AMERICAN CENTURY CALIFORNIA TAX FREE & MUNICIPAL FUNDS, 497K2, 1999-02-03

AMERICAN CENTURY CALIFORNIA TAX FREE & MUNICIPAL FUNDS
497K2, 1999-02-03

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FUND PROFILE

California Tax-Free Money Market

INVESTOR CLASS

January 31, 1999

[american century logo(reg.sm)]
American
Century

- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included
in the fund's Prospectus. The fund's Prospectus has additional
information about the fund, including a more detailed description of
the risks associated with investing in the fund, that you may want
to consider before you invest. You may obtain the Prospectus and other
information about the fund at no cost by calling us at 1-800-345-2021,
accessing our Web site or visiting one of our Investor Centers.
See the back cover for additional telephone numbers and our address.

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

CALIFORNIA TAX-FREE MONEY MARKET

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

California Tax-Free Money Market seeks safety of principal and high
current income that is exempt from federal and California income taxes.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund managers buy high-quality, cash-equivalent securities with
income payments exempt from federal and California income taxes. Cities,
counties and other municipalities in California usually issue these
securities for public projects.

The fund managers also may buy some high-quality, cash-equivalent
securities whose payments are exempt from federal and California income
taxes, but not the federal alternative minimum tax. Cities, counties and
other municipalities in California usually issue these securities (called
private activity bonds) to fund for-profit private projects, such as
hospitals and athletic stadiums. No more than 20% of the fund's total
assets may be invested in these securities.

Additional information about California Tax-Free Money Market's
investments is available in its annual and semiannual reports. In these
reports you will find a discussion of the market conditions and investment
strategies that significantly affected the fund's performance during the
most recent fiscal period. You may get these reports at no cost by calling
us.

3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?

*An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency. Although the fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
the fund.

*Because cash-equivalent securities are among the safest securities
available, the interest they pay is among the lowest for income-paying
securities. Accordingly, the yield on this fund will likely be lower than
funds that invest in longer-term or lower-quality securities.

*Some of the fund's income may be subject to the federal alternative
minimum tax.

*Because the fund invests primarily in California municipal securities, it
will be sensitive to events that affect California's economy. California
Tax-Free Money Market may have a higher level of risk than funds that
invest in a larger universe of securities.

FUND PERFORMANCE

The following bar chart shows the actual performance of California
Tax-Free Money Market's shares for each of the last 10 calendar years. The
bar chart indicates the volatility of the fund's historical returns from
year to year. Neither the bar chart nor the performance information below
it is intended to indicate how the fund will perform in the future.

[bar chart]
<TABLE>
CALENDAR YEAR-BY-YEAR RETURNS
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
California Tax-Free Money Market 5.71 5.16 3.81 2.49 2.03 2.42 3.41 3.07 3.19 2.95
</TABLE>

CALIFORNIA TAX-FREE MONEY MARKET AMERICAN CENTURY INVESTMENTS

[bar chart]
HIGHEST AND LOWEST QUARTERLY RETURNS
Quarter Ended 6/30/89 1.52%
Quarter Ended 3/31/94 0.44%

The following table shows the average annual returns of the fund's
shares for the periods indicated. The Lipper California Tax-Exempt Money
Market Average, an unmanaged index that reflects no operating costs, is
included as a benchmark for performance comparisons.

1 YEAR 5 YEARS 10 YEARS LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
California Tax-Free
Money Market 2.95% 3.01% 3.42% 3.79%
Lipper California Tax-Exempt
Money Market Average 2.72% 2.89% 3.39% 3.91%

For current performance information, including yields, please call us or
access our Web site.

4. WHAT ARE THE FUND'S FEES AND EXPENSES?

There are no sales loads, fees or other charges to buy fund shares
directly from American Century, to reinvest dividends in additional shares,
to exchange into the Investor Class shares of other American Century funds,
or to redeem your shares. The following table describes the fees and
expenses that you may pay if you buy and hold shares of the fund.

ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 0.50%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.50%

(1)Based on expenses incurred during the fund's most recent fiscal year.
The fund has a stepped fee schedule. As a result, the fund's management
fee generally decreases as fund assets increase.

(2)Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.

EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same fund operating expenses shown above
. . . your cost of investing in the fund would be:

1 year 3 years 5 years 10 years
------------------------------------------------
$51 $160 $279 $627

Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.

5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGER?

American Century Investment Management, Inc. provides investment
advisory and management services for the fund. American Century uses teams
of portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio manager on the
California Tax-Free Money Market team is identified below:

TODD PARDULA, Portfolio Manager, has been a member of the California
Tax-Free Money Market team since May 1994. He joined American Century in
1990. He has a bachelor's degree in finance from Santa Clara University and
is a Chartered Financial Analyst.

6. HOW DO I BUY FUND SHARES?

* Complete and return the enclosed application

* Call us and exchange shares from another American Century fund

* Call us and send your investment by bank wire transfer

Your initial investment must be at least $2,500. If the value of your
account falls below this account minimum, your shares may be redeemed
involuntarily.

FUND PROFILE CALIFORNIA TAX-FREE MONEY MARKET

7. HOW DO I SELL FUND SHARES?

You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in California
Tax-Free Money Market for shares in nearly 70 other mutual funds offered by
American Century. Depending on the options you select when you open your
account, some restrictions may apply. For your protection, some redemption
requests require a signature guarantee.

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

Dividends are declared and available for redemption daily. Distributions
will generally be exempt from federal and California income taxes. Some of
the fund's income may, however, be subject to the federal alternative
minimum tax. Consult your tax advisor for information about whether you are
subject to the federal alternative minimum tax. Distributions are
reinvested automatically in additional shares unless you choose another
option.

9. WHAT SERVICES ARE AVAILABLE?

American Century offers several ways to make it easier for you to manage
your account, such as:

* telephone transactions

* wire and electronic funds transfers

* 24-hour Automated Information Line transactions

* 24-hour online Internet account access and transactions

You will find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.

Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or through a financial intermediary.

If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call a Service Representative at 1-800-345-3533.

- --------------------------------------------------------------------------------
[american century logo(reg.sm)]
American
Century

AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200

WWW.AMERICANcentury.coM

INVESTOR SERVICES
1-800-345-2021 or 816-531-5575

AUTOMATED INFORMATION LINE
1-800-345-8765

CORPORATE; NOT-FOR-PROFIT; FOUNDATIONS;
ENDOWMENTS; KEOGH; SEP-, SARSEP- AND
SIMPLE-IRA; AND 403(B) SERVICES
1-800-345-3533

TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485

FAX
816-340-7962

Funds Distributor, Inc.

SH-PRF-14145 9901
<PAGE>
FUND PROFILE

California Municipal Money Market

INVESTOR CLASS

January 31, 1999

[american century logo(reg.sm)]
American
Century

- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included
in the fund's Prospectus. The fund's Prospectus has additional
information about the fund, including a more detailed description of the
risks associated with investing in the fund, that you may want
to consider before you invest. You may obtain the Prospectus and other
information about the fund at no cost by calling us at 1-800-345-2021,
accessing our Web site or visiting one of our Investor Centers.
See the back cover for additional telephone numbers and our address.

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

CALIFORNIA MUNICIPAL MONEY MARKET

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

California Municipal Money Market seeks safety of principal and high
current income that is exempt from federal and California income taxes.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund managers also may buy high-quality, cash- equivalent securities
whose payments are exempt from federal and California income taxes, but not
the federal alternative minimum tax. Cities, counties and other
municipalities in California usually issue these securities (called private
activity bonds) to fund for-profit private projects, such as hospitals and
athletic stadiums.

Additional information about California Municipal Money Market's
investments is available in its annual and semiannual reports. In these
reports you will find a discussion of the market conditions and investment
strategies that significantly affected the fund's performance during the
most recent fiscal period. You may get these reports at no cost by calling
us.

3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?

*Some or all of the fund's income may be subject to the federal alternative
minimum tax.

*Because the fund invests primarily in California municipal securities, it
will be sensitive to events that affect California's economy. California
Municipal Money Market may have a higher level of risk than funds that
invest in a larger universe of securities.

FUND PERFORMANCE

The following bar chart shows the actual performance of California
Municipal Money Market's shares for each calendar year since the fund's
inception on December 31, 1990. The bar chart indicates the volatility of
the fund's historical returns from year to year. Neither the bar chart nor
the performance information below it is intended to indicate how the fund
will perform in the future.

[bar chart]
<TABLE>
CALENDAR YEAR-BY-YEAR RETURNS
1991 1992 1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C>
California Municipal Money Market 4.61 2.95 2.09 2.47 3.49 3.10 3.23 3.05
</TABLE>

California Municipal Money Market American Century Investments

[bar chart]
HIGHEST AND LOWEST QUARTERLY RETURNS
Quarter Ended 9/30/91 1.18%
Quarter Ended 3/31/94 0.47%

1 YEAR 5 YEARS LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
California Municipal
Money Market 3.05% 3.07% 3.12%
Lipper California Tax-Exempt
Money Market Average 2.72% 2.89% 2.89%

For current performance information, including yields, please call us or
access our Web site.

4. WHAT ARE THE FUND'S FEES AND EXPENSES?

(1)Based on expenses incurred during the fund's most recent fiscal year.
The fund has a stepped fee schedule. As a result, the fund's management
fee generally decreases as fund assets increase.

EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn 5% return each year
* incur the same operating expenses shown above
. . . your cost of investing in the fund would be:

1 year 3 years 5 years 10 years
-----------------------------------------------
$51 $160 $279 $627

Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.

5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGER?

TODD PARDULA, Portfolio Manager, has been a member of the California
Municipal Money Market team since May 1994. He joined American Century in
1990. He has a bachelor's degree in finance from Santa Clara University and
is a Chartered Financial Analyst.

6. HOW DO I BUY FUND SHARES?

* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer

Your initial investment must be at least $2,500. If the value of your
account falls below this account minimum, your shares may be redeemed
involuntarily.

Fund Profile California Municipal Money Market

7. HOW DO I SELL FUND SHARES?

You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in California
Municipal Money Market for shares in nearly 70 other mutual funds offered
by American Century. Depending on the options you select when you open your
account, some restrictions may apply. For your protection, some redemption
requests require a signature guarantee.

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

Dividends are declared and available for redemption daily. Distributions
will generally be exempt from federal and California income taxes. Some or
all of the fund's income may, however, be subject to the federal
alternative minimum tax. Consult your tax advisor for information about
whether you are subject to the federal alternative minimum tax.
Distributions are reinvested automatically in additional shares unless you
choose another option.

9. WHAT SERVICES ARE AVAILABLE?

American Century offers several ways to make it easier for you to manage
your account, such as:

* telephone transactions

* wire and electronic funds transfers

* 24-hour Automated Information Line transactions

* 24-hour online Internet account access and transactions

You will find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.

- --------------------------------------------------------------------------------
[american century logo(reg.sm)]
American
Century

AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200

WWW.AMERICANCENTURY.COM

INVESTOR SERVICES
1-800-345-2021 or 816-531-5575

AUTOMATED INFORMATION LINE
1-800-345-8765

CORPORATE; NOT-FOR-PROFIT; FOUNDATIONS;
ENDOWMENTS; KEOGH; SEP-, SARSEP- AND
SIMPLE-IRA; AND 403(B) SERVICES
1-800-345-3533

TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485

FAX
816-340-7962

Funds Distributor, Inc.

SH-PRF-14146 9901
<PAGE>
FUND PROFILE

California Limited-Term Tax-Free

INVESTOR CLASS

January 31, 1999

[american century logo(reg.sm)]
American
Century

- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included
in the fund's Prospectus. The fund's Prospectus has additional
information about the fund, including a more detailed description of the
risks associated with investing in the fund, that you may want
to consider before you invest. You may obtain the Prospectus and other
information about the fund at no cost by calling us at 1-800-345-2021,
accessing our Web site or visiting one of our Investor Centers.
See the back cover for additional telephone numbers and our address.

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

CALIFORNIA LIMITED-TERM TAX-FREE

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

California Limited-Term Tax-Free seeks safety of principal and high
current income that is exempt from federal and California income taxes.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund managers buy quality, short-term debt securities with income
payments exempt from federal and California income taxes. Cities, counties
and other municipalities in California usually issue these securities for
public projects.

The fund managers also may buy some quality, short-term debt securities
whose payments are exempt from federal and California income taxes, but not
the federal alternative minimum tax. Cities, counties and other
municipalities in California usually issue these securities (called private
activity bonds) to fund for-profit private projects, such as hospitals and
athletic stadiums. No more than 20% of the fund's total assets may be
invested in these securities.

The fund may also use futures contracts and options to pursue its
investment objective.

During unusual market conditions, the fund is permitted to keep a
significant amount of its assets in cash or cash-equivalents. If it does,
it may not achieve its investment objective and may generate taxable
income.

The weighted average maturity of the fund is expected to be five years
or less.

Additional information about California Limited-Term Tax-Free's
investments is available in its annual and semiannual reports. In these
reports you will find a discussion of the market conditions and investment
strategies that significantly affected the fund's performance during the
most recent fiscal period. You may get these reports at no cost by calling
us.

3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?

*When interest rates change, the fund's share value will be affected.
Generally, when interest rates rise, the fund's share value will decline.
The opposite is true when interest rates decline. The interest rate risk
for California Limited-Term Tax-Free is higher than for funds that have
shorter weighted average maturities, such as money market funds.

*The fund may invest in securities rated in the lowest investment grade
category (e.g., Baa or BBB). The issuers of these securities are more
likely to have problems making interest and principal payments.

*Some of the fund's income may be subject to the federal alternative
minimum tax.

*Because the fund invests primarily in California municipal securities, it
will be sensitive to events that affect California's economy. California
Limited-Term Tax-Free may have a higher level of risk than funds that
invest in a larger universe of securities.

*As with all funds, at any given time the value of your shares of
California Limited-Term Tax-Free may be worth more or less than the price
you paid. If you sell your shares when the value is less than the price you
paid, you will lose money.

*An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.

In summary, California Limited-Term Tax-Free is intended for investors
who seek safety of principal and high current income that is exempt from
federal and California income taxes through a municipal securities fund,
and who are willing to accept the risks associated with the fund's
investment strategy.

California Limited-Term Tax-Free American Century Investments

FUND PERFORMANCE

The following bar chart shows the actual performance of California
Limited-Term Tax-Free's shares for each calendar year since the fund's
inception on June 1, 1992. The bar chart indicates the volatility of the
fund's historical returns from year to year. Neither the bar chart nor the
performance information below it is intended to indicate how the fund will
perform in the future.

[bar chart]
CALENDAR YEAR-BY-YEAR RETURNS
1993 1994 1995 1996 1997 1998
California Limited-Term Tax-Free 5.92 -0.61 8.32 3.93 5.34 4.91

[bar chart]
HIGHEST AND LOWEST QUARTERLY RETURNS
Quarter Ended 3/31/95 2.99%
Quarter Ended 3/31/94 -1.35%

The following table shows the average annual returns of the fund's
shares for the periods indicated. The Lehman 3-Year Municipal Bond Index,
an unmanaged index that reflects no operating costs, is included as a
benchmark for performance comparisons.

1 YEAR 5 YEARS LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
California Limited-Term
Tax-Free 4.91% 4.34% 4.83%
Lehman 3-Year
Municipal Bond Index 4.70% 4.80% 5.28%

4. WHAT ARE THE FUND'S FEES AND EXPENSES?

ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 0.51%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.01%
Total Annual Fund Operating Expenses 0.52%

(1)Based on expenses incurred during the fund's most recent fiscal year.
The fund has a stepped fee schedule. As a result, the fund's management
fee generally decreases as fund assets increase.

(2)Other expenses include the fees and expenses of the fund's
independent trustees, their legal counsel, interest and extraordinary
expenses.

1 year 3 years 5 years 10 years
------------------------------------------------
$53 $167 $290 $652

Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.

5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGER?

Fund Profile California Limited-Term Tax-Free

JOEL SILVA, Senior Portfolio Manager, has been a member of the
California Limited-Term Tax-Free team since June 1993. He joined American
Century in 1989. He has a bachelor's degree from California Polytechnic
University and an MBA from California State University, Hayward.

6. HOW DO I BUY FUND SHARES?

* Complete and return the enclosed application

* Call us and exchange shares from another American Century fund

* Call us and send your investment by bank wire transfer

Your initial investment must be at least $5,000. If the value of your
account falls below this account minimum, your shares may be redeemed
involuntarily.

7. HOW DO I SELL FUND SHARES?

You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in California
Limited-Term Tax-Free for shares in nearly 70 other mutual funds offered by
American Century. Depending on the options you select when you open your
account, some restrictions may apply. For your protection, some redemption
requests require a signature guarantee.

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

California Limited-Term Tax-Free pays distributions of substantially all
of its income monthly. Distributions will generally be exempt from federal
and California income taxes. Some of the fund's income may, however, be
subject to the federal alternative minimum tax. Consult your tax advisor
for information about whether you are subject to the federal alternative
minimum tax. Distributions are reinvested automatically in additional
shares unless you choose another option.

9. WHAT SERVICES ARE AVAILABLE?

American Century offers several ways to make it easier for you to manage
your account, such as:

* telephone transactions

* wire and electronic funds transfers

* 24-hour Automated Information Line transactions

* 24-hour online Internet account access and transactions

You will find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.

- --------------------------------------------------------------------------------
[american century logo(reg.sm)]
American
Century

AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200

WWW.AMERICANCENTURY.COM

INVESTOR SERVICES
1-800-345-2021 or 816-531-5575

AUTOMATED INFORMATION LINE
1-800-345-8765

CORPORATE; NOT-FOR-PROFIT; FOUNDATIONS;
ENDOWMENTS; KEOGH; SEP-, SARSEP- AND
SIMPLE-IRA; AND 403(B) SERVICES
1-800-345-3533

TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485

FAX
816-340-7962

Funds Distributor, Inc.

SH-PRF-14147 9901
<PAGE>
FUND PROFILE

California Intermediate-Term Tax-Free

INVESTOR CLASS

January 31, 1999

[american century logo(reg.sm)]
American
Century

- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included
in the fund's Prospectus. The fund's Prospectus has additional
information about the fund, including a more detailed description of the
risks associated with investing in the fund, that you may want
to consider before you invest. You may obtain the Prospectus and other
information about the fund at no cost by calling us at 1-800-345-2021,
accessing our Web site or visiting one of our Investor Centers.
See the back cover for additional telephone numbers and our address.

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

CALIFORNIA INTERMEDIATE-TERM TAX-FREE

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

California Intermediate-Term Tax-Free seeks safety of principal and high
current income that is exempt from federal and California income taxes.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund managers buy quality, intermediate-term debt securities with
income payments exempt from federal and California income taxes. Cities,
counties and other municipalities in California usually issue these
securities for public projects.

The fund managers also may buy some quality, intermediate-term debt
securities whose payments are exempt from federal and California income
taxes, but not the federal alternative minimum tax. Cities, counties and
other municipalities in California usually issue these securities (called
private activity bonds) to fund for-profit private projects, such as
hospitals and athletic stadiums. No more than 20% of the fund's total
assets may be invested in these securities.

The fund may also use futures contracts and options to pursue its
investment objective.

During unusual market conditions, the fund is permitted to keep a
significant amount of its assets in cash or cash- equivalents. If it does,
it may not achieve its investment objective and may generate taxable
income.

The weighted average maturity of the fund is expected to be between five
and 10 years.

Additional information about California Intermediate-Term Tax-Free's
investments is available in its annual and semiannual reports. In these
reports you will find a discussion of the market conditions and investment
strategies that significantly affected the fund's performance during the
most recent fiscal period. You may get these reports at no cost by calling
us.

3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?

*When interest rates change, the fund's share value will be affected.
Generally, when interest rates rise, the fund's share value will decline.
The opposite is true when interest rates decline. The interest rate risk
for California Intermediate-Term Tax-Free is higher than for funds that
have shorter weighted average maturities, such as money market and
short-term bond funds.

*Some of the fund's income may be subject to the federal alternative
minimum tax.

*Because the fund invests primarily in California municipal securities, it
will be sensitive to events that affect California's economy. California
Intermediate-Term Tax-Free may have a higher level of risk than funds that
invest in a larger universe of securities.

*As with all funds, at any given time the value of your shares of
California Intermediate-Term Tax-Free may be worth more or less than the
price you paid. If you sell your shares when the value is less than the
price you paid, you will lose money.

*An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.

In summary, California Intermediate-Term Tax-Free is intended for
investors who seek safety of principal and high current income that is
exempt from federal and California income taxes through a municipal
securities fund, and who are willing to accept the risks associated with
the fund's investment strategy.

California Intermediate-Term Tax-Free American Century Investments

FUND PERFORMANCE

The following bar chart shows the actual performance of California
Intermediate-Term Tax-Free's shares for each of the last 10 calendar years.
The bar chart indicates the volatility of the fund's historical returns
from year to year. Neither the bar chart nor the performance information
below it is intended to indicate how the fund will perform in the future.

[bar chart]
<TABLE>
CALENDAR YEAR-BY-YEAR RETURNS
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
California Intermediate-Term Tax-Free 7.94 6.99 10.38 7.09 10.69 -3.72 13.52 4.25 7.45 5.59
</TABLE>

The highest and lowest returns of the fund's shares for a calendar
quarter during the period reflected by the preceding bar chart are provided
in the following chart to indicate the fund's historical short-term
volatility. Shareholders should be aware, however, that California
Intermediate-Term Tax-Free is intended for investors with a long-term
investment horizon and is not managed for short-term results.

[bar chart]
HIGHEST AND LOWEST QUARTERLY RETURNS
Quarter Ended 3/31/95 5.25%
Quarter Ended 3/31/94 -3.98%

The following table shows the average annual returns of the fund's
shares for the periods indicated. The Lehman 5-Year General Obligation Bond
Index, an unmanaged index that reflects no operating costs, is included as
a benchmark for performance comparisons.

1 YEAR 5 YEARS 10 YEARS LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
California Intermediate-Term
Tax-Free 5.59% 5.27% 6.92% 6.91%
Lehman 5-Year General
Obligation Bond Index 5.84% 5.35% 6.98% 7.53%

4. WHAT ARE THE FUND'S FEES AND EXPENSES?

ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 0.51%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.51%

(1)Based on expenses incurred during the fund's most recent fiscal year.
The fund has a stepped fee schedule. As a result, the fund's management
fee generally decreases as fund assets increase.

1 year 3 years 5 years 10 years
----------------------------------------------
$52 $163 $285 $640

Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.

Fund Profile California Intermediate-Term Tax-Free

5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGER?

COLLEEN M. DENZLER, Senior Portfolio Manager, has been a member of the
California Intermediate-Term Tax-Free team since January 1996. Prior to
joining American Century, she was a Portfolio Manager with Calvert Group
for 10 years, specializing in state tax-exempt portfolios. She has a
bachelor's degree in finance from Radford University and is a Chartered
Financial Analyst.

6. HOW DO I BUY FUND SHARES?

* Complete and return the enclosed application

* Call us and exchange shares from another American Century fund

* Call us and send your investment by bank wire transfer

Your initial investment must be at least $5,000. If the value of your
account falls below this account minimum, your shares may be redeemed
involuntarily.

7. HOW DO I SELL FUND SHARES?

You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in California
Intermediate-Term Tax-Free for shares in nearly 70 other mutual funds
offered by American Century. Depending on the options you select when you
open your account, some restrictions may apply. For your protection, some
redemption requests require a signature guarantee.

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

California Intermediate-Term Tax-Free pays distributions of
substantially all of its income monthly. Distributions will generally be
exempt from federal and California income taxes. Some of the fund's income
may, however, be subject to the federal alternative minimum tax. Consult
your tax advisor for information about whether you are subject to the
federal alternative minimum tax. Distributions are reinvested automatically
in additional shares unless you choose another option.

9. WHAT SERVICES ARE AVAILABLE?

American Century offers several ways to make it easier for you to manage
your account, such as:

* telephone transactions

* wire and electronic funds transfers

* 24-hour Automated Information Line transactions

* 24-hour online Internet account access and transactions

You will find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.

- --------------------------------------------------------------------------------
[american century logo(reg.sm)]
American
Century

AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200

WWW.AMERICANCENTURY.COM

INVESTOR SERVICES
1-800-345-2021 or 816-531-5575

AUTOMATED INFORMATION LINE
1-800-345-8765

CORPORATE; NOT-FOR-PROFIT; FOUNDATIONS;
ENDOWMENTS; KEOGH; SEP-, SARSEP- AND
SIMPLE-IRA; AND 403(B) SERVICES
1-800-345-3533

TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485

FAX
816-340-7962

Funds Distributor, Inc.

SH-PRF-14152 9901
<PAGE>
FUND PROFILE

California Long-Term Tax-Free

INVESTOR CLASS

January 31, 1999

[american century logo(reg.sm)]
American
Century

- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included
in the fund's Prospectus. The fund's Prospectus has additional
information about the fund, including a more detailed description of the
risks associated with investing in the fund, that you may want
to consider before you invest. You may obtain the Prospectus and other
information about the fund at no cost by calling us at 1-800-345-2021,
accessing our Web site or visiting one of our Investor Centers.
See the back cover for additional telephone numbers and our address.

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

CALIFORNIA LONG-TERM TAX-FREE

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

California Long-Term Tax-Free seeks safety of principal and high current
income that is exempt from federal and California income taxes.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund managers buy quality, long-term debt securities with income
payments exempt from federal and California income taxes. Cities, counties
and other municipalities in California usually issue these securities for
public projects.

The fund managers also may buy some quality, long-term debt securities
whose payments are exempt from federal and California income taxes, but not
the federal alternative minimum tax. Cities, counties and other
municipalities in California usually issue these securities (called private
activity bonds) to fund for-profit private projects, such as hospitals and
athletic stadiums. No more than 20% of the fund's total assets may be
invested in these securities.

The fund may also use futures contracts and options to pursue its
investment objective.

During unusual market conditions, the fund is permitted to keep a
significant amount of its assets in cash or cash- equivalents. If it does,
it may not achieve its investment objective and may generate taxable
income.

The weighted average maturity of the fund is expected to be 10 years or
longer.

Additional information about California Long-Term Tax-Free's investments
is available in its annual and semiannual reports. In these reports you
will find a discussion of the market conditions and investment strategies
that significantly affected the fund's performance during the most recent
fiscal period. You may get these reports at no cost by calling us.

3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?

*When interest rates change, the fund's share value will be affected.
Generally, when interest rates rise, the fund's share value will decline.
The opposite is true when interest rates decline. The interest rate risk
for California Long-Term Tax-Free is higher than for funds that have
shorter weighted average maturities, such as money market and short-term
and intermediate-term bond funds.

*Some of the fund's income may be subject to the federal alternative
minimum tax.

*Because the fund invests primarily in California municipal securities, it
will be sensitive to events that affect California's economy. California
Long-Term Tax-Free may have a higher level of risk than funds that invest
in a larger universe of securities.

*As with all funds, at any given time the value of your shares of
California Long-Term Tax-Free may be worth more or less than the price you
paid. If you sell your shares when the value is less than the price you
paid, you will lose money.

*An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.

In summary, California Long-Term Tax-Free is intended for investors who
seek safety of principal and high current income that is exempt from
federal and California income taxes through a municipal securities fund,
and who are willing to accept the risks associated with the fund's
investment strategy.

California Long-Term Tax-Free American Century Investments

FUND PERFORMANCE

The following bar chart shows the actual performance of California
Long-Term Tax-Free's shares for each of the last 10 calendar years. The bar
chart indicates the volatility of the fund's historical returns from year
to year. Neither the bar chart nor the performance information below it is
intended to indicate how the fund will perform in the future.

[bar chart]
<TABLE>
CALENDAR YEAR-BY-YEAR RETURNS
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
California Long-Term Tax-Free 9.76 6.60 11.80 8.15 13.74 -6.51 19.80 3.59 9.74 6.31
</TABLE>

The highest and lowest returns of the fund's shares for a calendar
quarter during the period reflected by the preceding bar chart are provided
in the following chart to indicate the fund's historical short-term
volatility. Shareholders should be aware, however, that California
Long-Term Tax-Free is intended for investors with a long-term investment
horizon and is not managed for short-term results.

[bar chart]
HIGHEST AND LOWEST QUARTERLY RETURNS
Quarter Ended 3/31/95 7.13%
Quarter Ended 3/31/94 -5.71%

The following table shows the average annual returns of the fund's
shares for the periods indicated. The Lehman Long-Term Municipal Bond
Index, an unmanaged index that reflects no operating costs, is included as
a benchmark for performance comparisons.

1 YEAR 5 YEARS 10 YEARS LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
California Long-Term
Tax-Free 6.31% 6.24% 8.05% 8.44%
Lehman Long-Term
Municipal Bond Index 6.89% 6.84% 9.15% 10.51%

4. WHAT ARE THE FUND'S FEES AND EXPENSES?

(1)Based on expenses incurred during the fund's most recent fiscal year.
The fund has a stepped fee schedule. As a result, the fund's management
fee generally decreases as fund assets increase.

1 year 3 years 5 years 10 years
-------------------------------------------
$52 $163 $285 $640

Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.

Fund Profile California Long-Term Tax-Free

5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGER?

G. DAVID MACEWEN, Vice President and Senior Portfolio Manager,
supervises the American Century California Tax-Free and Municipal Funds
team and has been a member of the California Long-Term Tax-Free team since
May 1991. He joined American Century in 1991. He has a bachelor's degree in
economics from Boston University and an MBA in finance from the University
of Delaware.

6. HOW DO I BUY FUND SHARES?

* Complete and return the enclosed application

* Call us and exchange shares from another American Century fund

* Call us and send your investment by bank wire transfer

Your initial investment must be at least $5,000. If the value of your
account falls below this account minimum, your shares may be redeemed
involuntarily.

7. HOW DO I SELL FUND SHARES?

You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in California
Long-Term Tax-Free for shares in nearly 70 other mutual funds offered by
American Century. Depending on the options you select when you open your
account, some restrictions may apply. For your protection, some redemption
requests require a signature guarantee.

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

California Long-Term Tax-Free pays distributions of substantially all of
its income monthly. Distributions will generally be exempt from federal and
California income taxes. Some of the fund's income may, however, be subject
to the federal alternative minimum tax. Consult your tax advisor for
information about whether you are subject to the federal alternative
minimum tax. Distributions are reinvested automatically in additional
shares unless you choose another option.

9. WHAT SERVICES ARE AVAILABLE?

American Century offers several ways to make it easier for you to manage
your account, such as:

* telephone transactions

* wire and electronic funds transfers

* 24-hour Automated Information Line transactions

* 24-hour online Internet account access and transactions

You will find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.

- --------------------------------------------------------------------------------
[american century logo(reg.sm)]
American
Century

AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200

WWW.AMERICANCENTURY.COM

INVESTOR SERVICES
1-800-345-2021 or 816-531-5575

AUTOMATED INFORMATION LINE
1-800-345-8765

CORPORATE; NOT-FOR-PROFIT; FOUNDATIONS;
ENDOWMENTS; KEOGH; SEP-, SARSEP- AND
SIMPLE-IRA; AND 403(B) SERVICES
1-800-345-3533

TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485

FAX
816-340-7962

Funds Distributor, Inc.

SH-PRF-14148 9901
<PAGE>
FUND PROFILE

California High-Yield Municipal

INVESTOR CLASS

January 31, 1999

[american century logo(reg.sm)]
American
Century

- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included
in the fund's Prospectus. The fund's Prospectus has additional
information about the fund, including a more detailed description of the
risks associated with investing in the fund, that you may want
to consider before you invest. You may obtain the Prospectus and other
information about the fund at no cost by calling us at 1-800-345-2021,
accessing our Web site or visiting one of our Investor Centers.
See the back cover for additional telephone numbers and our address.

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

CALIFORNIA HIGH-YIELD MUNICIPAL

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

California High-Yield Municipal seeks high current income that is exempt
from federal and California income taxes.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund managers buy long- and intermediate-term debt securities with
income payments exempt from federal and California income taxes. Cities,
counties and other municipalities in California usually issue these
securities for public projects.

The fund managers also may buy long- and intermediate-term debt
securities whose payments are exempt from federal and California income
taxes, but not the federal alternative minimum tax. Cities, counties and
other municipalities in California usually issue these securities (called
private activity bonds) to fund for-profit private projects, such as
hospitals and athletic stadiums. Between 10% and 30% of the fund's total
assets may be invested in these securities.

The fund buys securities that are considered below investment-grade,
including so-called "junk bonds." Issuers of these securities often have
short financial histories or have questionable credit.

The fund also may use futures contracts and options to pursue its
investment objective.

During unusual market conditions, the fund is permitted to keep a
significant amount of its assets in cash or cash- equivalents. If it does,
it may not achieve its investment objective and may generate taxable
income.

The weighted average maturity of the fund is expected to be 10 years or
longer.

Additional information about California High-Yield Municipal's
investments is available in its annual and semi-annual reports. In these
reports you will find a discussion of the market conditions and investment
strategies that significantly affected the fund's performance during the
most recent fiscal period. You may get these reports at no cost by calling
us.

3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?

*When interest rates change, the fund's share value will be affected.
Generally, when interest rates rise, the fund's share value will decline.
The opposite is true when interest rates decline. The interest rate risk
for California High-Yield Municipal is higher than for funds that have
shorter weighted average maturities, such as money market and short-term
and intermediate-term bond funds.

*The fund may invest in securities rated below investment grade, including
bonds that are in technical or monetary default. By definition, the issuers
of many of these securities have had, and may continue to have, problems
making interest and principal payments.

*The fund's investments often have high credit risk. The fund's share value
may fluctuate significantly more than other bond funds because the fund
invests in lower-rated debt securities.

*Some or all of the fund's income may be subject to the federal alternative
minimum tax.

*Because the fund invests primarily in California municipal securities, it
will be sensitive to events that affect California's economy. California
High-Yield Municipal may have a higher level of risk than funds that invest
in a larger universe of securities.

*As with all funds, at any given time the value of your shares of
California High-Yield Municipal may be worth more or less than the price
you paid. If you sell your shares when the value is less than the price you
paid, you will lose money.

*An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.

In summary, California High-Yield Municipal is intended for investors
who seek high current income that is exempt from federal and California
income taxes through a municipal securities fund, and who are willing to
accept the risks associated with the fund's investment strategy.

California High-Yield Municipal American Century Investments

FUND PERFORMANCE

The following bar chart shows the actual performance of California
High-Yield Municipal's shares for each of the last 10 calendar years. The
bar chart indicates the volatility of the fund's historical returns from
year to year. Neither the bar chart nor the performance information below
it is intended to indicate how the fund will perform in the future.

[bar chart]
<TABLE>
CALENDAR YEAR-BY-YEAR RETURNS
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
California High-Yield Municipal 9.68 5.65 10.91 9.17 13.18 -5.36 18.29 5.89 10.50 6.73
</TABLE>

The highest and lowest returns of the fund's shares for a calendar
quarter during the period reflected by the preceding bar chart are provided
in the following chart to indicate the fund's historical short-term
volatility. Shareholders should be aware, however, that California
High-Yield Municipal is intended for investors with a long-term investment
horizon and is not managed for short-term results.

[bar chart]
HIGHEST AND LOWEST QUARTERLY RETURNS
Quarter Ended 3/31/95 7.18%
Quarter Ended 3/31/94 -4.54%

1 YEAR 5 YEARS 10 YEARS LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
California High-Yield
Municipal 6.73% 6.93% 8.30% 6.87%
Lehman Long-Term
Municipal Bond Index 6.89% 6.84% 9.15% 8.71%

4. WHAT ARE THE FUND'S FEES AND EXPENSES?

ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 0.54%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.54%

(1)Based on expenses incurred during the fund's most recent fiscal year.
The fund has a stepped fee schedule. As a result, the fund's management
fee generally decreases as fund assets increase.

1 year 3 years 5 years 10 years
----------------------------------------------
$55 $173 $301 $676

Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.

Fund Profile California High-Yield Municipal

5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGER?

STEVEN M. PERMUT, Senior Portfolio Manager and Director of Municipal
Research, has been a member of the California High-Yield Municipal team
since December 1987. Mr. Permut joined American Century in 1987. He has a
bachelor's degree in business from State University of New York, Oneonta
and an MBA in Finance from Golden Gate University, San Francisco.

6. HOW DO I BUY FUND SHARES?

* Complete and return the enclosed application

* Call us and exchange shares from another American Century fund

* Call us and send your investment by bank wire transfer

Your initial investment must be at least $5,000. If the value of your
account falls below this account minimum, your shares may be redeemed
involuntarily.

7. HOW DO I SELL FUND SHARES?

You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in California
High-Yield Municipal for shares in nearly 70 other mutual funds offered by
American Century. Depending on the options you select when you open your
account, some restrictions may apply. For your protection, some redemption
requests require a signature guarantee.

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

California High-Yield Municipal pays distributions of substantially all
of its income monthly. Distributions will generally be exempt from federal
and California income taxes. Some or all of the fund's income may, however,
be subject to the federal alternative minimum tax. Consult your tax advisor
for information about whether you are subject to the federal alternative
minimum tax. Distributions are reinvested automatically in additional
shares unless you choose another option.

9. WHAT SERVICES ARE AVAILABLE?

American Century offers several ways to make it easier for you to manage
your account, such as:

* telephone transactions

* wire and electronic funds transfers

* 24-hour Automated Information Line transactions

* 24-hour online Internet account access and transactions

You will find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.

- --------------------------------------------------------------------------------
[american century logo(reg.sm)]
American
Century

AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200

WWW.AMERICANCENTURY.COM

INVESTOR SERVICES
1-800-345-2021 or 816-531-5575

AUTOMATED INFORMATION LINE
1-800-345-8765

CORPORATE; NOT-FOR-PROFIT; FOUNDATIONS;
ENDOWMENTS; KEOGH; SEP-, SARSEP- AND
SIMPLE-IRA; AND 403(B) SERVICES
1-800-345-3533

TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485

FAX
816-340-7962

Funds Distributor, Inc.

SH-PRF-14149 9901
<PAGE>
FUND PROFILE

California Insured Tax-Free

INVESTOR CLASS

January 31, 1999

[american century logo(reg.sm)]
American
Century

- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included
in the fund's Prospectus. The fund's Prospectus has additional
information about the fund, including a more detailed description of the
risks associated with investing in the fund, that you may want
to consider before you invest. You may obtain the Prospectus and other
information about the fund at no cost by calling us at 1-800-345-2021,
accessing our Web site or visiting one of our Investor Centers.
See the back cover for additional telephone numbers and our address.

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

CALIFORNIA INSURED TAX-FREE

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

California Insured Tax-Free seeks safety of principal and high current
income that is exempt from federal and California income taxes through
investment in insured California municipal securities.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund managers buy quality, long-term insured debt securities with
income payments exempt from federal and California income taxes. Cities,
counties and other municipalities in California usually issue these
securities for public projects.

The fund managers also may buy some quality, long-term insured debt
securities whose payments are exempt from federal and California income
taxes, but not the federal alternative minimum tax. Cities, counties and
other municipalities in California usually issue these securities (called
private activity bonds) to fund for-profit private projects, such as
hospitals and athletic stadiums. No more than 20% of the fund's total
assets may be invested in these securities.

The fund's investments are insured. This is significant because

*the credit risk is less than for funds that invest in long-term debt
securities without insurance

*potential income is lower than for funds that invest in long-term debt
securities without insurance

A debt security's insurance cannot be cancelled and guarantees that
interest and other payments will be made as scheduled.

The weighted average maturity of the fund is expected to be 10 years or
longer.

The fund also may use futures contracts and options to pursue its
investment objective.

During unusual market conditions, the fund is permitted to keep a
significant amount of its assets in cash or cash- equivalents. If it does,
it may not achieve its investment objective and may generate taxable
income.

Additional information about California Insured Tax-Free's investments
is available in its annual and semiannual reports. In these reports you
will find a discussion of the market conditions and investment strategies
that significantly affected the fund's performance during the most recent
fiscal period. You may get these reports at no cost by calling us.

3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?

*When interest rates change, the fund's share value will be affected.
Generally, when interest rates rise, the fund's share value will decline.
The opposite is true when interest rates decline. The interest rate risk
for California Insured Tax-Free is higher than for funds that have shorter
weighted average maturities, such as money market and short-term and
intermediate-term bond funds.

*Some of the fund's income may be subject to the federal alternative
minimum tax.

*Because the fund invests primarily in California municipal securities, it
will be sensitive to events that affect California's economy. California
Insured Tax-Free may have a higher level of risk than funds that invest in
a larger universe of securities.

*As with all funds, at any given time the value of your shares of
California Insured Tax-Free may be worth more or less than the price you
paid. If you sell your shares when the value is less than the price you
paid, you will lose money.

*An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.

In summary, California Insured Tax-Free is intended for investors who
seek safety of principal and high current income that is exempt from
federal and California income taxes through a municipal securities fund,
and who are willing to accept the risks associated with the fund's
investment strategy.

California Insured Tax-Free American Century Investments

FUND PERFORMANCE

The following bar chart shows the actual performance of California
Insured Tax-Free's shares for each of the last 10 calendar years. The bar
chart indicates the volatility of the fund's historical returns from year
to year. Neither the bar chart nor the performance information below it is
intended to indicate how the fund will perform in the future.

[bar chart]
<TABLE>
CALENDAR YEAR-BY-YEAR RETURNS
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
California Insured Tax-Free 10.31 6.76 11.27 9.19 13.45 -6.55 19.03 3.70 9.34 6.09
</TABLE>

The highest and lowest returns of the fund's shares for a calendar
quarter during the period reflected by the preceding bar chart are provided
in the following chart to indicate the fund's historical short-term
volatility. Shareholders should be aware, however, that California Insured
Tax-Free is intended for investors with a long-term investment horizon and
is not managed for short-term results.

[bar chart]
HIGHEST AND LOWEST QUARTERLY RETURNS
Quarter Ended 3/31/95 7.00%
Quarter Ended 3/31/94 -6.68%

1 YEAR 5 YEARS 10 YEARS LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
California Insured
Tax-Free 6.09% 6.00% 8.05% 6.98%
Lehman Long-Term
Municipal Bond Index 6.89% 6.84% 9.15% 8.71%

4. WHAT ARE THE FUND'S FEES AND EXPENSES?

(1)Based on expenses incurred during the fund's most recent fiscal year.
The fund has a stepped fee schedule. As a result, the fund's management
fee generally decreases as fund assets increase.

1 year 3 years 5 years 10 years
-------------------------------------------
$52 $163 $285 $640

Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.

Fund Profile California Insured Tax-Free

5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGER?

G. DAVID MACEWEN, Vice President and Senior Portfolio Manager,
supervises the American Century California Tax-Free and Municipal Funds
team, and has been a member of the California Insured Tax-Free team since
May 1991. He joined American Century in 1991. He has a bachelor's degree in
economics from Boston University and an MBA in finance from the University
of Delaware.

6. HOW DO I BUY FUND SHARES?

* Complete and return the enclosed application

* Call us and exchange shares from another American Century fund

* Call us and send your investment by bank wire transfer

Your initial investment must be at least $5,000. If the value of your
account falls below this account minimum, your shares may be redeemed
involuntarily.

7. HOW DO I SELL FUND SHARES?

You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in California
Insured Tax-Free for shares in nearly 70 other mutual funds offered by
American Century. Depending on the options you select when you open your
account, some restrictions may apply. For your protection, some redemption
requests require a signature guarantee.

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

California Insured Tax-Free pays distributions of substantially all of
its income monthly. Distributions will generally be exempt from federal and
California income taxes. Some of the fund's income may, however, be subject
to the federal alternative minimum tax. Consult your tax advisor for
information about whether you are subject to the federal alternative
minimum tax. Distributions are reinvested automatically in additional
shares unless you choose another option.

9. WHAT SERVICES ARE AVAILABLE?

American Century offers several ways to make it easier for you to manage
your account, such as:

* telephone transactions

* wire and electronic funds transfers

* 24-hour Automated Information Line transactions

* 24-hour online Internet account access and transactions

You will find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.

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[american century logo(reg.sm)]
American
Century

AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200

WWW.AMERICANCENTURY.COM

INVESTOR SERVICES
1-800-345-2021 or 816-531-5575

AUTOMATED INFORMATION LINE
1-800-345-8765

CORPORATE; NOT-FOR-PROFIT; FOUNDATIONS;
ENDOWMENTS; KEOGH; SEP-, SARSEP- AND
SIMPLE-IRA; AND 403(B) SERVICES
1-800-345-3533

TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485

FAX
816-340-7962

Funds Distributor, Inc.

SH-PRF-14150 9901