believes its critical systems will
function properly in the Year 2000, this is not guaranteed. If the efforts of
American Century or its external service providers are not successful, the
funds' business, particularly its ability to provide shareholder services, may
be hampered.
In addition, the issuers of securities the funds own could have Year 2000
computer problems. These problems could negatively affect the value of their
securities, which, in turn, could impact the funds' performance. The manager has
established a process to gather publicly available information about the Year
2000 readiness of these issuers.
However, this process may not uncover all relevant information, and the
information gathered may not be complete and accurate. Moreover, an issuer's
Year 2000 readiness is only one of many factors the manager may consider when
making investment decisions, and other factors may receive greater weight.
[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-13720 9808
<PAGE>
AMERICAN CENTURY INVESTMENTS
PROSPECTUS SUPPLEMENT
DATED AUGUST 20, 1998
The following disclosure is added to the prospectus under the heading
"Management" following the subsection "Transfer and Administrative Services."
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. Because
this may impact the computer systems of various American Century-affiliated and
external service providers for the funds, American Century formally initiated a
Year 2000 readiness project in July 1997. It involves a team of information
technology professionals assisted by outside consultants and guided by a
senior-level steering committee. The team's goal is to assess the impact of the
Year 2000 on American Century's systems, renovate or replace noncompliant
critical systems and test those systems. In addition, the team has been working
to gather information about the Year 2000 efforts of the funds' other major
service providers. Although American Century believes its critical systems will
function properly in the Year 2000, this is not guaranteed. If the efforts of
American Century or its external service providers are not successful, the
funds' business, particularly its ability to provide shareholder services, may
be hampered.
In addition, the issuers of securities the funds own could have Year 2000
computer problems. These problems could negatively affect the value of their
securities, which, in turn, could impact the funds' performance. The manager has
established a process to gather publicly available information about the Year
2000 readiness of these issuers. However, this process may not uncover all
relevant information, and the information gathered may not be complete and
accurate. Moreover, an issuer's Year 2000 readiness is only one of many factors
the manager may consider when making investment decisions, and other factors may
receive greater weight.
[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-13719 9808
