AMERICAN CENTURY GOVERNMENT INCOME TRUST, 497K3B, 1999-01-20

AMERICAN CENTURY GOVERNMENT INCOME TRUST
497K3B, 1999-01-20

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FUND PROFILE

Intermediate-Term Treasury

INVESTOR CLASS

January 15, 1999

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

- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus has additional information about the
fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest. You may
obtain the Prospectus and other information about the fund at no cost by
calling us at 1-800-345-2021, accessing our Web site at 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 main- taining safety of capital.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

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

The fund managers 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 managers may invest up to 35% of the fund's
total assets in these securities.

The fund managers 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 managers 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 fiscal
period. You may get these reports at no cost by calling us.

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

* When interest rates change, the amount of income the fund generates
will be affected. Generally, when interest rates rise, the fund's
income and its 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 money market and short-term bond 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 (FDIC) 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
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Intermediate-Term Treasury 11.93% 9.20% 13.75% 6.55% 7.91% -2.34% 13.70% 4.08% 8.38% 8.94
</TABLE>

The highest and lowest returns of the fund's Investor Class shares for
a calendar quarter during the period reflected by the preceding bar chart
are provided in the following chart to indicate the fund's historical
short-term volatility. Shareholders should be aware, however, that
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- to 10-Year
Treasury Index, an unmanaged index that reflects no operating costs, is
included as a benchmark for performance comparisons.

1 5 10 LIFE OF
YEAR YEARS YEARS FUND
AVERAGE ANNUAL TOTAL RETURNS
(PERIOD ENDED DECEMBER 31, 1998)
Intermediate-Term Treasury 8.94% 6.41% 8.04% 8.86%
Salomon 3- to 10-Year
Treasury Index 10.21% 7.14% 8.67% 9.88%

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 will 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
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 identified below:

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

ROBERT GAHAGAN, Vice President and Portfolio Manager, has been a member
of the team that manages Intermediate-Term Treasury since January 1998. He
joined American Century in 1983. He has 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
IRA and Roth IRA 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

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

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

FAX 816-340-7962

SH-PRF-14851 9901
Funds Distributor, Inc.
<PAGE>
FUND PROFILE

Long-Term Treasury

INVESTOR CLASS

January 15, 1999

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

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

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

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 managers buy 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 fiscal
period. You may get these reports at no cost by calling us.

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

* When interest rates change, the amount of income the fund generates
will be affected. Generally, when interest rates rise, the fund's
income and its 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 money market, short-term and intermediate-term
bond 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 (FDIC) 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 1998
Long-Term Treasury 17.64% -9.25% 29.25% -1.36% 14.76% 12.76

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

FUND PERFORMANCE American Century Investments

[bar chart]
Highest and Lowest Quarterly Returns
Quarter Ended 6/30/95 10.48%
Quarter Ended 3/31/96 -7.00%

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

1 YEAR 5 YEARS LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS
(PERIOD ENDED DECEMBER 31, 1998)
Long-Term Treasury 12.76% 8.41% 9.38%
Salomon Long-Term Treasury/Agency Index 13.38% 9.35% 10.40%

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 0.51%(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.

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

. . . your cost of investing in the fund would be:

1 year 3 years 5 years 10 years
$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, has been a
member of the team that manages Long-Term Treasury since September 1992. He
joined American Century in 1990. He has a bachelor of arts from Pomona
College.

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

FUND PROFILE LONG-TERM TREASURY

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.

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.

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

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

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

FAX
816-340-7962

SH-PRF-14852 9901

Funds Distributor, Inc.
<PAGE>
FUND PROFILE

Short-Term Treasury

INVESTOR CLASS

January 15, 1999

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

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

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

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 managers buy short-term U.S. Treasury securities guaranteed by
the direct full faith and credit pledge of the U.S. government.

The fund managers 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 managers may invest up to 35% of the fund's
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 fiscal
period. You may get these reports at no cost by calling us.

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

* When interest rates change, the amount of income the fund generates
will be affected. Generally, when interest rates rise, the fund's
income and its 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 Short-Term
Treasury price you paid. If you sell your shares when the value is
less than the price you paid, you will lose money.

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

In summary, 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 1998
Short-Term Treasury 5.32% 0.15% 9.93% 4.12% 6.11% 6.44

[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- to 3-Year
Government Securities Index, an unmanaged index that reflects no operating
costs, is included as a benchmark for performance comparisons.

1 YEAR 5 YEARS LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS
(PERIOD ENDED DECEMBER 31, 1998)
Short-Term Treasury 6.44% 5.30% 5.07%
Lehman 1- to 3-Year
Government Securities Index 6.96% 5.96% 5.66%

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 0.51%(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.

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

. . . your cost of investing in the fund would be:

1 year 3 years 5 years 10 years
$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?

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

NEWLIN RANKIN, Senior Portfolio Manager, has been a member of the team
that manages Short-Term Treasury since March 1996. He joined American
Century in 1994. He has a bachelor's degree in decision science and an MBA
in international finance from the University of 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

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 Short-Term
Treasury 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

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

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

FAX 816-340-7962

SH-PRF-14850 9901
Funds Distributor, Inc.
<PAGE>
FUND PROFILE

GNMA Fund

INVESTOR CLASS

January 15, 1999

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

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

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

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 managers buy 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 managers receive the fund's share of payments regardless of whether
the ultimate borrowers make their payments.

The fund managers 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 fiscal period. You
may get these reports at no cost by calling us.

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

* When interest rates change, the amount of income the fund generates
will be affected. Generally, when interest rates rise, the fund's
income and its 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 (FDIC) 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]
<TABLE>
CALENDAR YEAR-BY-YEAR RETURNS
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GNMA Fund 13.90% 10.15% 15.56% 7.67% 6.59% -1.67% 15.86% 5.21% 8.79% 6.33
</TABLE>

GNMA Fund American Century Investments

[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 performance comparisons.

1 5 10 LIFE OF
YEAR YEARS YEARS FUND
AVERAGE ANNUAL TOTAL RETURNS
(PERIOD ENDED DECEMBER 31, 1998)
GNMA Fund 6.33% 6.75% 8.72% 8.70%
Salomon 30-year
GNMA Index 6.82% 7.34% 9.29% 9.60%
*(index as of 9/30/85)

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 0.59%(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.

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

1 year 3 years 5 years 10 years
$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?

DAVID SCHROEDER, Vice President and Senior Portfolio Manager, has been a
member of the team that manages GNMA Fund since January 1996. He joined
American Century in 1990. He has a bachelor of arts from Pomona College.

CASEY COLTON, Vice President and Senior Portfolio Manager, has been a
member of the team that manages GNMA Fund since January 1994. He joined
American Century in 1990. He has a bachelor's degree in business
administration from San Jose State University and an MBA 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.

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

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

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

FAX
816-340-7962

SH-PRF-14849 9901
Funds Distributor, Inc.
<PAGE>
FUND PROFILE

Capital Preservation

INVESTOR CLASS

January 15, 1999

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

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

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS
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 manager 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 fund manager 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 manager may purchase securities
in advance to generate additional income.

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 fiscal
period. You may get these reports at no cost by calling us.

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

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

* Because 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]
<TABLE>
CALENDAR YEAR-BY-YEAR RETURNS
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Capital Preservation 8.28% 7.64% 5.62% 3.31% 2.65% 3.63% 5.32% 4.85% 4.97% 4.92%
</TABLE>

[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 performance comparisons.

CAPITAL PRESERVATION AMERICAN CENTURY INVESTMENTS

1 5 10 LIFE OF
YEAR YEARS YEARS FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
Capital Preservation 4.92% 4.74% 5.10 5.31%
90-Day Treasury Bill Index 4.50% 4.95% 5.28% 7.05%

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.

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

. . . your cost of investing in the fund would be:

1 year 3 years 5 years 10 years
$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?

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

AMY O'DONNELL, Portfolio Manager, has been a member of the team that
manages Capital Preservation since April 1997. She joined American Century
in 1987. She has 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 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.

FUND PROFILE CAPITAL PRESERVATION

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.

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

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

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

FAX
816-340-7962

SH-PRF-14847 9901
Funds Distributor, Inc.
<PAGE>

FUND PROFILE

Government Agency Money Market

INVESTOR CLASS

January 15, 1999

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

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

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

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, 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 manager 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 manager 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.

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 fiscal 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]
<TABLE>
CALENDAR YEAR-BY-YEAR RETURNS
1990 1991 1992 1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Government Agency Money Market 8.34% 6.01% 3.39% 2.68% 3.75% 5.50% 4.93% 5.07% 5.07%
</TABLE>

[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 DECEMBER 31, 1998)
Government Agency
Money Market 5.07% 4.86% 4.98%
90-Day Treasury Bill Index* 4.50% 4.95% 4.94%
*(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?

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

Amy O'Donnell, Portfolio Manager, has been a member of the team that
manages Government Agency Money Market since April 1997. She joined
American Century in 1987. She has 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. 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. 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.

FUND PROFILE GOVERNMENT AGENCY MONEY MARKET

9. WHAT SERVICES ARE AVAILABLE?

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

* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions

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

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

American Century Investments
P.O. Box 419200
Kansas City, Missouri 64141-6200

www.americancentury.com

Investor Services
1-800-345-2021 or 816-531-5575

Automated Information Line
1-800-345-8765

Corporate; Not-For-Profit; Foundations; Endowments; Keogh; SEP-, SARSEP- and
SIMPLE-IRA; and 403(b) Services
1-800-345-3533

Telecommunications Device for the Deaf
1-800-634-4113 or 816-444-3485

Fax 816-340-7962

SH-PRF-14848 9901
Funds Distributor, Inc.
<PAGE>
FUND PROFILE

Short-Term
Government

INVESTOR CLASS

January 15, 1999

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

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

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

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 managers 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. The fund managers 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 fiscal
period. You may get these reports at no cost by calling us.

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

* When interest rates change, the amount of income the fund generates
will be affected. Generally, when interest rates rise, the fund's
income and its 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 (FDIC) 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
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Short-Term Government 9.99% 7.53% 11.64% 4.39% 4.17% -0.49% 10.51% 4.11% 6.02% 6.04%
</TABLE>

SHORT-TERM TREASURY 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- to 3-Year
Treasury/Agency Index, an unmanaged index that reflects no operating costs,
is included as a benchmark for performance comparisons.

1 5 10 LIFE OF
YEAR YEARS YEARS FUND
AVERAGE ANNUAL TOTAL RETURNS
(PERIOD ENDED DECEMBER 31, 1998)
Short-Term Government 6.04% 5.18% 6.33% 7.16%
Salomon 1- to 3-Year
Treasury/Agency Index 6.98% 5.94% 7.34% 8.25%

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.

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

. . . your cost of investing in the fund would be:

1 year 3 years 5 years 10 years
$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?

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

NEWLIN RANKIN, Senior Portfolio Manager, has been a member of the team
that manages Short-Term Government since January 1995. He joined American
Century in 1994. He has a bachelor's degree in decision science and an MBA
in international finance from the University of 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

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.

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

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

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

FAX
816-340-7962

SH-PRF-14859 9901
Funds Distributor, Inc.
<PAGE>

FUND PROFILE

Inflation-Adjusted Treasury

INVESTOR CLASS

January 15, 1999

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

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

BENHAM GROUP

AMERICAN CENTURY INVESTMENTS

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 manager 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 manager also may buy U.S. Treasury securities that are not
inflation-indexed. The fund manager may invest up to 35% of the fund's
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
fiscal 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 (FDIC) 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.

FUND PERFORMANCE

The following bar chart shows the actual performance of
Inflation-Adjusted Treasury's Investor Class shares for each calendar year
since the fund's inception on February 10, 1997. 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
1998
Inflation-Adjusted Treasury 3.45%

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

INFLATION-ADJUSTED TREASURY AMERICAN CENTURY INVESTMENTS

[bar chart]
HIGHEST AND LOWEST QUARTERLY RETURNS
Quarter Ended 9/30/98 2.27%
Quarter Ended 12/31/98 -0.37%

The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The Salomon Brothers
Treasury Index and the Salomon Brothers U.S. Inflation-Linked Index, are
unmanaged indices that reflect no operating costs, or are included as a
benchmark for performance comparisons.

1 YEAR LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS
(PERIOD ENDED DECEMBER 31, 1998)
Inflation-Adjusted Treasury 3.45% 2.36%
The Salomon Treasury Index 13.49% 16.11%
Salomon U.S. Inflation-Linked Index 3.92% 3.30%

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 0.51%(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.

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

. . . your cost of investing in the fund would be:

1 year 3 years 5 years 10 years
$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?

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

DAVID SCHROEDER, Vice President and Senior Portfolio Manager, has been a
member of the team that manages Inflation-Adjusted Treasury since its
inception on February 1997. He joined American Century in 1990. He
has a bachelor of arts 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

Your initial investment must be at least $2,500 ($1,000 for traditional
IRAs and Roth IRA accounts). If the value of your account falls below this
account minimum, your shares may be redeemed involuntarily.

FUND PROFILES INFLATION-ADJUSTED 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
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.

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

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

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

FAX
816-340-7962

SH-PRF-14853 9901

Funds Distributor, Inc.