FUND PROFILE
Tax-Free Money Market
INVESTOR CLASS
November 6, 1998
[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 includes 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 phone numbers and our address.
BENHAM GROUP
AMERICAN CENTURY INVESTMENTS
TAX-FREE MONEY MARKET
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Tax-Free Money Market seeks safety of principal and high current income
that is exempt from federal income tax.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund buys high-quality, cash-equivalent securities with income
payments exempt from federal income tax. Cities, counties and other
municipalities in the 50 states and U.S. territories usually issue these
securities for public projects, such as schools and roads.
The fund also buys some debt securities whose payments are exempt from
regular federal income tax, but not the federal alternative minimum tax.
Cities, counties and other municipalities usually issue these securities 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 weighted average maturity of the fund is expected to be 90 days or
less.
Additional information about 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
six-month 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, nor is it insured or
guaranteed by the Federal Deposit Insurance Corporation 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 municipal securities, it will be
sensitive to events that affect municipal markets. Tax-Free Money Market
may have a higher level of risk than funds that invest in a larger universe
of securities.
FUND PERFORMANCE
The bar chart below shows the actual performance of Tax-Free Money
Market's Investor Class shares for each of the last 10 calendar years. It
indicates the volatility of the fund's historical returns from year to
year. Neither it nor the performance information below the bar chart is
intended to indicate how the fund will perform in the future.
[bar chart to be filed]
As of September 30, 1998, the end of the most recent calendar quarter,
Tax-Free Money Market's year-to-date return was ____%.
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter since January 1, 1988, are provided in the chart below to
indicate the fund's historical short-term volatility.
[bar chart to be filed]
TAX-FREE MONEY MARKET AMERICAN CENTURY INVESTMENTS
The table below shows the average annual return of the fund's Investor
Class shares for the periods indicated. The Lipper Tax-Exempt Money Market
Average, an unmanaged index that reflects no operating costs, is included
for long-term performance comparisons.
1 YR. 5 YRS. 10 YRS. LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 1998) Tax-Free
Money Market 5.5% 5.5% 5.5% 5.5%
Lipper Tax-Exempt Money
Market Average 6.0% 6.0% 6.0% 6.0%
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 assets as of May 31, 1998. The fund's management fee
decreases as fund assets increase.
(2)Other expenses, which include the fees and expenses of the fund's
independent trustees, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
EXAMPLE OF HYPOTHETICAL FUND COSTS
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 $280 $628
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 MANAGERS?
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 our mutual funds. The portfolio managers on the Tax-Free
Money Market team are:
G. DAVID MACEWEN, Vice President and Senior Portfolio Manager,
supervises the American Century Municipal Trust team. Mr. MacEwen joined
American Century in 1991 as a Municipal Portfolio Manager. Mr. MacEwen is a
member of the Association of Investment Management and Research (AIMR) and
the Securities Analysts of San Francisco. He holds a bachelor's degree in
economics from Boston University and an MBA in finance from the University
of Delaware.
BRYAN E. KARCHER, Portfolio Manager, has been a member of the Tax-Free
Money Market team since April 1995. Mr. Karcher joined American Century in
1989. Before being promoted to his current position, Mr. Karcher was a
research analyst. He holds a bachelor's degree in economics from the
University of California, Los Angeles, 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 ($1,000 for traditional
IRA and Roth IRA accounts). 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 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.
FUND PROFILE TAX-FREE MONEY MARKET
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Dividends are declared and available for redemption daily. Distributions
will generally be exempt from federal income tax. 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 may 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 an Institutional 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
INSTITUTIONAL, CORPORATE, KEOGH, SEP/SARSEP,
SIMPLE 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.
(c) 1998 American Century Services Corporation
SH-BRO-13786 9810
<PAGE>
FUND PROFILE
High-Yield Municipal
INVESTOR CLASS
November 6, 1998
[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 includes 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 phone numbers and our address.
BENHAM GROUP
AMERICAN CENTURY INVESTMENTS
HIGH-YIELD MUNICIPAL
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
High-Yield Municipal is exempt from federal income tax. The fund also
seeks capital appreciation as a secondary objective.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund buys long-term debt securities with income payments exempt from
federal income tax. Cities, counties and other municipalities in the 50
states and U.S. territories usually issue these securities for public
projects, such as schools and roads.
The fund also may buy debt securities whose payments are exempt from
regular federal income tax, but not the federal alternative minimum tax.
Cities, counties and other municipalities usually issue these securities to
fund for-profit private projects, such as hospitals and athletic stadiums.
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 weighted average maturity of the fund is expected to be 10 years or
longer.
Additional information about High-Yield Municipal'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
six-month period. You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
*Interest rate changes affect the amount of income the fund generates.
Generally, when interest rates rise, the fund's share value will decline.
The opposite is true when interest rates decline. This interest rate risk
is higher for High-Yield Municipal than for funds that have shorter
weighted average maturities, such as short-term and intermediate-term
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.
*Some or all of the fund's income may be subject to the federal alternative
minimum tax.
*Because the fund invests primarily in municipal securities, it will be
sensitive to events that affect municipal markets. 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
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. Additionally, an investment in the fund is not a bank
deposit, nor is it insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency.
FUND PERFORMANCE
The highest and lowest returns of the fund's Investor Class share for a
calendar quarter since its inception on March 31, 1998, are provided in the
chart below to indicate the fund's historical short-term volatility.
Shareholders should be aware, however, that High-Yield Municipal is
intended for investors with a long-term investment horizon and is not
managed for short-term results.
[bar chart to be filed]
HIGH-YIELD MUNICIPAL AMERICAN CENTURY INVESTMENTS
The table below shows the average annual return of the fund's Investor
Class shares for the periods indicated. The Lipper High-Yield Municipal
Debt Average, an unmanaged index that reflects no operating costs, is
included for long-term performance comparisons.
LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 1998)
High-Yield Municipal 5.5%
Lipper High-Yield Municipal Debt Average 6.0%
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 0.65%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.65%
(1)The advisor has agreed to waive all expenses of High-Yield Municipal
through April 30, 1999. These numbers are based on assets as of May 31,
1998. The fund's management fee decreases as fund assets increase.
(2)Other expenses, which include the fees and expenses of the fund's
independent trustees, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
EXAMPLE OF HYPOTHETICAL FUND COSTS
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
------------------------------------------------
$66 $208 $362 $810
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 MANAGERS?
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 our mutual funds. The portfolio managers on the
High-Yield Municipal team are:
G. DAVID MACEWEN, Vice President and Senior Portfolio Manager,
supervises the American Century Municipal Trust team. Mr. MacEwen joined
American Century in 1991 as a Municipal Portfolio Manager. Mr. MacEwen is a
member of the Association of Investment Management and Research (AIMR) and
the Securities Analysts of San Francisco. He holds a bachelor's degree in
economics from Boston University and an MBA in finance from the University
of Delaware.
STEVEN M. PERMUT, Senior Portfolio Manager and Director of Municipal
Research, has been a member of the High-Yield Municipal team since its
inception in March 1998. Mr. Permut joined American Century in 1987 and is
the past Chairman of the California Society of Municipal Analysts and a
member of the Board of Directors of the National Federation of Municipal
Analysts. He holds a bachelor's degree in business and geography 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 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts). 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 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.
FUND PROFILE HIGH-YIELD MUNICIPAL
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
High-Yield Municipal pays distributions of substantially all of its
income monthly. Distributions will generally be exempt from federal income
tax. 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 may 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 an Institutional 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
INSTITUTIONAL, CORPORATE, KEOGH, SEP/SARSEP,
SIMPLE 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.
(c) 1998 American Century Services Corporation
SH-BRO-13787 9810
<PAGE>
FUND PROFILE
Intermediate-Term Tax-Free
INVESTOR CLASS
November 6, 1998
[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 includes 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 phone numbers and our address.
BENHAM GROUP
AMERICAN CENTURY INVESTMENTS
INTERMEDIATE-TERM TAX-FREE
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Intermediate-Term Tax-Free seeks safety of principal and high current
income that is exempt from federal income tax.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund buys quality, intermediate-term debt securities with income
payments exempt from federal income tax. Cities, counties and other
municipalities in the 50 states and U.S. territories usually issue these
securities for public projects, such as schools and roads.
The fund also buys some debt securities whose payments are exempt from
regular federal income tax, but not the federal alternative minimum tax.
Cities, counties and other municipalities usually issue these securities 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 weighted average maturity of the fund is expected to be between five
and 10 years.
Additional information about 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
six-month period. You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
*Interest rate changes affect the amount of income the fund generates.
Generally, when interest rates rise, the fund's share value will decline.
The opposite is true when interest rates decline. This interest rate risk
is higher for Intermediate-Term Tax-Free than for funds that have shorter
weighted average maturities, such as short-term and limited-term 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 municipal securities, it will be
sensitive to events that affect municipal markets. 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
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. Additionally, an investment in the fund is not a
bank deposit, nor is it insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
FUND PERFORMANCE
The bar chart below shows the actual performance of Intermediate-Term
Tax-Free's Investor Class shares for each of the last 10 calendar years. It
indicates the volatility of the fund's historical returns from year to
year. Neither it nor the performance information below the bar chart is
intended to indicate how the fund will perform in the future.
[bar chart to be filed]
As of September 30, 1998, the end of the most recent calendar quarter,
Intermediate-Term Tax-Free's year-to-date return was ____%.
INTERMEDIATE-TERM TAX-FREE AMERICAN CENTURY INVESTMENTS
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter since January 1, 1988, are provided in the chart below to
indicate the fund's historical short-term volatility. Shareholders should
be aware, however, that Intermediate-Term Tax-Free is intended for
investors with a long-term investment horizon and is not managed for
short-term results.
[bar chart to be filed]
The table below shows the average annual return of the fund's Investor
Class shares for the periods indicated. The Lipper Intermediate Municipal
Fund Index, an unmanaged index that reflects no operating costs, is
included for long-term performance comparisons.
1 YR. 5 YRS. 10 YRS. LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 1998)
Intermediate-Term Tax-Free 5.5% 5.5% 5.5% 5.5%
Lipper Intermediate Municipal
Fund Index 6.0% 6.0% 6.0% 6.0%
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 0.51%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.51%
(1)Based on assets as of May 31, 1998. The fund's management fee
decreases as fund assets increase.
(2)Other expenses, which include the fees and expenses of the fund's
independent trustees, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
EXAMPLE OF HYPOTHETICAL FUND COSTS
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
--------------------------------------------
$52 $164 $285 $640
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 MANAGERS?
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 our mutual funds. The portfolio managers on the
Intermediate-Term Tax-Free team are:
G. DAVID MACEWEN, Vice President and Senior Portfolio Manager,
supervises the American Century Municipal Trust team. Mr. MacEwen joined
American Century in 1991 as a Municipal Portfolio Manager. Mr. MacEwen is a
member of the Association of Investment Management and Research (AIMR) and
the Securities Analysts of San Francisco. He holds a bachelor's degree in
economics from Boston University and an MBA in finance from the University
of Delaware.
JOEL SILVA, Senior Portfolio Manager, has been a member of the
Intermediate-Term Tax-Free team since June 1994. Mr. Silva joined American
Century in 1989. Before being promoted to his current position, Mr. Silva
was a municipal bond trader. He holds a bachelor's degree from California
Polytechnic University and an MBA in corporate finance from California
State University, Hayward. Mr. Silva is a Registered Representative.
FUND PROFILE INTERMEDIATE-TERM TAX-FREE
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 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts). 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 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?
Intermediate-Term Tax-Free pays distributions of substantially all of
its income monthly. Distributions will generally be exempt from federal
income tax. 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 may 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 an Institutional 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
INSTITUTIONAL, CORPORATE, KEOGH, SEP/SARSEP,
SIMPLE 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.
(c) 1998 American Century Services Corporation
SH-BRO-13783 9810
<PAGE>
FUND PROFILE
Limited-Term Tax-Free
INVESTOR CLASS
November 6, 1998
[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 includes 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 phone numbers and our address.
BENHAM GROUP
AMERICAN CENTURY INVESTMENTS
LIMITED-TERM TAX-FREE
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Limited-Term Tax-Free seeks safety of principal and high current income
that is exempt from federal income tax.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund buys quality, short-term debt securities with income payments
exempt from federal income tax. Cities, counties and other municipalities
in the 50 states and U.S. territories usually issue these securities for
public projects, such as schools and roads.
The fund also buys some debt securities whose payments are exempt from
regular federal income tax, but not the federal alternative minimum tax.
Cities, counties and other municipalities usually issue these securities 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 weighted average maturity of the fund is expected to be five years
or less.
Additional information about 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
six-month period. You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
*Interest rate changes affect the amount of income the fund generates.
Generally, when interest rates rise, the fund's share value will decline.
The opposite is true when interest rates decline. This interest rate risk
is higher for Limited-Term Tax-Free 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 municipal securities, it will be
sensitive to events that affect municipal markets. 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
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. Additionally, an investment in the fund is not a bank
deposit, nor is it insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency.
FUND PERFORMANCE
The bar chart below shows the actual performance of Limited-Term
Tax-Free's Investor Class shares for each calendar year since its inception
on March 1, 1993. It indicates the volatility of the fund's historical
returns from year to year. Neither it nor the performance information below
the bar chart is intended to indicate how the fund will perform in the
future.
[bar chart to be filed]
As of September 30, 1998, the end of the most recent calendar quarter,
Limited-Term Tax-Free's year-to-date return was __%.
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter since its inception on March 1, 1993, are provided in the
chart below to indicate the fund's historical short-term volatility.
Shareholders should be aware, however, that Limited-Term Tax-Free is
intended for investors with a long-term investment horizon and is not
managed for short-term results.
[bar chart to be filed]
LIMITED-TERM TAX-FREE AMERICAN CENTURY INVESTMENTS
The table below shows the average annual return of the fund's Investor
Class shares for the periods indicated. The Lipper Short/Intermediate
Municipal Debt Average, an unmanaged index that reflects no operating
costs, is included for long-term performance comparisons.
1 YR. 5 YRS. 10 YRS. LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 1998)
Limited-Term Tax-Free 5.5% 5.5% 5.5% 5.5%
Lipper Short/Intermediate
Municipal Debt Average 6.0% 6.0% 6.0% 6.0%
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 0.51%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.51%
(1)Based on assets as of May 31, 1998. The fund's management fee
decreases as fund assets increase.
(2)Other expenses, which include the fees and expenses of the fund's
independent trustees, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
EXAMPLE OF HYPOTHETICAL FUND COSTS
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
----------------------------------------------
$52 $164 $285 $640
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 MANAGERS?
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 our mutual funds. The portfolio managers on the
Limited-Term Tax-Free team are:
G. DAVID MACEWEN, Vice President and Senior Portfolio Manager,
supervises the American Century Municipal Trust team. Mr. MacEwen joined
American Century in 1991 as a Municipal Portfolio Manager. Mr. MacEwen is a
member of the Association of Investment Management and Research (AIMR) and
the Securities Analysts of San Francisco. He holds a bachelor's degree in
economics from Boston University and an MBA in finance from the University
of Delaware.
JOEL SILVA, Senior Portfolio Manager, has been a member of the
Limited-Term Tax-Free team since August 1995. Mr. Silva joined American
Century in 1989. Before being promoted to his current position, Mr. Silva
was a municipal bond trader. He holds a bachelor's degree from California
Polytechnic University and an MBA in corporate finance from California
State University, Hayward. Mr. Silva is a Registered Representative.
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 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts). 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 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.
FUND PROFILE LIMITED-TERM TAX-FREE
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Limited-Term Tax-Free pays distributions of substantially all of its
income monthly. Distributions will generally be exempt from federal income
tax. 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 may 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 an Institutional 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
INSTITUTIONAL, CORPORATE, KEOGH, SEP/SARSEP,
SIMPLE 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.
(c) 1998 American Century Services Corporation
SH-BRO-13784 9810
<PAGE>
FUND PROFILE
Long-Term Tax-Free
INVESTOR CLASS
November 6, 1998
[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 includes 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 phone numbers and our address.
BENHAM GROUP
AMERICAN CENTURY INVESTMENTS
LONG-TERM TAX-FREE
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
The fund seeks safety of principal and high current income that is
exempt from federal income tax.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund buys quality, long-term debt securities with income payments
exempt from federal income tax. Cities, counties and other municipalities
in the 50 states and U.S. territories usually issue these securities for
public projects, such as schools and roads.
The fund also buys some debt securities whose payments are exempt from
regular federal income tax, but not the federal alternative minimum tax.
Cities, counties and other municipalities usually issue these securities 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 weighted average maturity of the fund is expected to be 10 years or
longer.
Additional information about 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
six-month period. You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* Interest rate changes affect the amount of income the fund generates.
Generally, when interest rates rise, the fund's share value will decline.
The opposite is true when interest rates decline. This interest rate risk
is higher for Long-Term Tax-Free than for funds that have shorter weighted
average maturities, such as short-term and intermediate-term 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 municipal securities, it will be
sensitive to events that affect municipal markets. 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
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. Additionally, an investment in the fund is not a bank
deposit, nor is it insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency.
FUND PERFORMANCE
The bar chart below shows the actual performance of Long-Term Tax-Free's
Investor Class shares for each of the last ten calendar years. It indicates
the volatility of the fund's historical returns from year to year. Neither
it nor the performance information below bar chart is intended to indicate
how the fund will perform in the future.
[bar chart to be filed]
As of September 30, 1998, the end of the most recent calendar quarter,
Long-Term Tax-Free's year-to-date return was ____%.
LONG-TERM TAX-FREE AMERICAN CENTURY INVESTMENTS
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter since January 1, 1988, are provided in the chart below to
indicate the fund's historical short-term volatility. Shareholders should
be aware, however, that Long-Term Tax-Free is intended for investors with a
long-term investment horizon and is not managed for short-term results.
[bar chart to be filed]
The table below shows the average annual return of the fund's Investor
Class shares for the periods indicated. The Lipper General Municipal Debt
Index, an unmanaged index that reflects no operating costs, is included for
long-term performance comparisons.
1 YR. 5 YRS. 10 YRS. LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 1998)
Long-Term Tax-Free 5.5% 5.5% 5.5% 5.5%
Lipper General Municipal
Debt Index 6.0% 6.0% 6.0% 6.0%
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 0.51%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.51%
(1)Based on assets as of May 31, 1998. The fund's management fee
decreases as fund assets increase.
(2)Other expenses, which include the fees and expenses of the fund's
independent trustees, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
EXAMPLE OF HYPOTHETICAL FUND COSTS
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
-------------------------------------------------
$52 $164 $285 $640
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 our mutual funds. The portfolio manager on the Long-Term
Tax-Free team is:
G. DAVID MACEWEN, Vice President and Senior Portfolio Manager,
supervises the American Century Municipal Trust team and has been a member
of the team that manages Long-Term Tax-Free since May 1991. Mr. MacEwen
joined American Century in 1991 as a Municipal Portfolio Manager. Mr.
MacEwen is a member of the Association of Investment Management and
Research (AIMR) and the Securities Analysts of San Francisco. He holds 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 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts). If the value of your account falls
below this account minimum, your shares may be redeemed involuntarily.
Fund Profile Long-Term Tax-Free
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 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?
Long-Term Tax-Free pays distributions of substantially all of its income
monthly. Distributions will generally be exempt from federal income tax.
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 will automatically be reinvested 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 may 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 an Institutional 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
INSTITUTIONAL, CORPORATE, KEOGH, SEP/SARSEP,
SIMPLE 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.
(c) 1998 American Century Services Corporation
SH-BRO-13785 9810
