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 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
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 may buy some high-quality, cash-equivalent 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 and it is not 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 following bar chart shows the actual performance of Tax-Free Money
Market's Investor Class 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]
CALENDAR YEAR-BY-YEAR RETURNS
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
Tax-Free Money Market 4.95 6.04 5.60 4.21 2.47 1.90 2.31 3.36 2.98 3.43
As of September 30, 1998, the end of the most recent calendar quarter, Tax-Free
Money Market's year-to-date return was 2.69%.
The highest and lowest returns of the fund's Investor Class shares for a
quarter during the last 10 calendar years since January 1, 1988, are
provided in the following chart to indicate the fund's historical
short-term volatility.
[bar chart]
Highest and Lowest Quarterly Returns
Quarter Ended 6/30/89 1.59%
Quarter Ended 3/31/94 0.44%
Tax-Free Money Market American Century Investments
The following table 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 as a benchmark for long-term performance comparisons.
1 YEAR 5 YEARS 10 YEARS
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 1998)
Tax-Free Money Market 3.69% 3.05% 3.63%
Lipper Tax-Exempt Money
Market Average 3.03% 2.89% 3.54%
(index as of 8/31/84)
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 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 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 $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 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 its 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. 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 and has been a portfolio manager since 1995. 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. 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 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 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.
SH-BRO-14807 9811
<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 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
HIGH-YIELD MUNICIPAL
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
High-Yield Municipal seeks high current income that 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- and 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 may buy long- and intermediate-term 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.
* An investment in the fund is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
In summary, High-Yield Municipal is intended for investors who seek high
current income that is exempt from federal income tax through a municipal
securities fund and who are willing to accept the risks associated with the
fund's investment strategy.
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.
High-Yield Municipal American Century Investments
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(3) 0.65%
(1)These numbers are based on assets as of May 31, 1998. 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 trustees, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
(3)The advisor has agreed to waive all expenses of High-Yield Municipal
through April 30, 1999.
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 $809
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 its 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. 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. 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. 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.
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 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.
Fund Profile High-Yield Municipal
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 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.
SH-BRO-14808 9811
