AMERICAN CENTURY GOVERNMENT INCOME TRUST, 497K2, 1998-11-09

AMERICAN CENTURY GOVERNMENT INCOME TRUST
497K2, 1998-11-09

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FUND PROFILE

Intermediate-Term Treasury

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

INTERMEDIATE-TERM TREASURY

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

Intermediate-Term Treasury seeks the highest level of current income
exempt from state income tax while maintaining safety of capital.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund buys intermediate-term U.S. Treasury securities guaranteed by
the direct full faith and credit pledge of the U.S. government.

The fund also may buy intermediate-term securities issued by the U.S.
government, its agencies and instrumentalities. The U.S. government
provides varying levels of financial support to these agencies and
instrumentalities. The fund may invest up to 35% of its total assets in
these securities.

The fund may purchase securities in a number of different ways to seek
higher rates of return. For example, by using when-issued and forward
commitment transactions, the fund may purchase securities in advance to
generate additional income.

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

Additional information about Intermediate-Term Treasury'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 Treasury than for funds that have shorter
weighted average maturities, such as short-term funds.

*As with all funds, at any given time, the value of your shares of
Intermediate-Term Treasury 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, Intermediate-Term Treasury is intended for investors who
seek the highest level of current income exempt from state income tax while
maintaining safety of capital and who are willing to accept the risks
associated with the fund's investment strategy.

FUND PERFORMANCE

The following bar chart shows the actual performance of
Intermediate-Term Treasury'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]
<TABLE>
CALENDAR YEAR-BY-YEAR RETURNS
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Intermediate-Term Treasury 5.24 11.93 9.20 13.75 6.55 7.91 -2.34 13.70 4.08 8.30
</TABLE>

As of September 30, 1998, the end of the most recent calendar quarter,
Intermediate-Term Treasury's year-to-date return was 9.52%.

The highest and lowest returns of the fund's Investor Class shares for a
quarter during the last 10 calendar years are provided in the following
chart to indicate the fund's historical short-term volatility. Shareholders
should be aware, however, that Intermediate-Term Treasury is intended for
investors with a long-term investment horizon and is not managed for
short-term results.

INTERMEDIATE-TERM TREASURY AMERICAN CENTURY INVESTMENTS

[bar chart]

Highest and Lowest Quarterly Returns
Quarter Ended 6/30/89 6.67%
Quarter Ended 3/31/94 -2.04%

The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The Salomon 3-10 year
Treasury Index, 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)
Intermediate-Term Treasury 12.58% 6.54% 8.19%
Salomon 3-10 Year
Treasury Index 13.66% 7.21% 8.76%

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 March 31, 1998. The fund has a stepped fee
schedule. As a result, the 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
-------------------------------------------------
$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 its mutual funds. The portfolio managers on the
Intermediate-Term Treasury team are:

DAVID SCHROEDER, Vice President and Senior Portfolio Manager, supervises
the American Century Government Income Trust team and has been a member of
the Intermediate-Term Treasury team since January 1992. He joined American
Century in 1990. He holds a bachelor of arts degree from Pomona College.

ROBERT GAHAGAN, Vice President and Portfolio Manager, has been a member
of the Intermediate-Term Treasury team since January 1998. He joined
American Century in 1983. He holds a bachelor's degree in economics and an
MBA from the University of Missouri, Kansas City.

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
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 INTERMEDIATE-TERM TREASURY

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 Treasury 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 Treasury pays distributions of substantially all of
its income monthly. Distributions may be taxable as ordinary income,
capital gains, or a combination of the two. Capital gains are taxed at
different rates depending on the length of time the fund held the
securities that were sold. Distributions are reinvested automatically in
additional shares unless you choose another option.

Distributions will generally be exempt from most state income taxes.
Consult your tax advisor to see if the fund's income is exempt in your
state.

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-13775 9810
<PAGE>
FUND PROFILE

Long-Term Treasury

INVESTOR CLASS

November 6, 1998

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

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

LONG-TERM TREASURY

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

Long-Term Treasury seeks the highest level of current income exempt from
state income tax while maintaining safety of capital.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund buys long-term U.S. Treasury securities guaranteed by the
direct full faith and credit pledge of the U.S. government.

The weighted average maturity of the fund is expected to be between 20
and 30 years.

Additional information about Long-Term Treasury'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 Treasury than for funds that have shorter weighted
average maturities, such as short-term and intermediate-term funds.

*As with all funds, at any given time the value of your shares of Long-Term
Treasury 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, Long-Term Treasury is intended for investors who seek the
highest level of current income exempt from state income tax while
maintaining safety of capital and who are willing to accept the risks
associated with the fund's investment strategy.

FUND PERFORMANCE

The following bar chart shows the actual performance of Long-Term
Treasury's Investor Class shares for each calendar year since the fund's
inception on September 8, 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
---- ---- ---- ---- ----
Long-Term Treasury 17.64 -9.25 29.95 -1.36 14.76

As of September 30, 1998, the end of the most recent calendar quarter, Long-Term
Treasury's year-to-date return was 13.65%.

The highest and lowest returns of the fund's Investor Class shares for a
quarter for the life of the fund if less than 10 years, are provided in the
following chart to indicate the fund's historical short-term volatility.
Shareholders should be aware, however, that Long-Term Treasury 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 6/30/95 10.48%
Quarter Ended 3/31/96 -7.00%

Long-Term Treasury American Century Investments

The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The Salomon 10+ Years
Treasury/Agency Index, an unmanaged index that reflects no operating costs,
is included as a benchmark for long-term performance comparisons.

1 YEAR 5 YEARS LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 1998)
Long-Term Treasury 20.80% 8.18% 9.93%
Salomon 10+ Yrs. Treasury/
Agency Index 21.86% 9.20% 11.04%

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 assets as of March 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 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 $291 $653

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?

DAVID SCHROEDER, Vice President and Senior Portfolio Manager, supervises
the American Century Government Income Trust team and has been a member of
the Long-Term Treasury team since September 1992. He joined American
Century in 1990. He holds a bachelor's degree from Pomona College.

CASEY COLTON, Vice President and Senior Portfolio Manager, has been a
member of the Long-Term Treasury team since January 1996. Mr. Colton joined
American Century in 1990. He holds a bachelor's degree in business
administration from San Jose State University and a master's degree from
the University of Southern California. He is a Chartered Financial Analyst
and a Certified Public Accountant.

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

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
Treasury 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 Long-Term Treasury

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

Long-Term Treasury pays distributions of substantially all of its income
monthly. Distributions may be taxable as ordinary income, capital gains or
a combination of the two. Capital gains are taxed at different rates
depending on the length of time the fund held the securities that were
sold. Distributions are reinvested automatically in additional shares
unless you choose another option.

Distributions will generally be exempt from most state income taxes.
Consult your tax advisor to see if the fund's income is exempt in your
state.

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.

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-13776 9810
<PAGE>
FUND PROFILE

Short-Term Treasury

INVESTOR CLASS

November 6, 1998

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

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

SHORT-TERM TREASURY

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

Short-Term Treasury seeks the highest level of current income exempt
from state income tax while maintaining safety of capital.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund buys short-term U.S. Treasury securities guaranteed by the
direct full faith and credit pledge of the U.S. government.

The fund also may buy short-term securities issued by the U.S.
government, its agencies and instrumentalities. The U.S. government
provides varying levels of financial support to these agencies and
instrumentalities. The fund may invest up to 35% of its total assets in
these securities.

The weighted average maturity of the fund is expected to be between 13
months and three years.

Additional information about Short-Term Treasury'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 Short-Term Treasury than for funds that have shorter weighted
average maturities, such as money market funds.

*As with all funds, at any given time the value of your shares of
Short-Term Treasury 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, Short-Term Treasury is intended for investors who seek the
highest level of current income exempt from state income tax while
maintaining safety of capital and who are willing to accept the risks
associated with the fund's investment strategy.

FUND PERFORMANCE

The following bar chart shows the actual performance of Short-Term
Treasury's Investor Class shares for each calendar year since the fund's
inception on September 8, 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
---- ---- ---- ---- ----
Short-Term Treasury 5.32 0.15 9.93 4.12 6.11

As of September 30, 1998, the end of the most recent calendar quarter,
Short-Term Treasury's year-to-date return was 5.80%.

[bar chart]

Highest and Lowest Quarterly Returns
Quarter Ended 3/31/95 3.14%
Quarter Ended 3/31/94 -0.54%

Short-Term Treasury American Century Investments

The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The Lehman 1-3 Year
Government Securities Index, an unmanaged index that reflects no operating
costs, is included as a benchmark for long-term performance comparisons.

1 YEAR 5 YEARS LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 1998)
Short-Term Treasury 7.48% 5.26% 5.18%
Lehman 1-3 Yr.
Government Securities Index 7.93% 5.93% 5.76%

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) 0.02%
Total Annual Fund Operating Expenses 0.53%

(1)Based on assets as of March 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 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
--------------------------------------------------
$54 $170 $296 $665

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?

NEWLIN RANKIN, Senior Portfolio Manager, has been a member of the
Short-Term Treasury team since March 1996. He joined American Century in
1994. Previously, he was an Assistant Vice President at Wells Fargo Bank.
He holds a bachelor's degree and an MBA from the University of San
Francisco.

ROBERT V. GAHAGAN, Vice President and Portfolio Manager, has been a
member of the Short-Term Treasury team since March 1996. He joined American
Century in 1983. He holds a bachelor's degree in economics and an MBA from
the University of Missouri, Kansas City.

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

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 Short-Term
Treasury 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 Short-Term Treasury

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

Short-Term Treasury pays distributions of substantially all of its
income monthly. Distributions may be taxable as ordinary income, capital
gains, or a combination of the two. Capital gains are taxed at different
rates depending on the length of time the fund held the securities that
were sold. Distributions are reinvested automatically in additional shares
unless you choose another option.

Distributions will generally be exempt from most state income taxes.
Consult your tax advisor to see if the fund's income is exempt in your
state.

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

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-13777 9810
<PAGE>
FUND PROFILE

GNMA Fund

INVESTOR CLASS

November 6, 1998

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

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

GNMA FUND

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

GNMA Fund seeks high current income while maintaining liquidity and
safety of principal by investing primarily in GNMA certificates.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund buys certificates issued by the Government National Mortgage
Association (GNMA). Unlike many other mortgage-backed securities, the
timely payment of principal and interest on GNMA certificates is backed by
the full faith and credit of the U.S. government. This means that the fund
receives its share of payments regardless of whether the ultimate borrowers
make their payments.

The fund also may buy short-term securities issued by the U.S.
government, its agencies and instrumentalities, including mortgage-backed
securities. The U.S. government provides varying levels of financial
support to these agencies and instrumentalities.

Additional information about GNMA Fund'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 GNMA Fund than for funds that have shorter weighted average
maturities, such as money market funds.

*GNMA Fund invests in mortgage-backed securities. When homeowners refinance
their mortgages to take advantage of declining interest rates, their
existing mortgages are prepaid. The mortgages, which back the securities
purchased by GNMA Fund, may be prepaid in this fashion. Because of this
"prepayment risk," the fund may benefit less from declining interest rates
than other short-term funds.

*As with all funds, at any given time the value of your shares of GNMA Fund
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, GNMA Fund is intended for investors who seek high current
income that is consistent with investment in GNMA certificates and who are
willing to accept the risks associated with the fund's investment strategy.

FUND PERFORMANCE

The following bar chart shows the actual performance of GNMA Fund'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
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
GNMA Fund 6.48 11.93 9.20 13.75 6.55 7.91 -1.67 15.86 5.21 8.79

As of September 30, 1998, the end of the most recent calendar quarter, GNMA
Fund's year-to-date return was 5.43%.

GNMA Fund American Century Investments

The highest and lowest returns of the fund's Investor Class shares for a
quarter during the last 10 calendar years are provided in the following
chart to indicate the fund's historical short-term volatility. Shareholders
should be aware, however, that GNMA Fund 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 6/30/89 7.68%
Quarter Ended 3/31/94 -2.39%

The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The Salomon 30-year GNMA
Index, 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)
GNMA Fund 7.63% 6.79% 8.66%
Salomon 30-year GNMA Index 8.27% 7.30% 9.21%
*(index as of 9/30/85)

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

ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 0.59%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.59%

(1)Based on assets as of March 31, 1998. 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
--------------------------------------------------
$60 $189 $329 $738

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 GNMA
Fund team are:

DAVID SCHROEDER, Vice President and Senior Portfolio Manager, supervises
the American Century Government Income Trust team and has been a member of
the GNMA Fund team since January 1996. He joined American Century in 1990.
He holds a bachelor's degree from Pomona College.

CASEY COLTON, Vice President and Senior Portfolio Manager, has been a
member of the GNMA Fund team since January 1994. He joined American Century
in 1990. He holds a bachelor's degree in business administration from San
Jose State University and a master's degree from the University of Southern
California. He is a Chartered Financial Analyst and a Certified Public
Accountant.

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

Fund Profile GNMA Fund

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 GNMA Fund 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?

GNMA Fund pays distributions of substantially all of its income monthly.
Distributions may be taxable as ordinary income, capital gains, or a
combination of the two. Capital gains are taxed at different rates
depending on the length of time the fund held the securities that were
sold. 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

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-13778 9810
<PAGE>
FUND PROFILE

Capital Preservation

INVESTOR CLASS

November 6, 1998

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

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

CAPITAL PRESERVATION

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

Capital Preservation is a money market fund that seeks maximum safety
and liquidity, and to pay shareholders the highest rate of return
consistent with this objective.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund buys very short-term U.S. Treasury securities that are
guaranteed by the direct full faith and credit pledge of the U.S.
government.

The weighted average maturity of the fund is expected to be 90 days or
less.

Additional information about Capital Preservation'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 very short-term 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.

FUND PERFORMANCE

The following bar chart shows the actual performance of Capital
Preservation'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
Capital Preservation 6.48 8.28 7.64 5.62 3.31 2.65 3.63 5.32 4.85 4.97

As of September 30, 1998, the end of the most recent calendar quarter, Capital
Preservation's year-to-date return was 3.75%.

[bar chart]

Highest and Lowest Quarterly Returns
Quarter Ended 6/30/89 2.12%
Quarter Ended 6/30/93 0.63%

The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The 90-Day Treasury Bill
Index, an unmanaged index that reflects no operating costs, is included as
a benchmark for long-term performance comparisons.

Capital Preservation American Century Investments

1 YEAR 5 YEARS 10 YEARS
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 1998)
Capital Preservation 5.05% 4.64% 5.18%
90-Day Treasury Bill Index 5.11% 4.96% 5.41%

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

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

ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 0.48%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.48%

(1)Based on assets as of March 31, 1998. 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
----------------------------------------------------
$49 $154 $269 $604

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?

AMY O'DONNELL, Portfolio Manager, has been a member of the Capital
Preservation team since April 1997. She joined American Century in 1987.
She holds a bachelor's degree in business administration and an MBA in
finance 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 $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 Capital
Preservation 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. Because
Capital Preservation is a money market fund, its distributions generally
will be taxed as ordinary income. If the fund's share price were to go up
or down, its annual distributions also could include capital gains or
losses. Distributions are reinvested automatically in additional shares
unless you choose another option.

Fund Profile Capital Preservation

Distributions will generally be exempt from most state income taxes.
Consult your tax advisor to see if the fund's income is exempt in your
state.

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

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-13779 9810
<PAGE>
FUND PROFILE

Government Agency Money Market

INVESTOR CLASS

November 6, 1998

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

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

GOVERNMENT AGENCY MONEY MARKET

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

Government Agency Money Market seeks to pay the highest rate of return
while maintaining liquidity and safety of principal. The fund invests
exclusively in short-term obligations of the U.S. government and its
agencies and instrumentalities. The fund seeks to purchase only those
securities with income that will be exempt from state income tax.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund buys very short-term securities issued by the U.S. government,
its agencies and instrumentalities. The U.S. government provides varying
levels of financial support to these agencies and instrumentalities.

The fund also may buy very short-term U.S. Treasury securities that are
guaranteed by the direct full faith and credit pledge of the U.S.
government.

The weighted average maturity of the fund is expected to be 90 days or
less.

Additional information about Government Agency 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?

FUND PERFORMANCE

The following bar chart shows the actual performance of Government
Agency Money Market's Investor Class shares for each year since the fund's
inception on December 5, 1989. 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
1990 1991 1992 1993 1994 1995 1996 1997
Government Agency Money Market 8.34 6.01 3.39 2.68 3.75 5.50 4.93 5.07

As of September 30, 1998, the end of the most recent calendar quarter,
Government Agency Money Market's year-to-date return was 3.83%.

[bar chart]

Highest and Lowest Quarterly Returns
Quarter Ended 3/31/90 2.06%
Quarter Ended 6/30/93 0.65%

Government Agency Money Market American Century Investments

1 YEAR 5 YEARS LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 1998)
Government Agency
Money Market 5.17% 4.76% 4.99%
90-Day T-Bill Index* 5.11% 4.96% 5.00%
*(index as of 12/31/89)

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 assets as of March 31, 1998. 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
-------------------------------------------------
$49 $154 $268 $603

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?

AMY O'DONNELL, Portfolio Manager, has been a member of the Government
Agency Money Market team since April 1997. She joined American Century in
1987. She holds a bachelor's degree in business administration and an MBA
in finance 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

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 Government
Agency 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. You may elect
to have distributions automatically deposited back into your Government
Agency Money Market account, sent directly to your bank account or sent to
you by check. Because Government Agency Money Market is a money market
fund, its distributions generally will be taxed as ordinary income. If the
fund's share price were to go up or down, its annual distributions also
could include capital gains or losses.

Fund Profile Government Agency Money Market

Distributions will generally be exempt from most state income taxes.
Consult your tax advisor to see if the fund's income is exempt in your
state.

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

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-13780 9810
<PAGE>
FUND PROFILE

Short-Term Government

INVESTOR CLASS

November 6, 1998

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

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

SHORT-TERM GOVERNMENT

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

Short-Term Government seeks high current income while maintaining safety
of principal.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund buys short-term securities issued by the U.S. government, its
agencies and instrumentalities, including mortgage-backed securities. The
U.S. government provides varying levels of financial support to these
agencies and instrumentalities. The fund also may buy short-term U.S.
Treasury securities guaranteed by the direct full faith and credit pledge
of the U.S. government.

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

Additional information about Short-Term Government'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 Short-Term Government than for funds that have shorter
weighted average maturities, such as money market funds.

*Short-Term Government invests in mortgage-backed securities. When
homeowners refinance their mortgages to take advantage of declining
interest rates, their existing mortgages are prepaid. The mortgages, which
back the securities purchased by Short-Term Government, may be prepaid in
this fashion. Because of this "prepayment risk," the fund may benefit less
from declining interest rates than other short-term funds.

*As with all funds, at any given time the value of your shares of
Short-Term Government 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, Short-Term Government is intended for investors who seek
high current income that is consistent with investment in securities issued
by the U.S. government and its agencies and who are willing to accept the
risks associated with the fund's investment strategy.

FUND PERFORMANCE

The following bar chart shows the actual performance of Short-Term
Government'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]
<TABLE>
CALENDAR YEAR-BY-YEAR RETURNS
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Short-Term Government 5.64 9.99 7.53 11.64 4.39 4.17 -0.49 10.51 4.11 6.02
</TABLE>

As of September 30, 1998, the end of the most recent calendar quarter,
Short-Term Government's year-to-date performance was 5.57%.

Short-Term Government American Century Investments

[bar chart]

Highest and Lowest Quarterly Returns
Quarter Ended 6/30/89 5.13%
Quarter Ended 3/31/94 1.03%

The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The Salomon 1-3 Year
Treasury/Agency Index, 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)
Short-Term Government 7.29% 5.15% 6.35%
Salomon 1-3 Yr. Treasury/
Agency Index 7.90% 5.90% 7.38%

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

(1)Based on assets as of March 31, 1998. 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
-------------------------------------------------
$60 $189 $329 $738

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?

NEWLIN RANKIN, Senior Portfolio Manager, has been a member of the
Short-Term Government team since January 1995. He joined American Century
in 1994. Previously, he was an Assistant Vice President at Wells Fargo
Bank. He holds a bachelor's degree and an MBA from the University of San
Francisco.

ROBERT V. GAHAGAN, Vice President and Portfolio Manager, has been a
member of the Short-Term Government team since December 1990. He joined
American Century in 1983. He holds a bachelor's degree in economics and an
MBA from the University of Missouri, Kansas City.

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

Fund Profile Short-Term Government

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 Short-Term
Government 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?

Short-Term Government pays distributions of substantially all of its
income monthly. Distributions may be taxable as ordinary income, capital
gains, or a combination of the two. Capital gains are taxed at different
rates depending on the length of time the fund held the securities that
were sold. 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

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-13781 9810
<PAGE>
FUND PROFILE

Inflation-Adjusted Treasury

INVESTOR CLASS

November 6, 1998

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

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

INFLATION-ADJUSTED TREASURY

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

Inflation-Adjusted Treasury seeks total return consistent with
investment in U.S. Treasury inflation-adjusted securities.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund buys inflation-indexed U.S. Treasury securities guaranteed by
the direct full faith and credit pledge of the U.S. government. These
inflation-indexed securities are designed to protect the future purchasing
power of the money invested in them.

The fund also may buy U.S. Treasury securities that are not
inflation-indexed. The fund may invest up to 35% of its total assets in
these securities.

Additional information about Inflation-Adjusted Treasury'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?

*Inflation-adjusted securities are sold based upon an assumption about real
interest rates. "Real" interest rates are the market rate of interest minus
the anticipated rate of inflation. Changes in real interest rates affect
the amount of income the fund generates. Generally, when real interest
rates rise, the fund's share value will decline. The opposite is true when
interest rates decline. This real interest rate risk is higher for
Inflation-Adjusted Treasury than for funds that do not invest in
inflation-indexed securities.

*As with all funds, at any given time, the value of your shares of
Inflation-Adjusted Treasury 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, Inflation-Adjusted Treasury is intended for investors who
seek total return that is consistent with investment in U.S. Treasury
inflation-indexed securities and who are willing to accept the risks
associated with the fund's investment strategy.

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) 0.13%
Total Annual Fund Operating Expenses 0.64%

(1)Based on assets as of March 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 include the fees and expenses of the fund's
independent trustees, their legal counsel, interest and extraordinary
expenses.

Inflation-Adjusted Treasury American Century Investments

1 year 3 years 5 years 10 years
---------------------------------------------------
$65 $205 $357 $798

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?

DAVID SCHROEDER, Vice President and Senior Portfolio Manager, supervises
the American Century Government Income Trust team and has been a member of
the Inflation-Adjusted Treasury team since its inception on February 10,
1997. He joined American Century in 1990. He has a bachelor's degree from
Pomona College.

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

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
Inflation-Adjusted Treasury 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?

Inflation-Adjusted Treasury pays distributions of substantially all of
its income, including "imputed income," monthly. Distributions may be
taxable as ordinary income, capital gains or a combination of the two.
Capital gains are taxed at different rates depending on the length of time
the fund held the securities that were sold. Distributions are reinvested
automatically in additional shares unless you choose another option.

Distributions will generally be exempt from most state income taxes.
Consult your tax advisor to see if the fund's income is exempt in your
state.

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.

Fund Profile Inflation-Adjusted Treasury

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.

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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

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-13782 9810