AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS, 485BPOS, 1998-04-30

AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS
485BPOS, 1998-04-30

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As filed with the Securities and Exchange Commission on April 30, 1998
1933 Act File No. 33-19589; 1940 Act File No. 811-5447

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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 X
-----

Pre-Effective Amendment No.____ -----

Post-Effective Amendment No._22_ X
-----
and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 X
-----

Amendment No._24_

(check appropriate box or boxes)

AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS
------------------------------------------
(Exact Name of Registrant as Specified in Charter)

American Century Tower, 4500 Main Street, Kansas City, MO 64111
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(Address of Principal Executive Offices) (Zip Code)

Registrant's Telephone Number, including Area Code: (816) 531-5575

Douglas A. Paul
1665 Charleston Road, Mountain View, CA 94043
---------------------------------------------
(Name and Address of Agent for Service)

Approximate Date of Proposed Public Offering: June 30, 1998

It is proposed that this filing become effective: (check appropriate box)

_____ immediately upon filing pursuant to paragraph (b) of Rule 485
__X__ on May 1, 1998 pursuant to paragraph (b) of Rule 485
_____ 60 days after filing pursuant to paragraph (a) of Rule 485
_____ on June 30, 1998 pursuant to paragraph (a)(1) of Rule 485
_____ 75 days after filing pursuant to paragraph (a) (2) of Rule 485
_____ on (date) pursuant to paragraph (a)(2) of Rule 485

- --------------------------------------------------------------------------------
The Registrant has registered an indefinite number or amount of Securities
under the Securities Act of 1933 pursuant to Rule 24f-2. The Rule 24f-2 notice
for the fiscal year ending December 31, 1997, was filed on February 24, 1998.
<PAGE>
================================================================================
CROSS REFERENCE SHEET

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N-1A Item No. Location
------------- --------
PART A

Item 1. Cover Page Cover Page
Item 2. Synopsis Transaction and Operating
Expense Table
Item 3. Condensed Financial Financial Highlights
Information
Item 4. General Description Investment Policies of
Registrant the Funds; Risk Factors;
Other Investment
Practices, Their Characteristics
and Risks; Performance
Advertising; Distribution
of Fund Shares; Further
Information About
American Century
Item 5. Management of the Management
Fund
Item 6. Capital Stock and Further Information About
Other Securities American Century
Item 7. Purchase of Securities How to Open An Account;
Being Offered How to Exchange From One
Account to Another;
Share Price; Distributions;
Item 8. Redemption How to Redeem Shares;
Signature Guarantee
Item 9. Pending Legal N/A
Proceedings

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PART B
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Item 10. Cover Page Cover Page
Item 11. Table of Contents Table of Contents
Item 12. General Information N/A
Item 13. Investment Objectives Investment Policies and Techniques;
and Policies Investment Restrictions;
Portfolio Turnover
Item 14. Management of the Officers and Directors;
Registrant Management;
Custodians
Item 15. Control Persons Capital Stock
and Principal
Holders of Securities
Item 16. Investment Advisory Management;
and Other Services Custodians
Item 17. Brokerage Allocation Brokerage;
Performance Advertising
Item 18. Capital Stock and Capital Stock;
Other Securities Multiple Class Structure
Item 19. Purchase, Redemption N/A
and Pricing of
Securities Being
Offered
Item 20. Tax Status N/A
Item 21. Underwriters N/A
Item 22. Calculation of Yield Performance Advertising
Quotations of Money
Market Funds
Item 23. Financial Statements Financial Statements

<PAGE>
PROSPECTUS

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

MAY 1, 1998

AMERICAN
CENTURY
GROUP

Global Gold
Global Natural Resources
Utilities Fund

INVESTOR CLASS

AMERICAN CENTURY INVESTMENTS

FAMILY OF FUNDS

American Century Investments offers you nearly 70 fund choices covering
stocks, bonds, money markets, specialty investments and blended portfolios. To
help you find the funds that may meet your investment needs, American Century
funds have been divided into three groups based on investment style and
objectives. These groups, which appear below, are designed to help simplify your
fund decisions.

AMERICAN CENTURY INVESTMENTS--FAMILY OF FUNDS
- -------------------------------------------------------------------------------
Benham American Century Twentieth Century
Group(reg. tm) Group Group
- -------------------------------------------------------------------------------
MONEY MARKET FUNDS ASSET ALLOCATION & GROWTH FUNDS
GOVERNMENT BOND FUNDS BALANCED FUNDS INTERNATIONAL FUNDS
DIVERSIFIED BOND FUNDS CONSERVATIVE EQUITY FUNDS
MUNICIPAL BOND FUNDS SPECIALTY FUNDS
- -------------------------------------------------------------------------------
Global Gold
Global Natural Resources
Utilities Fund

PROSPECTUS

MAY 1, 1998

Global Gold * Global Natural Resources * Utilities Fund

INVESTOR CLASS

AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS

American Century Quantitative Equity Funds is a part of American Century
Investments, a family of funds that includes nearly 70 no-load mutual funds
covering a variety of investment opportunities. Three of the funds from our
American Century Group that invest in specialized equity markets are described
in this Prospectus. Their investment objectives are listed on page 2 of this
Prospectus. The other funds are described in separate prospectuses.

Through its Investor Class of shares, American Century offers investors a
full line of no-load funds, investments that have no sales charges or
commissions.

This Prospectus gives you information about the funds that you should know
before investing. Please read this Prospectus carefully and retain it for future
reference. Additional information is included in the Statement of Additional
Information dated May 1, 1998, and filed with the Securities and Exchange
Commission (SEC). It is incorporated into this Prospectus by reference. To
obtain a copy without charge, call or write:

AMERICAN CENTURY INVESTMENTS
4500 Main Street * P.O. Box 419200
Kansas City, Missouri 64141-6200 * 1-800-345-2021
International calls: 816-531-5575
Telecommunications Device for the Deaf:
1-800-634-4113 * In Missouri: 816-444-3485
www.americancentury.com

Additional information, including this Prospectus and the Statement of
Additional Information, may be obtained by accessing the Web site maintained by
the SEC (www.sec.gov).

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.

PROSPECTUS 1

INVESTMENT OBJECTIVES OF THE FUNDS

AMERICAN CENTURY GLOBAL GOLD FUND

Global Gold seeks to realize a total return (capital growth and dividends)
consistent with investment in securities of companies that are engaged in
mining, processing, fabricating or distributing gold or other precious metals
throughout the world.

AMERICAN CENTURY GLOBAL NATURAL RESOURCES FUND

Global Natural Resources seeks to realize a total return (capital growth and
dividends) consistent with investment in companies that are engaged in the
natural resources industries.

The fund invests primarily in the stocks of foreign and U.S. companies
included in the Energy and Basic Materials sectors (Sectors) of the Dow Jones
World Stock Index* (DJWSI), excluding chemical companies.

AMERICAN CENTURY UTILITIES FUND

The Utilities Fund seeks current income and long-term growth of capital and
income.

The fund invests primarily in equity securities of companies engaged in the
utilities industry.

There is no assurance that the funds will achieve
their respective investment objectives.

* The DJWSI is property of Dow Jones & Company, Inc. which is not affiliated
with American Century.

NO PERSON IS AUTHORIZED BY THE FUNDS TO GIVE ANY INFORMATION OR MAKE ANY
REPRESENTATION OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS OR IN OTHER PRINTED
OR WRITTEN MATERIAL ISSUED BY OR ON BEHALF OF THE FUNDS, AND YOU SHOULD NOT RELY
ON ANY OTHER INFORMATION OR REPRESENTATION.

2 INVESTMENT OBJECTIVES AMERICAN CENTURY INVESTMENTS

TABLE OF CONTENTS

Investment Objectives of the Funds ......................................... 2
Transaction and Operating Expense Table .................................... 4
Financial Highlights ....................................................... 5

INFORMATION REGARDING THE FUNDS

Investment Policies of the Funds ........................................... 8
Core Investment Strategies ................................................. 8
Global Gold ................................................................ 8
Global Natural Resources ................................................... 9
Utilities Fund ............................................................. 10
Risk Factors and Investment Techniques ..................................... 11
Concentration Risk ......................................................... 11
Global Gold ................................................................ 11
Global Natural Resources ................................................... 11
Utilities Fund ............................................................. 11
Foreign Securities Risk .................................................... 12
European Currency Unification .............................................. 13
Uncertainties as Unification Nears ......................................... 13
Uncertainties After Unification of Currency ................................ 13
Risk of Using the Funds as a Hedge ......................................... 14
Other Investment Practices, Their Characteristics
and Risks .................................................................. 14
Portfolio Turnover ......................................................... 14
Convertible Securities ..................................................... 14
When-Issued Securities ..................................................... 14
Forward Currency Exchange Contracts ........................................ 15
Gold Investments ........................................................... 15
Short-Term Instruments ..................................................... 16
Futures Contracts and Options Thereon ...................................... 16
Rule 144A Securities ....................................................... 16
Indexed Securities ......................................................... 17
Other Techniques ........................................................... 17
Performance Advertising .................................................... 17

HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS

American Century Investments ............................................... 19
Investing in American Century .............................................. 19
How to Open an Account ..................................................... 19
By Mail .................................................................... 19
By Wire .................................................................... 19
By Exchange ................................................................ 20
In Person .................................................................. 20
Subsequent Investments ..................................................... 20
By Mail .................................................................... 20
By Telephone ............................................................... 20
By Online Access ........................................................... 20
By Wire .................................................................... 20
In Person .................................................................. 20
Automatic Investment Plan .................................................. 20
How to Exchange from One Account to Another ................................ 21
By Mail .................................................................... 21
By Telephone ............................................................... 21
By Online Access ........................................................... 21
How to Redeem Shares ....................................................... 21
By Mail .................................................................... 21
By Telephone ............................................................... 21
By Check-A-Month ........................................................... 21
Other Automatic Redemptions ................................................ 21
Redemption Proceeds ........................................................ 21
By Check ................................................................... 21
By Wire and ACH ............................................................ 22
Redemption of Shares in Low-Balance Accounts ............................... 22
Signature Guarantee ........................................................ 22
Special Shareholder Services ............................................... 22
Automated Information Line ................................................. 22
Online Account Access ...................................................... 22
Open Order Service ......................................................... 22
Tax-Qualified Retirement Plans ............................................. 23
Important Policies Regarding Your Investments .............................. 23
Reports to Shareholders .................................................... 24
Employer-Sponsored Retirement Plans and
Institutional Accounts ..................................................... 24

ADDITIONAL INFORMATION YOU SHOULD KNOW

Share Price ................................................................ 25
When Share Price is Determined ............................................. 25
How Share Price is Determined .............................................. 25
Where to Find Information About Share Price ................................ 26
Distributions .............................................................. 26
Taxes ...................................................................... 26
Tax-Deferred Accounts ...................................................... 26
Taxable Accounts ........................................................... 26
Management ................................................................. 27
Investment Management ...................................................... 27
Code of Ethics ............................................................. 28
Transfer and Administrative Services ....................................... 29
Year 2000 Issues ........................................................... 29
Distribution of Fund Shares ................................................ 29
Further Information About American Century ................................. 30

PROSPECTUS TABLE OF CONTENTS 3

TRANSACTION AND OPERATING EXPENSE TABLE

Global Gold,
Global Natural
Resources,
Utilities

SHAREHOLDER TRANSACTION EXPENSES:

Maximum Sales Load Imposed on Purchases .......................... none

Maximum Sales Load Imposed on Reinvested Dividends ............... none

Deferred Sales Load .............................................. none

Redemption Fee(1) ................................................ none

Exchange Fee ..................................................... none

ANNUAL FUND OPERATING EXPENSES:

(as a percentage of net assets)

Management Fees(2) ............................................... 0.70%

12b-1 Fees ....................................................... none

Other Expenses ................................................... 0.01%

Total Fund Operating Expenses .................................... 0.71%

EXAMPLE

You would pay the following expenses 1 year $ 7
on a $1,000 investment, assuming a 3 years 23
5% annual return and redemption at 5 years 40
the end of each time period: 10 years 88
- ----------

(1) Redemption proceeds sent by wire are subject to a $10 processing fee.

(2) A portion of the management fee may be paid by American Century Investment
Management, Inc. to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of
the manager. See "Management - Transfer and Administrative Services," page
29.

The purpose of this table is to help you understand the various costs and
expenses that you, as a shareholder, will bear directly or indirectly in
connection with an investment in the class of shares of the funds offered by
this Prospectus. The example set forth above assumes reinvestment of all
dividends and distributions and uses a 5% annual rate of return as required by
SEC regulations.

NEITHER THE 5% RATE OF RETURN NOR THE EXPENSES SHOWN ABOVE SHOULD BE
CONSIDERED INDICATIONS OF PAST OR FUTURE RETURNS AND EXPENSES. ACTUAL RETURNS
AND EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

The shares offered by this Prospectus are Investor Class shares and have no
up-front or deferred sales charges, commissions, or 12b-1 fees. The funds offer
one other class of shares, primarily to institutional investors, that has a
different fee structure than the Investor Class. The difference in the fee
structures among the classes is the result of their separate arrangements for
shareholder and distribution services and not the result of any difference in
amounts charged by the manager for core investment advisory services.
Accordingly, the core investment advisory expenses do not vary by class. A
difference in fees will result in different performance for these classes. For
additional information about the various classes, see "Further Information About
American Century," page 30.

4 TRANSACTION AND OPERATING EXPENSE TABLE AMERICAN CENTURY INVESTMENTS

FINANCIAL HIGHLIGHTS

GLOBAL GOLD

The Financial Highlights for the fiscal year ended December 31, 1997, have
been audited by Coopers & Lybrand, L.L.P., independent accountants, whose report
thereon appears in the fund's annual report, which is incorporated by reference
into the Statement of Additional Information. The annual report contains
additional performance information and will be made available upon request and
without charge. The Financial Highlights for the periods ended on or before
December 31, 1996, have been audited by other independent accountants. The
information presented is for a share outstanding throughout the years ended
December 31, except as noted.

1997 1996 1995 1994 1993 1992 1991 1990 1989 1988(1)

PER-SHARE DATA

Net Asset
Value,
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Beginning of Period ...... $ 11.33 $ 12.37 $ 11.33 $ 13.67 $ 7.55 $ 8.28 $ 9.35 $ 11.71 $ 9.05 $ 10.00
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Income from
Investment Operations

Net Investment Income .. 0.09 0.06 0.02 0.03 0.01 0.02 0.02 -- 0.04 0.09

Net Realized and
Unrealized Gain
(Loss) on Investment
Transactions ........... (4.79) (0.40) 1.03 (2.32) 6.12 (0.73) (1.07) (2.27) 2.75 (0.97)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total From
Investment Operations .. (4.70) (0.34) 1.05 (2.29) 6.13 (0.71) (1.05) (2.27) 2.79 (0.88)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Distributions

From Net
Investment Income ...... (0.09) (0.06) (0.01) (0.02) (0.01) (0.02) (0.02) -- (0.04) (0.07)

From Net Realized
Gains on Investment
Transactions ........... (0.20) (0.64) -- -- -- -- -- (0.09) (0.09) --

In Excess of Net
Realized Gains ......... -- -- -- (0.03) -- -- -- -- -- --
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Distributions .... (0.29) (0.70) (0.01) (0.05) (0.01) (0.02) (0.02) (0.09) (0.13) (0.07)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Asset Value,
End of Period ............ $ 6.34 $ 11.33 $ 12.37 $ 11.33 $ 13.67 $ 7.55 $ 8.28 $ 9.35 $ 11.71 $ 9.05
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Total Return(2) ........ (41.47)% (2.76)% 9.25% (16.75)% 81.22% (8.65)% (11.23)% (19.43)% 29.93% (9.19)%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating
Expenses
to Average Net Assets .. 0.67% 0.62% 0.61% 0.61% 0.72% 0.75% 0.75% 0.96% 1.00% --

Ratio of Net
Investment Income
to Average Net Assets .. 0.92% 0.46% 0.17% 0.20% 0.23% 0.23% 0.30% 0.01% 0.36% 2.04%(3)

Portfolio
Turnover Rate .......... 28% 45% 28% 42% 28% 53% 56% 21% 34% 1%

Average Commission
Paid per Share of
Equity Security
Traded ................. $ 0.0201 $ 0.0289 $ 0.0350 --(4) --(4) --(4) --(4) --(4) --(4) --(4)

Net Assets, End
of Period
(in thousands) ......... $246,015 $432,587 $537,693 $568,030 $616,347 $163,777 $124,436 $104,163 $ 61,786 $ 7,683

(1) August 17, 1988 (inception) through December 31, 1988.

(2) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.

(3) Annualized. (The period ended December 31, 1988 includes 0.76% from
nonrecurring income.)

(4) Disclosure of average commission paid per share of equity security traded
was not required prior to the year ended December 31, 1995.
</TABLE>

PROSPECTUS FINANCIAL HIGHLIGHTS 5

FINANCIAL HIGHLIGHTS

GLOBAL NATURAL RESOURCES

1997 1996 1995 1994(1)

PER-SHARE DATA

Net Asset Value,
<S> <C> <C> <C> <C>
Beginning of Period ................................... $11.91 $10.66 $9.61 $10.00
------- ------- ------- -------
Income From Investment Operations

Net Investment Income ............................... 0.22 0.17 0.16 0.07

Net Realized and Unrealized Gain
(Loss) on Investment Transactions ................... 0.08 1.46 1.22 (0.42)
------- ------- ------- -------
Total From Investment Operations .................... 0.30 1.63 1.38 (0.35)
------- ------- ------- -------
Distributions

From Net Investment Income .......................... (0.23) (0.17) (0.16) (0.04)

From Net Realized Gains
on Investment Transactions .......................... (0.50) (0.21) (0.17) --
------- ------- ------- -------
Total Distributions ................................. (0.73) (0.38) (0.33) (0.04)
------- ------- ------- -------
Net Asset Value,
End of Period ......................................... $11.48 $11.91 $10.66 $9.61
======= ======= ======= =======
Total Return(2) ..................................... 2.50% 15.45% 14.41% (3.48)%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses
to Average Net Assets ................................. 0.73%(3) 0.76% 0.76% --

Ratio of Net Investment Income
to Average Net Assets ................................. 1.55%(3) 1.78% 2.02% 2.74%(4)

Portfolio Turnover Rate ............................... 41% 53% 39% --

Average Commission Paid
per Share of Equity Security Traded ................... $0.0254 $0.0305 $0.0280 --(5)

Net Assets,
End of Period (in thousands) .......................... $46,556 $66,021 $30,157 $18,972

(1) September 15, 1994 (inception) through December 31, 1994.

(2) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.

(3) A portion of the management fee was waived during the year ended December
31, 1997. In absence of the fee waiver, the ratio of operating expenses to
average net assets would have been 0.77% and the ratio of net investment
income to average net assets would have been 1.51%.

(4) Annualized.

(5) Disclosure of average commission paid per share of equity security traded
was not required prior to the year ended December 31, 1995.

</TABLE>

6 FINANCIAL HIGHLIGHTS AMERICAN CENTURY INVESTMENTS

FINANCIAL HIGHLIGHTS

UTILITIES FUND

1997 1996 1995 1994 1993(1)

PER-SHARE DATA

Net Asset Value,
<S> <C> <C> <C> <C> <C>
Beginning of Period ............................. $11.51 $11.44 $8.79 $10.24 $10.00
------- ------- ------- ------- -------
Income From Investment Operations

Net Investment Income ......................... 0.43 0.45 0.42 0.44 0.36

Net Realized and Unrealized Gain
(Loss) on Investment Transactions ............. 3.57 0.08 2.65 (1.45) 0.30
------- ------- ------- ------- -------
Total From
Investment Operations ......................... 4.00 0.53 3.07 (1.01) 0.66
------- ------- ------- ------- -------
Distributions

From Net Investment Income .................... (0.42) (0.46) (0.42) (0.44) (0.36)

From Net Realized Gains on
Investment Transactions ....................... (0.85) -- -- -- (0.06)
------- ------- ------- ------- -------
Total Distributions ........................... (1.27) (0.46) (0.42) (0.44) (0.42)
------- ------- ------- ------- -------
Net Asset Value, End of Period .................. $14.24 $11.51 $11.44 $8.79 $10.24
======= ======= ======= ======= =======
Total Return(2) ............................... 35.82% 4.82% 35.70% (10.03)% 6.60%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses
to Average Net Assets ......................... 0.72% 0.71% 0.75% 0.75% 0.50%(3)

Ratio of Net Investment Income
to Average Net Assets ......................... 3.56% 3.88% 4.31% 4.67% 4.23%(3)

Portfolio Turnover Rate ....................... 92% 93% 68% 61% 39%

Average Commission
Paid per Share of Equity Security Traded ...... $0.0376 $0.0381 $0.0300 --(4) --(4)

Net Assets, End of Period (in thousands) ...... $209,962 $145,134 $218,794 $152,570 $194,314
- ----------

(1) March 1, 1993 (inception) through December 31, 1993.

(2) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.

(3) Annualized.

(4) Disclosure of average commission paid per share of equity security traded
was not required prior to the year ended December 31, 1995.

</TABLE>

PROSPECTUS FINANCIAL HIGHLIGHTS 7

INFORMATION REGARDING THE FUNDS

INVESTMENT POLICIES OF THE FUNDS

The funds have adopted certain investment restrictions that are set forth in
the Statement of Additional Information. Those restrictions, as well as the
investment objectives of the funds identified on page 2 of this Prospectus, and
any other investment policies designated as "fundamental" in this Prospectus or
in the Statement of Additional Information, cannot be changed without
shareholder approval. The funds have implemented additional investment policies
and practices to guide their activities in the pursuit of their respective
investment objectives. These policies and practices, which are described
throughout this Prospectus, are not designated as fundamental policies and may
be changed without shareholder approval.

CORE INVESTMENT STRATEGIES

The manager uses quantitative management strategies in pursuit of the funds'
respective investment objectives. Quantitative management combines two
investment management approaches. The first is active management, which allows
the advisor to select investments for a fund without reference to an index or
investment model. The second is indexing, in which the advisor tries to match a
fund's portfolio composition to that of a particular index.

The primary management technique the manager uses is portfolio optimization.
The manager constructs the fund's portfolio to match the fund benchmarks' risk
characteristics and, in turn, the benchmarks' performance.

GLOBAL GOLD

The manager will construct Global Gold's portfolio to match the risk
characteristics of the market for gold and gold-related equity securities and,
in turn, attempt to produce performance indicative of performance in the
worldwide gold equities market. As part of evaluating and determining the
appropriate investments for Global Gold, the manager intends to utilize various
benchmarks, including a proprietary benchmark developed and monitored by the
manager.

The manager's proprietary benchmark is designed to reflect the securities
market identified by Global Gold's investment objective. The benchmark is
comprised of securities of companies throughout the world that are engaged in
mining, processing, exploring for or otherwise dealing with gold or other
precious metals (Gold Companies). The Gold Companies included in the manager's
proprietary benchmark must receive a minimum percentage of their revenues from
gold-related activities or have a minimum percentage of their assets invested in
gold-related assets, such as gold mines. In addition, the Gold Companies that
will be included in the manager's proprietary benchmark also must meet minimum
market capitalization requirements. The manager may change the composition and
characteristics of the proprietary benchmark as warranted by developments in the
global gold market.

Global Gold will concentrate its investments in securities of Gold
Companies. Under normal circumstances, at least 65% of the value of Global
Gold's total assets will be invested in securities of issuers engaged in gold
operations, including securities of gold mining finance companies, as well as
operating companies with long-, medium- or short-life gold mines.

Global Gold may invest in common stocks, securities convertible into common
stocks and sponsored or unsponsored American Depositary Receipts (ADRs) for the
securities of Gold Companies, all of which may be traded on a securities
exchange or over-the-counter. In seeking income or in times when a conservative
policy is warranted, Global Gold may also purchase preferred stocks and debt
securities, such as notes, bonds, debentures or commercial paper, any of which
may or may not be rated by nationally recognized securities rating agencies.

As part of its global investment strategy, Global Gold will normally invest
in securities of issuers located in at least three different countries, one of

8 INFORMATION REGARDING THE FUNDS AMERICAN CENTURY INVESTMENTS

which may be the United States. For temporary defensive purposes, however,
Global Gold may invest in less than three countries. The manager anticipates
that a substantial portion of Global Gold's assets will be invested in
securities of companies domiciled in or operating in one or more foreign
countries. There are certain risks which are posed to Global Gold when it
invests in foreign securities. See "Risk Factors and Investment
Techniques--Foreign Securities Risk," page 12. These risks may be greater as
Global Gold increases its investments in regions outside North America.

The manager works to balance three goals:

* To construct Global Gold's portfolio composition so that its risk and
investment performance characteristics will match the selected
benchmarks as closely as possible while meeting IRS diversification
requirements;

* To keep enough cash on hand to meet shareholder redemption requests and
pay operational expenses; and

* To keep portfolio transaction costs low.

Global Gold is a "non-diversified company" as defined in the Investment
Company Act of 1940 (the Investment Company Act), which means that the
proportion of Global Gold's assets that may be invested in the securities of a
single issuer is not limited by the Investment Company Act. However, Subchapter
M of the Internal Revenue Code of 1986, as amended, limits the proportion of
assets a fund may invest in the securities of any single issuer. Global Gold
intends to adhere to these limits in order to qualify as a regulated investment
company.

GLOBAL NATURAL RESOURCES

Global Natural Resources seeks to realize a total return (capital growth and
dividends) consistent with investment in companies that are engaged in the
natural resources industries.

Global Natural Resources invests primarily in the stocks of foreign and U.S.
companies included in the Energy and Basic Materials sectors (Sectors) of the
Dow Jones World Stock Index* (DJWSI), excluding chemical companies.

The DJWSI (which is market-capitalization weighted) was created on January
5, 1993, and currently consists of approximately 2,800 stocks of U.S. and
foreign companies representing approximately 28 countries and 120 industry
groups and subgroups, which are grouped into nine broad market sectors. These
nine sectors include the Energy and the Basic Materials sectors.

The value of the DJWSI is calculated each day the New York Stock Exchange
(the Exchange) is open for trading and is based on prices at the close of the
Exchange, usually 3 p.m. Central time. Foreign securities are valued in U.S.
dollars based on the exchange rates as of the close of the Exchange.

The DJWSI editors select companies and stocks based entirely on their own
criteria, which they may change at any time. The DJWSI is divided into
categories determined by the editors of The Wall Street Journal, who may alter
their categorization without consulting the companies, the stock exchanges, or
any official agency. The industries currently included in the Energy and Basic
Materials sectors (excluding chemical companies) are:

ENERGY SECTOR BASIC MATERIALS SECTOR
- --------------------------------------------------------------------------------
Coal Aluminum
Oil Drilling Other Non-Ferrous Metals
Oil Companies, Major Forest Products
Oil Companies, Secondary Mining, Diversified
Oilfield Equip/Services Paper Products
Pipelines Precious Metals and Steel
- --------------------------------------------------------------------------------

Although the chemicals industry is included in the DJWSI Basic Materials
sector, Global Natural Resources does not invest in the chemicals industry.
Typically, chemical companies do not maintain large natural resources
inventories, but rather focus on chemical product development.

In order to minimize transaction costs, Global Natural Resources uses the
portfolio optimization technique (described in "Core Investment Strategies,"
page 8) instead of holding all of the securities included in the Sectors.

Even though Global Natural Resources' portfolio is not constructed to match
the composition of the

*Dow Jones & Company, Inc. has not participated in any way in the creation of
the fund or in the selection of the stocks included in Global Natural Resources'
portfolio and has not approved any information included in the Prospectus
relating thereto. The DJWSI is the property of Dow Jones & Co., Inc.

PROSPECTUS INFORMATION REGARDING THE FUNDS 9

Sectors, the manager does not expect Global Natural Resources' total return to
vary from the combined return of the Sectors by more than five percentage points
per year. However, the manager may periodically need to adjust Global Natural
Resources' holdings to more closely match the composition of the Sectors in
order to reduce performance deviation.

Sector performance is calculated monthly on a total return basis, using
beginning-of-the-month capitalization weightings and assuming reinvestment of
dividends. Global Natural Resources' ability to match Sector performance may
depend in part on market conditions, shareholder activity, transaction costs,
Global Natural Resources' size, and tax considerations.

Global Natural Resources is a "non-diversified company" as defined in the
Investment Company Act, which means that the proportion of Global Natural
Resources' assets that may be invested in the securities of a single issuer is
not limited by the Investment Company Act. However, Subchapter M of the Code
limits the proportion of assets a fund may invest in the securities of any
single issuer. Global Natural Resources intends to adhere to these limits in
order to qualify as a regulated investment company.

As an operating policy, Global Natural Resources will remain as fully
invested as practicable in securities of companies included in the Sectors;
therefore, investors bear the risk of a general decline in the stock prices of
issuers included in the Sectors. Although Global Natural Resources invests
primarily in securities of companies included in the Sectors, it may also invest
up to 10% of its total assets in other types of securities (see "Other
Investment Practices, Their Characteristics and Risks," page 14). However,
Global Natural Resources may invest up to 35% of its total assets in when-issued
and forward commitment agreements if necessary to purchase Sector securities.
Such investments may be made to improve portfolio diversification and to provide
extra cash to meet redemptions and day-to-day operating expenses.

UTILITIES FUND

The Utilities Fund seeks current income and long-term growth of capital and
income. The Utilities Fund invests primarily in equity securities of companies
engaged in the utilities industry.

Under normal market conditions, the Utilities Fund invests at least 75% of
its total assets in equity securities of companies engaged in the utilities
industry. Such companies may include: public utility companies, whose user rates
are set by a government entity such as a state utilities commission; companies
with non-regulated utility operations; or companies with a combination of
regulated and non-regulated utility operations. Within this 75% category, the
Utilities Fund will not buy shares of a company unless 50% or more of the
company's revenues or net profits are derived from the ownership or operation of
facilities used to provide electricity, natural gas, telecommunications
services, pay television (e.g., cable), water, or sanitary services to the
public.

To enhance dividend income, increase portfolio diversification, or support
share price stability, the Utilities Fund may invest up to 25% of its total
assets in fixed-income securities (i.e., bonds issued by the U.S. government or
its agencies, bonds issued by companies engaged in the utilities industry
(utility bonds), or bonds issued by non-utility corporations).

The manager may invest up to 5% of the Utilities Fund's total assets in
non-utility corporate bonds. The Utilities Fund's corporate debt holdings must
be of investment-grade quality.

To be considered investment-grade, a bond must be rated BBB/Baa or better by
a nationally recognized statistical rating organization (a rating agency) or be
judged to be of comparable quality by the manager under the direction of the
Board of Directors. If a bond held by the Utilities Fund is downgraded by a
rating agency, the manager will not necessarily sell the bond unless it
determines that the bond is no longer of investment-grade quality.

In recent years, changes in the regulatory climate have allowed public
utility companies to provide products and services outside of their traditional
geographic areas. The manager seeks to maximize the benefits from both increased
competition and expanded growth prospects that are expected to arise from these
changes.

The Utilities Fund is a "diversified" investment company as defined in the
Investment Company Act. This means that investments in any single issuer are
limited by restrictions in the Investment Company Act.

10 INFORMATION REGARDING THE FUNDS AMERICAN CENTURY INVESTMENTS

RISK FACTORS AND INVESTMENT TECHNIQUES

The funds may be an appropriate component of a stock portfolio for investors
seeking total return through investments in stocks (both equity and
specialized), bonds and short-term instruments. The funds work best for
long-term investors who are prepared to endure fluctuations in the values of the
special market categories in which each of the funds invests. An investment in
any one of the funds does not constitute a balanced investment plan.

CONCENTRATION RISK

Because each fund concentrates its investments in a particular industry or
sector, each may be subject to greater risks and market fluctuations than a
portfolio representing a broader range of industries. Each fund, therefore,
serves a different purpose than a general stock fund. Each fund is particularly
vulnerable to risks specific to issuers in its area of specialty.

GLOBAL GOLD

Many investors perceive that gold investments hedge against inflation,
currency devaluations, and general stock market declines; however, there is no
assurance that these historical inverse relationships will persist. Changing
market conditions (i.e., fluctuating operating costs, political events, and
changes in interest rates and currency rates) may affect gold prices and tend to
have a more exaggerated effect on gold stocks. Because of their high share price
volatility, gold stocks are considered speculative and may affect Global Gold's
share price. Investment in Global Gold shares may involve special
considerations, including: fluctuations in the price of gold; the potential
effect of the concentration of the sources of supply of gold and over control of
the sale of gold; changes in U.S. or foreign tax, currency or mining laws;
increased environmental costs; and unpredictable monetary policies and economic
and political conditions.

GLOBAL NATURAL RESOURCES

Global Natural Resources is particularly vulnerable to risks specific to
natural resources companies. Historically, during periods of economic or
financial instability, the securities of some natural resources companies become
subject to broad price fluctuations, reflecting the volatility of energy and
basic materials prices and unstable supplies of precious and industrial metals,
oils, coal, timber or other natural resources. Price instability may adversely
affect the earnings of natural resources companies. Natural resources companies
also may be subject to risks associated with extraction of natural resources,
such as mining and oil drilling accidents, and the hazards associated with
natural resources such as fire and drought.

UTILITIES FUND

Public utilities companies have historically provided above-average
dividends, which may make their stocks appropriate for long-term,
income-oriented investors. Historically, utility stocks have generally been
considered to be among the most conservative equity securities despite their
vulnerability to inflation and regulation. However, increased competition and a
trend toward deregulation have created opportunities for growth, as well as
greater price volatility, among utilities stocks.

As indicated below, Chart 1 compares the rate of dividend growth for the
Standard & Poor's Utilities Index (S&P Utilities Index) with the rate of
inflation as measured by the Consumer Price Index (CPI) over a 50-year period.

[line chart - data below]

CHART 1 - GROWTH OF UTILITY STOCK
DIVIDENDS VS. INFLATION
Inflation S&P Utilities
(CPI) Index Dividends
Dec-47 $1.00 $1.00
Dec-48 $1.03 $1.02
Dec-49 $1.01 $1.10
Dec-50 $1.07 $1.18
Dec-51 $1.13 $1.22
Dec-52 $1.14 $1.22
Dec-53 $1.15 $1.31
Dec-54 $1.14 $1.38
Dec-55 $1.15 $1.45
Dec-56 $1.18 $1.57
Dec-57 $1.21 $1.66
Dec-58 $1.23 $1.70
Dec-59 $1.25 $1.81
Dec-60 $1.27 $1.90
Dec-61 $1.28 $2.00
Dec-62 $1.30 $2.09
Dec-63 $1.32 $2.20
Dec-64 $1.33 $2.37
Dec-65 $1.36 $2.54
Dec-66 $1.40 $2.74
Dec-67 $1.45 $2.92
Dec-68 $1.52 $3.05
Dec-69 $1.61 $3.14
Dec-70 $1.70 $3.23
Dec-71 $1.75 $3.32
Dec-72 $1.81 $3.38
Dec-73 $1.97 $3.47
Dec-74 $2.21 $3.53
Dec-75 $2.37 $3.66
Dec-76 $2.48 $3.84
Dec-77 $2.65 $4.13
Dec-78 $2.89 $4.42
Dec-79 $3.27 $4.76
Dec-80 $3.68 $5.06
Dec-81 $4.01 $5.45
Dec-82 $4.16 $5.84
Dec-83 $4.32 $6.17
Dec-84 $4.49 $6.60
Dec-85 $4.66 $6.87
Dec-86 $4.71 $7.17
Dec-87 $4.92 $7.53
Dec-88 $5.14 $7.78
Dec-89 $5.38 $8.05
Dec-90 $5.71 $8.46
Dec-91 $5.88 $8.68
Dec-92 $6.05 $8.72
Dec-93 $6.22 $8.84
Dec-94 $6.39 $9.04
Dec-95 $6.55 $9.06
Dec-96 $6.77 $9.84
Dec-97 $6.90 $10.30

Source: Ibbotson Associates

Historically, common stock dividend yields for public utility companies have
exceeded comparable figures for the broader market while offering investors
comparatively less share price volatility. Chart 2 compares common stock
dividend yields for the S&P Utilities Index with those of the broader Standard &
Poor's 500 Composite Stock Price Index (S&P 500) from 1947 to 1997.

PROSPECTUS INFORMATION REGARDING THE FUNDS 11

[line chart - data below]

CHART 2 - STOCK DIVIDEND YIELDS
S&P UTILITIES INDEX VS. S&P 500
S&P 500 Yield S&P Utilities Index Yield
Dec-47 5.49% 6.02%
Dec-48 6.12% 6.23%
Dec-49 6.80% 5.42%
Dec-50 7.20% 5.98%
Dec-51 5.93% 5.52%
Dec-52 5.31% 4.89%
Dec-53 5.84% 5.10%
Dec-54 4.28% 4.53%
Dec-55 3.61% 4.48%
Dec-56 3.73% 4.85%
Dec-57 4.48% 5.07%
Dec-58 3.17% 3.86%
Dec-59 3.06% 3.96%
Dec-60 3.36% 3.59%
Dec-61 2.82% 3.02%
Dec-62 3.38% 3.36%
Dec-63 3.04% 3.25%
Dec-64 2.95% 3.11%
Dec-65 2.94% 3.30%
Dec-66 3.57% 3.88%
Dec-67 3.03% 4.33%
Dec-68 2.96% 4.29%
Dec-69 3.43% 5.49%
Dec-70 3.41% 5.14%
Dec-71 3.01% 5.43%
Dec-72 2.67% 5.42%
Dec-73 3.46% 7.25%
Dec-74 5.25% 10.32%
Dec-75 4.08% 8.08%
Dec-76 3.77% 6.93%
Dec-77 4.90% 7.40%
Dec-78 5.28% 8.93%
Dec-79 5.23% 9.28%
Dec-80 4.54% 9.46%
Dec-81 5.41% 10.08%
Dec-82 4.88% 9.46%
Dec-83 4.30% 9.14%
Dec-84 4.50% 8.53%
Dec-85 3.74% 7.22%
Dec-86 3.42% 6.26%
Dec-87 3.57% 7.23%
Dec-88 3.50% 6.76%
Dec-89 3.13% 5.05%
Dec-90 3.66% 5.77%
Dec-91 2.93% 5.48%
Dec-92 2.84% 5.40%
Dec-93 2.70% 5.02%
Dec-94 2.87% 5.90%
Dec-95 2.24% 4.38%
Dec-96 2.01% 4.85%
Dec-97 1.60% 4.28%

Source: Ibbotson Associates

Chart 3 illustrates historical risk (or volatility) in the utilities sector
by comparing the historical risk and reward characteristics of the S&P Utilities
Index with comparable figures for the S&P 500 and a U.S. Treasury bond with a
remaining maturity of 20 years.

[bullet graph - data below]

CHART 3 - RISK VS. REWARD (1947-1997)
T-Bond S&P 500 S&P Utilities
Reward - Average Annual Total Return 5.35% 11.94% 9.26%
Risk - Standard Deviation 10.54% 16.57% 15.79%

Source: Ibbotson Associates

Note that while the S&P Utilities Index was less volatile than the S&P 500,
it also produced lower returns than the S&P 500 during the period illustrated
above. The S&P 500 is an unmanaged index representing the performance of 500
major companies, most of which are listed on the Exchange. Investors cannot
invest directly in the S&P 500.

The charts on this page and page 11 show the characteristics of utilities
stocks that have attracted investors in the past. Regulatory and competitive
factors are changing the utilities industry considerably, and there is no
assurance that these historic trends will continue. Within any one market
sector, a period of above average performance may be followed by a period of
below average performance.

FOREIGN SECURITIES RISK

Because of Global Gold's policy of investing primarily in securities of
companies engaged in gold mining, a substantial part of Global Gold's assets is
generally invested in securities of companies domiciled or operating in one or
more foreign countries. Depending upon the composition of the Sectors, Global
Natural Resources also invests in foreign securities. The Utilities Fund may
invest up to 10% of its assets in securities of foreign utility companies.

Securities of foreign issuers may be affected by the strength of foreign
currencies relative to the U.S. dollar or by political or economic developments
in foreign countries. Foreign companies may not be subject to accounting
standards or governmental regulations comparable to those that affect U.S.
companies, and there may be less public information about their operations.

In particular, liquidity of a fund's portfolio may be affected by a fund's
global exposure. While the funds intend to acquire securities of foreign issuers
only where there are public trading markets for such securities, such
investments may tend to reduce the liquidity of the fund's portfolio in the
event of internal problems in such foreign countries or deteriorating relations
between the United States and such countries.

Restrictions and controls on investment in the securities markets of some
countries may have an adverse effect on the availability and costs to the funds
of investments in those countries. In addition, there may be the possibility of
expropriations, foreign withholding taxes, confiscatory taxation, political,
economic or social instability or diplomatic developments which could affect
assets of the fund invested in issuers in foreign countries. In particular,
investments by Global Gold in Gold Companies located in South Africa, which
comprise a significant component of the global gold industry, may present
greater risks to Global Gold than investments in other countries because of
South Africa's relatively unstable internal political conditions.

In addition, issuers of unsponsored ADRs are not obligated to disclose
material information in the United States and, therefore, there may be less
information available to the investing public than with sponsored ADRs. The
manager will attempt to independently accumulate

12 INFORMATION REGARDING THE FUNDS AMERICAN CENTURY INVESTMENTS

and evaluate information with respect to the issuers of the underlying
securities of sponsored and unsponsored ADRs to attempt to limit each fund's
exposure to the market risk associated with such investments.

EUROPEAN CURRENCY UNIFICATION

The following change in European currency may affect Global Gold and Global
Natural Resources.

Many European countries are about to adopt a single European currency, the
euro. Once it has been determined which countries will participate in the
Economic and Monetary Union (EMU), the euro will become legal tender in these
countries effective January 1, 1999. The countries currently participating in
the EMU are Austria, Belgium, Finland, France, Germany, Ireland, Italy,
Luxembourg, Netherlands, Portugal and Spain. The notable countries missing from
the new unified currency are Great Britain, Denmark and Sweden. A new European
Central Bank (ECB) will be created to manage the monetary policy of the new
unified region. On the same day, the exchange rates will be irrevocably fixed
between the EMU member countries. National currencies will continue to circulate
until they are replaced by euro coins and bank notes by the middle of 2002.

This change is likely to significantly impact the European capital markets
in which the funds invest. The biggest changes will be the additional risks that
the funds will face in pursuing its investment objective. All of the risks
described below may increase the funds' share price volatility.

UNCERTAINTIES AS UNIFICATION NEARS

Taxes. The IRS has not determined the proper tax treatment of the currency
conversion, particularly whether the conversion to the new currency will result
in recognition of gain or loss. There is a risk that the funds' distribution of
income will be impacted by these tax uncertainties. For example, recognition of
gain or loss on the conversion could result in distributions from a fund of
income for which no cash has been received.

Volatility of Currency Exchange Rates. Exchange rates between the U.S.
dollar and European currencies (particularly the German mark) will likely become
more volatile and unstable, particularly between now and January 1, 1999.

Capital Market Reaction. Uncertainty in the lead-up to introduction of the
euro may lead to a shift by institutional money managers away from European
currencies and into Swiss francs, U.S. dollars or Japanese yen. This reaction
may make markets less liquid and thus more difficult for the fund to pursue its
investment strategy.

Conversion Costs. European issuers of securities in which the funds invest,
particularly those that deal in goods and services, may face substantial
conversion costs. These costs may not be accurately anticipated and therefore
present another risk factor that may affect issuer profitability and
creditworthiness.

Potential for Delay. Despite all of the preparations by the participating
European countries, it is still possible that currency unification may be
delayed from its January 1, 1999, implementation date. Such a delay could
introduce still more risks, since uncertainty would be increased and there would
be economic costs to unwind some of the infrastructure created in anticipation
of the unification.

Treatment of European Currency Units. The ECU is the currency basket used as
the unit of account by the European Community. While it is not a currency, it is
treated like one by capital markets for settlement purposes. When the new
European currency is introduced, the value of the ECU will become fixed. Because
the treatment of ECU in some financial contracts is not uniform, their value may
be altered by the event.

Lack of European Unanimity. Because some European countries will not be
participants in the euro, there could be greater volatility in the exchange rate
between these nonparticipating countries and new unified currency. While this
risk is particularly high between now and the effective date of currency
unification, it could also remain during the initial periods after unification.

UNCERTAINTIES AFTER UNIFICATION OF CURRENCY

PROSPECTUS INFORMATION REGARDING THE FUNDS 13

The risk of unenforceability may arise in a number of ways: For example, a
contract used to hedge against exchange-rate volatility between two EU
currencies will become "fixed," rather than "variable," as part of the
conversion since the currencies have, in effect, disappeared for exchange
purposes.

The European Council and the State of New York have enacted laws and
regulations designed to ensure that financial contracts will continue to be
enforceable after conversion. There is no guarantee, however, that these laws
will be completely effective in preventing disputes from arising. Disputes and
litigation over these contract issues could negatively impact the funds'
portfolio holdings and may create uncertainties in the valuation of financial
contracts the funds hold.

ECB Policymaking. As the ECB and European market participants search for a
common understanding of policy targets and instruments, interest rates and
exchange rates could become more volatile.

RISK OF USING THE FUNDS AS A HEDGE

Many investors may perceive that Global Gold and Global Natural Resources
offer a hedge against certain economic or market events. Global Gold may be
perceived as a hedge against general price inflation, currency devaluations and
general stock market declines. Global Natural Resources may be perceived as a
hedge against commodity-price driven inflation. While there may be some
empirical support to these perceptions, there is no assurance that these
historical inverse relationships will persist.

OTHER INVESTMENT PRACTICES, THEIR CHARACTERISTICS AND RISKS

For additional information, see "Additional Investment Restrictions" in the
Statement of Additional Information.

PORTFOLIO TURNOVER

The portfolio turnover rates of the funds are shown in the financial
information of this Prospectus.

Investment decisions to purchase and sell securities are based on the
anticipated contribution of the security in question to a fund's objective. The
manager believes the rate of portfolio turnover is irrelevant when it determines
a change is in order to achieve the objective and, accordingly, the annual
portfolio turnover rate cannot be accurately predicted.

The portfolio turnover of a fund may be higher than other mutual funds with
similar investment objectives. Higher turnover would generate correspondingly
higher transaction costs that the funds pay directly. Higher portfolio turnover
also may increase the likelihood that the capital gains, if any, realized and
distributed by a fund will include short-term capital gains, which are taxable
as ordinary income.

CONVERTIBLE SECURITIES

In addition to common stock, the funds may buy securities convertible into
common stock, such as convertible bonds, convertible preferred stocks and
warrants. The manager may purchase these securities if it believes that a
company's convertible securities are undervalued in the market.

Convertible securities provide a fixed-income stream and the opportunity,
through their conversion feature, to participate in the capital appreciation
resulting from a market price advance in the convertible security's underlying
common stock. A convertible security tends to increase in market value when
interest rates rise. The price of a convertible security also is influenced by
the market value of the security's underlying common stock and tends to increase
as the market value of the underlying stock rises, whereas it tends to decrease
as the market value of the underlying stock declines.

WHEN-ISSUED SECURITIES

Each of the funds may sometimes purchase new issues of securities on a
when-issued basis or forward commitment basis when, in the opinion of the
manager, such purchases will further the investment objectives of the funds. The
price of when-issued securities is established at the time the commitment to
purchase is made. Delivery of and payment for these securities typically occur
15 to 45 days after the commitment to purchase. Market rates of interest on debt
securities at the time of delivery may be higher or lower than those contracted
for on the when-issued security. Accordingly, the value of such security may
decline prior to delivery, which could result in a loss to the fund. A separate
account for each fund consisting of cash or appropriate liquid assets in an
amount at least equal to the when-issued commitments will be established and
maintained with the custodian. No income will accrue to the fund prior to
delivery.

14 INFORMATION REGARDING THE FUNDS AMERICAN CENTURY INVESTMENTS

FORWARD CURRENCY EXCHANGE CONTRACTS

Some of the foreign securities held by the funds may be denominated in
foreign currencies. Other securities, such as depositary receipts, may be
denominated in U.S. dollars, but have a value that is dependent on the
performance of a foreign security, as valued in the currency of its home
country. As a result, the value of a fund's portfolio may be affected by changes
in the exchange rates between foreign currencies and the U.S. dollar, as well as
by changes in the market values of the securities themselves. The performance of
foreign currencies relative to the U.S. dollar may be a factor in the overall
performance of a fund.

To protect against adverse movements in exchange rates between currencies,
the funds may, for hedging purposes only, enter into forward currency exchange
contracts. A forward currency exchange contract obligates the fund to purchase
or sell a specific currency at a future date at a specific price.

A fund may elect to enter into a forward currency exchange contract with
respect to a specific purchase or sale of a security, or with respect to the
fund's portfolio positions generally.

By entering into a forward currency exchange contract with respect to the
specific purchase or sale of a security denominated in a foreign currency, a
fund can "lock in" an exchange rate between the trade and settlement dates for
that purchase or sale. This practice is sometimes referred to as "transaction
hedging." Each fund may enter into transaction hedging contracts with respect to
all or a substantial portion of its foreign securities trades.

When the manager believes that a particular currency may decline in value
compared to the U.S. dollar, a fund may enter into forward currency exchange
contracts to sell the value of some or all of the fund's portfolio securities
either denominated in, or whose value is tied to, that currency. This practice
is sometimes referred to as "portfolio hedging." A fund may not enter into a
portfolio hedging transaction where it would be obligated to deliver an amount
of foreign currency in excess of the aggregate value of its portfolio securities
or other assets denominated in, or whose value is tied to, that currency.

Each fund will make use of portfolio hedging to the extent deemed
appropriate by the manager. However, it is anticipated that a fund will enter
into portfolio hedges much less frequently than transaction hedges.

If a fund enters into a forward currency exchange contract, the fund, when
required, will instruct its custodian bank to segregate cash or appropriate
liquid assets in a separate account in an amount sufficient to cover its
obligation under the contract. Those assets will be valued at market daily, and
if the value of the segregated securities declines, additional cash or
securities will be added so that the value of the account is not less than the
amount of the fund's commitment.

Predicting the relative future values of currencies is very difficult, and
there is no assurance that any attempt to protect a fund against adverse
currency movements through the use of forward currency exchange contracts will
be successful. In addition, the use of forward currency exchange contracts tends
to limit the potential gains that might result from a positive change in the
relationship between the foreign currency and the U.S. dollar.

At any given time, no more than 10% of a fund's total assets will be
committed to a segregated account in connection with portfolio hedging
transactions.

GOLD INVESTMENTS

Global Gold may purchase gold, gold certificates, or gold futures (referred
to collectively as Gold Investments), although it will not purchase gold in any
form that is not readily marketable and that cannot be stored in accordance with
custody regulations applicable to mutual funds.

The manager may use a Gold Investment when it judges the price of gold to be
artificially low. The manager may also use a Gold Investment as a hedge if it
expects a rise in the price of gold to correlate with rising prices of Global
Gold's other gold-related investments. If gold prices rise as the manager
predicted, proceeds from the sale of the Gold Investment may be used to cover
the increased price of the hedged security. However, if the price of the Gold
Investment declines, Global Gold may suffer a loss.

Direct purchases of gold bullion or coins may generate higher custody and
transaction costs than other types of investments and do not generate interest
or dividend income for Global Gold. The sole source of return on such
investments is from gain (or losses) realized at the time of sale. Gold coins
may be purchased for their intrinsic value only and not for their numismatic
value.

PROSPECTUS INFORMATION REGARDING THE FUNDS 15

Internal Revenue Service (IRS) income tests and certain state laws
effectively limit the amount of Gold Investments Global Gold may make. Global
Gold intends to make such investments only to the extent permitted by these
limits.

SHORT-TERM INSTRUMENTS

For liquidity purposes, each fund may invest in high-quality money market
instruments with remaining maturities of one year or less.

Each fund may also enter into repurchase agreements, collateralized by U.S.
government securities, with banks or broker-dealers that are deemed to present
minimal credit risk. Credit risk determinations are made by the manager pursuant
to guidelines established by the Board of Directors. A repurchase agreement
involves the purchase of a security and a simultaneous agreement to sell the
security back to the seller at a higher price. Delays or losses could result if
the party to the agreement defaults or becomes bankrupt.

Each fund may invest up to 5% of its total assets in any money market fund
advised by the manager, provided that the investment is consistent with the
fund's respective investment policies and restrictions. Each fund's total
investment in money market funds may not exceed 10% of its total assets.

FUTURES CONTRACTS AND OPTIONS THEREON

The funds may buy or sell futures contracts relating to groups of securities
or indices and write or buy put and call options relating to such futures
contracts.

For options sold, a fund will segregate cash or appropriate liquid assets
including equity securities and debt securities of any grade equal to the value
of securities underlying the option unless the option is otherwise covered.

A fund will deposit cash or appropriate liquid assets in a segregated
custodial account in an amount equal to the fluctuating market value of long
futures contracts it has purchased, less any margin deposited on its long
position. It may hold cash or acquire such debt obligations for the purpose of
making these deposits.

The funds may use futures and options transactions to maintain cash reserves
while remaining fully invested, to facilitate trading, to reduce transaction
costs, or to pursue higher investment returns when a futures contract is priced
more attractively than its underlying security or index.

Futures contracts and options thereon may subject a fund to greater and more
volatile risks than might otherwise be the case. The principal risks related to
the use of such instruments are (1) the offsetting correlation between movements
in the market price of the portfolio investments (held or intended) being hedged
and in the price of the futures contract or option may be imperfect; (2)
possible lack of a liquid secondary market for closing out futures or option
positions; (3) the need of additional portfolio management skills and
techniques; and (4) losses due to unanticipated market price movements. For a
hedge to be completely effective, the price change of the hedging instrument
should equal the price change of the securities being hedged. Such equal price
changes are not always possible because the investment underlying the hedging
instrument may not be the same investment that is being hedged.

The ordinary spreads between prices in the cash and futures markets, due to
the differences in the nature of those markets, are subject to distortion. Due
to the possibility of distortion, a correct forecast of general interest rate
trends by the manager may still not result in a successful transaction. The
manager may be incorrect in its expectations as to the extent of various
interest rate movements or the time span within which the movements take place.

See the Statement of Additional Information for further information about
these instruments and their risks.

RULE 144A SECURITIES

The funds may, from time to time, purchase Rule 144A securities when they
present attractive investment opportunities that otherwise meet the funds'
criteria for selection. Rule 144A securities are securities that are privately
placed with and traded among qualified institutional investors rather than the
general public. Although Rule 144A securities are considered "restricted
securities," they are not necessarily illiquid.

16 INFORMATION REGARDING THE FUNDS AMERICAN CENTURY INVESTMENTS

fact for the Board of Directors to determine, such determination to be based
upon a consideration of the readily available trading markets and the review of
any contractual restrictions. The staff also acknowledges that, while the Board
retains ultimate responsibility, it may delegate this function to the manager.
Accordingly, the Board has established guidelines and procedures for determining
the liquidity of Rule 144A securities and has delegated the day-to-day function
of determining the liquidity of Rule 144A securities to the manager. The Board
retains the responsibility to monitor the implementation of the guidelines and
procedures it has adopted.

Since the secondary market for such securities is limited to certain
qualified institutional investors, the liquidity of such securities may be
limited accordingly and a fund may, from time to time, hold a Rule 144A security
that is illiquid. In such an event, the fund's manager will consider appropriate
remedies to minimize the effect on such fund's liquidity. No fund may invest
more than 15% of its assets in illiquid securities (securities that may not be
sold within seven days at approximately the price used in determining the net
asset value of fund shares).

INDEXED SECURITIES

Global Natural Resources may invest in indexed securities whose value is
linked to commodities including, but not limited to, notes indexed to the
Goldman Sachs Commodity Index (GSCI). The GSCI is composed of energy,
agricultural, livestock and metals commodities. Global Natural Resources may
invest in notes indexed to the entire GSCI or to certain components of the GSCI

OTHER TECHNIQUES

The manager may buy other types of securities or employ other portfolio
management techniques on behalf of a fund including reverse repurchase
agreements. When SEC guidelines require it to do so, a fund will set aside cash
or appropriate liquid assets in a segregated account to cover the fund's
obligations.

PERFORMANCE ADVERTISING

From time to time, the funds may advertise performance data. Fund
performance may be shown by presenting one or more performance measurements,
including cumulative total return or average annual total return, yield and and
effective yield. Performance data may be quoted separately for the Investor
Class and for the other class.

Cumulative total return data is computed by considering all elements of
return, including reinvestment of dividends and capital gains distributions,
over a stated period of time. Average annual total return is determined by
computing the annual compound return over a stated period of time that would
have produced the fund's cumulative total return over the same period if the
fund's performance had remained constant throughout.

A quotation of yield reflects a fund's income over a stated period of time
expressed as a percentage of the fund's share price. The effective yield is
calculated in a similar manner, but when annualized, the income earned by the
investment is assumed to be reinvested. The effective yield will be slightly
higher than the yield because of the compounding effect on the assumed
reinvestment.

Yield is calculated by adding over a 30-day (or one-month) period all
interest and dividend income (net of fund expenses) calculated on each day's
market values, dividing this sum by the average number of fund shares
outstanding during the period, and expressing the result as a percentage of the
fund's share price on the last day of the 30-day (or one-month) period. The
percentage is then annualized. Capital gains and losses are not included in the
calculation.

Yields are calculated according to accounting methods that are standardized
in accordance with SEC rules for all stock and bond funds. Because yield
accounting methods differ from the methods used for other accounting purposes, a
fund's yield may not equal the income paid on its shares or the income reported
in the fund's financial statements.

PROSPECTUS INFORMATION REGARDING THE FUNDS 17

be compared, on a relative basis, to other funds in our fund family. This
relative comparison, which may be based upon historical fund performance or
historical or expected volatility or other fund characteristics, may be
presented numerically, graphically or in text. Fund performance also may be
combined or blended with other funds in our fund family, and that combined or
blended performance may be compared to the same indices to which individual
funds may be compared.

All performance information advertised by the funds is historical in nature
and is not intended to represent or guarantee future results. The value of fund
shares when redeemed may be more or less than their original cost.

18 INFORMATION REGARDING THE FUNDS AMERICAN CENTURY INVESTMENTS

HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS

AMERICAN CENTURY INVESTMENTS

The funds offered by this Prospectus are a part of the American Century
Investments family of mutual funds. Our family provides a full range of
investment opportunities, from the aggressive equity growth funds in our
Twentieth Century Group, to the fixed income funds in our Benham Group, to the
moderate risk and specialty funds in our American Century Group. Please call
1-800-345-2021 for a brochure or prospectuses for the other funds in the
American Century Investments family.

To reduce expenses and demonstrate respect for our environment, we have
initiated a project through which we will eliminate duplicate copies of most
financial reports and prospectuses to most households and deliver account
statements to most households in a single envelope, even if they have more than
one account. If you would like additional copies of financial reports and
prospectuses or separate mailing of account statements, please call us.

INVESTING IN AMERICAN CENTURY

The following sections explain how to invest in American Century funds,
including purchases, redemptions, exchanges and special services. You will find
more detail about doing business with us by referring to the Investor Services
Guide that you will receive when you open an account.

If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or through a bank, broker-dealer or other
financial intermediary, the following sections, as well as the information
contained in our Investor Services Guide, may not apply to you. Please read
"Employer-Sponsored Retirement Plans and Institutional Accounts," page 24.

HOW TO OPEN AN ACCOUNT

To open an account, you must complete and sign an application, furnishing
your taxpayer identification number. (You must also certify whether you are
subject to withholding for failing to report income to the IRS.) Investments
received without a certified taxpayer identification number will be returned.

The minimum investment is $2,500 [$1,000 for IRA and Uniform Gifts/Transfers
to Minors Acts (UGMA/UTMA) accounts]. These minimums will be waived if you
establish an automatic investment plan to your account that is the equivalent of
at least $50 per month. See "Automatic Investment Plan," page 20.

The minimum investment requirements may be different for some types of
retirement accounts. Call one of our Investor Services Representatives for
information on our retirement plans, which are available for individual
investors or for those investing through their employers.

Please note: If you register your account as belonging to multiple owners
(e.g., as joint tenants), you must provide us with specific authorization on
your application in order for us to accept written or telephone instructions
from a single owner. Otherwise, all owners will have to agree to any
transactions that involve the account (whether the transaction request is in
writing or over the telephone).

You may invest in the following ways:

BY MAIL

Send a completed application and check or money order payable in U.S.
dollars to American Century Investments.

BY WIRE

You may make your initial investment by wiring funds. To do so, call us or
mail a completed application and provide your bank with the following
information:

* RECEIVING BANK AND ROUTING NUMBER:
Commerce Bank, N.A. (101000019)

* BENEFICIARY (BNF):
American Century Services Corporation
4500 Main St., Kansas City, Missouri 64111

PROSPECTUS HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS 19

* BENEFICIARY ACCOUNT NUMBER (BNF ACCT):
2804918

* REFERENCE FOR BENEFICIARY (RFB):
American Century account number into which you are investing. If more than
one, leave blank and see Bank to Bank Information below.

* ORIGINATOR TO BENEFICIARY (OBI):
Name and address of owner of account into which you are investing.

* BANK TO BANK INFORMATION
(BBI OR FREE FORM TEXT):

* Taxpayer identification or Social Security
number.
* If more than one account, account numbers and amount to be invested in
each account.
* Current tax year, previous tax year or rollover designation if an IRA.
Specify whether traditional IRA, Roth IRA, Education IRA, SEP-IRA,
SARSEP-IRA, SIMPLE Employer or SIMPLE Employee.

BY EXCHANGE

Call 1-800-345-2021 from 7 a.m. to 7 p.m. Central time to get information on
opening an account by exchanging from another American Century account. See page
21 for more information on exchanges.

IN PERSON

If you prefer to work with a representative in person, please visit one of
our Investor Centers, located at:

4500 Main Street
Kansas City, Missouri 64111

4917 Town Center Drive
Leawood, Kansas 66211

1665 Charleston Road
Mountain View, California 94043

2000 S. Colorado Blvd.
Denver, Colorado 80222

SUBSEQUENT INVESTMENTS

Subsequent investments may be made by an automatic bank, payroll or
government direct deposit (see "Automatic Investment Plan," this page) or by any
of the methods below. The minimum investment requirement for subsequent
investments is $250 for checks submitted without the investment slip portion of
a previous statement or confirmation and $50 for all other types of subsequent
investments.

BY MAIL

When making subsequent investments, enclose your check with the investment
slip portion of a previous statement or confirmation. If the investment slip is
not available, indicate your name, address and account number on your check or a
separate piece of paper. (Please be aware that the investment minimum for
subsequent investments is higher without an investment slip.)

BY TELEPHONE

Once your account is open, you may make investments by telephone if you have
authorized us (by choosing "Full Services" on your application) to draw on your
bank account. You may call an Investor Services Representative or use our
Automated Information Line.

BY ONLINE ACCESS

Once your account is open, you may make investments online if you have
authorized us (by choosing "Full Services" on your application) to draw on your
bank account.

BY WIRE

You may make subsequent investments by wire. Follow the wire transfer
instructions on page 19 and indicate your account number.

IN PERSON

You may make subsequent investments in person at one of our Investor
Centers. The locations of our Investor Centers are listed on this page.

AUTOMATIC INVESTMENT PLAN

You may elect on your application to make investments automatically by
authorizing us to draw on your bank account regularly. Such investments must be
at least the equivalent of $50 per month. You also may choose an automatic
payroll or government direct deposit. If you are establishing a new account,
check the appropriate box under "Automatic Investments" on your application to
receive more information. If you would like to add a direct deposit to an
existing account, please call an Investor Services Representative.

20 HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS AMERICAN CENTURY INVESTMENTS

HOW TO EXCHANGE FROM ONE ACCOUNT TO ANOTHER

As long as you meet any minimum investment requirements, you may exchange
your fund shares to our other funds up to six times per year per account. An
exchange request will be processed as of the same day it is received, if it is
received before the funds' net asset values are calculated, which is one hour
prior to the close of the New York Stock Exchange for funds issued by American
Century Target Maturities Trust and at the close of the Exchange for all of our
other funds. See "When Share Price is Determined," page 25.

For any single exchange, the shares of each fund being acquired must have a
value of at least $100. However, we will allow investors to set up an Automatic
Exchange Plan between any two funds in the amount of at least $50 per month. See
our Investor Services Guide for further information about exchanges.

BY MAIL

You may direct us in writing to exchange your shares from one American
Century account to another. For additional information, please see our Investor
Services Guide.

BY TELEPHONE

You can make exchanges over the telephone (either with an Investor Services
Representative or using our Automated Information Line, page 22) if you have
authorized us to accept telephone instructions. You can authorize this by
selecting "Full Services" on your application or by calling us at 1-800-345-2021
to get the appropriate form.

BY ONLINE ACCESS

You can make exchanges online if you have authorized us to accept
instructions over the Internet. You can authorize this by selecting "Full
Services" on your application or by calling us at 1-800-345-2021 to get the
appropriate form.

HOW TO REDEEM SHARES

We will redeem or "buy back" your shares at any time. Redemptions will be
made at the next net asset value determined after a complete redemption request
is received.

Please note that a request to redeem shares in an IRA or 403(b) plan must be
accompanied by an executed IRS Form W4-P and a reason for withdrawal as
specified by the IRS.

BY MAIL

Your written instructions to redeem shares may be made either by a
redemption form, which we will send you upon request, or by a letter to us.
Certain redemptions may require a signature guarantee. Please see "Signature
Guarantee," page 22.

BY TELEPHONE

If you have authorized us to accept telephone instructions, you may redeem
your shares by calling an Investor Services Representative.

BY CHECK-A-MONTH

If you have at least a $10,000 balance in your account, you may redeem
shares by Check-A-Month. A Check-A-Month plan automatically redeems enough
shares each month to provide you with a check in an amount you choose (minimum
$50). To set up a Check-A-Month plan, please call and request our Check-A-Month
brochure.

OTHER AUTOMATIC REDEMPTIONS

If you have at least a $10,000 balance in your account, you may elect to
make redemptions automatically by authorizing us to send funds to you or to your
account at a bank or other financial institution. To set up automatic
redemptions, call an Investor Services Representative.

REDEMPTION PROCEEDS

Please note that shortly after a purchase of shares is made by check or
electronic draft (also known as an ACH draft) from your bank, we may wait up to
15 days or longer to send redemption proceeds (to allow your purchase funds to
clear). No interest is paid on the redemption proceeds after the redemption is
processed but before your redemption proceeds are sent.

Redemption proceeds may be sent to you in one of the following ways:

BY CHECK

Ordinarily, all redemption checks will be made payable to the registered
owner of the shares and will be mailed only to the address of record. For more
information, please refer to our Investor Services Guide.

PROSPECTUS HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS 21

BY WIRE AND ACH

You may authorize us to transmit redemption proceeds by wire or ACH. These
services will be effective 15 days after we receive the authorization.

Your bank will usually receive wired funds within 48 hours of transmission.
Funds transferred by ACH may be received up to seven days after transmission.
Wired funds are subject to a $10 fee to cover bank wire charges, which is
deducted from redemption proceeds. Once the funds are transmitted, the time of
receipt and the funds' availability are not under our control.

REDEMPTION OF SHARES IN LOW-BALANCE ACCOUNTS

Whenever the shares held in an account have a value of less than the
required minimum, a letter will be sent advising you to either bring the value
of the shares held in the account up to the minimum or to establish an automatic
investment that is the equivalent of at least $50 per month. See "How to Open An
Account," page 19. If action is not taken within 90 days of the letter's date,
the shares held in the account will be redeemed and the proceeds from the
redemption will be sent by check to your address of record. We reserve the right
to increase the investment minimums.

SIGNATURE GUARANTEE

To protect your accounts from fraud, some transactions will require a
signature guarantee. Which transactions will require a signature guarantee will
depend on which service options you elect when you open your account. For
example, if you choose "In Writing Only," a signature guarantee is required
when:

* redeeming more than $25,000; or
* establishing or increasing a Check-A-Month or automatic transfer on an
existing account.

You can obtain a signature guarantee from a bank or trust company, credit
union, broker-dealer, securities exchange or association, clearing agency or
savings association, as defined by federal law.

For a more in-depth explanation of our signature guarantee policy, or if you
live outside the United States and would like to know how to obtain a signature
guarantee, please consult our Investor Services Guide.

We reserve the right to require a signature guarantee on any transaction, or
to change this policy at any time.

SPECIAL SHAREHOLDER SERVICES

We offer several service options to make your account easier to manage.
These are listed on the account application. Please make note of these options
and elect the ones that are appropriate for you. Be aware that the "Full
Services" option offers you the most flexibility. You will find more information
about each of these service options in our Investor Services Guide.

Our special shareholder services include:

AUTOMATED INFORMATION LINE

We offer an Automated Information Line, 24 hours a day, seven days a week,
at 1-800-345-8765. By calling the Automated Information Line, you may listen to
fund prices, yields and total return figures. You may also use the Automated
Information Line to make investments into your accounts (if we have your bank
information on file) and obtain your share balance, value and most recent
transactions. If you have authorized us to accept telephone instructions, you
also may exchange shares from one fund to another via the Automated Information
Line. Redemption instructions cannot be given via the Automated Information
Line.

ONLINE ACCOUNT ACCESS

You may contact us 24 hours a day, seven days a week, at
www.americancentury.com to access daily share prices, receive updates on major
market indices and view historical performance of the fund. If you select "Full
Services" on your application, you can use your personal access code and Social
Security number to view your account balance and account activity, make
subsequent investments from your bank account or exchange shares from one fund
to another.

OPEN ORDER SERVICE

Through our open order service, you may designate a price at which to buy
shares of a variable-priced fund by exchange from one of our money market funds,
or a price at which to sell shares of a variable-priced fund by exchange to one
of our money market funds. The designated purchase price must be equal to or
lower, or the designated sale price equal to or higher, than the variable-priced
fund's net asset value at the time the order is placed. If the designated price
is met within 90 calendar days, we will execute your exchange order

22 HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS AMERICAN CENTURY INVESTMENTS

automatically at that price (or better). Open orders not executed within 90 days
will be canceled.

If the fund you have selected deducts a distribution from its share price,
your order price will be adjusted accordingly so the distribution does not
inadvertently trigger an open order transaction on your behalf. If you close or
re-register the account from which the shares are to be redeemed, your open
order will be canceled.

Because of their time-sensitive nature, open order transactions are accepted
only by telephone or in person. These transactions are subject to exchange
limitations described in each fund's prospectus, except that orders and
cancellations received before 2 p.m. Central time are effective the same day,
and orders or cancellations received after 2 p.m. Central time are effective the
next business day.

TAX-QUALIFIED RETIREMENT PLANS

Each fund is available for your tax-deferred retirement plan. Call or write
us and request the appropriate forms for:

* Individual Retirement Accounts (IRAs);
* 403(b)plans for employees of public school
systems and non-profit organizations; or
* Profit sharing plans and pension plans for
corporations and other employers.

If your IRA and 403(b) accounts do not total $10,000, each account is
subject to an annual $10 fee, up to a total of $30 per year.

You also can transfer your tax-deferred plan to us from another company or
custodian. Call or write us for a Request to Transfer form.

IMPORTANT POLICIES REGARDING YOUR INVESTMENTS

Every account is subject to policies that could affect your investment.
Please refer to the Investor Services Guide for further information about the
policies discussed below, as well as further detail about the services we offer

(1) We reserve the right for any reason to suspend the offering of shares
for a period of time, or to reject any specific purchase order
(including purchases by exchange). Additionally, purchases may be
refused if, in the opinion of the manager, they are of a size that
would disrupt the management of the fund.

(2) We reserve the right to make changes to any stated investment
requirements, including those that relate to purchases, transfers and
redemptions. In addition, we may also alter, add to or terminate any
investor services and privileges. Any changes may affect all
shareholders or only certain series or classes of shareholders.

(3) Shares being acquired must be qualified for sale in your state of
residence.

(4) Transactions requesting a specific price and date, other than open
orders, will be refused. Once you have mailed or otherwise transmitted
your transaction instructions to us, they may not be modified or
canceled.

(5) If a transaction request is made by a corporation, partnership, trust,
fiduciary, agent or unincorporated association, we will require
evidence satisfactory to us of the authority of the individual making
the request.

(6) We have established procedures designed to assure the authenticity of
instructions received by telephone. These procedures include requesting
personal identification from callers, recording telephone calls, and
providing written confirmations of telephone transactions. These
procedures are designed to protect shareholders from unauthorized or
fraudulent instructions. If we do not employ reasonable procedures to
confirm the genuineness of instructions, then we may be liable for
losses due to unauthorized or fraudulent instructions. The company, its
transfer agent and manager will not be responsible for any loss due to
instructions they reasonably believe are genuine.

(7) All signatures should be exactly as the name appears in the
registration. If the owner's name appears in the registration as Mary
Elizabeth Jones, she should sign that way and not as Mary E. Jones.

PROSPECTUS HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS 23

(8) Unusual stock market conditions have in the past resulted in an
increase in the number of shareholder telephone calls. If you
experience difficulty in reaching us during such periods, you may send
your transaction instructions by mail, express mail or courier service,
or you may visit one of our Investor Centers. You may also use our
Automated Information Line if you have requested and received an access
code and are not attempting to redeem shares.

(9) If you fail to provide us with the correct certified taxpayer
identification number, we may reduce any redemption proceeds by $50 to
cover the penalty the IRS will impose on us for failure to report your
correct taxpayer identification number on information reports.

(10) We will perform special inquiries on shareholder accounts. A research
fee of $15 per hour may be applied.

REPORTS TO SHAREHOLDERS

At the end of each calendar quarter, we will send you a consolidated
statement that summarizes all of your American Century holdings, as well as an
individual statement for each fund you own that reflects all year-to-date
activity in your account. You may request a statement of your account activity
at any time.

With the exception of most automatic transactions, each time you invest,
redeem, transfer or exchange shares, we will send you a confirmation of the
transaction. See the Investor Services Guide for more detail.

Carefully review all the information relating to transactions on your
statements and confirmations to ensure that your instructions were acted on
properly. Please notify us immediately in writing if there is an error. If you
fail to provide notification of an error with reasonable promptness, i.e.,
within 30 days of non-automatic transactions or within 30 days of the date of
your consolidated quarterly statement, in the case of automatic transactions, we
will deem you to have ratified the transaction.

No later than January 31 of each year, we will send you reports that you may
use in completing your U.S. income tax return. See the Investor Services Guide
for more information.

Each year, we will send you an annual and a semiannual report relating to
your fund, each of which is incorporated herein by reference. The annual report
includes audited financial statements and a list of portfolio securities as of
the fiscal year end. The semiannual report includes unaudited financial
statements for the first six months of the fiscal year, as well as a list of
portfolio securities at the end of the period. You also will receive an updated
prospectus at least once each year. Please read these materials carefully, as
they will help you understand your fund.

EMPLOYER-SPONSORED RETIREMENT PLANS AND INSTITUTIONAL ACCOUNTS

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, your ability to purchase shares of the
funds, exchange them for shares of other American Century funds, and redeem them
will depend on the terms of your plan.

If you own or are considering purchasing fund shares through a bank,
broker-dealer, insurance company or other financial intermediary, your ability
to purchase, exchange and redeem shares will depend on your agreement with, and
the policies of, such financial intermediary.

You may reach one of our Institutional Service Representatives by calling
1-800-345-3533 to request information about our funds and services, to obtain a
current prospectus or to get answers to any questions about our funds that you
are unable to obtain through your plan administrator or financial intermediary.

24 HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS AMERICAN CENTURY INVESTMENTS

ADDITIONAL INFORMATION YOU SHOULD KNOW

SHARE PRICE

WHEN SHARE PRICE IS DETERMINED

The price of your shares is also referred to as their net asset value. Net
asset value is determined by calculating the total value of a fund's assets,
deducting total liabilities and dividing the result by the number of shares
outstanding. For all American Century funds, except funds issued by American
Century Target Maturities Trust, net asset value is determined as of the close
of regular trading on each day that the New York Stock Exchange is open, usually
3 p.m. Central time. The net asset values for Target Maturities funds are
determined one hour prior to the close of the Exchange.

Investments and requests to redeem or exchange shares will receive the share
price next determined after receipt by us of the investment, redemption or
exchange request. For example, investments and requests to redeem or exchange
shares received by us or one of our agents or designees before the time as of
which the net asset value of the fund is determined, are effective on, and will
receive the price determined, that day. Investment, redemption and exchange
requests received thereafter are effective on, and receive the price determined
as of, the close of the Exchange on the next day the Exchange is open.

Investments are considered received only when payment is received by us.
Wired funds are considered received on the day they are deposited in our bank
account if they are deposited before the time as of which the net asset value of
the fund is determined.

Investments by telephone pursuant to your prior authorization to us to draw
on your bank account are considered received at the time of your telephone call.

Investment and transaction instructions received by us on any business day
by mail prior to the time as of which the net asset value of the fund is
determined will receive that day's price. Investments and instructions received
after that time will receive the price determined on the next business day.

If you invest in fund shares through an employer-sponsored retirement plan
or other financial intermediary, it is the responsibility of your plan
recordkeeper or financial intermediary to transmit your purchase, exchange and
redemption requests to the funds' transfer agent prior to the applicable cut-off
time for receiving orders and to make payment for any purchase transactions in
accordance with the funds' procedures or any contractual arrangements with the
funds or the funds' distributor in order for you to receive that day's price.

We have contractual relationships with certain financial intermediaries in
which such intermediaries represent that they have systems to track the time at
which investment orders are received and to segregate orders received at
different times. Based on these representations, the funds have authorized such
intermediaries and their designees to accept purchase and redemption orders on
the funds' behalf up to the applicable cut-off time. The funds will be deemed to
have received such orders upon acceptance by the duly authorized intermediary,
and such orders will be priced at the funds' net asset value next determined
after acceptance on the funds' behalf by such intermediary.

HOW SHARE PRICE IS DETERMINED

The valuation of assets for determining net asset value may be summarized as
follows:

The portfolio securities of each fund, except as otherwise noted, listed or
traded on a domestic securities exchange are valued at the last sale price on
that exchange. Portfolio securities primarily traded on foreign securities
exchanges are generally valued at the preceding closing values of such
securities on the exchange where primarily traded. If no sale is reported, or if
local convention or regulation so provides, the mean of the latest bid and asked
prices is used. Depending on local convention or regulation, securities traded
over-the-counter are priced at the mean of the latest bid and asked prices, or
at the last sale price. When market quotations are not readily

PROSPECTUS ADDITIONAL INFORMATION YOU SHOULD KNOW 25

available, securities and other assets are valued at fair value as determined in
accordance with procedures adopted by the Board of Directors.

Debt securities not traded on a principal securities exchange are valued
through valuations obtained from a commercial pricing service or at the most
recent mean of the bid and asked prices provided by investment dealers in
accordance with procedures established by the Board of Directors.

WHERE TO FIND INFORMATION ABOUT SHARE PRICE

The net asset values of the Investor Class of the funds are published in
leading newspapers daily. The net asset value may be obtained by calling us or
by accessing our Web site (www.americancentury.com).

DISTRIBUTIONS

For the Utilities Fund, distributions from net investment income are
declared and paid quarterly. Global Gold Fund and Global Natural Resources Fund
pay dividends, if any, on a semi-annual basis in June and December.

You will begin to participate in the distributions the day after your
purchase is effective. See "When Share Price is Determined," page 25. If you
redeem shares, you will receive the distribution declared for the day of the
redemption. If all shares are redeemed, the distribution on the redeemed shares
will be included with your redemption proceeds.

In general, distributions from net realized securities gains, if any, are
declared and paid annually, usually in December, but the funds may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code, in all events in a manner consistent
with the provisions of the Investment Company Act.

Participants in employer-sponsored retirement or savings plans must reinvest
all distributions. For shareholders investing through taxable accounts,
distributions will be reinvested unless you elect to receive them in cash.
Distributions of less than $10 generally will be reinvested. Distributions made
shortly after a purchase by check or ACH may be held up to 15 days. You may
elect to have distributions on shares held in certain IRAs and 403(b) plans paid
in cash only if you are at least 591/2 years old or permanently and totally
disabled. Distribution checks normally are mailed within seven days after the
record date. Please consult our Investor Services Guide for further information
regarding your distribution options.

A distribution does not increase the value of your shares or your total
return. At any given time the value of your shares includes the undistributed
net gains, if any, realized by the fund on the sale of portfolio securities, and
undistributed dividends and interest received, less fund expenses.

Because such gains and dividends are included in the price of your shares,
when they are distributed the price of your shares is reduced by the amount of
the distribution. If you buy your shares through a taxable account just before
the distribution, you will pay the full price for your shares, and then receive
a portion of the purchase price back as a taxable distribution. See "Taxes,"
this page.

TAXES

Each fund has elected to be taxed under Subchapter M of the Internal Revenue
Code, which means that to the extent its income is distributed to shareholders,
it pays no income tax.

TAX-DEFERRED ACCOUNTS

If fund shares are purchased through tax-deferred accounts, such as a
qualified employer-sponsored retirement or savings plan, income and capital
gains distributions paid by the fund will generally not be subject to current
taxation, but will accumulate in your account under the plan on a tax-deferred
basis.

Employer-sponsored retirement and savings plans are governed by complex tax
rules. If you elect to participate in your employer's plan, consult your plan
administrator, your plan's summary plan description, or a professional tax
advisor regarding the tax consequences of participation in the plan,
contributions to, and withdrawals or distributions from the plan.

TAXABLE ACCOUNTS

26 ADDITIONAL INFORMATION YOU SHOULD KNOW AMERICAN CENTURY INVESTMENTS

for more than 45 days. Distributions from gains on assets held longer than 12
months but no more than 18 months (28% rate gain) and/or assets held longer than
18 months (20% rate gain) are taxable as long-term gains regardless of the
length of time you have held the shares. However, you should note that any loss
realized upon the sale or redemption of shares held for six months or less will
be treated as a long-term capital loss to the extent of any distribution of
long-term capital gain (28% and/or 20% rate gain) to you with respect to such
shares.

Distributions are taxable to you regardless of whether they are taken in
cash or reinvested, even if the value of your shares is below your cost. If you
purchase shares shortly before a distribution, you must pay income taxes on the
distribution, even though the value of your investment (plus cash received, if
any) will not have increased. In addition, the share price at the time you
purchase shares may include unrealized gains in the securities held in the
investment portfolio of the fund. If these portfolio securities are subsequently
sold and the gains are realized, they will, to the extent not offset by capital
losses, be paid to you as a distribution of capital gains and will be taxable to
you as short-term or long-term capital gains (28% and/or 20% rate gain).

In January of the year following the distribution, if you own shares in a
taxable account, you will receive a Form 1099-DIV notifying you of the status of
your distributions for federal income tax purposes.

Distributions may also be subject to state and local taxes, even if all or a
substantial part of such distributions are derived from interest on U.S.
government obligations which, if you received them directly, would be exempt
from state income tax. However, most but not all states allow this tax exemption
to pass through to fund shareholders when a fund pays distributions to its
shareholders. You should consult your tax advisor about the tax status of such
distributions in your own state.

If you have not complied with certain provisions of the Internal Revenue
Code, we are required by federal law to withhold and remit to the IRS 31% of
reportable payments (which may include dividends, capital gains distributions
and redemptions). Those regulations require you to certify that the Social
Security number or tax identification number you provide is correct and that you
are not subject to 31% withholding for previous under-reporting to the IRS. You
will be asked to make the appropriate certification on your application.
Payments reported by us that omit your Social Security number or tax
identification number will subject us to a penalty of $50, which will be charged
against your account if you fail to provide the certification by the time the
report is filed. This charge is not refundable.

Redemption of shares of a fund (including redemptions made in an exchange
transaction) will be a taxable transaction for federal income tax purposes and
shareholders generally will recognize a gain or loss in an amount equal to the
difference between the basis of the shares and the amount received. Assuming
that shareholders hold such shares as a capital asset, the gain or loss will be
a capital gain or loss and generally will be considered long-term subject to tax
at a maximum rate of 28% if shareholders have held such shares for a period of
more than 12 months but no more than 18 months and long-term subject to tax at a
maximum rate of 20% if shareholders have held such shares for a period of more
than 18 months. If a loss is realized on the redemption of fund shares, the
reinvestment in additional fund shares within 30 days before or after the
redemption may be subject to the "wash sale" rules of the Internal Revenue Code,
resulting in a postponement of the recognition of such loss for federal income
tax purposes.

In addition to the federal income tax consequences described above relating
to an investment in a fund, there may be other federal, state or local tax
considerations that depend upon the circumstances of each particular investor.
Prospective shareholders are therefore urged to consult their tax advisors with
respect to the effect of this investment on their own specific situations.

MANAGEMENT

INVESTMENT MANAGEMENT

The funds are open-end series of the American Century Quantitative Equity
Funds (the company). The Utilities Fund is a diversified series, while Global
Gold and Global Natural Resources are non-diversified series. Under the laws of
the State of California, the Board of Directors is responsible for managing the

PROSPECTUS ADDITIONAL INFORMATION YOU SHOULD KNOW 27

business and affairs of the company. Acting pursuant to an investment management
agreement entered into with the funds, American Century Investment Management,
Inc. serves as the manager of the funds. Its principal place of business is
American Century Tower, 4500 Main Street, Kansas City, Missouri 64111. The
manager has been providing investment advisory services to investment companies
and institutional clients since it was founded in 1958.

The manager supervises and manages the investment portfolio of each fund and
directs the purchase and sale of their investment securities. It utilizes teams
of portfolio managers, assistant portfolio managers and analysts acting together
to manage the assets of the funds. The teams meet regularly to review portfolio
holdings and to discuss purchase and sale activity. The teams adjust holdings in
the funds' portfolios as they deem appropriate in pursuit of the funds'
investment objectives. Individual portfolio manager members of the team may also
adjust portfolio holdings of a fund or of sectors of a fund as necessary between
team meetings.

JOHN SCHNIEDWIND, Senior Vice President and Group Leader--Quantitative
Equity, joined American Century in 1982, and supervises the portfolio management
teams that manage Global Gold and Global Natural Resources. He has been a member
of the team that manages Utilities since its inception.

KURT BORGWARDT, Vice President, Portfolio Manager and Director of
Quantitative Equity Research, joined American Century in 1990, and has served as
the Director of Quantitative Equity Research since then. Mr. Borgwardt joined
the team managing Utilities in May 1997.

WILLIAM MARTIN, Vice President and Senior Portfolio Manager, has served on
the management team for Global Gold and Global Natural Resources Funds since
their inception dates.

JOSEPH B. STERLING, Portfolio Manager, joined the team managing Global
Natural Resources in November 1996, and the team managing Utilities in May 1997.
Prior to joining the portfolio management team for Global Natural Resources, Mr.
Sterling served as an Associate Portfolio Manager. Mr. Sterling joined American
Century in 1989 as an Equity Research Analyst and held that position until
December 1995, when he was promoted to Associate Portfolio Manager.

The activities of the manager are subject only to directions of the funds'
Board of Directors. The manager pays all the expenses of the funds except
brokerage, taxes, interest, fees and expenses of the non-interested person
directors (including counsel fees) and extraordinary expenses.

For the services provided to the funds, the manager receives a monthly fee
based on a percentage of the average net assets of each fund. The annual rate at
which this fee is assessed is determined monthly in a two-step process: First, a
fee rate schedule is applied to the assets of all of the funds in a fund's
investment category which are managed by the manager (the Investment Category
Fee). The three investment categories are: Money Market Funds, Bond Funds, and
Equity Funds. Second, a separate fee rate schedule is applied to the assets of
all of the funds managed by the manager (the Complex Fee). The Investment
Category Fee and the Complex Fee are then added to determine the unified
management fee payable by the fund to the manager. Currently, the Investment
Category Fee for each of the funds is an annual rate of 0.40% of the average net
assets of the fund. The Complex Fee is currently an annual rate of 0.30% of the
average net assets of each fund. Further information about the calculation of
the annual management fee is contained in the Statement of Additional
Information.

On the first business day of each month, each fund pays a management fee to
the manager for the previous month at the specified rate. The fee for the
previous month is calculated by multiplying the applicable fee for each fund by
the aggregate average daily closing value of each fund's net assets during the
previous month, and further multiplying that product by a fraction, the
numerator of which is the number of days in the previous month and the
denominator of which is 365 (366 in leap years).

CODE OF ETHICS

28 ADDITIONAL INFORMATION YOU SHOULD KNOW AMERICAN CENTURY INVESTMENTS

obtain preclearance before executing personal trades. With respect to Portfolio
Managers and other investment personnel, the Code of Ethics prohibits
acquisition of securities in an initial public offering, as well as profits
derived from the purchase and sale of the same security within 60 calendar days.
These provisions are designed to ensure that the interests of fund shareholders
come before the interests of the people who manage those funds.

TRANSFER AND ADMINISTRATIVE SERVICES

American Century Services Corporation, 4500 Main Street, Kansas City,
Missouri 64111, acts as transfer agent and dividend-paying agent for the funds.
It provides facilities, equipment and personnel to the funds, and is paid for
such services by the manager.

Although there is no sales charge levied by the funds, transactions in
shares of the funds may be executed by brokers or investment advisors who charge
a transaction-based fee or other fee for their services. Such charges may vary
among broker-dealers and financial advisors, but in all cases will be retained
by the broker-dealer or financial advisor and not remitted to the funds or the
manager. You should be aware of the fact that these transactions may be made
directly with American Century without incurring such fees.

From time to time, special services may be offered to shareholders who
maintain higher share balances in our family of funds. These services may
include the waiver of minimum investment requirements, expedited confirmation of
shareholder transactions, newsletters and a team of personal representatives.
Any expenses associated with these special services will be paid by the manager
or its affiliates.

The manager and the transfer agent are both wholly owned by American Century
Companies, Inc. (ACC). James E. Stowers Jr., Chairman of the Board of Directors
of ACC, controls ACC by virtue of his ownership of a majority of its common
stock.

Pursuant to a Sub-Administration Agreement with the manager, Funds
Distributor Inc. (FDI) serves as the Co-Administrator for the funds. FDI is
responsible for (i) providing certain officers of the funds and (ii) reviewing
and filing marketing and sales literature on behalf of the funds. The fees and
expenses of FDI are paid by the manager out of its management fee.

YEAR 2000 ISSUES

Many of the world's computer systems currently cannot properly recognize or
process date-sensitive information relating to the Year 2000 and beyond. The
funds depend upon the computer systems of various service providers, including
the transfer agent, for their day-to-day operations. Inadequate remediation of
the Year 2000 problem by these service providers and others with whom they
interact could have an adverse effect on the funds' operations, including
pricing, securities trading and settlement, and the provision of shareholder
services.

The transfer agent has assembled a team of information technology
professionals who are taking steps to address Year 2000 issues with respect to
its own computers and to obtain satisfactory assurances that comparable steps
are being taken by the funds' other major service providers and vendors. The key
phases of the remediation plan include: an inventory of all internal systems,
vendor products and services and data providers (substantially completed in
1997); an assessment of all systems for date reliance and the impact of the
century rollover on each (substantially completed with respect to critical
systems in early 1998); and the renovation and testing of affected systems
(targeted for completion with respect to critical systems by the end of 1998).
The manager will pay for the remediation effort with revenues from its
management fee, so that the funds will not directly bear any of the cost.

In light of these remediation efforts, the funds do not anticipate a
material adverse impact on their business, operations or financial condition
relating to Year 2000 issues. However, there can be no assurance that the
remediation plan will be sufficient and timely or that interaction with other
noncomplying computer systems will not have a material adverse effect on the
funds' business, operations or financial condition.

DISTRIBUTION OF FUND SHARES

The funds' shares are distributed by FDI, a registered broker-dealer. FDI is
a wholly-owned indirect subsidiary of Boston Institutional Group, Inc. FDI's
principal business address is 60 State Street, Suite 1300, Boston, Massachusetts
02109. The Investor Class of shares does not pay any commissions or sales loads
to the distributor or to any other broker-dealers

PROSPECTUS INFORMATION REGARDING THE FUNDS 29

or financial intermediaries in connection with the distribution of fund shares.

Investors may open accounts with American Century only through the
distributor. All purchase transactions in the funds offered by this Prospectus
are processed by the transfer agent, which is authorized to accept any
instructions relating to fund accounts. All purchase orders must be accepted by
the distributor. All fees and expenses of FDI in acting as distributor for the
funds are paid by the manager.

FURTHER INFORMATION ABOUT AMERICAN CENTURY

American Century Quantitative Equity Funds is an open-end management
investment company. Its business and affairs are managed by its officers under
the direction of its Board of Directors.

The principal office of the funds is American Century Tower, 4500 Main
Street, P.O. Box 419200, Kansas City, Missouri 64141-6200. All inquiries may be
made by mail to that address, or by telephone to 1-800-345-2021 (international
calls: 816-531-5575).

American Century Quantitative Equity Funds issues shares with no par value.
Each series is commonly referred to as a fund. The assets belonging to each
series of shares are held separately by the custodian and in effect each series
is a separate fund.

American Century offers two classes of the funds offered by this Prospectus:
an Investor Class and an Advisor Class. The shares offered by this Prospectus
are Investor Class shares and have no up-front charges, commissions, or 12b-1
fees.

The other class of shares is primarily offered to institutional investors or
through institutional distribution channels, such as employer-sponsored
retirement plans or through banks, broker-dealers, insurance companies or other
financial intermediaries. The other class has different fees, expenses, and/or
minimum investment requirements than the Investor Class. The difference in the
fee structures among the classes is the result of their separate arrangements
for shareholder and distribution services and not the result of any difference
in amounts charged by the manager for core investment advisory services.
Accordingly, the core investment advisory expenses do not vary by class.
Different fees and expenses will affect performance. For additional information
concerning the other classes of shares not offered by this Prospectus, call us
at 1-800-345-2021 or contact a sales representative or financial intermediary
who offers those classes of shares.

Except as described below, all classes of shares of a fund have identical
voting, dividend, liquidation and other rights, preferences, terms and
conditions. The only differences among the various classes are (a) each class
may be subject to different expenses specific to that class, (b) each class has
a different identifying designation or name, (c) each class has exclusive voting
rights with respect to matters solely affecting such class and (d) each class
may have different exchange privileges.

Each share, irrespective of series or class, is entitled to one vote for
each dollar of net asset value applicable to such share on all questions, except
for those matters that must be voted on separately by the series or class of
shares affected. Matters affecting only one series or class are voted upon only
by that series or class.

Shares have non-cumulative voting rights, which means that the holders of
more than 50% of the votes cast in an election of directors can elect all of the
directors if they choose to do so, and in such event the holders of the
remaining votes will not be able to elect any person or persons to the Board of
Directors.

Unless required by the Investment Company Act, it will not be necessary for
the funds to hold annual meetings of shareholders. As a result, shareholders may
not vote each year on the election of directors or the appointment of auditors.
However, pursuant to the funds' by-laws, the holders of shares representing at
least 10% of the votes entitled to be cast may request the funds to hold a
special meeting of shareholders. We will assist in the communication with other
shareholders.

WE RESERVE THE RIGHT TO CHANGE ANY OF OUR POLICIES, PRACTICES AND PROCEDURES
DESCRIBED IN THIS PROSPECTUS, INCLUDING THE STATEMENT OF ADDITIONAL INFORMATION,
WITHOUT SHAREHOLDER APPROVAL EXCEPT IN THOSE INSTANCES WHERE SHAREHOLDER
APPROVAL IS EXPRESSLY REQUIRED.

30 ADDITIONAL INFORMATION YOU SHOULD KNOW AMERICAN CENTURY INVESTMENTS

NOTES

NOTES 31

NOTES

32 NOTES AMERICAN CENTURY INVESTMENTS

NOTES

NOTES 33

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

INVESTOR SERVICES:
1-800-345-2021 OR 816-531-5575

AUTOMATED INFORMATION LINE:
1-800-345-8765

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

FAX: 816-340-7962

WWW.AMERICANCENTURY.COM

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

9804
SH-BKT-11910
<PAGE>
PROSPECTUS

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

MAY 1, 1998

AMERICAN
CENTURY
GROUP

Global Gold
Global Natural Resources
Utilities Fund

ADVISOR CLASS

AMERICAN CENTURY INVESTMENTS

FAMILY OF FUNDS

PROSPECTUS

MAY 1, 1998

Global Gold * Global Natural Resources * Utilities Fund

ADVISOR CLASS

AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS

American Century Quantitative Equity Funds is a part of American Century
Investments, a family of funds that includes nearly 70 no-load and low-load
mutual funds covering a variety of investment opportunities. Three of the funds
from our American Century Group that invest in specialized equity markets are
described in this Prospectus. Their investment objectives are listed on page 2
of this Prospectus. The other funds are described in separate prospectuses.

Each fund's shares offered in this Prospectus (the Advisor Class shares) are
sold at their net asset value with no sales charges or commissions. The Advisor
Class shares are subject to a Rule 12b-1 shareholder services fee and
distribution fee as described in this Prospectus.

The Advisor Class shares are intended for purchase by participants in
employer-sponsored retirement or savings plans and for persons purchasing shares
through broker-dealers, banks, insurance companies and other financial
intermediaries that provide various administrative and distribution services.

AMERICAN CENTURY INVESTMENTS
4500 Main Street * P.O. Box 419385
Kansas City, Missouri 64141-6385 * 1-800-345-3533
International calls: 816-531-5575
Telecommunications Device for the Deaf:
1-800-345-1833 * In Missouri: 816-444-3038
www.americancentury.com

Additional information, including this Prospectus and the Statement of
Additional Information, may be obtained by accessing the Web site maintained by
the SEC (www.sec.gov).

PROSPECTUS 1

INVESTMENT OBJECTIVES OF THE FUNDS

AMERICAN CENTURY GLOBAL GOLD FUND

AMERICAN CENTURY GLOBAL NATURAL RESOURCES FUND

Global Natural Resources seeks to realize a total return (capital growth and
dividends) consistent with investment in companies that are engaged in the
natural resources industries.

AMERICAN CENTURY UTILITIES FUND

The Utilities Fund seeks current income and long-term growth of capital and
income.

The fund invests primarily in equity securities of companies engaged in the
utilities industry.

There is no assurance that the funds will achieve
their respective investment objectives.

* The DJWSI is property of Dow Jones & Company, Inc. which is not affiliated
with American Century.

2 INVESTMENT OBJECTIVES AMERICAN CENTURY INVESTMENTS

TABLE OF CONTENTS

Investment Objectives of the Funds ........................................ 2
Transaction and Operating Expense Table ................................... 4
Performance Information of Other Class .................................... 5

INFORMATION REGARDING THE FUNDS

Investment Policies of the Funds .......................................... 8
Core Investment Strategies ............................................. 8
Global Gold ............................................................ 8
Global Natural Resources ............................................... 9
Utilities Fund ......................................................... 10
Risk Factors and Investment Techniques .................................... 10
Concentration Risk ..................................................... 11
Global Gold .................................................... 11
Global Natural Resources ....................................... 11
Utilities Fund ................................................. 11
Foreign Securities Risk ............................................. 12
European Currency Unification ....................................... 13
Uncertainties as Unification Nears ............................. 13
Uncertainties After Unification of Currency .................... 13
Risk of Using the Funds as a Hedge .................................. 14
Other Investment Practices, Their Characteristics
and Risks ........................................................... 14
Portfolio Turnover .................................................. 14
Convertible Securities .............................................. 14
When-Issued Securities .............................................. 14
Forward Currency Exchange Contracts ................................. 14
Gold Investments .................................................... 15
Short-Term Instruments .............................................. 16
Futures Contracts and Options Thereon ............................... 16
Rule 144A Securities ................................................ 16
Indexed Securities .................................................. 17
Other Techniques .................................................... 17
Performance Advertising .................................................. 17

HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS

How to Purchase and Sell American Century Funds ........................... 19
How to Exchange from One
American Century Fund to Another ....................................... 19
How to Redeem Shares ...................................................... 19
Telephone Services ........................................................ 19
Investors Line ......................................................... 19

ADDITIONAL INFORMATION YOU SHOULD KNOW

Share Price ............................................................... 20
When Share Price is Determined ......................................... 20
How Share Price is Determined .......................................... 20
Where to Find Information About Share Price ............................ 21
Distributions ............................................................. 21
Taxes ..................................................................... 21
Tax-Deferred Accounts .................................................. 21
Taxable Accounts ....................................................... 21
Management ................................................................ 22
Investment Management .................................................. 22
Code of Ethics ......................................................... 23
Transfer and Administrative Services ................................... 24
Year 2000 Issues ....................................................... 24
Distribution of Fund Shares ............................................... 24
Service and Distribution Fees .......................................... 25
Further Information About American Century ................................ 25

PROSPECTUS TABLE OF CONTENTS 3

TRANSACTION AND OPERATING EXPENSE TABLE

Global Gold,
Global Natural
Resources,
Utilities

SHAREHOLDER TRANSACTION EXPENSES:

Maximum Sales Load Imposed on Purchases ............................ none

Maximum Sales Load Imposed on Reinvested Dividends ................. none

Deferred Sales Load ................................................ none

Redemption Fee ..................................................... none

Exchange Fee ....................................................... none

ANNUAL FUND OPERATING EXPENSES:

(as a percentage of net assets)

Management Fees(1) ................................................. 0.45%

12b-1 Fees(2) ...................................................... 0.50%

Other Expenses ..................................................... 0.01%

Total Fund Operating Expenses ...................................... 0.96%

EXAMPLE

You would pay the following expenses 1 year $ 10
on a $1,000 investment, assuming a 3 years 31
5% annual return and redemption at 5 years 53
the end of each time period: 10 years 118

(1)A portion of the management fee may be paid by American Century Investment
Management, Inc. to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of
the manager. See "Management -- Transfer and Administrative Services," page
24.

(2)The 12b-1 fee is designed to permit investors to purchase Advisor Class
shares through broker-dealers, banks, insurance companies and other financial
intermediaries. A portion of the fee is used to compensate them for ongoing
recordkeeping and administrative services that would otherwise be performed
by an affiliate of the manager, and a portion is used to compensate them for
distribution and other shareholder services. See "Service and Distribution
Fees," page 25.

The shares offered by this Prospectus are Advisor Class shares. The funds
offer one other class of shares, which is primarily made available to retail
investors. This other class has a different fee structure than the Advisor
Class. The difference in the fee structures among the classes is the result of
their separate arrangements for shareholder and distribution services and not
the result of any difference in amounts charged by the manager for core
investment advisory services. Accordingly, the core investment advisory expenses
do not vary by class. A difference in fees will result in different performance
for the other class. For additional information about the various classes, see
"Further Information About American Century," page 25.

4 TRANSACTION AND OPERATING EXPENSE TABLE AMERICAN CENTURY INVESTMENTS

PERFORMANCE INFORMATION OF OTHER CLASS

GLOBAL GOLD

The Advisor Class of the fund was established September 2, 1997, however no
shares had been issued prior to the fund's fiscal year end. The financial
information in this table regarding selected per share data for the fund
reflects the performance of the fund's Investor Class of shares, which has a
total expense ratio that is 0.25% lower than the Advisor Class. Had the Advisor
Class been in existence for the time periods presented, the fund's performance
results would be lower as a result of the additional expense.

1997 1996 1995 1994 1993 1992 1991 1990 1989 1988(1)

PER-SHARE DATA

Net Asset
Value,
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Beginning of Period ... $11.33 $12.37 $11.33 $13.67 $7.55 $8.28 $9.35 $11.71 $9.05 $10.00
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Income from
Investment Operations

Net Investment
Income .............. 0.09 0.06 0.02 0.03 0.01 0.02 0.02 -- 0.04 0.09

Net Realized and
Unrealized Gain
(Loss) on Investment
Transactions ........ (4.79) (0.40) 1.03 (2.32) 6.12 (0.73) (1.07) (2.27) 2.75 (0.97)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total From
Investment
Operations ......... (4.70) (0.34) 1.05 (2.29) 6.13 (0.71) (1.05) (2.27) 2.79 (0.88)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Distributions

From Net
Investment Income ... (0.09) (0.06) (0.01) (0.02) (0.01) (0.02) (0.02) -- (0.04) (0.07)

From Net Realized
Gains on Investment
Transactions ........ (0.20) (0.64) -- -- -- -- -- (0.09) (0.09) --

In Excess of Net
Realized Gains ...... -- -- -- (0.03) -- -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total Distributions.. (0.29) (0.70) (0.01) (0.05) (0.01) (0.02) (0.02) (0.09) (0.13) (0.07)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net Asset Value,
End of Period ......... $6.34 $11.33 $12.37 $11.33 $13.67 $7.55 $8.28 $9.35 $11.71 $9.05
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Total Return(2) ..... (41.47)% (2.76)% 9.25% (16.75)% 81.22% (8.65)% (11.23)% (19.43)% 29.93% (9.19)%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating
Expenses to Average
Net Assets .......... 0.67% 0.62% 0.61% 0.61% 0.72% 0.75% 0.75% 0.96% 1.00% --

Ratio of Net Investment
Income to Average
Net Assets .......... 0.92% 0.46% 0.17% 0.20% 0.23% 0.23% 0.30% 0.01% 0.36% 2.04%(3)

Portfolio
Turnover Rate ....... 28% 45% 28% 42% 28% 53% 56% 21% 34% 1%

Average Commission
Paid per Share of
Equity Security
Traded ..............$0.0201 $0.0289 $0.0350 --(4) --(4) --(4) --(4) --(4) --(4) --(4)

Net Assets, End
of Period
(in thousands) .......$246,015 $432,587 $537,693 $568,030 $616,347 $163,777 $124,436 $104,163 $61,786 $7,683
- ----------

(1) August 17, 1988 (inception) through December 31, 1988.

(2) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.

(3) Annualized. (The period ended December 31, 1988 includes 0.76% from
nonrecurring income.)

(4) Disclosure of average commission paid per share of equity security traded
was not required prior to the year ended December 31, 1995.
</TABLE>

PROSPECTUS PERFORMANCE INFORMATION OF OTHER CLASS 5

<TABLE>
<CAPTION>
PERFORMANCE INFORMATION OF OTHER CLASS

GLOBAL NATURAL RESOURCES

1997 1996 1995 1994(1)

PER-SHARE DATA

<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ................. $ 11.91 $ 10.66 $ 9.61 $ 10.00
------------ ------------ ------------ ------------
Income From Investment Operations

Net Investment Income ................................ 0.22 0.17 0.16 0.07

Net Realized and Unrealized Gain (Loss)
on Investment Transactions ........................... 0.08 1.46 1.22 (0.42)
------------ ------------ ------------ ------------
Total From Investment Operations ..................... 0.30 1.63 1.38 (0.35)
------------ ------------ ------------ ------------
Distributions

From Net Investment Income ........................... (0.23) (0.17) (0.16) (0.04)

From Net Realized Gains on Investment Transactions ... (0.50) (0.21) (0.17) --
------------ ------------ ------------ ------------
Total Distributions .................................. (0.73) (0.38) (0.33) (0.04)
------------ ------------ ------------ ------------
Net Asset Value, End of Period ....................... $ 11.48 $ 11.91 $ 10.66 $ 9.61
============ ============ ============ ============
Total Return(2) ...................................... 2.50% 15.45% 14.41% (3.48)%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses to Average Net Assets .... 0.73%(3) 0.76% 0.76% --

Ratio of Net Investment Income to Average Net Assets . 1.55%(3) 1.78% 2.02% 2.74%(4)

Portfolio Turnover Rate .............................. 41% 53% 39% --

Average Commission Paid per Share of
Equity Security Traded ............................... $ 0.0254 $ 0.0305 $ 0.0280 --(5)

Net Assets, End of Period (in thousands) ............. $ 46,556 $ 66,021 $ 30,157 $ 18,972

(1) September 15, 1994 (inception) through December 31, 1994.

(2) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.

(4) Annualized.

(5) Disclosure of average commission paid per share of equity security traded
was not required prior to the year ended December 31, 1995.
</TABLE>

6 PERFORMANCE INFORMATION OF OTHER CLASS AMERICAN CENTURY INVESTMENTS

<TABLE>
<CAPTION>
PERFORMANCE INFORMATION OF OTHER CLASS

UTILITIES FUND

1997 1996 1995 1994 1993(1)

PER-SHARE DATA

Net Asset Value,
<S> <C> <C> <C> <C> <C>
Beginning of Period ............................. $11.51 $11.44 $8.79 $10.24 $10.00
------- ------- ------- ------- -------
Income From Investment Operations

Net Investment Income ......................... 0.43 0.45 0.42 0.44 0.36

From Net Investment Income .................... (0.42) (0.46) (0.42) (0.44) (0.36)

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses
to Average Net Assets ......................... 0.72% 0.71% 0.75% 0.75% 0.50%(3)

Ratio of Net Investment Income
to Average Net Assets ......................... 3.56% 3.88% 4.31% 4.67% 4.23%(3)

Portfolio Turnover Rate ....................... 92% 93% 68% 61% 39%

Average Commission
Paid per Share of Equity Security Traded ...... $0.0376 $0.0381 $0.0300 --(4) --(4)

Net Assets, End of Period (in thousands) ...... $209,962 $145,134 $218,794 $152,570 $194,314

(1) March 1, 1993 (inception) through December 31, 1993.

(2) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.

(3) Annualized.

(4) Disclosure of average commission paid per share of equity security traded
was not required prior to the year ended December 31, 1995.

</TABLE>

PROSPECTUS PERFORMANCE INFORMATION OF OTHER CLASS 7

INFORMATION REGARDING THE FUNDS

INVESTMENT POLICIES OF THE FUNDS

CORE INVESTMENT STRATEGIES

GLOBAL GOLD

As part of its global investment strategy, Global Gold will normally invest
in securities of issuers

8 INFORMATION REGARDING THE FUNDS AMERICAN CENTURY INVESTMENTS

located in at least three different countries, one of which may be the United
States. For temporary defensive purposes, however, Global Gold may invest in
less than three countries. The manager anticipates that a substantial portion of
Global Gold's assets will be invested in securities of companies domiciled in or
operating in one or more foreign countries. There are certain risks which are
posed to Global Gold when it invests in foreign securities. See "Risk Factors
and Investment Techniques--Foreign Securities Risk," page 12. These risks may be
greater as Global Gold increases its investments in regions outside North
America.

The manager works to balance three goals:

* To keep enough cash on hand to meet shareholder redemption requests and
pay operational expenses; and

* To keep portfolio transaction costs low.

GLOBAL NATURAL RESOURCES

Global Natural Resources seeks to realize a total return (capital growth and
dividends) consistent with investment in companies that are engaged in the
natural resources industries.

ENERGY SECTOR BASIC MATERIALS SECTOR
- --------------------------------------------------------------------------------

Coal Aluminum
Oil Drilling Other Non-Ferrous Metals
Oil Companies, Major Forest Products
Oil Companies, Secondary Mining, Diversified
Oilfield Equip/Services Paper Products
Pipelines Precious Metals and Steel
- --------------------------------------------------------------------------------

Even though Global Natural Resources' portfolio is not constructed to match
the composition of the

*Dow Jones & Company, Inc. has not participated in any way in the creation
of the fund or in the selection of the stocks included in Global Natural
Resources' portfolio and has not approved any information included in the
Prospectus relating thereto. the DJWSI is the property of Dow Jones & Company,
Inc.

PROSPECTUS INFORMATION REGARDING THE FUNDS 9

As an operating policy, Global Natural Resources will remain as fully
invested as practicable in securities of companies included in the Sectors;
therefore, investors bear the risk of a general decline in the stock prices of
issuers included in the Sectors. Although Global Natural Resources invests
primarily in securities of companies included in the Sectors, it also may invest
up to 10% of its total assets in other types of securities (see "Other
Investment Practices, Their Characteristics and Risks," page 14). However,
Global Natural Resources may invest up to 35% of its total assets in when-issued
and forward commitment agreements if necessary to purchase Sector securities.
Such investments may be made to improve portfolio diversification and to provide
extra cash to meet redemptions and day-to-day operating expenses.

UTILITIES FUND

The Utilities Fund seeks current income and long-term growth of capital and
income. The Utilities Fund invests primarily in equity securities of companies
engaged in the utilities industry.

To enhance dividend income, increase portfolio diversification or support
share price stability, the Utilities Fund may invest up to 25% of its total
assets in fixed-income securities (i.e., bonds issued by the U.S. government or
its agencies, bonds issued by companies engaged in the utilities industry
(utility bonds) or bonds issued by non-utility corporations).

The manager may invest up to 5% of the Utilities Fund's total assets in
non-utility corporate bonds. The Utilities Fund's corporate debt holdings must
be of investment-grade quality.

RISK FACTORS AND INVESTMENT TECHNIQUES

The funds may be an appropriate component of a stock portfolio for investors
seeking total return through

10 INFORMATION REGARDING THE FUNDS AMERICAN CENTURY INVESTMENTS

investments in stocks (both equity and specialized), bonds and short-term
instruments. The funds work best for long-term investors who are prepared to
endure fluctuations in the values of the special market categories in which each
of the funds invests. An investment in any one of the funds does not constitute
a balanced investment plan.

CONCENTRATION RISK

Because each fund concentrates its investments in a particular industry or
sector, each may be subject to greater risks and market fluctuations than a
portfolio representing a broader range of industries. Each fund therefore serves
a different purpose than a general stock fund. Each fund is particularly
vulnerable to risks specific to issuers in its area of specialty.

GLOBAL GOLD

Many investors perceive that gold investments hedge against inflation,
currency devaluations and general stock market declines; however, there is no
assurance that these historical inverse relationships will persist. Changing
market conditions (i.e., fluctuating operating costs, political events, and
changes in interest rates and currency rates) may affect gold prices and tend to
have a more exaggerated effect on gold stocks. Because of their high share price
volatility, gold stocks are considered speculative and may affect Global Gold's
share price. Investment in Global Gold shares may involve special
considerations, including: fluctuations in the price of gold; the potential
effect of the concentration of the sources of supply of gold and over control of
the sale of gold; changes in U.S. or foreign tax, currency or mining laws;
increased environmental costs; and unpredictable monetary policies and economic
and political conditions.

GLOBAL NATURAL RESOURCES

UTILITIES FUND

As indicated on this page, Chart 1 compares the rate of dividend growth for
the Standard & Poor's Utilities Index (S&P Utilities Index) with the rate of
inflation as measured by the Consumer Price Index (CPI) over a 50-year period.

[line chart - data below]

Source: Ibbotson Associates

PROSPECTUS INFORMATION REGARDING THE FUNDS 11

[line chart - data below]

Source: Ibbotson Associates

[bullet graph - data below]
CHART 3 - RISK VS. REWARD (1947-1997)
T-Bond S&P 500 S&P Utilities
Reward - Average Annual Total Return 5.35% 11.94% 9.26%
Risk - Standard Deviation 10.54% 16.57% 15.79%

Source: Ibbotson Associates

The preceding charts show the characteristics of utilities stocks that have
attracted investors in the past. Regulatory and competitive factors are changing
the utilities industry considerably, and there is no assurance that these
historic trends will continue. Within any one market sector, a period of above
average performance may be followed by a period of below average performance.

FOREIGN SECURITIES RISK

Restrictions and controls on investment in the securities markets of some
countries may have an adverse effect on the availability and costs to the funds
of investments in those countries. In addition, there may be the possibility of
expropriations, foreign withholding taxes, confiscatory taxation, political,
economic or social instability or diplomatic developments, which could affect
assets of the fund invested in issuers in foreign countries. In particular,
investments by Global Gold in Gold Companies located in South Africa, which
comprise a significant component of the global gold industry, may present
greater risks to Global Gold than investments in other countries because of
South Africa's relatively unstable internal political conditions.

12 INFORMATION REGARDING THE FUNDS AMERICAN CENTURY INVESTMENTS

and unsponsored ADRs to attempt to limit each fund's exposure to the market risk
associated with such investments.

EUROPEAN CURRENCY UNIFICATION

The following change in European currency may affect Global Gold and Global
Natural Resources.

UNCERTAINTIES AS UNIFICATION NEARS

UNCERTAINTIES AFTER UNIFICATION OF CURRENCY

Contract Continuity. Some financial contracts may become unenforceable when
the currencies are unified. These financial contracts may include bank loan
agreements, master agreements for swaps and other derivatives, master agreements
for foreign exchange and currency option transactions and debt securities. The
risk of unenforceability may arise in a number of ways: For example, a contract
used to hedge against exchange-rate volatility between two EU currencies will
become "fixed," rather than "variable," as part of

PROSPECTUS INFORMATION REGARDING THE FUNDS 13

the conversion since the currencies have, in effect, disappeared for exchange
purposes.

ECB Policymaking. As the ECB and European market participants search for a
common understanding of policy targets and instruments, interest rates and
exchange rates could become more volatile.

RISK OF USING THE FUNDS AS A HEDGE

OTHER INVESTMENT PRACTICES, THEIR CHARACTERISTICS AND RISKS

For additional information, see "Additional Investment Restrictions" in the
Statement of Additional Information.

PORTFOLIO TURNOVER

The portfolio turnover rates of the funds are shown in the financial
information of this Prospectus.

CONVERTIBLE SECURITIES

WHEN-ISSUED SECURITIES

Each of the funds may sometimes purchase new issues of securities on a
when-issued basis or forward commitment basis when, in the opinion of the
manager, such purchases will further the investment objectives of the fund. The
price of when-issued securities is established at the time the commitment to
purchase is made. Delivery of and payment for these securities typically occur
15 to 45 days after the commitment to purchase. Market rates of interest on debt
securities at the time of delivery may be higher or lower than those contracted
for on the when-issued security. Accordingly, the value of such security may
decline prior to delivery, which could result in a loss to the fund. A separate
account for each fund consisting of cash or appropriate liquid assets in an
amount at least equal to the when-issued commitments will be established and
maintained with the custodian. No income will accrue to the fund prior to
delivery.

FORWARD CURRENCY EXCHANGE CONTRACTS

Some of the foreign securities held by the funds may be denominated in
foreign currencies. Other securities,

14 INFORMATION REGARDING THE FUNDS AMERICAN CENTURY INVESTMENTS

such as depositary receipts, may be denominated in U.S. dollars, but have a
value that is dependent on the performance of a foreign security, as valued in
the currency of its home country. As a result, the value of a fund's portfolio
may be affected by changes in the exchange rates between foreign currencies and
the U.S. dollar, as well as by changes in the market values of the securities
themselves. The performance of foreign currencies relative to the U.S. dollar
may be a factor in the overall performance of a fund.

A fund may elect to enter into a forward currency exchange contract with
respect to a specific purchase or sale of a security, or with respect to the
fund's portfolio positions generally.

At any given time, no more than 10% of a fund's total assets will be
committed to a segregated account in connection with portfolio hedging
transactions.

GOLD INVESTMENTS

Global Gold may purchase gold, gold certificates or gold futures (referred
to collectively as Gold Investments), although it will not purchase gold in any
form that is not readily marketable and that cannot be stored in accordance with
custody regulations applicable to mutual funds.

The manager may use a Gold Investment when it judges the price of gold to be
artificially low. The manager also may use a Gold Investment as a hedge if it
expects a rise in the price of gold to correlate with rising prices of Global
Gold's other gold-related investments. If gold prices rise as the manager
predicted, proceeds from the sale of the Gold Investment may be used to cover
the increased price of the hedged security. However, if the price of the Gold
Investment declines, Global Gold may suffer a loss.

Internal Revenue Service (IRS) income tests and certain state laws
effectively limit the amount of Gold Investments Global Gold may make. Global
Gold

PROSPECTUS INFORMATION REGARDING THE FUNDS 15

intends to make such investments only to the extent permitted by these limits.

SHORT-TERM INSTRUMENTS

For liquidity purposes, each fund may invest in high-quality money market
instruments with remaining maturities of one year or less.

FUTURES CONTRACTS AND OPTIONS THEREON

The funds may buy or sell futures contracts relating to groups of securities
or indices and write or buy put and call options relating to such futures
contracts.

See the Statement of Additional Information for further information about
these instruments and their risks.

RULE 144A SECURITIES

With respect to securities eligible for resale under Rule 144A, the staff of
the SEC has taken the position that the liquidity of such securities in the
portfolio of a fund offering redeemable securities is a question of fact for the
Board of Directors to determine, such determination to be based upon a
consideration of the readily available trading markets and the review of any
contractual restrictions. The staff also acknowledges that, while the Board
retains ultimate responsibility, it may delegate this function to the manager.

16 INFORMATION REGARDING THE FUNDS AMERICAN CENTURY INVESTMENTS

Accordingly, the Board has established guidelines and procedures for determining
the liquidity of Rule 144A securities and has delegated the day-to-day function
of determining the liquidity of Rule 144A securities to the manager. The Board
retains the responsibility to monitor the implementation of the guidelines and
procedures it has adopted.

Since the secondary market for such securities is limited to certain
qualified institutional investors, the liquidity of such securities may be
limited accordingly and a fund may, from time to time, hold a Rule 144A security
that is illiquid. In such an event, the funds' manager will consider appropriate
remedies to minimize the effect on such fund's liquidity. No fund may invest
more than 15% of its assets in illiquid securities (securities that may not be
sold within seven days at approximately the price used in determining the net
asset value of fund shares).

INDEXED SECURITIES

OTHER TECHNIQUES

PERFORMANCE ADVERTISING

From time to time, the funds may advertise performance data. Fund
performance may be shown by presenting one or more performance measurements,
including cumulative total return or average annual total return, yield and
effective yield. Performance data may be quoted separately for the Advisor Class
and for the other class.

The funds also may include in advertisements data comparing performance with
the performance of non-related investment media, published editorial comments
and performance rankings compiled by independent organizations (such as Lipper
Analytical Services, Inc.) and publications that monitor the performance of
mutual funds. Performance information may be quoted numerically or may be
presented in a table, graph or other illustration. In addition, fund performance
may be compared to well-known indices of market performance. Fund performance
also may be compared, on a relative basis, to other funds in our fund family.
This relative comparison, which may be based upon historical fund performance or
historical or expected volatility or other fund characteristics, may be
presented numerically, graphically or in text. Fund performance also may be
combined or blended with

PROSPECTUS INFORMATION REGARDING THE FUNDS 17

other funds in our fund family, and that combined or blended performance may be
compared to the same indices to which individual funds may be compared.

18 INFORMATION REGARDING THE FUNDS AMERICAN CENTURY INVESTMENTS

HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS

The following section explains how to purchase, exchange and redeem Advisor
Class shares of the funds offered by this Prospectus.

HOW TO PURCHASE AND SELL AMERICAN CENTURY

FUNDS

One or more of the funds offered by this Prospectus is available as an
investment option under your employer-sponsored retirement or savings plan or
through or in connection with a program, product or service offered by a
financial intermediary, such as a bank, broker-dealer or insurance company.
Since all records of your share ownership are maintained by your plan sponsor,
plan recordkeeper or other financial intermediary, all orders to purchase,
exchange and redeem shares must be made through your employer or other financial
intermediary, as applicable.

If you are purchasing through a retirement or savings plan, the
administrator of your plan or your employee benefits office can provide you with
information on how to participate in your plan and how to select American
Century funds as an investment option.

If you are purchasing through a financial intermediary, you should contact
your service representative at the financial intermediary for information about
how to select American Century funds.

If you have questions about a fund, see "Investment Policies of the Funds,"
page 8, or call one of our Institutional Service Representatives at
1-800-345-3533.

Orders to purchase shares are effective on the day we receive payment. See
"When Share Price is Determined," page 20.

We may discontinue offering shares generally in the funds (including any
class of shares of a fund) or in any particular state without notice to
shareholders.

HOW TO EXCHANGE FROM ONE AMERICAN CENTURY FUND TO ANOTHER

Your plan or program may permit you to exchange your investment in the
shares of a fund for shares of another fund in our family. See your plan
administrator, employee benefits office or financial intermediary for details on
the rules in your plan governing exchanges.

HOW TO REDEEM SHARES

Subject to any restrictions imposed by your employer's plan or financial
intermediary's program, you can sell (redeem) your shares at their net asset
value through the plan or financial intermediary. Your plan administrator,
trustee, financial intermediary or other designated person must provide us with
redemption instructions. The shares will be redeemed at the net asset value next
computed after receipt of the instructions in good order. See "When Share Price
Is Determined," page 20. If you have any questions about how to redeem, contact
your plan administrator, employee benefits office or service representative at
your financial intermediary, as applicable.

TELEPHONE SERVICES

INVESTORS LINE

To request information about our funds and a current prospectus, or get
answers to any questions that you may have about the funds and the services we
offer, call one of our Institutional Service Representatives at 1-800-345-3533.

PROSPECTUS HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS 19

ADDITIONAL INFORMATION YOU SHOULD KNOW

SHARE PRICE

WHEN SHARE PRICE IS DETERMINED

The price of your shares is also referred to as their net asset value. Net
asset value is determined by calculating the total value of a fund's assets,
deducting total liabilities and dividing the result by the number of shares
outstanding. For all American Century funds, except funds issued by the American
Century Target Maturities Trust, net asset value is determined as of the close
of regular trading on each day that the New York Stock Exchange is open, usually
3 p.m. Central time. The net asset values for Target Maturities funds are
determined one hour prior to the close of the Exchange.

Investments by telephone pursuant to your prior authorization to us to draw
on your bank account are considered received at the time of your telephone call.

Investments and transaction instructions received by us on any business day
by mail prior to the time as of which the net asset value of the fund is
determined will receive that day's price. Investments and instructions received
after that time will receive the price determined on the next business day.

We have contractual relationships with certain financial intermediaries in
which such intermediaries represent that they have systems to track the time at
which investment orders are received and to segregate orders received at
different times. Based on these representations, the funds have authorized such
intermediaries and their designees to accept purchase and redemption orders on
the company's behalf up to the applicable cut-off time. The funds will be deemed
to have received such orders upon acceptance by the duly authorized
intermediary, and such orders will be priced at the company's net asset value
next determined after acceptance on the company's behalf by such intermediary.

HOW SHARE PRICE IS DETERMINED

The valuation of assets for determining net asset value may be summarized as
follows:

20 ADDITIONAL INFORMATION YOU SHOULD KNOW AMERICAN CENTURY INVESTMENTS

WHERE TO FIND INFORMATION ABOUT SHARE PRICE

The net asset values of the Investor Class are published in leading
newspapers daily. Because the total expense ratio for the Advisor Class shares
is 0.25% higher than the Investor Class, their net asset values will be lower
than the Investor Class. The net asset value of the Advisor Class of each fund
may be obtained by calling us.

DISTRIBUTIONS

For the Utilities Fund, distributions from net income will be declared and
paid quarterly. Global Gold Fund and Global Natural Resources Fund pay
dividends, if any, on a semi-annual basis in June and December.

You will begin to participate in the distributions the day after your
purchase is effective. See "When Share Price is Determined," page 20. If you
redeem shares, you will receive the distribution declared for the day of the
redemption. If all shares are redeemed, the distribution on the redeemed shares
will be included with your redemption proceeds.

In general, distributions from net investment income and net realized
securities gains, if any, are declared and paid annually, usually in December,
but the funds may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code, in all events in a
manner consistent with the provisions of the Investment Company Act.

TAXES

Each fund has elected to be taxed under Subchapter M of the Internal Revenue
Code, which means that to the extent its income is distributed to shareholders,
it pays no income tax.

TAX-DEFERRED ACCOUNTS

TAXABLE ACCOUNTS

PROSPECTUS ADDITIONAL INFORMATION YOU SHOULD KNOW 21

because they are derived from interest income. Distributions from net long-term
capital gains are taxable as long-term capital for more than 45 days.
Distributions from gains on assets held longer than 12 months but no more than
18 months (28% rate gain) and/or assets held longer than 18 months (20% rate
gain) are taxable as long-term gains regardless of the length of time you have
held the shares on which such distributions are paid. However, you should note
that any loss realized upon the sale or redemption of shares held for six months
or less will be treated as a long-term capital loss to the extent of any
distribution of long-term capital gain (28% and/or 20% rate gain) to you with
respect to such shares.

Distributions also may be subject to state and local taxes, even if all or a
substantial part of such distributions are derived from interest on U.S.
government obligations which, if you received them directly, would be exempt
from state income tax. However, most but not all states allow this tax exemption
to pass through to fund shareholders when a fund pays distributions to its
shareholders. You should consult your tax advisor about the tax status of such
distributions in your own state.

If you have not complied with certain provisions of the Internal Revenue
Code, we or your financial intermediary are required by federal law to withhold
and remit to the IRS 31% of reportable payments (which may include dividends,
capital gains distributions and redemptions). Those regulations require you to
certify that the Social Security number or tax identification number you provide
is correct and that you are not subject to 31% withholding for previous
under-reporting to the IRS. You will be asked to make the appropriate
certification on your application. Payments reported by us that omit your Social
Security number or tax identification number will subject us to a penalty of
$50, which will be charged against your account if you fail to provide the
certification by the time the report is filed. This charge is not refundable.

MANAGEMENT

INVESTMENT MANAGEMENT

The funds are open-end series of the American Century Quantitative Equity
Funds (the company). The

22 ADDITIONAL INFORMATION YOU SHOULD KNOW AMERICAN CENTURY INVESTMENTS

Utilities Fund is a diversified series, while Global Gold and Global Natural
Resources are non-diversified series. Under the laws of the State of California,
the Board of Directors is responsible for managing the business and affairs of
the company. Acting pursuant to an investment management agreement entered into
with the funds, American Century Investment Management, Inc. serves as the
manager of the funds. Its principal place of business is American Century Tower,
4500 Main Street, Kansas City, Missouri 64111. The manager has been providing
investment advisory services to investment companies and institutional clients
since it was founded in 1958.

WILLIAM MARTIN, Vice President and Senior Portfolio Manager, has served on
the management team for Global Gold and Global Natural Resources since their
inception dates.

JOSEPH B. STERLING, Portfolio Manager, joined the team managing Global
Natural Resources in November 1996, and the team managing Utilities in May 1997.
Prior to joining the portfolio management team for Global Natural Resources, Mr.
Sterling served as an Associate Portfolio Manager. Mr. Sterling joined American
Century in 1989 as an Equity Research Analyst and held that position until
December 1995 when he was promoted to Associate Portfolio Manager.

For the services provided to the funds, the manager receives a monthly fee
based on a percentage of the average net assets of each fund. The annual rate at
which this fee is assessed is determined monthly in a two-step process: First, a
fee rate schedule is applied to the assets of all of the funds in a fund's
investment category which are managed by the manager (the Investment Category
Fee). The three investment categories are: Money Market Funds, Bond Funds, and
Equity Funds. Second, a separate fee rate schedule is applied to the assets of
all of the funds managed by the manager (the Complex Fee). The Investment
Category Fee and the Complex Fee are then added to determine the unified
management fee payable by the fund to the manager. Currently, the Investment
Category Fee for each of the funds is an annual rate of 0.40% of the average net
assets of the fund. The Complex Fee is currently an annual rate of 0.05% of the
average net assets of each fund. Further information about the calculation of
the annual management fee is contained in the Statement of Additional
Information.

CODE OF ETHICS

PROSPECTUS ADDITIONAL INFORMATION YOU SHOULD KNOW 23

employees with access to information about the purchase or sale of securities in
the funds' portfolios obtain preclearance before executing personal trades. With
respect to Portfolio Managers and other investment personnel, the Code of Ethics
prohibits acquisition of securities in an initial public offering, as well as
profits derived from the purchase and sale of the same security within 60
calendar days. These provisions are designed to ensure that the interests of
fund shareholders come before the interests of the people who manage those
funds.

TRANSFER AND ADMINISTRATIVE SERVICES

YEAR 2000 ISSUES

The manager will pay for the remediation effort with revenues from its
management fee, so that the funds will not directly bear any of the cost. In
light of these remediation efforts, the funds do not anticipate a material
adverse impact on their business, operations or financial condition relating to
Year 2000 issues. However, there can be no assurance that the remediation plan
will be sufficient and timely or that interaction with other noncomplying
computer systems will not have a material adverse effect on the funds' business,
operations or financial condition.

DISTRIBUTION OF FUND SHARES

24 ADDITIONAL INFORMATION YOU SHOULD KNOW AMERICAN CENTURY INVESTMENTS

SERVICE AND DISTRIBUTION FEES

Rule 12b-1 adopted by the SEC under the Investment Company Act permits
investment companies that adopt a written plan to pay certain expenses
associated with the distribution of their shares. Pursuant to that rule, the
funds' Board of Directors and the initial shareholder of the funds' Advisor
Class shares have approved and entered into a Master Distribution and
Shareholder Services Plan (the Plan) with the distributor. Pursuant to the Plan,
each fund pays the manager a shareholder services fee and a distribution fee,
each equal to 0.25% (for a total of 0.50%) per annum of the average daily net
assets of the shares of the fund's Advisor Class. The shareholder services fee
is paid for the purpose of paying the costs of securing certain shareholder and
administrative services, and the distribution fee is paid for the purpose of
paying the costs of providing various distribution services. All or a portion of
such fees are paid by the manager, as paying agent for the funds, to the banks,
broker-dealers, insurance companies or other financial intermediaries through
which such shares are made available.

The Plan has been adopted and will be administered in accordance with the
requirements of Rule 12b-1 under the Investment Company Act. For additional
information about the Plan and its terms, see "Multiple Class Structure--Master
Distribution and Shareholder Services Plan" in the Statement of Additional
Information. Fees paid pursuant to the Plan may be paid for shareholder services
and the maintenance of accounts and therefore may constitute "service fees" for
purposes of applicable rules of the National Association of Securities Dealers.

FURTHER INFORMATION ABOUT AMERICAN CENTURY

American Century Quantitative Equity Funds is an open-end management
investment company. Its business and affairs are managed by its officers under
the direction of its Board of Directors.

The principal office of the funds is American Century Tower, 4500 Main
Street, P.O. Box 419385, Kansas City, Missouri 64141-6385. All inquiries may be
made by mail to that address, or by telephone to 1-800-345-3533 (international
calls: 816-531-5575).

American Century offers two classes of the funds offered by this Prospectus:
an Investor Class and an Advisor Class. The shares offered by this Prospectus
are Advisor Class shares.

The Investor Class is primarily made available to retail investors. The
other class has different fees, expenses, and/or minimum investment requirements
than the Advisor Class. The difference in the fee structures among the classes
is the result of their separate arrangements for shareholder and distribution
services and not the result of any difference in amounts charged by the manager
for core investment advisory services. Accordingly, the core investment advisory
expenses do not vary by class. Different fees and expenses will affect
performance. For additional information concerning the Investor Class of shares,
call one of our Investor Services Representatives at 1-800-345-2021.

PROSPECTUS ADDITIONAL INFORMATION YOU SHOULD KNOW 25

26 ADDITIONAL INFORMATION YOU SHOULD KNOW AMERICAN CENTURY INVESTMENTS

NOTES

NOTES 27

NOTES

28 NOTES AMERICAN CENTURY INVESTMENTS

NOTES

NOTES 29

P.O. BOX 419385
KANSAS CITY, MISSOURI
64141-6385

INSTITUTIONAL SERVICES:
1-800-345-3533 OR 816-531-5575

TELECOMMUNICATIONS DEVICE FOR THE DEAF:
1-800-345-1833 OR 816-444-3038

FAX: 816-340-4655

WWW.AMERICANCENTURY.COM

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American
Century(reg.tm)
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STATEMENT OF ADDITIONAL INFORMATION

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

MAY 1, 1998

AMERICAN
CENTURY
GROUP

Global Gold
Global Natural Resources
Utilities Fund

STATEMENT OF ADDITIONAL INFORMATION

MAY 1, 1998

AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS

This is the Statement of Additional Information for the American Century Global
Gold Fund, American Century Global Natural Resources Fund and American Century
Utilities Fund. This Statement is not a prospectus but should be read in
conjunction with the funds' current Prospectus dated May 1, 1998. The funds'
annual reports for the fiscal year ended December 31, 1997, are incorporated
herein by reference. Please retain this document for future reference. To obtain
the Prospectus, call American Century Investments toll free at 1-800-345-2021
(international calls: 816-531-5575) or write P.O. Box 419200, Kansas City,
Missouri 64141-6200.

TABLE OF CONTENTS

Investment Policies and Techniques ........................................ 2
Special Considerations Regarding Global Gold's Investment Policies ........ 10
Risk Factors (Utilities Fund) ............................................. 11
Investment Restrictions ................................................... 12
Portfolio Turnover ........................................................ 13
Performance Advertising ................................................... 14
Taxes ..................................................................... 15
Capital Stock ............................................................. 17
Custodian Banks ........................................................... 18
Independent Accountants ................................................... 18
Multiple Class Structure .................................................. 18
Brokerage ................................................................. 19
Officers and Directors .................................................... 20
Management ................................................................ 22
Holidays .................................................................. 24
Financial Statements ...................................................... 24

STATEMENT OF ADDITIONAL INFORMATION 1

INVESTMENT POLICIES AND TECHNIQUES

The following pages provide a more detailed description of the securities
and investment practices identified in the Prospectus. Unless otherwise noted,
the policies described in this Statement of Additional Information are not
fundamental and may be changed by the Board of Directors.

U.S. GOVERNMENT SECURITIES

Each fund may invest in U.S. government securities, including bills, notes,
and bonds issued by the U.S. Treasury and securities issued or guaranteed by
agencies or instrumentalities of the U.S. government. Some U.S. government
securities are supported by the direct full faith and credit pledge of the U.S.
government; others are supported by the right of the issuer to borrow from the
U.S. Treasury; others, such as securities issued by the Federal National
Mortgage Association, are supported by the discretionary authority of the U.S.
government to purchase the agencies' obligations; and others are supported only
by assurance that the U.S. government will provide financial support to an
instrumentality it sponsors when it is not obligated by law to do so.

WHEN-ISSUED AND FORWARD COMMITMENT AGREEMENTS

Each fund may engage in securities transactions on a when-issued or forward
commitment basis, in which the transaction price and yield are each fixed at the
time the commitment is made, but payment and delivery occur at a future date
(typically 15 to 45 days later).

When purchasing securities on a when-issued or forward commitment basis, a
fund assumes the rights and risks of ownership, including the risks of price and
yield fluctuations. Although a fund will make commitments to purchase or sell
securities on a when-issued or forward commitment basis with the intention of
actually receiving or delivering them, it may sell the securities before the
settlement date if doing so is deemed advisable as a matter of investment
strategy.

In purchasing securities on a when-issued or forward commitment basis, a
fund will establish and maintain until the settlement date a segregated account
consisting of cash or appropriate liquid assets including equity securities and
debt securities of any grade in an amount sufficient to meet the purchase price.
When the time comes to pay for the when-issued securities, a fund will meet its
obligations with available cash, through the sale of securities, or, although it
would not normally expect to do so, by selling the when-issued securities
themselves (which may have a market value greater or less than a fund's payment
obligation). Selling securities to meet when-issued or forward commitment
obligations may generate taxable capital gains or losses.

On the settlement date, the market value of the security may be more or less
than its purchase or sale price under the agreement. If the other party to a
when-issued or forward commitment agreement fails to deliver or pay for the
security, a fund could miss a favorable price or yield opportunity or suffer a
loss. A fund does not earn interest on purchased securities until the settlement
date.

CONVERTIBLE SECURITIES

Each fund may buy securities that are convertible into common stock. Listed
below is a brief description of the various types of convertible securities the
funds may buy.

Convertible bonds are issued with lower coupons than nonconvertible bonds of
the same quality and maturity, but they give holders the option to exchange
their bonds for a specific number of shares of the company's common stock at a
predetermined price. This structure allows the convertible bond holder to
participate in share price movements in the company's common stock. The actual
return on a convertible bond may exceed its stated yield if the company's common
stock appreciates in value and the option to convert to common shares becomes
more valuable.

Convertible preferred stocks are nonvoting equity securities that pay a
fixed dividend. These securities have a convertible feature similar to
convertible bonds; however, they do not have a maturity date. Due to their
fixed-income features, convertible issues typically are more sensitive to
interest rate changes than the underlying common stock. In the event of
liquidation, bondholders would have claims on company assets senior to those of
stockholders; preferred stockholders would have claims senior to those of common
stockholders.

2 AMERICAN CENTURY INVESTMENTS

Warrants entitle the holder to buy the issuer's stock at a specific price
for a specific period of time. The price of a warrant tends to be more volatile
than, and does not always track, the price of the underlying stock. Warrants are
issued with expiration dates. Once a warrant expires, it has no value in the
market.

REPURCHASE AGREEMENTS

In a repurchase agreement (repo), a fund buys a security at one price and
simultaneously agrees to sell it back to the seller at an agreed upon price on a
specified date (usually within seven days from the date of purchase) or on
demand. The repurchase price exceeds the purchase price by an amount that
reflects an agreed-upon rate of return and that is unrelated to the interest
rate on the underlying security. Delays or losses could result if the other
party to the agreement defaults or becomes bankrupt.

American Century Investment Management, Inc. (the manager) attempts to
minimize the risks associated with repurchase agreements by adhering to written
guidelines that govern repurchase agreements. These guidelines strictly govern
(i) the type of securities which may be acquired and held under repurchase
agreements; (ii) collateral requirements for sellers under repurchase
agreements; (iii) the amount of a fund's net assets that may be committed to
repurchase agreements that mature in more than seven days; and (iv) the manner
in which a fund must take delivery of securities subject to repurchase
agreements. Moreover, the Board of Directors reviews and approves, on a
quarterly basis, the creditworthiness of brokers, dealers and banks with whom a
fund may enter into repurchase agreements. A fund may enter into a repurchase
agreement only with an entity that appears on a list of entities that have been
approved by the Board as sufficiently creditworthy.

The funds have received permission from the Securities and Exchange
Commission (SEC) to participate in joint repurchase agreements collateralized by
U.S. government securities with other mutual funds advised by the manager. Joint
repos are expected to increase the income the funds can earn from repo
transactions without increasing the risks associated with these transactions.

FOREIGN SECURITIES

The funds may buy securities of foreign issuers in foreign markets. With
respect to the Global Gold and Utilities Funds, most of their foreign securities
investments are made by purchasing American Depositary Receipts (ADRs),
"ordinary shares," or "New York shares." Please refer to the discussion under
"Depositary Receipts" on page 5. The Utilities Fund may invest in
foreign-currency-denominated debt or equity securities of companies engaged in
the utilities industry that trade in foreign markets if the manager believes
that such investments will be advantageous to the fund.

Investing in foreign companies may involve risks not typically associated
with investing in U.S. companies. The value of securities denominated in foreign
currencies and of dividends from such securities can change significantly when
foreign currencies strengthen or weaken relative to the U.S. dollar. Foreign
securities markets generally have less trading volume and less liquidity than
U.S. markets, and prices in some foreign markets can be very volatile.

Many foreign countries lack uniform accounting and disclosure standards
comparable to those that apply to U.S. companies, and it may be more difficult
to obtain reliable information regarding a foreign issuer's financial condition
and operations. In addition, the costs of foreign investing, including
withholding taxes, brokerage commissions, and custodial fees, are generally
higher than for U.S. investments.

Foreign markets may offer less protection to investors than U.S. markets.
Foreign issuers, brokers, and securities markets may be subject to less
governmental supervision. Foreign security trading practices, including those
involving the release of assets in advance of payment, may involve increased
risks in the event of a failed trade or the insolvency of a broker-dealer and
may involve substantial delays. It also may be difficult to enforce legal rights
in foreign countries.

Investing abroad carries political and economic risks distinct from those
associated with investing in the United States. Foreign investments may be
affected by actions of foreign governments that are adverse to the interests of
U.S. investors, including the possibility of expropriation or nationalization of
assets, confiscatory taxation, restrictions on U.S. investment,

STATEMENT OF ADDITIONAL INFORMATION 3

or restrictions on the ability to repatriate assets or to convert currency into
U.S. dollars. There may be a greater possibility of default by foreign
governments or foreign-government-sponsored enterprises. Investments in foreign
countries also involve a risk of local political, economic, or social
instability, military action or unrest, or adverse diplomatic developments.

Each fund's assets are valued daily in U.S. dollars, although foreign
currency holdings are not physically converted into U.S. dollars on a daily
basis.

FOREIGN CURRENCY EXCHANGE TRANSACTIONS

The manager may engage in foreign currency exchange transactions on behalf
of a fund in order to manage currency risk. Foreign currencies will be purchased
and sold regularly, either in the spot (i.e., cash) market or in the forward
market (through forward foreign currency exchange contracts, or forward
contracts).

A forward foreign currency exchange contract is an obligation to purchase or
sell a specific currency at a future date, which may be any fixed number of days
agreed upon by the parties, commencing with the date of the contract, at a price
set at the time of the contract. When a fund agrees to buy or sell a security
denominated in a foreign currency, it may enter into a forward contract to "lock
in" the U.S. dollar price of the security. By entering into a forward contract
to buy or sell the amount of foreign currency involved in the underlying
securities transaction for a fixed amount of U.S. dollars, the manager can
protect a fund against a possible loss resulting from adverse changes in the
relationship between the U.S. dollar and the foreign currency between the date
the security is purchased or sold and the date payment is made or received. This
type of transaction is sometimes referred to as a "position hedge."

However, it should be noted that using forward contracts to protect a fund's
foreign investments from currency fluctuations does not eliminate fluctuations
in the prices of the underlying securities themselves. Forward contracts simply
establish a rate of exchange that can be achieved at some future point in time.
Additionally, although forward contracts tend to minimize the risk of loss due
to a decline in the value of the hedged currency, they also limit any gain that
might result if the hedged currency's value increases.

Successful use of forward contracts depends on the manager's skill in
analyzing and predicting currency values. Although they are used for settlement
purposes, forward contracts alter a fund's exposure to currency exchange rate
activity and could result in losses to a fund if currencies do not perform as
the manager anticipates. A fund also may incur significant costs when converting
assets from one currency to another.

Foreign exchange dealers do not charge fees for currency conversions.
Instead, they realize a profit based on the difference (i.e., the spread)
between the prices at which they are buying and selling various currencies. A
dealer may offer to sell a foreign currency at one rate while simultaneously
offering a lesser rate of exchange on the purchase of that currency.

The funds use forward contracts for currency hedging purposes only and not
for speculative purposes. The funds are not required to enter into forward
contracts with regard to foreign holdings and will not do so unless this
procedure is deemed appropriate by the manager.

The currency management techniques discussed above are limited by various
constraints, including the intention to protect the U.S. tax status of each fund
as a regulated investment company.

NON-SECTOR EQUITY SECURITIES (GLOBAL NATURAL RESOURCES)

Global Natural Resources may invest in companies engaged in the natural
resources industry that do not meet all of the criteria for inclusion in the
Energy and Basic Materials sectors (excluding chemical companies) of the Dow
Jones World Stock Index. These may include small companies that do not meet the
capitalization requirement for inclusion in the Energy and Basic Materials
sectors (Sectors) but that the manager believes represent significant investment
opportunities for the fund.

Within this category, the manager attempts to select securities of issuers
whose revenues and earnings are expected to be influenced by changes in the
prices of natural resources and that are expected to perform in a manner that
causes the fund's performance to closely track the performance of the Sectors.

4 AMERICAN CENTURY INVESTMENTS

DEPOSITARY RECEIPTS

American Depositary Receipts (ADRs) and European Depositary Receipts (EDRs)
are receipts representing ownership of shares of a foreign-based issuer held in
trust by a bank or similar financial institution. These are designed for U.S.
and European securities markets as alternatives to purchasing underlying
securities in their corresponding national markets and currencies. ADRs and EDRs
can be sponsored or unsponsored.

Sponsored ADRs and EDRs are certificates in which a bank or financial
institution participates with a custodian. Issuers of unsponsored ADRs and EDRs
are not contractually obligated to disclose material information in the United
States. Therefore, there may not be a correlation between such information and
the market value of the unsponsored ADR or EDR.

ADRs are dollar-denominated receipts representing interests in the
securities of a foreign issuer. They are issued by U.S. banks and traded on
exchanges or over the counter in the United States. Ordinary shares are shares
of foreign issuers that are traded abroad and on a U.S. exchange. New York
shares are shares that a foreign issuer has allocated for trading in the United
States. ADRs, ordinary shares, and New York shares all may be purchased with and
sold for U.S. dollars, which protects the fund from the foreign settlement risks
described under the section titled "Foreign Securities" on page 3.

RESTRICTED SECURITIES

Restricted securities held by the funds generally can be sold in privately
negotiated transactions, pursuant to an exemption from registration under the
Securities Act of 1933, or in a registered public offering. Where registration
is required, the funds may be required to pay all or a part of the registration
expense, and a considerable period may elapse between the time it decides to
seek registration of the securities and the time it is permitted to sell them
under an effective registration statement. If, during this period, adverse
market conditions were to develop, a fund might obtain a less favorable price
than prevailed when it decided to try to register the securities.

PORTFOLIO LENDING

In order to realize additional income, a fund may lend its portfolio
securities. Such loans may not exceed one-third of the fund's net assets valued
at market except (i) through the purchase of debt securities in accordance with
its investment objective, policies and limitations, or (ii) by engaging in
repurchase agreements with respect to portfolio securities.

SHORT SALES AND PUT OPTIONS ON INDIVIDUAL SECURITIES (UTILITIES FUND)

The Utilities Fund may buy puts and enter into short sales with respect to
stocks underlying its convertible security holdings. For example, if the advisor
anticipates a decline in the price of the stock underlying a convertible
security the fund holds, it may purchase a put option on the stock or sell the
stock short. If the stock price subsequently declines, the proceeds of the short
sale or an increase in the value of the put option could be expected to offset
all or a portion of the effect of the stock's decline on the value of the
convertible security.

When the fund enters into a short sale, it will be required to set aside
securities equivalent in kind and amount to those sold short (or securities
convertible or exchangeable into such securities) and will be required to
continue to hold them while the short sale is outstanding. The fund will incur
transaction costs, including interest expenses, in connection with opening,
maintaining, and closing short sales.

FUTURES AND OPTIONS TRANSACTIONS

FUTURES TRANSACTIONS. A fund may engage in futures transactions. Such
transactions may be used to maintain cash reserves while remaining fully
invested, to facilitate trading, to reduce transaction costs, or to pursue
higher investment returns when a futures contract is priced more attractively
than its underlying security or index.

Futures contracts provide for the sale by one party and purchase by another
party of a specific security (gold bullion, for example) at a specified future
time and price. Futures contracts are traded on national futures exchanges.
Futures exchanges and trading are regulated under the Commodity Exchange Act by
the Commodity Futures Trading Commission (CFTC), a U.S. government agency.

STATEMENT OF ADDITIONAL INFORMATION 5

Although futures contracts, by their terms, generally call for actual
delivery or acceptance of the underlying securities, in most cases the contracts
are closed out before the settlement date. Closing out a futures position is
done by taking an opposite position in an identical contract (i.e., buying a
contract that has previously been sold, or selling a contract that has
previously been bought).

To initiate and maintain open positions in futures contracts, a fund is
required to make a good faith margin deposit in cash or appropriate securities
with a broker or custodian. A margin deposit is intended to assure completion of
the contract (delivery or acceptance of the underlying security) if it is not
terminated prior to the specified delivery date. Minimum initial margin
requirements are established by the futures exchanges and may be revised. In
addition, brokers may establish deposit requirements that are higher than the
exchange minimums.

After a futures contract position is opened, the value of the contract is
marked to market daily. If the futures contract price changes to the extent that
the margin on deposit does not satisfy margin requirements, the contract holder
is required to pay additional "variation" margin. Conversely, changes in the
contract value may reduce the required margin, resulting in a repayment of
excess margin to the contract holder. Variation margin payments are made to or
from the futures broker as long as the contract remains open and do not
constitute margin transactions for purposes of a fund's investment restrictions.

Some futures contract strategies carry a substantial risk of loss, due to
both the low margin deposits required and the high degree of leverage involved
in futures pricing. A relatively small movement in a futures contract may result
in immediate, substantial gains or losses to a fund.

Those who trade futures contracts may be broadly classified as either
"hedgers" or "speculators." Hedgers use the futures markets primarily to offset
unfavorable changes in the value of securities they hold or expect to acquire
for investment purposes. Speculators are less likely to own the securities
underlying the futures contracts they trade and are more likely to use futures
contracts with the expectation of realizing profits from fluctuations in the
prices of the underlying securities. The funds will not utilize futures
contracts for speculative purposes.

Although techniques other than trading futures contracts can be used to
control a fund's exposure to market fluctuations, the use of futures contracts
may be a more effective means of hedging this exposure. While a fund pays
brokerage commissions in connection with opening and closing out futures
positions, these costs are generally lower than the transaction costs incurred
in the purchase and sale of the underlying securities.

PURCHASING PUT AND CALL OPTIONS. By purchasing a put option, a fund obtains
the right (but not the obligation) to sell the option's underlying instrument at
a fixed "strike" price. In return for this right, the fund pays the current
market price for the option (known as the option premium). Options have various
types of underlying instruments, including specific securities, indices of
securities prices, and futures contracts. A fund may terminate its position in a
put option it has purchased by allowing it to expire or by exercising the
option. If the option is allowed to expire, the fund will lose the entire
premium it paid. If the fund exercises the option, it completes the sale of the
underlying instrument at the strike price. A fund also may terminate a put
option position by closing it out in the secondary market at its current price
if a liquid secondary market exists.

The buyer of a typical put option can expect to realize a gain if security
prices fall substantially. However, if the underlying instrument's price does
not fall enough to offset the cost of purchasing the option, a put buyer can
expect to suffer a loss (limited to the amount of the premium paid plus related
transaction costs).

The features of call options are essentially the same as those of put
options, except that the purchaser of a call option obtains the right to
purchase, rather than sell, the underlying instrument at the option's strike
price. A call buyer typically attempts to participate in potential price
increases of the underlying instrument with risk limited to the cost of the
option if security prices fall. At the same time, the buyer can expect to suffer
a loss if security prices do not rise sufficiently to offset the cost of the
option.

WRITING PUT AND CALL OPTIONS. If a fund writes a put option, it takes the
opposite side of the transac-

6 AMERICAN CENTURY INVESTMENTS

tion from the option's purchaser. In return for receipt of the premium, the fund
assumes the obligation to pay the strike price for the option's underlying
instrument if the other party chooses to exercise the option. When writing an
option on a futures contract, the fund will be required to make margin payments
to a broker or custodian as described above for futures contracts. The fund may
seek to terminate its position in a put option it writes before it is exercised
by closing out the option in the secondary market at its current price. If the
secondary market is not liquid for a put option the fund has written, however,
the fund must continue to be prepared to pay the strike price while the option
is outstanding, regardless of price changes, and must continue to set aside
assets to cover its position.

If security prices rise, a put writer would generally expect to profit,
although the gain would be limited to the amount of the premium received. If
security prices remain the same over time, it is likely that the writer also
will profit by being able to close out the option at a lower price. If security
prices fall, the put writer would expect to suffer a loss. This loss should be
less than the loss from purchasing the underlying instrument directly, however,
because the premium received for writing the option should mitigate the effects
of the decline.

Writing a call option obligates a fund to sell or deliver the option's
underlying instrument, in return for the strike price upon exercise of the
option. The characteristics of writing call options are similar to those of
writing put options, except that writing calls generally is a profitable
strategy if prices remain the same or fall. Through receipt of the option
premium, a call writer mitigates the effects of a price decline. At the same
time, because a call writer must be prepared to deliver the underlying
instrument in return for the strike price even if its current value is greater,
a call writer gives up some ability to participate in security price increases.

COMBINED POSITIONS. A fund may purchase and write options in combination
with one another, or in combination with futures or forward contracts, in order
to adjust the risk and return characteristics of the overall position. For
example, a fund may purchase a put option and write a call option on the same
underlying instrument in order to construct a combined position whose risk and
return characteristics are similar to selling a futures contract. Another
possible combined position would involve writing a call option at one strike
price and buying a call option at a lower price, in order to reduce the risk of
the written call option in the event of a substantial price increase. Because
combined options positions involve multiple trades, they result in higher
transaction costs and may be more difficult to open and close out.

OVER-THE-COUNTER OPTIONS. Unlike exchange-traded options, which are
standardized with respect to the underlying instrument, expiration date,
contract size, and strike price, the terms of over-the-counter (OTC) options
(options not traded on exchanges) generally are established through negotiation
with the other party to the option contract. While this type of arrangement
allows a fund greater flexibility in tailoring an option to its needs, OTC
options generally involve greater credit risk than exchange-traded options,
which are guaranteed by the clearing organizations of the exchanges where they
are traded. The risk of illiquidity is also greater with OTC options, because
these options generally can be closed out only by negotiation with the other
party to the option.

OPTIONS ON FUTURES. By purchasing an option on a futures contract, a fund
obtains the right, but not the obligation, to sell the futures contract (a put
option) or to buy the contract (a call option) at a fixed strike price. A fund
can terminate its position in a put option by allowing it to expire or by
exercising the option. If the option is exercised, the fund completes the sale
of the underlying security at the strike price. Purchasing an option on a
futures contract does not require a fund to make margin payments unless the
option is exercised.

CORRELATION OF PRICE CHANGES. Because there are a limited number of types of
exchange-traded options and futures contracts, it is likely that the
standardized contracts available will not match a fund's current or anticipated
investments exactly. A fund may invest in options and futures contracts based on
securities with issuers, maturities, or other characteristics different from
those of the securities in which it typically invests (for example, it may hedge
intermediate-term securities with a futures contract based on an index of
long-term bond prices or hedge stock holdings with futures contracts on a
broad-based stock index

STATEMENT OF ADDITIONAL INFORMATION 7

such as the Standard & Poor's 500 Composite Stock Price Index (S&P 500)) which
involves a risk that the options or futures position will not track the
performance of the fund's other investments.

Options and futures prices can also diverge from the prices of their
underlying instruments, even if the underlying instruments are well correlated
with a fund's investments. Options and futures prices are affected by factors
such as current and anticipated short-term interest rates, changes in the
volatility of the underlying instrument, and the time remaining until expiration
of the contract; these factors may not affect security prices in the same way.
Imperfect correlation also may result from differing levels of demand in the
options and futures markets and the securities markets, from structural
differences in how options and futures and securities are traded, or from the
imposition of daily price fluctuation limits or trading halts. A fund may
purchase or sell options and futures contracts with a greater or lesser value
than the securities it wishes to hedge or intends to purchase in an effort to
compensate for differences in volatility between the contract and the
securities, although this strategy may not be successful in all cases. If price
changes in the fund's options or futures positions are poorly correlated with
its other investments, the positions may fail to produce anticipated gains or
result in losses that are not offset by gains in other investments.

RISKS AND LIQUIDITY OF FUTURES CONTRACTS AND OPTIONS. Futures and options
have risks associated with their use: possible default by the other party to the
transaction; illiquidity; and, to the extent the manager's interpretation of
certain market movements is incorrect, the risk that the use of such
transactions could result in losses greater than if they had not been used.
Losses resulting from the use of these transactions would reduce net asset value
and possibly income.

There is no assurance a liquid secondary market will exist for any
particular futures contract or option at any particular time. Options may have
relatively low trading volume and liquidity if their strike prices are not close
to the underlying instrument's current price. In addition, exchanges may
establish daily price fluctuation limits for futures contracts and options and
may halt trading if a contract's price increases or decreases more than the
limit on a given day. On volatile trading days when the price fluctuation limit
is reached or a trading halt is imposed, it may be impossible for a fund to
enter into new positions or close out existing positions. If the secondary
market for a contract were not liquid, because of price fluctuation limits or
otherwise, prompt liquidation of unfavorable positions could be difficult or
impossible, and the fund could be required to continue holding a position until
delivery or expiration regardless of changes in the value of the position. Under
these circumstances, the fund's access to assets held to cover its future and
options positions also could be impaired.

Futures and options trading on foreign exchanges may not be regulated as
effectively as similar transactions in the United States and may not involve
clearing mechanisms or guarantees similar to those available in the United
States. The value of a futures contract or option traded on a foreign exchange
may be adversely affected by lesser trading volume and the imposition of
different exercise and settlement terms, trading procedures, and margin
requirements.

RESTRICTIONS ON THE USE OF FUTURES CONTRACTS AND OPTIONS. The funds have
filed a notice of eligibility for exclusion as a "commodity pool operator" with
the CFTC and the National Futures Association, which regulates trading in the
futures markets. The funds intend to comply with Section 4.5 of the regulations
under the Commodity Exchange Act, which limits the extent to which a fund can
commit assets to initial margin deposits and options premiums.

The Utilities Fund may enter into futures contracts, options, or options on
futures contracts, provided that such obligations represent no more than 20% of
its net assets.

Each fund may enter into futures transactions (including related options)
for hedging purposes without regard to the percentage of assets committed to
initial margin and for other than hedging purposes provided that assets
committed to initial margin deposits on such instruments, plus premiums paid for
open futures options positions, less the amount by which any such positions are
"in-the-money," do not exceed 5% of its total assets. To the extent required by
law, Global Natural Resources will set aside cash and appropriate liquid assets
in a segregated account to

8 AMERICAN CENTURY INVESTMENTS

cover its obligations related to futures contracts and options. Financial
futures or options purchased or sold will be standardized and traded through the
facilities of a U.S. or foreign securities association or listed on a U.S. or
foreign securities or commodities exchange, board of trade, or similar entity,
or quoted on an automatic quotation system, except that it may effect
transactions in over-the-counter options with primary U.S. government securities
dealers recognized by the Federal Reserve Bank of New York. In addition, Global
Natural Resources has undertaken to limit aggregate premiums paid on all options
purchased to no more than 5% of its total net asset value.

The funds intend to comply with tax rules applicable to regulated investment
companies.

FUTURES AND OPTIONS RELATING TO FOREIGN CURRENCIES. A fund may purchase and
sell currency futures and purchase and write currency options to increase or
decrease its exposure to different foreign currencies. A fund also may purchase
and write currency options in conjunction with each other or with currency
futures or forward contracts.

Currency futures contracts are similar to forward currency exchange
contracts, except that they are traded on exchanges (and have margin
requirements) and have standard contract sizes and delivery dates. Most currency
futures contracts call for payment or delivery in U.S. dollars. The underlying
instrument of a currency option may be a foreign currency, which generally is
purchased or delivered in exchange for U.S. dollars, although it may be a
futures contract. The purchaser of a currency call obtains the right to purchase
the underlying currency, and the purchaser of a currency put obtains the right
to sell the underlying currency.

The uses and risks of currency futures and options are similar to those of
futures and options relating to securities or indexes, as described above.
Values of currency futures and options can be expected to correlate with
exchange rates but may not reflect other factors that affect the value of a
fund's investments. A currency hedge, for example, should protect a German
mark-denominated security from a decline in the German mark, but it will not
protect a fund against a price decline resulting from a deterioration in the
issuer's creditworthiness. Because the value of a fund's
foreign-currency-denominated investments will change in response to many factors
other than exchange rates, it may not be possible to match the amount of
currency options and futures to the value of the fund's investments over time.

INDEXED SECURITIES (GLOBAL NATURAL RESOURCES)

Global Natural Resources may invest in indexed securities whose value is
linked to commodities, including, but not limited to, notes indexed to Goldman
Sachs Commodity Index (GSCI). The GSCI is composed of energy, agricultural,
livestock, and metals commodities. The fund may invest in notes indexed to the
entire GSCI or to certain components of the GSCI.

A commodity-linked note enables the investor to purchase a note whose
coupons or redemption value is linked to the performance of a particular
commodity price. The fund may purchase and sell indexed securities for
investment purposes as well as hedging purposes to the extent permitted by
applicable law. Indexed securities may have return characteristics similar to
direct investments in the underlying commodity or to one or more options on the
underlying commodity. Indexed securities may be more volatile than the
underlying commodity itself and present many of the same risks as investing in
futures and options. Indexed securities are also subject to credit risks
associated with the issuer of the security.

The fund may invest in indexed securities to track the Sectors at lower
transaction costs or to take advantage of investment opportunities not
represented by the Sectors.

GOLD INVESTMENTS (GLOBAL GOLD)

GOLD BULLION. As a means of seeking its principal objective of capital
appreciation and when it is felt to be appropriate as a possible hedge against
inflation, Global Gold may invest a portion of its assets in gold bullion and
may hold a portion of its cash in foreign currency in the form of gold coins.
There is, of course, no assurance that such investments will provide capital
appreciation as a hedge against inflation. The fund's ability to invest in gold
bullion is restricted by the diversification requirements that the fund must
meet in order to qualify as a regulated investment company under Subchapter M of
the Internal Revenue Code of 1986, as amended (the Code), as well as the
diversification requirements of the Investment

STATEMENT OF ADDITIONAL INFORMATION 9

Company Act of 1940, as amended (the 1940 Act). In addition, the ability of the
fund to make such investments may be further restricted by the securities laws
and regulations in effect from time to time in the states where the fund's
shares are qualified for sale.

Fund assets will be invested in gold bullion at such times as the prospects
of such investments are, in the opinion of management, attractive in relation to
other possible investments. The basic trading unit for gold bullion is a gold
bar weighing approximately 100 troy ounces with a purity of at least 995/1000,
although gold bullion is also sold in much smaller units. Gold bars and wafers
are usually numbered and bear an indication of purity and the stamp of the assay
office which certifies the bar's purity. Bars of gold bullion historically have
traded primarily in New York, London and Zurich gold markets and in terms of
volume, such gold markets have been the major markets for trading in gold
bullion. Prices in the Zurich gold market generally correspond to the prices in
the London gold market. Since the ownership of gold bullion became legal in the
United States on December 31, 1974, U.S. markets for trading gold bullion have
developed. It is anticipated that transactions in gold will generally be made in
such U.S. markets, although such transactions may be made in foreign markets
when it is deemed to be in the best interest of the fund. Transactions in gold
bullion by the fund are negotiated with principal bullion dealers, unless, in
the investment's manager's opinion, more favorable prices (including the costs
and expenses described below) are otherwise obtainable. Prices at which gold
bullion is purchased or sold include dealer mark-ups or mark-downs, insurance
expenses, may be a greater or lesser percentage of the price from time to time,
depending on whether the price of gold bullion decreases or increases. Because
gold bullion does not generate any investment income, the only source of return
to the fund on such an investment will be from any gains realized upon its sale,
and negative return will be realized, of course, to the extent the fund sells
its gold bullion at a loss.

SPECIAL CONSIDERATIONS REGARDING GLOBAL GOLD'S INVESTMENT POLICIES

As is the case with respect to virtually all investments, there are risks
inherent in Global Gold's policies of investing in securities of companies
engaged in mining, processing or dealing in gold or other precious metals and in
gold bullion. In addition to the general considerations described above, such
investments may involve the following special considerations:

FLUCTUATIONS IN THE PRICE OF GOLD. The price of gold has recently been
subject to substantial movements over short periods of time and may be affected
by unpredictable international monetary and political policies, such as currency
devaluations or revaluations, economic conditions within an individual country,
trade imbalances or trade or currency restrictions between countries and world
inflation rates and interest rates. The price of gold, in turn, is likely to
affect the market prices of securities of companies mining, processing, or
dealing in gold and, accordingly, the value of the fund's investments in such
securities also may be affected.

POTENTIAL EFFECT OF CONCENTRATION OF SOURCE OF SUPPLY AND CONTROL OF SALES.
At the current time there are only four major sources of primary gold
production, and the market share of each source cannot be readily ascertained.
One of the largest national producers of gold bullion and platinum is the
Republic of South Africa. Changes in political and economic conditions affecting
South Africa may have a direct impact on its sales of gold. Under South African
law, the only authorized sales agent for gold produced in South Africa is the
Reserve Bank of South Africa which, through its retention policies, controls the
time and place of any sale of South African bullion. The South African Ministry
of Mines determines gold mining policy. South Africa depends predominantly on
gold sales for the foreign exchange necessary to finance its imports, and its
sales policy is necessarily subject to national and international economic and
political developments.

TAX AND CURRENCY LAWS. Changes in the tax or currency laws of the United
States, and of foreign countries, may inhibit the fund's ability to pursue or
may increase the cost of pursuing its investment programs. For example, in
September 1985, the government of South Africa reimposed a two-tier currency
system. While this system may be removed within the next couple of years, it
continues to differentiate between currency that may be used in transactions
involving transfers of South African investments by foreign investors (the
financial rand) and currency used for importing goods and remitting profits and

10 AMERICAN CENTURY INVESTMENTS

dividends from an operating enterprise (the commercial rand). Since the
reimposition of the two-tier currency system, the volatility of the financial
rand has contributed to fluctuations in the net asset value of the fund. These
effects may increase if the permissible uses of the financial rand are expanded.

UNPREDICTABLE MONETARY POLICIES, ECONOMIC AND POLITICAL CONDITIONS. The
fund's assets might be less liquid or the change in the value of its assets
might be more volatile (and less related to general price movements in the U.S.
markets) than would be the case with investments in the securities of larger
U.S. companies, particularly because the price of gold and other precious metals
may be affected by unpredictable international monetary policies and economic
and political considerations, governmental controls, conditions of scarcity,
surplus or speculation. In addition, the use of gold or Special Drawing Rights
(which are also used by members of the International Monetary Fund for
international settlements) to settle net deficits and surpluses in trade and
capital movements between nations subject the supply and demand, and therefore
the price, of gold to a variety of economic factors which normally would not
affect other types of commodities.

NEW AND DEVELOPING MARKETS FOR PRIVATE GOLD OWNERSHIP. Between 1933 and
December 31, 1974, a market did not exist in the United States in which gold
bullion could be purchased by individuals for investment purposes. Since it
became legal to invest in gold, markets have developed in the United States. Any
large purchases or sales of gold bullion could have an effect on the price of
gold bullion. Recently, several Central Banks have been sellers of gold bullion
from their reserves. Sales by central banks and/or rumors of such sales have had
a negative effect on gold prices.

EXPERTISE OF THE INVESTMENT MANAGER. The successful management of the fund's
portfolio may be more dependent upon the skills and expertise of its investment
manager than is the case for most mutual funds because of the need to evaluate
the factors identified above. Moreover, in some countries, disclosures
concerning an issuer's financial condition and results and other matters may be
subject to less stringent regulatory provisions, or may be presented on a less
uniform basis than is the case for issuers subject to U.S. securities laws.
Issuers and securities exchanges in some countries may be subject to less
stringent governmental regulations than is the case for U.S. companies.

RISK FACTORS (UTILITIES FUND)

Because the Utilities Fund concentrates its assets in the utilities
industry, its performance depends in part on how favorably investors perceive
this sector of the market relative to other sectors (such as transportation or
technology). Of course, investor perceptions of the utilities industry are
driven not only by comparisons with other market sectors but by trends and
events within the utilities industry. The following is a brief outline of risk
factors associated with investment in the utilities industry.

REGULATORY RISKS. Regulators (primarily at the state level) monitor and
control public utility company revenues and costs. Regulators can limit profits
and dividends paid to investors; they also may restrict a company's access to
new markets. Some analysts observe that state regulators have become
increasingly active in developing and promoting energy policy through the
regulatory process.

NATURAL RESOURCE RISKS. Swift and unpredictable changes in the price and
supply of natural resources can hamper utility company profitability. These
changes may be caused by political events, energy conservation programs, the
success of exploration projects, or tax and other regulatory policies of various
governments.

ENVIRONMENTAL RISKS. There are considerable costs associated with
environmental compliance, nuclear waste cleanup, and safety regulation. For
example, coal-burning utilities are under pressure to curtail sulfur emissions,
and utilities in general increasingly are called upon by regulators to bear
environmental costs, which may not be easily recovered through rate increases or
business growth.

Changing weather patterns and natural disasters affect consumer demand for
utility services (e.g., electricity, heat, and air conditioning), which, in
turn, affects utility revenues.

TECHNOLOGY AND COMPETITIVE RISKS. The introduction and phase-in of new
technologies can affect a utility company's competitive strength. The race by
long-distance telephone providers to incorporate fiber optic technology is one
example of competitive risk within the utilities industry.

STATEMENT OF ADDITIONAL INFORMATION 11

The increasing role of independent power producers (IPPs) in the natural gas
and electric utility segments of the utilities industry is another example of
competitive risk. Typically, IPPs wholesale power to established local
providers, but there is a trend toward letting them sell power directly to
industrial consumers. Co-generation facilities, such as those of landfill
operators that produce methane gas as a byproduct of their core business, pose
another competitive challenge to gas and electric utilities. In addition to
offering a less expensive source of power, these companies may receive more
favorable regulatory treatment than utilities seeking to expand facilities that
consume nonrenewable energy sources.

INTEREST RATE RISKS. Utility companies usually finance capital expenditures
(e.g., new plant construction) by issuing long-term debt. Rising long-term
interest rates increase interest expenses and reduce company earnings.

INVESTMENT RESTRICTIONS

The funds' investment restrictions are set forth below. These investment
restrictions are fundamental and may not be changed without approval of a
majority of the outstanding votes of shareholders of a fund, as determined in
accordance with the Investment Company Act.

AS A FUNDAMENTAL POLICY, EACH FUND SHALL NOT:

1) issue senior securities, except as permitted under the Investment
Company Act of 1940.

2) borrow money, except that the fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 331/3% of the fund's total assets (including the amount
borrowed) less liabilities (other than borrowings).

3) lend any security or make any other loan if, as a result, more than
331/3% of the fund's total assets would be lent to other parties,
except, (i) through the purchase of debt securities in accordance with
its investment objective, policies and limitations, or (ii) by engaging
in repurchase agreements with respect to portfolio securities.

4) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments. This policy shall not prevent the
fund from investment in securities or other instruments backed by real
estate or securities of companies that deal in real estate or are
engaged in the real estate business.

5) deviate from its policy of concentrating its investments in securities
of issuers engaged in mining, fabricating, processing or dealing in
gold or other precious metals, such as silver, platinum and
palladium[Global Gold only]; engaged in the utilities industry
[Utilities Fund only] or engaged in the natural resources industries
[Global Natural Resources only].

6) act as an underwriter of securities issued by others, except to the
extent that the fund may be considered an underwriter within the
meaning of the Securities Act of 1933 in the disposition of restricted
securities.

7) (a) [Utilities Fund and Global Natural Resources only] purchase or sell
physical commodities unless acquired as a result of ownership of
securities or other instruments; provided that this limitation shall
not prohibit the fund from purchasing or selling options and futures
contracts or from investing in securities or other instruments backed
by physical commodities.

(b) [Global Gold only] purchase gold bullion, gold coins, or gold
represented by certificates of ownership interest or gold futures
contracts whose underlying commodity value would cause the fund's
aggregate investment in such commodities to exceed 10% of the fund's
net assets.

8) invest for purposes of exercising control over management.

In addition, the funds are subject to the following additional investment
restrictions, which are not fundamental and may be changed by the Board of
Directors.

AS AN OPERATING POLICY, EACH FUND:

a) [Global Gold and Global Natural Resources only] in order to meet
federal tax requirements for qualification as a regulated investment
company, limits its investment so that at the close of each quarter of
its taxable year: (i) with regard to at least 50% of total assets, no
more than 5%

12 AMERICAN CENTURY INVESTMENTS

of total assets are invested in the securities of a single issuer, and
(ii) no more than 25% of total assets are invested in the securities of
a single issuer. Limitations (i) and (ii) do not apply to government
securities as defined for federal tax purposes. The fund does not, with
respect to 75% of its total assets, currently intend to purchase the
securities of any issuer (other than securities issued or guaranteed by
the U.S. government or any of its agencies or instrumentalities) if, as
a result thereof, the fund would own more than 10% of the outstanding
voting securities of such issuer.

b) shall not purchase additional investment securities at any time during
which outstanding borrowings exceed 5% of the total assets of the fund.

c) shall not purchase any security or enter into a repurchase agreement
if, as a result, more than 15% of its net assets would be invested in
repurchase agreements not entitling the holder to payment of principal
and interest within seven days and in securities that are illiquid by
virtue of legal or contractual restrictions on resale or the absence of
a readily available market.

d) shall not sell securities short, unless it owns or has the right to
obtain securities equivalent in kind and amount to the securities sold
short, and provided that transactions in futures contracts and options
are not deemed to constitute selling securities short.

e) shall not purchase securities on margin, except that the fund may
obtain such short-term credits as are necessary for the clearance of
transactions, and provided that margin payments in connection with
futures contracts and options on futures contracts shall not constitute
purchasing securities on margin.

Unless otherwise indicated, percentage limitations included in the
restrictions apply at the time transactions are entered into. Accordingly, any
later increase or decrease beyond the specified limitation resulting from a
change in a fund's net assets will not be considered in determining whether it
has complied with its investment restrictions.

PORTFOLIO TURNOVER

The portfolio turnover rates of the funds are shown in the Financial
Highlights table in each fund's Prospectus.

With respect to each fund, the manager will purchase and sell securities
without regard to the length of time the security has been held. Accordingly,
the fund's rate of portfolio turnover may be substantial.

Each fund intends to purchase a given security whenever the manager believes
it will contribute to the stated objective of the fund. In order to achieve each
fund's investment objective, the manager will sell a given security, no matter
for how long or for how short a period it has been held in the portfolio, and no
matter whether the sale is at a gain or at a loss, if the manager believes that
the security is not fulfilling its purpose, either because, among other things,
it did not live up to the manager's expectations, it may be replaced with
another security holding greater promise, it has reached its optimum potential,
there was a change in the circumstances of a particular company or industry or
economic conditions in general, or because of some combination of such reasons.

When a general decline in security prices is anticipated, the funds may
decrease or eliminate entirely their equity positions and increase their cash
positions, and when a rise in price levels is anticipated, the funds may
increase their equity positions and decrease their cash positions. However, it
should be expected that the funds will, under most circumstances, be essentially
fully invested in equity securities.

Because investment decisions are based on the anticipated contribution of
the security in question to the fund's objectives, the manager believes that the
rate of portfolio turnover is irrelevant when it believes a change is in order
to achieve those objectives, and the fund's annual portfolio turnover rate
cannot be anticipated and may be comparatively high. This disclosure regarding
portfolio turnover is a statement of fundamental policy and may be changed only
by a vote of the shareholders.

Because the manager does not take portfolio turnover rate into account in
making investment decisions, (1) the manager has no intention of accomplishing
any particular rate of portfolio turnover,

STATEMENT OF ADDITIONAL INFORMATION 13

whether high or low, and (2) the portfolio turnover rates in the past should not
be considered as a representation of the rates that will be attained in the
future.

PERFORMANCE ADVERTISING

The funds may quote performance in various ways. Historical performance
information will be used in advertising and sales literature and should not be
considered an indication of future results.

Yield quotations are based on the investment income per share earned during
a particular 30-day period, less expenses accrued during the period (net
investment income), and are computed by dividing a fund's net investment income
by its share price on the last day of the period, according to the following
formula:

YIELD = 2 [(a - b + 1)(6 )- 1]
cd

where a = dividends and interest earned during the period, b = expenses accrued
for the period (net of reimbursements), c = the average daily number of shares
outstanding during the period that were entitled to receive dividends, and d =
the maximum offering price per share on the last day of the period.

For the 30-day period ended December 31, 1997, the Utilities Fund's yield
was 2.93%.

Total returns quoted in advertising and sales literature reflect all aspects
of a fund's return, including the effect of reinvesting dividends and capital
gain distributions (if any) and any change in a fund's net asset value per share
during the period.

Average annual total returns are calculated by determining the growth or
decline in value of a hypothetical historical investment in a fund over a stated
period and then calculating the annually compounded percentage rate that would
have produced the same result if the rate of growth or decline in value had been
constant throughout the period. For example, a cumulative total return of 100%
over 10 years would produce an average annual return of 7.18%, which is the
steady annual rate that would result in 100% growth on a compounded basis in 10
years. While average annual total returns are a convenient means of comparing
investment alternatives, investors should realize that a fund's performance is
not constant over time but changes from year-to-year, and that average annual
total returns represent averaged figures as opposed to actual year-to-year
performance.

The funds' average annual total returns for the one-year, three-year,
five-year and life-of-fund periods ended December 31, 1997, are indicated in the
table below.

AVERAGE ANNUAL TOTAL RETURNS

One Three Five Life of
Year Year Year Fund
- --------------------------------------------------------------------------------

Global Gold(1) (41.47)% (14.63)% (1.27)% (3.49)%
Global Natural
Resources(2) 2.50% 10.61% N/A 8.46%
Utilities Fund(3) 35.82% 24.52% N/A 13.60%
- --------------------------------------------------------------------------------

(1)Commenced operations on August 17, 1988.

(2)Commenced operations on September 15, 1994.

(3)Commenced operations on March 1, 1993.

Average annual total returns for periods of less than one year are
calculated by determining a fund's total return for the period, extending that
return for a full year (assuming that performance remains constant throughout
the year), and quoting the result as an annual return. Because a fund's return
may not remain constant over the course of a year, these performance figures
should be viewed as strictly hypothetical.

In addition to average annual returns, the funds may quote unaveraged or
cumulative total returns reflecting the simple change in value of an investment
over a stated period. Average annual and cumulative total returns may be quoted
as a percentage or as a dollar amount and may be calculated for a single
investment, a series of investments, or a series of redemptions over any time
period. Total returns may be broken down into their components of income and
capital (including capital gains and changes in share price) in order to
illustrate the relationship of these factors and their contributions to total
return. Performance information may be quoted numerically or in a table, graph,
or similar illustration.

A fund's performance may be compared with the performance of other mutual
funds tracked by mutual fund rating services or with other indexes of market
performance. This may include comparisons with funds that, unlike American
Century funds, are sold with a sales charge or deferred sales charge. Sources of
economic data that may be considered in making

14 AMERICAN CENTURY INVESTMENTS

such comparisons may include, but are not limited to: U.S. Treasury bill, note,
and bond yields, money market fund yields, U.S. government debt and percentage
held by foreigners, the U.S. money supply, net free reserves, and yields on
current-coupon Government National Mortgage Association securities (GNMAs)
(source: Board of Governors of the Federal Reserve System); the federal funds
and discount rates (source: Federal Reserve Bank of New York); yield curves for
U.S. Treasury securities and AA/AAA-rated corporate securities (source:
Bloomberg Financial Markets); yield curves for AAA-rated tax-free municipal
securities (source: Telerate); yield curves for foreign government securities
(sources: Bloomberg Financial Markets and Data Resources, Inc.); total returns
on foreign bonds (source: J.P. Morgan Securities Inc.); various U.S. and foreign
government reports; the junk bond market (source: Data Resources, Inc.); the CRB
Futures Index (source: Commodity Index Report); the price of gold (sources:
London a.m./p.m. fixing and New York Comex Spot Price); rankings of any mutual
fund or mutual fund category tracked by Lipper Analytical Services, Inc. or
Morningstar, Inc.; mutual fund rankings published in major, nationally
distributed periodicals; data provided by the Investment Company Institute;
Ibbotson Associates, Stocks, Bonds, Bills, and Inflation; major indexes of stock
market performance; and indexes and historical data supplied by major securities
brokerage or investment advisory firms. The funds also may utilize reprints from
newspapers and magazines furnished by third parties to illustrate historical
performance.

Global Gold's sales literature may illustrate the market for gold within the
context of historical and current economic conditions. Specific illustrations
may include the relationship of the price of gold (per London pm fixing) to
30-year U.S. Treasury bond yields, 30-year U.S. Treasury bond prices, inflation
as measured by the Consumer Price Index, or equity securities as measured by the
Standard & Poor's 500 Composite Stock Price Index (S&P 500) or the Dow Jones
Industrial Average.

Indexes may assume reinvestment of dividends, but generally they do not
reflect administrative and management costs such as those incurred by a mutual
fund.

Statistics may be used in advertising and sales literature to illustrate
historical and projected demand for commodities owned or processed by companies
in which Global Natural Resources invests. This may include illustrations such
as a chart that shows historical and projected demand for multiple energy
sources measured in barrels of oil equivalents, or BOEs.

Occasionally, statistics may be used to illustrate fund volatility or risk.
Measures of volatility or risk are generally used to compare a fund's net asset
value or performance to a market index. One measure of volatility is "beta."
Beta expresses fund volatility relative to the total market as represented by
the S&P 500. A beta of more than 1.00 indicates volatility greater than that of
the market, and a beta of less than 1.00 indicates volatility less than the
market. Another measure of volatility or risk is "standard deviation." Standard
deviation is used to measure the variability of net asset value or total return
relative to an average over a specified period of time. The premise is that
greater volatility connotes greater risk undertaken to achieve a desired
performance.

The manager may obtain ratings from one or more rating agencies and may
publish such ratings in advertisements and sales literature.

Pursuant to the Multiple Class Plan, the funds may issue additional classes
of existing funds or introduce new funds with multiple classes available for
purchase. To the extent a new class is added to an existing fund, the manager
may, in compliance with SEC and NASD rules, regulations and guidelines, market
the new class of shares using the historical performance information of the
original class of shares. When quoting performance information for the new class
of shares for periods prior to the first full quarter after inception, the
original class' performance will be restated to reflect the expenses of the new
class. For periods after the first full quarter after inception, actual
performance of the new class will be used.

TAXES

Gains attributable to the disposition of Global Gold's direct investments in
gold bullion or coins do not qualify as income for purposes of satisfying
diversification tests under the Code. If a fund realizes greater than 10% of its
income from such non-qualifying sources, it would incur federal income and state
taxes on the net investment income and capital gains it distributes to
shareholders.

STATEMENT OF ADDITIONAL INFORMATION 15

A fund's transactions in foreign currencies, forward contracts, options and
futures contracts (including options and futures contracts on foreign
currencies) will be subject to special provisions of the Code that, among other
things, may affect the character of gains and losses realized by a fund (i.e.,
may affect whether gains or losses are ordinary or capital), accelerate
recognition of income to the fund, defer fund losses, and affect the
determination of whether capital gains and losses are characterized as long-term
or short-term capital gains or losses. These rules could therefore affect the
character, amount, and timing of distributions to shareholders. These provisions
also may require a fund to mark to market certain types of the positions in its
portfolio (i.e., treat them as if they were sold at the fund's fiscal year end),
which may cause the fund to recognize income without receiving sufficient cash
for making distributions in amounts necessary to satisfy the 90% and 98%
distribution requirements for relief from income and excise taxes. Each fund
will monitor its transactions and may make such tax elections as the manager
deems appropriate with respect to foreign currency, options, futures contracts,
forward contracts, or hedged investments. Each fund's status as a regulated
investment company may limit its transactions involving foreign currency,
futures, options and forward contracts.

Under the Code, gains or losses attributable to fluctuations in exchange
rates that occur between the time a fund accrues income or other receivables or
accrues expenses or other liabilities denominated in a foreign currency and the
time the fund actually collects such receivables or pays such liabilities
generally are treated as ordinary income or loss. Similarly, in disposing of
debt securities denominated in foreign currencies and certain other instruments,
gains or losses attributable to fluctuations in the value of a foreign currency
between the date the security or contract is acquired and the date it is
disposed of are also usually treated as ordinary income or loss. Under Section
988 of the Code, these gains or losses may increase or decrease the amount of
the fund's investment company taxable income distributed to shareholders as
ordinary income.

Each fund may invest in shares of foreign corporations that may be
classified under the Code as passive foreign investment companies (PFICs). In
general, a foreign corporation is classified as a PFIC if at least one-half of
its assets constitute investment-type assets or 75% or more of its gross income
is investment-type income. Certain distributions from a PFIC and gains from the
sale of PFIC shares are treated as excess distributions. These excess
distributions and gains may be subject to federal income tax. Interest charges
also may be imposed on a fund with respect to deferred taxes arising from such
excess distributions or gains.

Each fund's intention to qualify annually as a regulated investment company
may limit its elections with respect to PFIC shares.

Because the application of the PFIC rules may affect, among other things,
the character of gains, the amount of gain or loss, and the timing of the
recognition of income with respect to PFIC shares, as well as subject a fund to
tax on certain income from PFIC shares, the amount that must be distributed to
shareholders, which will be taxed to shareholders as ordinary income or
long-term capital gain, may be increased or decreased substantially compared to
that of a fund that did not invest in PFIC shares.

Earnings derived by a fund from sources outside the United States may be
subject to non-U.S. withholding and possibly other taxes. Such taxes might be
reduced or eliminated under the terms of a U.S. income tax treaty, and a fund
would undertake any procedural steps required to claim the benefits of such a
treaty. With respect to any non-U.S. taxes actually paid by a fund, if more than
50% of the value of the fund's total assets at the close of any taxable year
consists of securities of foreign corporations, the fund will elect to treat any
non-U.S. income and similar taxes it pays as though the taxes were paid by its
shareholders.

Generally, a credit for foreign taxes is subject to the limitation that it
may not exceed the shareholder's U.S. tax attributable to his or her taxable
income from foreign sources. Gains realized by a fund from the sale of
securities will be treated as derived from U.S. sources, and certain currency
gains, including gains from foreign-currency-denominated debt securities,
receivables, and payables, will be treated as income derived from U.S. sources.
The limitation on the foreign tax credit is applied separately to foreign source
passive income, which may include certain dividends received from the fund and
certain other types of income. Accordingly, shareholders may be unable to

16 AMERICAN CENTURY INVESTMENTS

claim a credit for the full amount of their proportionate share of the foreign
taxes paid by a fund.

Some of the debt securities that may be acquired by a fund may be treated in
the same way as debt securities that are originally issued at a discount.
Generally, the amount of the original issue discount (OID) is treated as
interest income and is included in income over the term of the debt security,
even though payment of that amount is not received until a later time, usually
when the debt security matures.

Some of the debt securities may be purchased by a fund at a discount that
exceeds the original issue discount on such debt securities, if any. This
additional discount represents market discount for federal income tax purposes.
The gain realized on the disposition of any taxable debt security having market
discount will be treated as ordinary income to the extent that it does not
exceed the accrued market discount on such debt security. Generally, market
discount accrues on a daily basis for each day the debt security is held by a
fund and at a constant rate over the time remaining to the debt security's
maturity or, at the election of the fund, at a constant yield to maturity that
takes into account the semiannual compounding of interest.

Generally, a fund will be required to distribute dividends representing
discounts on debt securities that are currently included in income to
shareholders, even if cash representing such income has not been received by the
fund. Cash to pay such dividends may be obtained from proceeds of sales of
securities held by the fund.

Exchange control regulations that may restrict repatriation of investment
income, capital, or the proceeds of securities sales by foreign investors may
limit the fund's ability to make sufficient distributions to satisfy the 90% and
calendar-year distribution requirements.

CAPITAL STOCK

The funds' capital stock is described in the Prospectus under the heading
"Further Information About American Century." The corporation currently has five
series of shares. American Century Global Gold Fund, American Century Global
Natural Resources Fund and American Century Utilities Fund are described in this
Statement of Additional Information. The corporation may in the future issue
additional series or classes of shares. The assets belonging to each series or
class of shares are held separately by the custodian and the shares of each
series or class represent a beneficial interest in the principal, earnings and
profit (or losses) of investment and other assets held for each series or class.
Your rights as a shareholder are the same for all series or class of securities
unless otherwise stated. Within their respective series or class, all shares
have equal redemption rights. Each share, when issued, is fully paid and
non-assessable. Each share, irrespective of series or class, is entitled to one
vote for each dollar of net asset value represented by such share on all
questions.

In the event of complete liquidation or dissolution of the funds,
shareholders of each series or class of shares shall be entitled to receive, pro
rata, all of the assets less the liabilities of that series or class.

As of April 5, 1998, in excess of 5% of the outstanding shares of the
following funds were owned of record by:

Fund Global Gold
- --------------------------------------------------------------------------------

Shareholder Name and Charles Schwab & Co.
Address 101 Montgomery Street
San Francisco, CA 94104
- --------------------------------------------------------------------------------

# of Shares Held 6,972,469
- --------------------------------------------------------------------------------

% of Total Shares Outstanding 17%
- --------------------------------------------------------------------------------

Fund Global Natural Resources
- --------------------------------------------------------------------------------

Shareholder Name and Charles Schwab & Co.
Address 101 Montgomery Street
San Francisco, CA 94104
- --------------------------------------------------------------------------------

# of Shares Held 913,637
- --------------------------------------------------------------------------------

% of Total Shares Outstanding 22%
- --------------------------------------------------------------------------------

Fund Utilities Fund
- --------------------------------------------------------------------------------

Shareholder Name and Charles Schwab & Co.
Address 101 Montgomery Street
San Francisco, CA 94104
- --------------------------------------------------------------------------------

# of Shares Held 3,552,703
- --------------------------------------------------------------------------------

% of Total Shares Outstanding 23%
- --------------------------------------------------------------------------------

STATEMENT OF ADDITIONAL INFORMATION 17

CUSTODIAN BANKS

Chase Manhattan Bank, 4 Chase Metrotech Center, Brooklyn, New York 11245 and
Commerce Bank, N.A., 1000 Walnut, Kansas City, Missouri 64106 serve as
custodians of the funds' assets. Services provided by the custodian banks
include (i) settling portfolio purchases and sales, (ii) reporting failed
trades, (iii) identifying and collecting portfolio income, and (iv) providing
safekeeping of securities. The custodians take no part in determining a fund's
investment policies or in determining which securities are sold or purchased by
a fund.

INDEPENDENT ACCOUNTANTS

Coopers & Lybrand L.L.P., City Center Square, 1100 Main Street, Suite 900,
Kansas City, Missouri 64105-2140, was appointed to serve as the independent
accountants to examine the financial statements of the funds commencing with the
fiscal year beginning January 1, 1997. As independent accountants of the funds,
Coopers & Lybrand L.L.P. provides services including (1) audit of the annual
financial statements, (2) assistance and consultation in connection with SEC
filings and (3) review of the annual federal income tax return filed for each
fund.

MULTIPLE CLASS STRUCTURE

The funds' Board of Directors has adopted a multiple class plan (the
Multiple Class Plan) pursuant to Rule 18f-3 adopted by the SEC. Pursuant to such
plan, the funds may issue up to three classes of funds: an Investor Class, an
Advisor Class and an Institutional Class. Not all funds offer all three classes.

The Investor Class is made available to investors directly without any load
or commission for a single unified management fee. The Institutional and Advisor
Classes are made available to institutional shareholders or through financial
intermediaries that do not require the same level of shareholder and
administrative services from the manager as Investor Class shareholders. As a
result, the manager is able to charge these classes a lower unified management
fee. In addition to the management fee, however, the Advisor Class shares are
subject to a Master Distribution and Shareholder Services Plan (described below)
. The Plan has been adopted by the funds' Board of Directors and initial
shareholder in accordance with Rule 12b-1 adopted by the SEC under the
Investment Company Act.

RULE 12B-1

Rule 12b-1 permits an investment company to pay expenses associated with the
distribution of its shares in accordance with a plan adopted by the investment
company's Board of Directors and approved by its shareholders. Pursuant to such
rule, the Board of Directors and initial shareholder of the funds' Advisor Class
have approved and entered into a Master Distribution and Shareholder Services
Plan, with respect to the Advisor Class (the Plan) which is described below.

In adopting the Plan, the Board of Directors [including a majority who are
not "interested persons" of the funds (as defined in the Investment Company Act)
, hereafter referred to as the "independent directors"] determined that there
was a reasonable likelihood that the Plan would benefit the funds and the
shareholders of the affected class. Pursuant to Rule 12b-1, information with
respect to revenues and expenses under the Plan is presented to the Board of
Directors quarterly for its consideration in connection with its deliberations
as to the continuance of the Plan. Continuance of the Plan must be approved by
the Board of Directors (including a majority of the independent directors)
annually. The Plan may be amended by a vote of the Board of Directors (including
a majority of the independent directors), except that the Plan may not be
amended to materially increase the amount to be spent for distribution without
majority approval of the shareholders of the affected class. The Plan terminates
automatically in the event of an assignment and may be terminated upon a vote of
a majority of the independent directors or by vote of a majority of the
outstanding voting securities of the affected class.

All fees paid under the plans will be made in accordance with Section 26 of
the Rules of Fair Practice of the National Association of Securities Dealers
(NASD).

MASTER DISTRIBUTION AND SHAREHOLDER SERVICES PLAN

As described in the Prospectuses, the funds' Advisor Class shares are made
available to participants

18 AMERICAN CENTURY INVESTMENTS

in employer-sponsored retirement or savings plans and to persons purchasing
through financial intermediaries, such as banks, broker-dealers and insurance
companies. The distributor enters into contracts with various banks,
broker-dealers, insurance companies and other financial intermediaries with
respect to the sale of the funds' shares and/or the use of the funds' shares in
various investment products or in connection with various financial services.

Certain recordkeeping and administrative services that are provided by the
funds' transfer agent for the Investor Class shareholders may be performed by a
plan sponsor (or its agents) or by a financial intermediary for shareholders in
the Advisor Class. In addition to such services, the financial intermediaries
provide various distribution services.

To enable the funds' shares to be made available through such plans and
financial intermediaries, and to compensate them for such services, the funds'
investment manager has reduced its management fee by 0.25% per annum with
respect to the Advisor Class shares and the funds' Board of Directors has
adopted a Master Distribution and Shareholder Services Plan (the Distribution
Plan). Pursuant to such Plan, the Advisor Class shares pay the Distributor a fee
of 0.50% annually of the aggregate average daily assets of the funds' Advisor
Class shares, 0.25% of which is paid for shareholder services (as described
above) and 0.25% of which is paid for distribution services.

Distribution services include any activity undertaken or expense incurred
that is primarily intended to result in the sale of Advisor Class shares, which
services may include but are not limited to, (a) the payment of sales
commission, ongoing commissions and other payments to brokers, dealers,
financial institutions or others who sell Advisor Class shares pursuant to
selling agreements; (b) compensation to registered representatives or other
employees of the distributor who engages in or support distribution of the
funds' Advisor Class shares; (c) compensation to, and expenses (including
overhead and telephone expenses) of the distributor; (d) the printing of
prospectuses, statements of additional information and reports for other than
existing shareholders; (e) the preparation, printing and distribution of sales
literature and advertising materials provided to the funds' shareholders and
prospective shareholders; (f) receiving and answering correspondence from
prospective shareholders, including distributing prospectuses, statements of
additional information, and shareholder reports; (g) the providing of facilities
to answer questions from prospective investors about fund shares; (h) complying
with federal and state securities laws pertaining to the sale of fund shares;
(i) assisting investors in completing application forms and selecting dividend
and other account options; (j) the providing of other reasonable assistance in
connection with the distribution of fund shares; (k) the organizing and
conducting of sales seminars and payments in the form of transactional
compensation or promotional incentives; (l) profit on the foregoing; (m) the
payment of "service fees" for the provision of personal, continuing services to
investors, as contemplated by the Rules of Fair Practice of the NASD and (n)
such other distribution and services activities as the manager determines may be
paid for by the funds pursuant to the terms of the plan and in accordance with
Rule 12b-1 of the Investment Company Act.

BROKERAGE

Under the management agreement between the funds and the manager, the
manager has the responsibility of selecting brokers to execute portfolio
transactions. The funds' policy is to secure the most favorable prices and
execution of orders on its portfolio transactions. So long as that policy is
met, the manager may take into consideration the factors discussed below when
selecting brokers.

STATEMENT OF ADDITIONAL INFORMATION 19

services will be in addition to and not in lieu of services required to be
performed by the manager. The manager does not utilize brokers that provide such
information and services for the purpose of reducing the expense of providing
required services to the funds.

In the years ended December 31, 1997, 1996 and 1995, the brokerage
commissions of each fund were as follows:

Years Ended December 31,
- ---------------------------------------------------------------------------
Fund 1997 1996 1995
- ---------------------------------------------------------------------------

Global Gold $ 588,515 $ 1,350,735 $ 1,122,431
Global Natural Resources 119,686 144,442 43,589
Utilities 327,582 442,714 205,544
- ---------------------------------------------------------------------------

In 1997, $1,021,806 (99%) of the total brokerage commissions ($1,035,783)
were paid to brokers and dealers who provided information and services.

The brokerage commissions paid by the funds may exceed those which another
broker might have charged for effecting the same transactions, because of the
value of the brokerage and research services provided by the broker. Research
services furnished by brokers through whom the funds effect securities
transactions may be used by the manager in servicing all of its accounts, and
not all such services may be used by the manager in managing the portfolios of
the funds.

The staff of the SEC has expressed the view that the best price and
execution of over-the-counter transactions in portfolio securities may be
secured by dealing directly with principal market makers, thereby avoiding the
payment of compensation to another broker. In certain situations, the officers
of the funds and the manager believe that the facilities, expert personnel and
technological systems of a broker often enable the funds to secure as good a net
price by dealing with a broker instead of a principal market maker, even after
payment of the compensation to the broker. The funds regularly place its
over-the-counter transactions with principal market makers, but also may deal on
a brokerage basis when utilizing electronic trading networks or as circumstances
warrant.

OFFICERS AND DIRECTORS

The principal officers and directors of the corporation, their ages (listed
in parentheses), principal business experience during the past five years, and
their affiliation with the funds' manager, American Century Investment
Management, Inc. and its transfer agent, American Century Services Corporation,
are listed below. The address at which each director and officer listed below
may be contacted, with the exception of Messrs. Stowers III, Lyons, Looby, May,
Leach and Zindel and Ms. Roepke, is 1665 Charleston Road, Mountain View,
California 94043. The address of Messrs. Stowers III, Lyons, Looby, May, Leach
and Zindel and Ms. Roepke is American Century, 4500 Main Street, Kansas City,
Missouri 64111. All persons named as officers for the corporation also serve in
similar capacities for other funds advised by the manager. Those directors that
are "interested persons"as defined in the Investment Company Act of 1940 are
indicated by an asterisk (*).

*WILLIAM M. LYONS (42), Director (1998). Mr. Lyons is President, Chief
Operating Officer and General Counsel of ACC; Executive Vice President and
General Counsel of ASC and ACIS; Assistant Secretary of ACC; and Secretary of
ACS and ACIS.

*JAMES E. STOWERS III (39), Chairman of the Board of Directors (1998) and
Director (1995). Mr. Stowers III is Chief Executive Officer and Director of ACC;
Chief Executive Officer and Director of ACS and ACIS.

ALBERT A. EISENSTAT (67), Director (1995). Mr. Eisenstat is an independent
Director of each of Commercial Metals Co. (1982), Sungard Data Systems (1991)
and Business Objects S/A (1994). Previously, he served as Vice President of
Corporate Development and Corporate Secretary of Apple Computer and served on
its Board of Directors (1985 to 1993).

RONALD J. GILSON, (51), Director (1995). Mr. Gilson is the Charles J. Meyers
Professor of Law and Business at Stanford Law School (1979) and the Mark and Eva
Stern Professor of Law and Business at Columbia University School of Law(1992).
He is counsel to Marron, Ried & Sheehy (a San Francisco law firm, 1984).

20 AMERICAN CENTURY INVESTMENTS

MYRON S. SCHOLES (56), Director (1988). Mr. Scholes was awarded the 1997
Nobel Memorial Prize in Economic Sciences for his role in the development of the
Black-Scholes option pricing model. Mr. Scholes is a principal of Long-Term
Capital Management (1993). He is also Frank E. Buck Professor of Finance at the
Stanford Graduate School of Business (1983), a Director of Dimensional Fund
Advisors (1982) and the Smith Breeden Family of Funds (1992). From August 1991
to June 1993, Mr. Scholes was a Managing Director of Salomon Brothers Inc.
(securities brokerage).

KENNETH E. SCOTT (69), Director (1988). Mr. Scott is Ralph M. Parsons
Professor of Law and Business at Stanford Law School (1972) and a Director of
RCM Capital Management (1994).

ISAAC STEIN (51), Director (1992). Mr. Stein is former Chairman of the Board
(1990 to 1992) and Chief Executive Officer (1991 to 1992) of Esprit de Corp.
(clothing manufacturer). He is a member of the Board of Raychem Corporation
(electrical equipment, 1993), President of Waverley Associates, Inc. (private
investment firm, 1983), and a Director of ALZA Corporation (pharmaceuticals,
1987). He is also a Trustee of Stanford University (1994) and Chairman of
Stanford Health Services (hospital, 1994).

JEANNE D. WOHLERS (52), Director (1988). Ms. Wohlers is a private investor,
and an independent Director and Partner of Windy Hill Productions, LP.
Previously, she served as Vice President and Chief Financial Officer of Sybase,
Inc. (software company, 1988 to 1992).

RICHARD W. INGRAM (42), President (1998); Executive Vice President and
Director of Client Services and Treasury Administration, Funds Distributor, Inc.
(FDI). Mr. Ingram joined FDI in 1995. Prior to joining FDI, Mr. Ingram served as
Vice President and Division Manager of First Data Investor Services Group, Inc.
(from March 1994 to November 1995) and before that as Vice President, Assistant
Treasurer and Tax Director-Mutual Funds of The Boston Company, Inc. (from 1989
to 1994).

*DOUGLAS A. PAUL (51), Secretary (1988), Vice President (1990), and General
Counsel (1990); Vice President and Associate General Counsel, ACS.

*MARYANNE ROEPKE (42), CPA, Treasurer (1995) and Vice President (1998);
Senior Vice President and Assistant Treasurer of ACS.

CHRISTOPHER J. KELLEY (33), Vice President (1998); Vice President and
Associate General Counsel of FDI. Mr. Kelley joined FDI in 1996. Prior to
joining FDI, Mr. Kelley served as Assistant Counsel at Forum Financial Group
(from April 1994 to July 1996) and before that as a compliance officer for
Putnam Investments (from 1992 to 1994).

MARY A. NELSON (34), Vice President (1998); Vice President and Manager of
Treasury Services and Administration of FDI. Ms. Nelson joined FDI in 1995.
Prior to joining FDI, Ms. Nelson served as Assistant Vice President and Client
Manager for The Boston Company, Inc. (from 1989 to 1994).

*JON ZINDEL (30), Tax Officer (1997); Director of Taxation (1996); Vice
President of ACS (1998); Tax Manager, Price Waterhouse LLP (1989).

*ROBERT J. LEACH (31), CPA, Controller (1996).

As of April 7, 1997, the funds' Directors and officers as a group owned less
than 1% of the funds' outstanding shares.

DIRECTOR COMPENSATION FOR THE FISCAL YEAR ENDED DECEMBER 31, 1997

Aggregate Total Compensation from
Compensation the American Century
Director(1) from the Corporation Family of Funds(2)
- --------------------------------------------------------------------------------

Albert A. Eisenstat $4,335 $69,250
Ronald J. Gilson 4,564 74,000
Myron S. Scholes 4,302 68,250
Kenneth E. Scott 4,760 77,000
Ezra Solomon(3) 166 3,500
Isaac Stein 4,400 69,500
Jeanne D. Wohlers 4,525 72,500
- --------------------------------------------------------------------------------

(1)Interested Directors receive no compensation for their services as such.

(2)Includes compensation paid by the 13 investment company members of the
American Century family of funds.

(3)Retired December, 1996.

STATEMENT OF ADDITIONAL INFORMATION 21

The corporation has adopted the American Century Mutual Funds Deferred
Compensation Plan for Non-Interested Directors. Under the Plan, the
non-interested person Directors may defer receipt of all or any part of the fees
to be paid to them for serving as Directors of the corporation.

Under the Plan, all deferred fees are credited to an account established in
the name of the Directors. The amounts credited to the account then increase or
decrease, as the case may be, in accordance with the performance of one or more
of the American Century funds that are selected by the Director. The account
balance continues to fluctuate in accordance with the performance of the
selected fund or funds until final payment of all amounts credited to the
account. Directors are allowed to change their designation of mutual funds from
time to time.

No deferred fees are payable until such time as a Director resigns, retires
or otherwise ceases to be a member of the Board of Directors. Directors may
receive deferred fee account balances either in a lump sum payment or in
substantially equal installment payments to be made over a period not to exceed
10 years. Upon the death of a Director, all remaining deferred fee account
balances are paid to the Director's beneficiary or, if none, to the Director's
estate.

The Plan is an unfunded plan and, accordingly, American Century has no
obligation to segregate assets to secure or fund the deferred fees. The rights
of Directors to receive their deferred fee account balances are the same as the
rights of a general unsecured creditor of the corporation. The Plan may be
terminated at any time by the administrative committee of the Plan. If
terminated, all deferred fee account balances will be paid in a lump sum.

No deferred fees were paid to any Director under the Plan during the fiscal
year ended December 31, 1997.

Those Directors who are "interested persons," as defined in the Investment
Company Act, receive no fee as such for serving as a Director. The salaries of
such individuals, who are also officers of the funds, are paid by the manager.

MANAGEMENT

A description of the responsibilities and method of compensation of the
funds' manager, American Century Investment Management, Inc., appears in the
Prospectus under the heading "Management."

The schedule by which the Investment Category Fee is determined is as
follows:

Category Assets Fee Rate
- --------------------------------------------------------------------------------

First $1 billion 0.5200%
Next $5 billion 0.4600%
Next $15 billion 0.4160%
Next $25 billion 0.3690%
Next $50 billion 0.3420%
Next $150 billion 0.3390%
Thereafter 0.3380%
- --------------------------------------------------------------------------------

The Complex Fee Schedule (Investor Class) is as follows:

Complex Assets Fee Rate
- --------------------------------------------------------------------------------

First $2.5 billion 0.3100%
Next $7.5 billion 0.3000%
Next $15.0 billion 0.2985%
Next $25.0 billion 0.2970%
Next $50.0 billion 0.2960%
Next $100.0 billion 0.2950%
Next $100.0 billion 0.2940%
Next $200.0 billion 0.2930%
Next $250.0 billion 0.2920%
Next $500.0 billion 0.2910%
Thereafter 0.2900%
- --------------------------------------------------------------------------------

The Complex Fee schedule for the Institutional Class is lower by 0.2000% at
each graduated step. For example, if the Investor Class Complex Fee is 0.3000%
for the first $2 billion, the Institutional Class Complex Fee is 0.1000%
(0.3000% minus 0.2000%) for the first

22 AMERICAN CENTURY INVESTMENTS

$2 billion. The Complex Fee schedule for the Advisor Class is lower by 0.2500%
at each graduated step.

On the first business day of each month, the funds pay a management fee to
the manager for the previous month at the specified rate. The fee for the
previous month is calculated by multiplying the applicable fee for a fund by the
aggregate average daily closing value of a fund's net assets during the previous
month by a fraction, the numerator of which is the number of days in the
previous month and the denominator of which is 365 (366 in leap years).

The management agreement shall continue in effect until the earlier of the
expiration of two years from the date of its execution or until the first
meeting of shareholders following such execution and for as long thereafter as
its continuance is specifically approved at least annually by (1) the funds'
Board of Directors, or by the vote of a majority of outstanding votes (as
defined in the Investment Company Act) and (2) by the vote of a majority of the
directors of the funds who are not parties to the agreement or interested
persons of the manager, cast in person at a meeting called for the purpose of
voting on such approval.

The management agreement provides that it may be terminated at any time
without payment of any penalty by the funds' Board of Directors, or by a vote of
a majority of the funds' shareholders, on 60 days' written notice to the
manager, and that it shall be automatically terminated if it is assigned.

The management agreement provides that the manager shall not be liable to
the funds or their shareholders for anything other than willful misfeasance, bad
faith, gross negligence or reckless disregard of its obligations and duties.

The management agreement also provides that the manager and its officers,
directors and employees may engage in other business, devote time and attention
to any other business whether of a similar or dissimilar nature, and render
services to others.

Certain investments may be appropriate for the funds and also for other
clients advised by the manager. Investment decisions for the funds and other
clients are made with a view to achieving their respective investment objectives
after consideration of such factors as their current holdings, availability of
cash for investment, and the size of their investment generally. A particular
security may be bought or sold for only one client or series, or in different
amounts and at different times for more than one but less than all clients or
series. In addition, purchases or sales of the same security may be made for two
or more clients or series on the same date. Such transactions will be allocated
among clients in a manner believed by the manager to be equitable to each. In
some cases this procedure could have an adverse effect on the price or amount of
the securities purchased or sold by a fund.

The manager may aggregate purchase and sale orders of the funds with
purchase and sale orders of its other clients when the manager believes that
such aggregation provides the best execution for the funds. The funds' Board of
Directors has approved the policy of the manager with respect to the aggregation
of portfolio transactions. Where portfolio transactions have been aggregated,
the funds participate at the average share price for all transactions in that
security on a given day and share transaction costs on a pro rata basis. The
manager will not aggregate portfolio transactions of the funds unless it
believes such aggregation is consistent with its duty to seek best execution on
behalf of the funds and the terms of the management agreement. The manager
receives no additional compensation or remuneration as a result of such
aggregation.

In addition to managing the funds, the manager also acts as an investment
adviser to 12 institutional accounts and to the following registered investment
companies: American Century Mutual Funds, Inc., American Century World Mutual
Funds, Inc., American Century Premium Reserves, Inc., American Century Variable
Portfolios, Inc., American Century Capital Portfolios, Inc., American Century
Strategic Asset Allocations, Inc., American Century Municipal Trust, American
Century Government Income Trust, American Century Investment Trust, American
Century Target Maturities Trust, American Century California Tax-Free and
Municipal Funds, and American Century International Bond Funds.

Prior to August 1, 1997, Benham Management Corporation served as the
investment advisor to the funds. Benham Management Corporation was, like the
manager, wholly owned by ACC. In late 1997, Benham Management Corporation was
merged into the manager.

STATEMENT OF ADDITIONAL INFORMATION 23

Investment advisory fees paid by each fund to the manager for the fiscal
years ended December 31, 1997, 1996 and 1995 are indicated in the following
tables. The first table shows the unified management fee for each fund paid from
the effective date of the current advisory agreement with the manager through
the funds' fiscal year end. The second table shows the fees paid under the prior
advisory agreement with Benham Management Company, net of any reimbursements.

UNIFIED MANAGEMENT FEE

1997(1)
- --------------------------------------------------------------------------------

Global Gold $ 900,609
Global Natural Resources $ 161,611
Utilities Fund $ 423,153
- --------------------------------------------------------------------------------

(1)From August 1 through December 31, 1997.

INVESTMENT ADVISORY FEES(1)

1997(2) 1996 1995
- --------------------------------------------------------------------------------

Global Gold $ 633,691 $ 1,645,729 $ 1,776,728
Global Natural Resources $ 120,156 $ 74,093 $ 0
Utilities Fund $ 207,981 $ 526,012 $ 540,339
- --------------------------------------------------------------------------------

(1)Net of reimbursements.

(2)From January 1 through July 31, 1997.

American Century Services Corporation provides physical facilities,
including computer hardware and software and personnel, for the day-to-day
administration of the funds and of the manager. The manager pays American
Century Services Corporation for such services.

Prior to August 1, 1997, the funds paid American Century Services
Corporation directly for its services as transfer agent and administrative
services agent. After that date, these fees are included in the unified
management fee.

Administrative service and transfer agent fees paid by the funds for the
fiscal years ended December 31, 1997, 1996, and 1995, are indicated in the
following tables. Fee amounts are net of expense limitations.

ADMINISTRATIVE FEES(1)

1997 1996 1995
- --------------------------------------------------------------------------------

Global Gold $ 210,125 $ 525,854 $ 549,463
Global Natural Resources $ 34,367 $ 45,527 $ 7,049
Utilities Fund $ 70,612 $ 160,940 $ 170,950
- --------------------------------------------------------------------------------

(1)Net of reimbursements.

TRANSFER AGENT FEES(1)

1997 1996 1995
- --------------------------------------------------------------------------------

Global Gold $ 320,161 $ 644,392 $ 702,149
Global Natural Resources $ 63,879 $ 113,382 $ 62,844
Utilities Fund $ 158,168 $ 370,118 $ 414,319
- --------------------------------------------------------------------------------

(1)Net of reimbursements.

HOLIDAYS

The funds do not determine the net asset value of their shares on days when
the New York Stock Exchange is closed. Currently, the Exchange is closed on
Saturdays and Sundays, and on holidays, namely New Year's Day, Martin Luther
King Jr. Day, Presidents Day, Good Friday, Memorial Day, Independence Day, Labor
Day, Thanksgiving and Christmas.

FINANCIAL STATEMENTS

The financial statements of the funds, including the Statements of Assets
and Liabilities and the Statements of Operations for the fiscal year ended
December 31, 1997, and the Statements of Changes in Net Assets for the fiscal
years ended December 31, 1996, and 1997, are included in the Annual Reports to
shareholders, for the fiscal year ended December 31, 1997. The reports on the
financial highlights for the fiscal years 1993, 1994, 1995 and 1996 are included
in the Annual Reports to Shareholders for the fiscal year ended December 31,
1996. Each such Annual Report is incorporated herein by reference. You may
receive copies of the reports without charge upon request to American Century at
the address and phone number shown on the cover of this Statement of Additional
Information.

24 AMERICAN CENTURY INVESTMENTS

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

INVESTOR SERVICES:
1-800-345-2021 OR 816-531-5575

AUTOMATED INFORMATION LINE:
1-800-345-8765

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

FAX: 816-340-7962

WWW.AMERICANCENTURY.COM

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

9804 [recycled logo]
SH-BKT-11912 Recycled
<PAGE>
PROSPECTUS

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

MAY 1, 1998

AMERICAN
CENTURY
GROUP

Income & Growth
Equity Growth

INVESTOR CLASS

AMERICAN CENTURY INVESTMENTS
FAMILY OF FUNDS

American Century Investments offers you nearly 70 fund choices covering
stocks, bonds, money markets, specialty investments and blended portfolios. To
help you find funds that may meet your investment needs, American Century funds
have been divided into three groups based on investment style and objectives.
These groups, which appear below, are designed to help simplify your fund
decisions.

AMERICAN CENTURY INVESTMENTS

BENHAM GROUP(reg.tm) AMERICAN CENTURY GROUP TWENTIETH CENTURY GROUP

MONEY MARKET FUNDS ASSET ALLOCATION &
GOVERNMENT BOND FUNDS BALANCED FUNDS GROWTH FUNDS
DIVERSIFIED BOND FUNDS CONSERVATIVE EQUITY FUNDS INTERNATIONAL FUNDS
MUNICIPAL BOND FUNDS SPECIALTY FUNDS

Income & Growth
Equity Growth

PROSPECTUS
MAY 1, 1998

Income & Growth
Equity Growth

INVESTOR CLASS

AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS

American Century Quantitative Equity Funds is a part of American Century
Investments, a family of funds that includes nearly 70 no-load mutual funds
covering a variety of investment opportunities. Two of the funds from our
American Century Group that seek capital appreciation are described in this
Prospectus. Their investment objectives are listed on page 2 of this Prospectus.
The other funds are described in separate prospectuses.

Through its Investor Class of shares, American Century offers investors a
full line of no-load funds, investments that have no sales charges or
commissions.

This Prospectus gives you information about the funds that you should know
before investing. Please read this Prospectus carefully and retain it for future
reference. Additional information is included in the Statement of Additional
Information dated May 1, 1998, and filed with the Securities and Exchange
Commission. It is incorporated into this Prospectus by reference. To obtain a
copy without charge, call or write:

AMERICAN CENTURY INVESTMENTS
4500 Main Street o P.O. Box 419200
Kansas City, Missouri 64141-6200 o 1-800-345-2021
International calls: 816-531-5575
Telecommunications Device for the Deaf:
1-800-634-4113 o In Missouri: 816-444-3485
www.americancentury.com

Additional information, including this Prospectus and the Statement of
Additional Information, may be obtained by accessing the Web site maintained by
the SEC (www.sec.gov).

PROSPECTUS 1

INVESTMENT OBJECTIVES OF THE FUNDS

AMERICAN CENTURY INCOME & GROWTH FUND

Income & Growth seeks dividend growth, current income and capital
appreciation by investing in common stocks.

AMERICAN CENTURY EQUITY GROWTH FUND

Equity Growth seeks capital appreciation by investing in common stocks.

There is no assurance that the funds will achieve
their respective investment objectives.

2 INVESTMENT OBJECTIVES AMERICAN CENTURY INVESTMENTS

TABLE OF CONTENTS

INFORMATION REGARDING THE FUNDS

Investment Policies of the Funds .......................................... 7
Income & Growth ........................................................ 7
Equity Growth .......................................................... 7
Risk Factors and Investment Techniques .................................... 7
Other Investment Practices, Their Characteristics
and Risks .............................................................. 8
Portfolio Turnover ..................................................... 8
Convertible Securities ................................................. 8
Futures Contracts
and Options Thereon ............................................ 8
Short-Term Instruments .............................................. 8
Foreign Securities .................................................. 9
Other Techniques .................................................... 9
Performance Advertising ................................................... 9

HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS

American Century Investments .............................................. 10
Investing in American Century ............................................. 10
How to Open an Account .................................................... 10
By Mail ........................................................ 10
By Wire ........................................................ 10
By Exchange .................................................... 11
In Person ...................................................... 11
Subsequent Investments .............................................. 11
By Mail ........................................................ 11
By Telephone ................................................... 11
By Online Access ............................................... 11
By Wire ........................................................ 11
In Person ...................................................... 11
Automatic Investment Plan ........................................... 11
How to Exchange from One Account to Another ............................... 12
By Mail ........................................................ 12
By Telephone ................................................... 12
By Online Access ............................................... 12
How to Redeem Shares ...................................................... 12
By Mail ........................................................ 12
By Telephone ................................................... 12
By Check-A-Month ............................................... 12
Other Automatic Redemptions .................................... 12
Redemption Proceeds ................................................. 12
By Check ....................................................... 12
By Wire and ACH ................................................ 13
Redemption of Shares
in Low-Balance Accounts ........................................ 13
Signature Guarantee ....................................................... 13
Special Shareholder Services .............................................. 13
Automated Information Line ..................................... 13
Online Account Access .......................................... 13
Open Order Service ............................................. 13
Tax-Qualified Retirement Plans ................................. 14
Important Policies Regarding Your Investments ............................. 14
Reports to Shareholders ................................................... 15
Employer-Sponsored Retirement Plans and
Institutional Accounts ................................................. 15

ADDITIONAL INFORMATION YOU SHOULD KNOW

Share Price ............................................................... 16
When Share Price Is Determined ......................................... 16
How Share Price Is Determined .......................................... 16
Where to Find Information About Share Price ............................ 17
Distributions ............................................................. 17
Taxes ..................................................................... 18
Tax-Deferred Accounts .................................................. 18
Taxable Accounts ....................................................... 18
Management ................................................................ 19
Investment Management .................................................. 19
Code of Ethics ......................................................... 20
Transfer and Administrative Services ................................... 20
Year 2000 Issues ....................................................... 20
Distribution of Fund Shares ............................................... 21
Further Information About American Century ................................ 21

PROSPECTUS TABLE OF CONTENTS 3

TRANSACTION AND OPERATING EXPENSE TABLE

Income & Growth Equity Growth

SHAREHOLDER TRANSACTION EXPENSES:

Maximum Sales Load
Imposed on Purchases ......................... none none

Maximum Sales Load Imposed
on Reinvested Dividends ...................... none none

Deferred Sales Load .......................... none none

Redemption Fee(1) ............................ none none

Exchange Fee ................................. none none

ANNUAL FUND OPERATING EXPENSES:
(as a percentage of net assets)

Management Fees(2) ........................... 0.70% 0.70%

12b-1 Fees ................................... none none

Other Expenses ............................... 0.01% 0.01%

Total Fund Operating Expenses ................ 0.71% 0.71%

EXAMPLE

You would pay the following
expenses on a $1,000 investment, 1 year $ 7 $ 7
assuming a 5% annual return and 3 years 23 23
redemption at the end of each 5 years 40 40
time period: 10 years 88 88

(1) Redemption proceeds sent by wire are subject to a $10 processing fee.

(2) A portion of the management fee may be paid by American Century Investment
Management, Inc. to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of the
manager. See "Management - Transfer and Administrative Services," page 20.

The shares offered by this Prospectus are Investor Class shares and have no
up-front or deferred sales charges, commissions, or 12b-1 fees. The funds offer
two other classes of shares, primarily to institutional investors, that have
different fee structures than the Investor Class. The difference in the fee
structures among the classes is the result of their separate arrangements for
shareholder and distribution services and not the result of any difference in
amounts charged by the manager for core investment advisory services.
Accordingly, the core investment advisory expenses do not vary by class. A
difference in fees will result in different performance for the other classes.
For additional information about the various classes, see "Further Information
About American Century," page 21.

4 TRANSACTION AND OPERATING EXPENSE TABLE AMERICAN CENTURY INVESTMENTS

FINANCIAL HIGHLIGHTS

INCOME & GROWTH

1997 1996 1995 1994 1993 199 2 1991 1990(1)
PER-SHARE DATA

Net Asset Value,
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Beginning of Period ............ $ 20.16 $ 17.81 $ 13.92 $ 15.08 $ 14.11 $ 13.53 $ 10.12 $ 10.00
---------- ---------- ---------- ---------- ---------- -------- --------- ---------
Income From
Investment Operations

Net Investment Income ....... 0.43(2) 0.44 0.42 0.44 0.43 0.42 0.48 0.01

Net Realized and
Unrealized Gain
(Loss) on Investment
Transactions ................ 6.40 3.79 4.64 (0.53) 1.15 0.62 3.56 0.12
---------- ---------- ---------- ---------- ---------- -------- --------- ---------
Total From
Investment Operations ....... 6.83 4.23 5.06 (0.09) 1.58 1.04 4.04 0.13
---------- ---------- ---------- ---------- ---------- -------- --------- ---------
Distributions

From Net Investment Income .. (0.39) (0.44) (0.42) (0.43) (0.43) (0.41) (0.47) (0.01)

From Net Realized Gains on
Investment Transactions ..... (2.29) (1.44) (0.75) (0.64) (0.18) (0.05) (0.16) --
---------- ---------- ---------- ---------- ---------- -------- --------- ---------
Total Distributions ......... (2.68) (1.88) (1.17) (1.07) (0.61) (0.46) (0.63) (0.01)
---------- ---------- ---------- ---------- ---------- -------- --------- ---------
Net Asset Value, End of Period . $ 24.31 $ 20.16 $ 17.81 $ 13.92 $ 15.08 $ 14.11 $ 13.53 $ 10.12
========== ========== ========== ========== ========== ======== ========= =========
Total Return(3) ............. 34.52% 24.15% 36.88% (0.55)% 11.31% 7.86% 39.08% 1.29%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating
Expenses to Average
Net Assets .................... 0.65% 0.62% 0.67% 0.73% 0.75% 0.75% 0.50% --

Ratio of Net
Investment Income
to Average Net Assets ....... 1.81% 2.32% 2.61% 2.96% 2.90% 3.16% 4.03% 2.09%(4)

Portfolio Turnover Rate ..... 102% 92% 70% 68% 31% 63% 140% --

Average Commission
Paid per Share of
Equity Security Traded ...... $ 0.0443 $ 0.0389 $ 0.0300 --(5) --(5) --(5) --(5) --(5)

Net Assets,
End of Period
(in thousands) .............. $1,795,124 $ 717,695 $ 373,701 $ 224,939 $ 230,191 $141,221 $ 59,318 $ 991
- ----------

(1) December 17, 1990 (inception), through December 31, 1990.

(2) Computed using average shares outstanding throughout the period.

(3) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total return for periods less than one year are not
annualized.

(4) Annualized.

(5) Disclosure of average commission paid per share of equity security traded
was not required prior to the year ended December 31, 1995.
</TABLE>

PROSPECTUS FINANCIAL HIGHLIGHTS 5

<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS

EQUITY GROWTH

1997 1996 1995 1994 1993 1992 1991(1)

PER-SHARE DATA

<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ........... $15.96 $14.25 $11.53 $12.12 $11.68 $11.57 $10.00
------ ------ ------ ------ ------ ------ ------
Income From Investment Operations

Net Investment Income ........................ 0.27(2) 0.27 0.26 0.30 0.23 0.26 0.34

Net Realized and Unrealized Gain
(Loss) on Investment Transactions ............ 5.36 3.55 3.70 (0.33) 1.10 0.23 1.65
------ ------ ------ ------ ------ ------ ------
Total From Investment Operations ............. 5.63 3.82 3.96 (0.03) 1.33 0.49 1.99
------ ------ ------ ------ ------ ------ ------
Distributions

From Net Investment Income ................... (0.24) (0.26) (0.23) (0.30) (0.23) (0.23) (0.29)

From Net Realized Capital Gains
on Investment Transactions ................... (2.31) (1.85) (1.01) (0.26) (0.66) (0.15) (0.13)
------ ------ ------ ------ ------ ------ ------
Total Distributions .......................... (2.55) (2.11) (1.24) (0.56) (0.89) (0.38) (0.42)
------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Period ................. $19.04 $15.96 $14.25 $11.53 $12.12 $11.68 $11.57
====== ====== ====== ====== ====== ====== ======
Total Return(3) .............................. 36.06% 27.34% 34.56% (0.23)% 11.42% 4.13% 17.48%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses
to Average Net Assets ........................ 0.67% 0.63% 0.71% 0.75% 0.75% 0.75% 0.35%(4)

Ratio of Net Investment Income
to Average Net Assets ........................ 1.39% 1.74% 1.96% 2.26% 2.04% 2.33% 3.29%(4)

Portfolio Turnover Rate ...................... 161% 131% 126% 94% 97% 114% 89%

Average Commission Paid per
Share of Equity Security Traded .............. $0.0441 $0.0385 $0.0320 --(5) --(5) --(5) --(5)

Net Assets, End of Period (in thousands) ..... $773,425 $274,433 $159,450 $97,437 $96,284 $73,592 $38,951
- ----------

(1) May 9, 1991 (inception), through December 31, 1991.

(2) Computed using average shares outstanding throughout the period.

(3) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total return for periods less than one year are not
annualized.

(4) Annualized.

(5) Disclosure of average commission paid per share of equity security traded
was not required prior to the year ended December 31, 1995.
</TABLE>

6 FINANCIAL HIGHLIGHTS AMERICAN CENTURY INVESTMENTS

INFORMATION REGARDING THE FUNDS

INVESTMENT POLICIES OF THE FUNDS

INCOME & GROWTH

Income & Growth's investment objective is to seek dividend growth, current
income, and capital appreciation by investing in common stocks.

Income & Growth is designed for income-oriented investors seeking a total
return that exceeds the total return of the Standard & Poor's 500 Composite
Stock Price Index (S&P 500) and a dividend yield that exceeds the S&P 500's
dividend yield. Of course, Income & Growth's total return and dividend yield may
be higher or lower than the S&P 500's total return and dividend yield over any
period of time.

EQUITY GROWTH

Equity Growth's investment objective is to seek capital appreciation by
investing in common stocks. Equity Growth is designed for investors whose
financial goals include long-term capital growth. The manager seeks a total
return for Equity Growth that exceeds the total return of the S&P 500. Of
course, Equity Growth's total return may be higher or lower than the S&P 500's
return over any period of time.

RISK FACTORS AND INVESTMENT TECHNIQUES

The manager uses quantitative management strategies in pursuit of each
fund's investment objective. Quantitative management combines two investment
management approaches. The first is to rank stocks based on their relative
attractiveness. The attractiveness of a stock is determined analytically by
using a computer model to combine value and growth measures. Examples of value
measures include price to book and price to cash flow ratios while examples of
growth measures include the rate of growth of a company's earnings and changes
in analysts' earnings estimates.

The second approach is to use a technique referred to as portfolio
optimization. Using a computer the manager constructs a portfolio (i.e., company
names and shares held in each) that seeks the optimal tradeoff between the risk
of the portfolio relative to a benchmark (i.e., the S&P 500) and the expected
return of the portfolio as measured by the stock ranking model. With respect to
the Income & Growth fund, the portfolio optimization includes targeting a
dividend yield that exceeds that of the S&P 500.

A funds' portfolio holdings are drawn primarily from equity securities of
the 1,500 largest companies traded in the United States (ranked by market
capitalization). Equity Growth also may invest in small capitalization stocks of
companies that, in the manager's opinion, have growth potential consistent with
the fund's investment objective.

A fund's investment approach may cause it to be more heavily invested in
some industries than in others. However, neither fund may invest more than 25%
of its total assets in companies whose principal business activities are in the
same industry. In addition, each fund is a "diversified" investment company as
defined in the Investment Company Act of 1940 (the Investment Company Act). This
means that investments in any single issuer are limited by restrictions in the
Investment Company Act.

Each fund may invest in securities or engage in transactions involving
instruments other than equity securities, as discussed in the section titled
"Other Investment Practices, Their Characteristics and Risks," page 8.

PROSPECTUS INFORMATION REGARDING THE FUNDS 7

OTHER INVESTMENT PRACTICES, THEIR
CHARACTERISTICS AND RISKS

For additional information, see "Investment Restrictions" in the Statement
of Additional Information.

PORTFOLIO TURNOVER

The portfolio turnover rates of the funds are shown in the financial
information of this Prospectus.

Investment decisions to purchase and sell securities are based on the
anticipated contribution of the security in question to a fund's objective. The
manager considers the rate of portfolio turnover when it determines a change is
in order to achieve the objective and, accordingly, under normal conditions the
annual portfolio turnover rate is not anticipated to exceed 150%.

The portfolio turnover of a fund may be higher than other mutual funds with
similar investment objectives. Higher turnover would generate correspondingly
greater brokerage commissions that the funds pay directly. Higher portfolio
turnover also may increase the likelihood that the capital gains, if any,
realized and distributed by a fund will include short-term capital gains, which
are taxable as ordinary income. When a security is sold, the manager seeks
whenever possible to minimize the capital gain that would be realized.

CONVERTIBLE SECURITIES

Although the funds' equity investments consist primarily of common stock,
each fund may buy securities convertible into common stock, such as convertible
bonds, convertible preferred stocks and warrants. The manager may purchase these
securities if it believes that a company's convertible securities are
undervalued in the market.

FUTURES CONTRACTS AND OPTIONS THEREON

The funds may buy or sell futures contracts relating to groups of securities
or indices and write or buy put and call options relating to such futures
contracts.

See the Statement of Additional Information for further information about
these instruments and their risks.

SHORT-TERM INSTRUMENTS

For liquidity purposes, each fund may invest in high-quality money market
instruments with remaining maturities of one year or less.

Each fund also may enter into repurchase agreements, collateralized by U.S.
government securities, with banks or broker-dealers that are deemed to present
minimal credit risk. Credit risk determinations are made by the manager pursuant
to guidelines estab-

8 INFORMATION REGARDING THE FUNDS AMERICAN CENTURY INVESTMENT

lished by the Board of Directors. A repurchase agreement involves the purchase
of a security and a simultaneous agreement to sell the security back to the
seller at a higher price. Delays or losses could result if the party to the
agreement defaults or becomes bankrupt.

FOREIGN SECURITIES

Each fund may invest in securities of foreign issuers, including instruments
that trade on domestic or foreign securities exchanges in U.S. dollars or
foreign currencies. Securities of foreign issuers may be affected by the
strength of foreign currencies relative to the U.S. dollar or by political or
economic developments in foreign countries. Foreign companies may not be subject
to accounting standards or governmental regulations comparable to those that
affect U.S. companies, and there may be less public information about their
operations.

OTHER TECHNIQUES

The manager may buy other types of securities or employ other portfolio
management techniques on behalf of the fund including reverse repurchase
agreements. When SEC guidelines require it to do so, the fund will set aside
cash or appropriate liquid assets in a segregated account to cover the fund's
obligations.

PERFORMANCE ADVERTISING

From time to time, the funds may advertise performance data. Fund
performance may be shown by presenting one or more performance measurements,
including cumulative total return or average annual total return and yield.
Performance data may be quoted separately for the Investor Class and for the
other classes.

PROSPECTUS INFORMATION REGARDING THE FUNDS 7

HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS

AMERICAN CENTURY INVESTMENTS

INVESTING IN AMERICAN CENTURY

HOW TO OPEN AN ACCOUNT

You may invest in the following ways:

BY MAIL

Send a completed application and check or money order payable in U.S.
dollars to American Century Investments.

BY WIRE

You may make your initial investment by wiring funds. To do so, call us or
mail a completed application and provide your bank with the following
information:

o RECEIVING BANK AND ROUTING NUMBER:
Commerce Bank, N.A. (101000019)

o BENEFICIARY (BNF):
American Century Services Corporation
4500 Main St., Kansas City, Missouri 64111

o BENEFICIARY ACCOUNT NUMBER (BNF ACCT):
2804918

o REFERENCE FOR BENEFICIARY (RFB):
American Century account number into which you are investing. If more than
one, leave blank and see Bank to Bank Information on the next page.

10 HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS AMERICAN CENTURY INVESTMENTS

o ORIGINATOR TO BENEFICIARY (OBI):
Name and address of owner of account into which you are investing.

o BANK TO BANK INFORMATION
(BBI OR FREE FORM TEXT):

* Taxpayer identification or Social Security
number.

* If more than one account, account numbers and amount to be invested in
each account.

* Current tax year, previous tax year or rollover designation if an IRA.
Specify whether traditional IRA, Roth IRA, Education IRA, SEP-IRA,
SARSEP-IRA, SIMPLE Employer or SIMPLE Employee.

BY EXCHANGE

Call 1-800-345-2021 from 7 a.m. to 7 p.m. Central time to get information on
opening an account by exchanging from another American Century account. See page
12 for more information on exchanges.

IN PERSON

If you prefer to work with a representative in person, please visit one of
our Investor Centers, located at:

4500 Main Street
Kansas City, Missouri 64111

4917 Town Center Drive
Leawood, Kansas 66211

1665 Charleston Road
Mountain View, California 94043

2000 S. Colorado Blvd.
Denver, Colorado 80222

SUBSEQUENT INVESTMENTS

BY MAIL

BY TELEPHONE

BY ONLINE ACCESS

Once your account is open, you may make investments online if you have
authorized us (by choosing "Full Services" on your application) to draw on your
bank account.

BY WIRE

You may make subsequent investments by wire. Follow the wire transfer
instructions on page 10 and indicate your account number.

IN PERSON

You may make subsequent investments in person at one of our Investor
Centers. The locations of our Investor Centers are listed on this page.

AUTOMATIC INVESTMENT PLAN

PROSPECTUS HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS 11

HOW TO EXCHANGE FROM ONE ACCOUNT TO ANOTHER

BY MAIL

You may direct us in writing to exchange your shares from one American
Century account to another. For additional information, please see our Investor
Services Guide.

BY TELEPHONE

You can make exchanges over the telephone (either with an Investor Services
Representative or using our Automated Information Line--see page 13) if you have
authorized us to accept telephone instructions. You can authorize this by
selecting "Full Services" on your application or by calling us at 1-800-345-2021
to get the appropriate form.

BY ONLINE ACCESS

HOW TO REDEEM SHARES

We will redeem or "buy back" your shares at any time. Redemptions will be
made at the next net asset value determined after a complete redemption request
is received.

Please note that a request to redeem shares in an IRA or 403(b) plan must be
accompanied by an executed IRS Form W4-P and a reason for withdrawal as
specified by the IRS.

BY MAIL

BY TELEPHONE

If you have authorized us to accept telephone instructions, you may redeem
your shares by calling an Investor Services Representative.

BY CHECK-A-MONTH

OTHER AUTOMATIC REDEMPTIONS

REDEMPTION PROCEEDS

Redemption proceeds may be sent to you in one of the following ways:

BY CHECK

12 HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS AMERICAN CENTURY INVESTMENTS

BY WIRE AND ACH

You may authorize us to transmit redemption proceeds by wire or ACH. These
services will be effective 15 days after we receive the authorization.

REDEMPTION OF SHARES IN LOW-BALANCE ACCOUNTS

Whenever the shares held in an account have a value of less than the
required minimum, a letter will be sent advising you to either bring the value
of the shares held in the account up to the minimum or to establish an automatic
investment that is the equivalent of at least $50 per month. See "How to Open An
Account," page 10. If action is not taken within 90 days of the letter's date,
the shares held in the account will be redeemed and the proceeds from the
redemption will be sent by check to your address of record. We reserve the right
to increase the investment minimums.

SIGNATURE GUARANTEE

* redeeming more than $25,000; or

* establishing or increasing a Check-A-Month or automatic transfer on an
existing account.

You can obtain a signature guarantee from a bank or trust company, credit
union, broker-dealer, securities exchange or association, clearing agency or
savings association, as defined by federal law.

We reserve the right to require a signature guarantee on any transaction, or
to change this policy at any time.

SPECIAL SHAREHOLDER SERVICES

Our special shareholder services include:

AUTOMATED INFORMATION LINE

ONLINE ACCOUNT ACCESS

OPEN ORDER SERVICE

PROSPECTUS HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS 13

equal to or lower, or the designated sale price equal to or higher, than the
variable-priced fund's net asset value at the time the order is placed. If the
designated price is met within 90 calendar days, we will execute your exchange
order automatically at that price (or better). Open orders not executed within
90 days will be canceled.

TAX-QUALIFIED RETIREMENT PLANS

Each fund is available for your tax-deferred retirement plan. Call or write
us and request the appropriate forms for:

* Individual Retirement Accounts (IRAs);

* 403(b) plans for employees of public school
systems and non-profit organizations; or

* Profit sharing plans and pension plans for corporations and other
employers.

If your IRA and 403(b) accounts do not total $10,000, each account is
subject to an annual $10 fee, up to a total of $30 per year.

You can also transfer your tax-deferred plan to us from another company or
custodian. Call or write us for a Request to Transfer form.

IMPORTANT POLICIES REGARDING YOUR INVESTMENTS

(1) We reserve the right for any reason to suspend the offering of shares for
a period of time, or to reject any specific purchase order (including
purchases by exchange). Additionally, purchases may be refused if, in the
opinion of the manager, they are of a size that would disrupt the
management of the fund.

(2) We reserve the right to make changes to any stated investment
requirements, including those that relate to purchases, transfers and
redemptions. In addition, we also may alter, add to or terminate any
investor services and privileges. Any changes may affect all shareholders
or only certain series or classes of shareholders.

(3) Shares being acquired must be qualified for sale in your state of
residence.

(4) Transactions requesting a specific price and date, other than open orders,
will be refused. Once you have mailed or otherwise transmitted your
transaction instructions to us, they may not be modified or canceled.

(5) If a transaction request is made by a corporation, partnership, trust,
fiduciary, agent or unincorporated association, we will require evidence
satisfactory to us of the authority of the individual making the request.

(6) We have established procedures designed to assure the authenticity of
instructions received by telephone. These procedures include requesting
personal identification from callers, recording telephone calls, and
providing written confirmations of telephone transactions. These
procedures are designed to protect shareholders from unauthorized or
fraudulent instructions. If we do not employ reasonable procedures to
confirm the genuineness of instructions, then we may be liable for losses
due to unauthorized or fraudulent instructions. The company, its transfer
agent and manager will not be responsible for any loss due to instructions
they reasonably believe are genuine.

(7) All signatures should be exactly as the name appears in the registration.
If the owner's name appears in the registration as Mary Elizabeth Jones,
she should sign that way and not as Mary E. Jones.

(8) Unusual stock market conditions have in the past resulted in an increase
in the number of

14 HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS AMERICAN CENTURY INVESTMENTS

shareholder telephone calls. If you experience difficulty in reaching us
during such periods, you may send your transaction instructions by mail,
express mail or courier service, or you may visit one of our Investor
Centers. You also may use our Automated Information Line if you have
requested and received an access code and are not attempting to redeem
shares.

(10) We will perform special inquiries on shareholder accounts. A research fee
of $15 per hour may be applied.

REPORTS TO SHAREHOLDERS

Carefully review all the information relating to transactions on your
statements and confirmations to ensure that your instructions were acted on
properly. Please notify us immediately in writing if there is an error. If you
fail to provide notification of an error with reasonable promptness (i.e.,
within 30 days of non-automatic transactions or within 30 days of the date of
your consolidated quarterly statement, in the case of automatic transactions) we
will deem you to have ratified the transaction.

No later than January 31 of each year, we will send you reports that you may
use in completing your U.S. income tax return. See the Investor Services Guide
for more information.

EMPLOYER-SPONSORED RETIREMENT
PLANS AND INSTITUTIONAL ACCOUNTS

PROSPECTUS HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS 15

ADDITIONAL INFORMATION YOU SHOULD KNOW

SHARE PRICE

WHEN SHARE PRICE IS DETERMINED

The price of your shares is also referred to as their net asset value. Net
asset value is determined by calculating the total value of a fund's assets,
deducting total liabilities and dividing the result by the number of shares
outstanding. For all American Century funds, except funds issued by the American
Century Target Maturities Trust, net asset value is determined as of the close
of regular trading on each day that the New York Stock Exchange is open, usually
3 p.m. Central time. The net asset values for Target Maturities funds are
determined one hour prior to the close of the Exchange.

Investments by telephone pursuant to your prior authorization to us to draw
on your bank account are considered received at the time of your telephone call.

We have contractual relationships with certain financial intermediaries in
which such intermediaries represent that they have systems to track the time at
which investment orders are received and to segregate orders received at
different times. Based on these representations, the funds have authorized such
intermediaries and their designees to accept purchase and redemption orders on
the funds' behalf up to the applicable cut-off time. The funds will be deemed to
have received such orders upon acceptance by the duly authorized intermediary,
and such orders will be priced at the funds' net asset values next determined
after acceptance on the funds' behalf by such intermediary.

HOW SHARE PRICE IS DETERMINED

The valuation of assets for determining net asset value may be summarized as
follows:

The portfolio securities of each fund, except as otherwise noted, listed or
traded on a domestic securities exchange are valued at the last sale price on
that exchange. Portfolio securities primarily traded on foreign securities
exchanges generally are valued at the preceding closing values of such
securities on the exchange where primarily traded. If no sale is reported, or if
local convention or regulation so provides, the mean of the latest bid and asked
prices is used. Depending on local convention or regulation, securities traded
over-the-counter are priced at the mean of the latest bid and asked prices, or
at the last sale price. When market quotations are not readily available,
securities and other assets are valued at fair

16 ADDITIONAL INFORMATION YOU SHOULD KNOW AMERICAN CENTURY INVESTMENT

value as determined in accordance with procedures adopted by the Board of
Directors.

The value of an exchange-traded foreign security is determined in its
national currency as of the close of trading on the foreign exchange on which it
is traded or as of the close of business on the New York Stock Exchange, if that
is earlier. That value is then exchanged to dollars at the prevailing foreign
exchange rate.

Trading in securities on European and Far Eastern securities exchanges and
over-the-counter markets is normally completed at various times before the close
of business on each day that the New York Stock Exchange is open. If an event
were to occur after the value of a security was established but before the net
asset value per share was determined that was likely to materially change the
net asset value, then that security would be valued at fair value as determined
in accordance with procedures adopted by the Board of Directors.

Trading of these securities in foreign markets may not take place on every
New York Stock Exchange business day. In addition, trading may take place in
various foreign markets on Saturdays or on other days when the New York Stock
Exchange is not open and on which a fund's net asset value is not calculated.
Therefore, such calculation does not take place contemporaneously with the
determination of the prices of many of the portfolio securities used in such
calculation, and the value of a fund's portfolio may be affected on days when
shares of the fund may not be purchased or redeemed.

WHERE TO FIND INFORMATION ABOUT SHARE PRICE

The net asset values of the Investor Class of the funds are published in
leading newspapers daily. The net asset values may be obtained by calling us or
by accessing our Web site (www.americancentury.com).

DISTRIBUTIONS

Distributions from net income are declared and paid quarterly. Distributions
from net realized securities gains, if any, generally are declared and paid once
a year, but the fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code, in all events
in a manner consistent with the provisions of the Investment Company Act.

THE OBJECTIVE OF EQUITY GROWTH IS CAPITAL APPRECIATION AND NOT THE
PRODUCTION OF DISTRIBUTIONS. YOU ARE ENCOURAGED TO MEASURE THE SUCCESS OF YOUR
INVESTMENT BY THE VALUE OF YOUR INVESTMENT AT ANY GIVEN TIME AND NOT BY THE
DISTRIBUTIONS YOU RECEIVE.

You will begin to participate in the distributions the day after your
purchase is effective. See "When Share Price Is Determined," page 16. If you
redeem shares, you will receive the distribution declared for the day of the
redemption. If all shares are redeemed, the distribution on the redeemed shares
will be included with your redemption proceeds.

Participants in employer-sponsored retirement or savings plans must reinvest
all distributions. For shareholders investing through taxable accounts,
distributions will be reinvested unless you elect to receive them in cash.
Distributions of less than $10 generally will be reinvested. Distributions made
shortly after a purchase by check or ACH may be held up to 15 days. You may
elect to have distributions on shares held in certain IRAs and 403(b) plans paid
in cash only if you are at least 59-1/2 years old or permanently and totally
disabled. Distribution checks normally are mailed within seven days after the
record date. Please consult our Investor Services Guide for further information
regarding your distribution options.

A distribution on shares of a fund does not increase the value of your
shares or your total return. At any given time the value of your shares includes
the undistributed net gains, if any, realized by the fund on the sale of
portfolio securities, and undistributed dividends and interest received, less
fund expenses.

PROSPECTUS ADDITIONAL INFORMATION YOU SHOULD KNOW 17

TAXES

Each fund has elected to be taxed under Subchapter M of the Internal Revenue
Code, which means that to the extent its income is distributed to shareholders,
it pays no income tax.

TAX-DEFERRED ACCOUNTS

TAXABLE ACCOUNTS

If fund shares are purchased through taxable accounts, distributions of net
investment income and net short-term capital gains are taxable to you as
ordinary income, except as described below. The dividends from net income may
qualify for the 70% dividends received deduction for corporations to the extent
that the fund held shares receiving the dividend for more than 45 days.
Distributions from gains on assets held longer than 12 months but no more than
18 months (28% rate gain) and/or assets held longer than 18 months (20% rate
gain) are taxable as long-term gains regardless of the length of time you have
held the shares. However, you should note that any loss realized upon the sale
or redemption of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain (28% or 20% rate gain) to you with respect to such shares.

If you have not complied with certain provisions of the Internal Revenue
Code and Regulations, we are required by federal law to withhold and remit to
the IRS 31% of reportable payments (which may include dividends, capital gains
distributions and redemptions). Those regulations require you to certify that
the Social Security number or tax identification number you provide is correct
and that you are not subject to 31% withholding for previous under-reporting to
the IRS. You will be asked to make the appropriate certification on your
application. Payments reported by us that omit your Social Security number or
tax identification number will subject us to a penalty of $50, which will be
charged against your account if you fail to provide the certification by the
time the report is filed. This charge is not refundable.

18 ADDITIONAL INFORMATION YOU SHOULD KNOW AMERICAN CENTURY INVESTMENTS

mum rate of 28% if shareholders have held such shares for a period of more than
12 months but no more than 18 months and long-term subject to tax at a maximum
rate of 20% if shareholders have held such shares for a period of more than 18
months. If a loss is realized on the redemption of fund shares, the reinvestment
in additional fund shares within 30 days before or after the redemption may be
subject to the "wash sale" rules of the Internal Revenue Code, resulting in a
postponement of the recognition of such loss for federal income tax purposes.

MANAGEMENT

INVESTMENT MANAGEMENT

The funds are diversified, open-end series of the American Century
Quantitative Equity Funds (the company). Under the laws of the State of
California, the Board of Directors is responsible for managing the business and
affairs of the company. Acting pursuant to an investment management agreement
entered into with the funds, American Century Investment Management, Inc. serves
as the manager of the funds. Its principal place of business is American Century
Tower, 4500 Main Street, Kansas City, Missouri 64111. The manager has been
providing investment advisory services to investment companies and institutional
clients since it was founded in 1958.

The manager supervises and manages the investment portfolio of each fund and
directs the purchase and sale of their investment securities. It utilizes teams
of portfolio managers, assistant portfolio managers and analysts acting together
to manage the assets of the funds. The teams meet regularly to review portfolio
holdings and to discuss purchase and sale activity. The teams adjust holdings in
the funds' portfolios as they deem appropriate in pursuit of the funds'
investment objectives. Individual portfolio manager members of the team also may
adjust portfolio holdings of a fund or of sectors of a fund as necessary between
team meetings.

The portfolio manager members of the teams managing the funds and their work
experience for the last five years are as follows:

JOHN SCHNIEDWIND, Senior Vice President and Group Leader--Quantitative
Equity, joined American Century in 1982, and has been a member of the team that
manages Income & Growth since its inception and has supervised the team that
manages Equity Growth since its inception.

JEFFREY R. TYLER, Senior Vice President and Portfolio Manager, joined
American Century in January 1988 as a Portfolio Manager. Mr. Tyler is a member
of the team that manages Equity Growth.

WILLIAM MARTIN, Vice President and Senior Portfolio Manager, joined the team
managing Equity Growth in May 1997.

For the services provided to the funds, the manager receives a monthly fee
based on a percentage of the average net assets of each fund. The annual rate at
which this fee is assessed is determined monthly in a two-step process. First, a
fee rate schedule is applied to the assets of all of the funds in a fund's
investment category that are managed by the manager (the Investment Category
Fee). The three investment categories are: Money Market Funds, Bond Funds and
Equity Funds. Second, a separate fee rate schedule is applied to the assets of
all of the funds managed by the manager (the Complex Fee). The Investment
Category Fee and the Complex Fee are then added to determine the unified
management fee payable by the fund to the manager. Currently, the Investment
Category Fee for each of the funds is an annual rate of 0.40% of the average net
assets of the fund. The

PROSPECTUS ADDITIONAL INFORMATION YOU SHOULD KNOW 19

Complex Fee is currently an annual rate of 0.30% of the average net assets of a
fund. Further information about the calculation of the annual management fee is
contained in the Statement of Additional Information.

CODE OF ETHICS

The funds and the manager have adopted a Code of Ethics that restricts
personal investing practices by employees of the manager and its affiliates.
Among other provisions, the Code of Ethics requires that employees with access
to information about the purchase or sale of securities in the funds' portfolios
obtain preclearance before executing personal trades. With respect to Portfolio
Managers and other investment personnel, the Code of Ethics prohibits
acquisition of securities in an initial public offering, as well as profits
derived from the purchase and sale of the same security within 60 calendar days.
These provisions are designed to ensure that the interests of fund shareholders
come before the interests of the people who manage those funds.

TRANSFER AND ADMINISTRATIVE SERVICES

American Century Services Corporation, American Century Tower, 4500 Main
Street, Kansas City, Missouri 64111, acts as transfer agent and dividend-paying
agent for the funds. It provides facilities, equipment and personnel to the
funds, and is paid for such services by the manager.

Certain recordkeeping and administrative services that would otherwise be
performed by the transfer agent may be performed by an insurance company or
other entity providing similar services for various retirement plans using
shares of the funds as a funding medium, by broker-dealers and financial
advisors for their customers investing in shares of American Century or by
sponsors of multi mutual fund no- or low-transaction fee programs. The manager
or an affiliate may enter into contracts to pay them for such recordkeeping and
administrative services out of its unified management fee.

Although there is no upfront sales charge levied by the funds, transactions
in shares of the funds may be executed by brokers or investment advisors who
charge a transaction-based fee or other fee for their services. Such charges may
vary among broker-dealers and financial advisors, but in all cases will be
retained by the broker-dealer or financial advisor and not remitted to the funds
or the manager. You should be aware of the fact that these transactions may be
made directly with American Century without incurring such fees.

YEAR 2000 ISSUES

20 ADDITIONAL INFORMATION YOU SHOULD KNOW AMERICAN CENTURY INVESTMENTS

pricing, securities trading and settlement, and the provision of shareholder
services.

The manager will pay for the remediation effort with revenues from its
management fee, so that the funds will not directly bear any of the cost.

In light of these remediation efforts, the funds do not anticipate a
material adverse impact on its business, operations or financial condition
relating to Year 2000 issues. However, there can be no assurance that the
remediation plan will be sufficient and timely or that interaction with other
noncomplying computer systems will not have a material adverse effect on the
funds' business, operations or financial condition.

DISTRIBUTION OF FUND SHARES

The funds' shares are distributed by FDI, a registered broker-dealer. FDI is
a wholly owned, indirect subsidiary of Boston Institutional Group, Inc. FDI's
principal business address is 60 State Street, Suite 1300, Boston, Massachusetts
02109. The Investor Class of shares does not pay any commissions or sales loads
to the other fees to the distributor or to any other broker-dealers or financial
intermediaries in connection with the distribution of fund shares.

FURTHER INFORMATION ABOUT AMERICAN CENTURY

American Century Quantitative Equity Funds is an open-end management
investment company. Its business and affairs are managed by its officers under
the direction of its Board of Directors.

American Century offers three classes of the funds: an Investor Class, an
Institutional Class and an Advisor Class. The shares offered by this Prospectus
are Investor Class shares and have no up-front charges, commissions or 12b-1
fees.

The other classes of shares are primarily offered to institutional investors
or through institutional distribution channels, such as employer-sponsored
retirement plans or through banks, broker-dealers, insurance companies or other
financial intermediaries. The other classes have different fees, expenses,
and/or minimum investment requirements than the Investor Class. The difference
in the fee structures among the classes is the result of their separate
arrangements for shareholder and distribution services and not the result of any
difference in amounts charged by the manager for core investment advisory
services. Accordingly, the core investment advisory expenses do not vary by
class. Different fees and expenses will affect performance. For additional
information concerning the other classes of shares not offered by this
Prospectus, call us at 1-800-345-3533 or contact a sales representative or
financial intermediary who offers those classes of shares.

PROSPECTUS ADDITIONAL INFORMATION YOU SHOULD KNOW 21

voting rights with respect to matters solely affecting such class, (d) each
class may have different exchange privileges, and (e) the Institutional Class
may provide for automatic conversion from that class into shares of the Investor
Class of the same fund.

23 ADDITIONAL INFORMATION YOU SHOULD KNOW AMERICAN CENTURY INVESTMENTS

NOTES

PROSPECTUS NOTES 23

NOTES

24 NOTES

NOTES

PROSPECTUS NOTES 25

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

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

Automated Information Line:
1-800-345-8765

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

Fax: 816-340-7962

www.americancentury.com

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

9804 [recycled logo]
SH-BKT-11920 Recycled
<PAGE>
PROSPECTUS

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

MAY 1, 1998

AMERICAN
CENTURY
GROUP

Income & Growth
Equity Growth

ADVISOR CLASS

AMERICAN CENTURY INVESTMENTS
FAMILY OF FUNDS

AMERICAN CENTURY INVESTMENTS

BENHAM GROUP(reg.tm) AMERICAN CENTURY GROUP TWENTIETH CENTURY GROUP

MONEY MARKET FUNDS ASSET ALLOCATION &
GOVERNMENT BOND FUNDS BALANCED FUNDS GROWTH FUNDS
DIVERSIFIED BOND FUNDS CONSERVATIVE EQUITY FUNDS INTERNATIONAL FUNDS
MUNICIPAL BOND FUNDS SPECIALTY FUNDS

Income & Growth
Equity Growth

PROSPECTUS
MAY 1, 1998

Income & Growth
Equity Growth

ADVISOR CLASS

AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS

American Century Quantitative Equity Funds is a part of American Century
Investments, a family of funds that includes nearly 70 no-load and low-load
mutual funds covering a variety of investment opportunities. Two of the funds
from our American Century Group that seek capital appreciation are described in
this Prospectus. Their investment objectives are listed on page 2 of this
Prospectus. The other funds are described in separate prospectuses.

Each fund's shares offered in this Prospectus (the Advisor Class shares) are
sold at their net asset value with no sales charges or commissions. The Advisor
Class shares are subject to Rule 12b-1 shareholder services and distribution
fees as described in this Prospectus.

This Prospectus gives you information about the funds that you should know
before investing. Please read this Prospectus carefully and retain it for future
reference. Additional information is included in the Statement of Additional
Information dated May 1, 1998, and filed with the Securities and Exchange
Commission. It is incorporated into this Prospectus by reference. To obtain a
copy without charge, call or write:

AMERICAN CENTURY INVESTMENTS
4500 Main Street * P.O. Box 419385
Kansas City, Missouri 64141-6385 o 1-800-345-3533
International calls: 816-531-5575
Telecommunications Device for the Deaf:
1-800-345-1833 o In Missouri: 816-444-3038
www.americancentury.com

Additional information, including this Prospectus and the Statement of
Additional Information, may be obtained by accessing the Web site maintained by
the SEC (www.sec.gov).

PROSPECTUS 1

INVESTMENT OBJECTIVES OF THE FUNDS

AMERICAN CENTURY INCOME & GROWTH FUND

Income & Growth seeks dividend growth, current income and capital
appreciation by investing in common stocks.

AMERICAN CENTURY EQUITY GROWTH FUND

Equity Growth seeks capital appreciation by investing in common stocks.

There is no assurance that the funds will achieve
their respective investment objectives.

2 INVESTMENT OBJECTIVES AMERICAN CENTURY INVESTMENTS

TABLE OF CONTENTS

INFORMATION REGARDING THE FUNDS

Investment Policies of the Funds ........................................... 9
Income & Growth ......................................................... 9
Equity Growth ........................................................... 9
Risk Factors and Investment Techniques ..................................... 9
Other Investment Practices, Their Characteristics
and Risks ............................................................... 10
Portfolio Turnover ...................................................... 10
Convertible Securities .................................................. 10
Futures Contracts
and Options Thereon ............................................. 10
Short-Term Instruments ............................................... 10
Foreign Securities ................................................... 11
Other Techniques ..................................................... 11
Performance Advertising .................................................... 11

HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS

How to Purchase
and Sell American Century Funds ......................................... 12
How to Exchange from
One American Century Fund to Another .................................... 12
How to Redeem Shares ....................................................... 12
Telephone Services ......................................................... 12
Investors Line .................................................. 12

ADDITIONAL INFORMATION YOU SHOULD KNOW

Share Price ................................................................ 13
When Share Price Is Determined .......................................... 13
How Share Price Is Determined ........................................... 13
Where to Find Information About Share Price ............................. 14
Distributions .............................................................. 14
Taxes ...................................................................... 15
Tax-Deferred Accounts ................................................... 15
Taxable Accounts ........................................................ 15
Management ................................................................. 16
Investment Management ................................................... 16
Code of Ethics .......................................................... 17
Transfer and Administrative Services .................................... 17
Year 2000 Issues ........................................................ 17
Distribution of Fund Shares ................................................ 18
Service and Distribution Fees ........................................... 18
Further Information About American Century ................................. 18

PROSPECTUS TABLE OF CONTENTS 3

TRANSACTION AND OPERATING EXPENSE TABLE

Income & Growth Equity Growth

SHAREHOLDER TRANSACTION EXPENSES:

Maximum Sales Load
Imposed on Purchases ........................ none none

Maximum Sales Load Imposed
on Reinvested Dividends ..................... none none

Deferred Sales Load ......................... none none

Redemption Fee .............................. none none

Exchange Fee ................................ none none

ANNUAL FUND OPERATING EXPENSES:
(as a percentage of net assets)

Management Fees(1). ......................... 0.45% 0.45%

12b-1 Fees(2) ............................... 0.50% 0.50%

Other Expenses. ............................. 0.01% 0.01%

Total Fund Operating Expenses. .............. 0.96% 0.96%

EXAMPLE

You would pay the following expenses on a 1 year $ 10 $ 10
$1,000 investment, assuming a 5% annual return and 3 years 31 31
redemption at the end of each time period: 5 years 53 53
10 years 118 118

(1) A portion of the management fee may be paid by American Century Investment
Management, Inc. to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of
the manager. See "Management -- Transfer and Administrative Services," page
17.

(2) The 12b-1 fee is designed to permit investors to purchase Advisor Class
shares through broker-dealers, banks, insurance companies and other financial
intermediaries. A portion of the fee is used to compensate them for ongoing
recordkeeping and administrative services that would otherwise be performed by
an affiliate of the manager, and a portion is used to compensate them for
distribution and other shareholder services. See "Service and Distribution
Fees," page 18.

The shares offered by this Prospectus are Advisor Class shares. The funds
offer two other classes of shares, one of which is primarily made available to
retail investors and one that is primarily made available to institutional
investors. The other classes have different fee structures than the Advisor
Class. The difference in the fee structures among the classes is the result of
their separate arrangements for shareholder and distribution services and not
the result of any difference in amounts charged by the manager for core
investment advisory services. Accordingly, the core investment advisory expenses
do not vary by class. A difference in fees will result in different performance
for the other classes. For additional information about the various classes, see
"Further Information About American Century," page 18.

4 TRANSACTION AND OPERATING EXPENSE TABLE AMERICAN CENTURY INVESTMENTS

FINANCIAL HIGHLIGHTS

INCOME & GROWTH

The sale of the Advisor Class of the fund commenced on December 15, 1997.
Performance information of the original class of shares, which commenced
operations on December 17, 1990, is presented on page 7.

The Financial Highlights for the period presented have been audited by Coopers
& Lybrand, L.L.P., independent accountants, whose report thereon appears in the
fund's annual report, which is incorporated by reference into the Statement of
Additional Information. The annual report contains additional performance
information and will be made available upon request and without charge. The
information presented is for a share outstanding throughout the years ended
December 31.

1997(1)

PER-SHARE DATA

Net Asset Value,
Beginning of Period ......................................... $ 26.36
-----------
Income From Investment Operations

Net Investment Income ..................................... 0.01(2)
-----------
Net Realized and Unrealized
Gain on Investment Transactions ........................... 0.25
-----------
Total From Investment Operations .......................... 0.26
-----------
Distributions

From Net Investment Income ................................ (0.03)

From Net Realized Gains
on Investment Transactions ................................ (2.29)
-----------
Total Distributions ....................................... (2.32)
-----------
Net Asset Value, End of Period .............................. $ 24.30
===========
Total Return(3) ............................................. 1.28%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses to Average Net Assets ........... 0.94(4)

Ratio of Net Investment Income to Average Net Assets ........ 1.22(4)

Portfolio Turnover Rate ..................................... 102%

Average Commission Paid per Share of
Equity Security Traded ...................................... $ 0.0443

Net Assets, End of Period (in thousands) .................... $ 3,720
- ----------

(1) December 15, 1997 (commencement of sale) through December 31, 1997.

(2) Computed using average shares outstanding throughout the period.

(3) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.

(4) Annualized.

PROSPECTUS FINANCIAL HIGHLIGHTS 5

FINANCIAL HIGHLIGHTS

EQUITY GROWTH

The sale of the Advisor Class of the fund commenced on October 9, 1997.
Performance information of the original class of shares, which commenced
operations on May 9, 1991, is presented on page 8.

1997(1)

PER-SHARE DATA

Net Asset Value, Beginning of Period ........................... $ 21.61
---------
Income From Investment Operations

Net Investment Income ........................................ 0.05(2)

Net Realized and Unrealized Loss on Investment Transactions .. (0.25)
---------
Total From Investment Operations ............................. (0.20)
---------
Distributions

From Net Investment Income ................................... (0.06)

From Net Realized Gains on Investment Transactions ........... (2.31)
---------
Total Distributions .......................................... (2.37)
---------
Net Asset Value, End of Period ................................. $ 19.04
=========
Total Return(3) ................................................ (0.50)%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses to Average Net Assets .............. 0.94(4)

Ratio of Net Investment Income to Average Net Assets ........... 1.14(4)

Portfolio Turnover Rate ........................................ 161%

Average Commission Paid per Share of Equity Security Traded .... $ 0.0441

Net Assets, End of Period (in thousands) ....................... $ 553
- ----------

(1) October 9, 1997 (commencement of sale) through December 31, 1997.

(2) Computed using average shares outstanding throughout the period.

(3) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.

(4) Annualized.

6 FINANCIAL HIGHLIGHTS AMERICAN CENTURY INVESTMENTS

<TABLE>
<CAPTION>
PERFORMANCE INFORMATION OF OTHER CLASS

INCOME & GROWTH

1997 1996 1995 1994 1993 1992 1991 1990(1)
PER-SHARE DATA

Net Asset Value,
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Beginning of Period ............ $20.16 $17.81 $13.92 $15.08 $14.11 $13.53 $10.12 $10.00
------- ------ ------ ------ ------ ------ ------ ------
Income From
Investment Operations

Net Investment Income ....... 0.43(2) 0.44 0.42 0.44 0.43 0.42 0.48 0.01

Net Realized and
Unrealized Gain
(Loss) on Investment
Transactions ................ 6.40 3.79 4.64 (0.53) 1.15 0.62 3.56 0.12
------- ------ ------ ------ ------ ------ ------ ------
Total From
Investment Operations ....... 6.83 4.23 5.06 (0.09) 1.58 1.04 4.04 0.13
------- ------ ------ ------ ------ ------ ------ ------
Distributions

From Net Investment Income .. (0.39) (0.44) (0.42) (0.43) (0.43) (0.41) (0.47) (0.01)

From Net Realized Gains on
Investment Transactions ..... (2.29) (1.44) (0.75) (0.64) (0.18) (0.05) (0.16) --
------- ------ ------ ------ ------ ------ ------ ------
Total Distributions ......... (2.68) (1.88) (1.17) (1.07) (0.61) (0.46) (0.63) (0.01)
------- ------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Period . $24.31 $20.16 $17.81 $13.92 $15.08 $14.11 $13.53 $10.12
======= ====== ====== ====== ====== ====== ====== ======
Total Return(3) ............. 34.52% 24.15% 36.88% (0.55)% 11.31% 7.86% 39.08% 1.29%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating
Expenses to Average
Net Assets .................... 0.65% 0.62% 0.67% 0.73% 0.75% 0.75% 0.50% --

Ratio of Net
Investment Income
to Average Net Assets ....... 1.81% 2.32% 2.61% 2.96% 2.90% 3.16% 4.03% 2.09%(4)

Portfolio Turnover Rate ..... 102% 92% 70% 68% 31% 63% 140% --

Average Commission
Paid per Share of
Equity Security Traded ...... $0.0443 $0.0389 $0.0300 --(5) --(5) --(5) --(5) --(5)

Net Assets,
End of Period
(in thousands) .............$1,795,124 $717,695 $373,701 $224,939 $230,191 $141,221 $59,318 $991
- ----------

(1) December 17, 1990 (inception), through December 31, 1990.

(2) Computed using average shares outstanding throughout the period.

(3) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.

(4) Annualized.

(5) Disclosure of average commission paid per share of equity security traded
was not required prior to the year ended December 31, 1995.
</TABLE>

PROSPECTUS PERFORMANCE INFORMATION OF OTHER CLASS 7

<TABLE>
<CAPTION>
PERFORMANCE INFORMATION OF OTHER CLASS

EQUITY GROWTH

1997 1996 1995 1994 1993 1992 1991(1)

PER-SHARE DATA

<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ............ $15.96 $14.25 $11.53 $12.12 $11.68 $11.57 $10.00
------ ------ ------ ------ ------ ------ ------
Income From Investment Operations

Net Investment Income ......................... 0.27(2) 0.27 0.26 0.30 0.23 0.26 0.34

Net Realized and Unrealized Gain
(Loss) on Investment Transactions ............. 5.36 3.55 3.70 (0.33) 1.10 0.23 1.65
------ ------ ------ ------ ------ ------ ------
Total From Investment Operations .............. 5.63 3.82 3.96 (0.03) 1.33 0.49 1.99
------ ------ ------ ------ ------ ------ ------
Distributions

From Net Investment Income .................... (0.24) (0.26) (0.23) (0.30) (0.23) (0.23) (0.29)

From Net Realized Capital Gains
on Investment Transactions .................... (2.31) (1.85) (1.01) (0.26) (0.66) (0.15) (0.13)
------ ------ ------ ------ ------ ------ ------
Total Distributions ........................... (2.55) (2.11) (1.24) (0.56) (0.89) (0.38) (0.42)
------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Period .................. $19.04 $15.96 $14.25 $11.53 $12.12 $11.68 $11.57
====== ====== ====== ====== ====== ====== ======
Total Return(3) ............................... 36.06% 27.34% 34.56% (0.23)% 11.42% 4.13% 17.48%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses
to Average Net Assets ......................... 0.67% 0.63% 0.71% 0.75% 0.75% 0.75% 0.35%(4)

Ratio of Net Investment Income
to Average Net Assets ......................... 1.39% 1.74% 1.96% 2.26% 2.04% 2.33% 3.29%(4)

Portfolio Turnover Rate ....................... 161% 131% 126% 94% 97% 114% 89%

Average Commission Paid per
Share of Equity Security Traded ............... $0.0441 $0.0385 $0.0320 --(5) --(5) --(5) --(5)

Net Assets, End of Period (in thousands) ...... $773,425 $274,433 $159,450 $97,437 $96,284 $73,592 $38,951
- ----------

(1) May 9, 1991 (inception), through December 31, 1991.

(2) Computed using average shares outstanding throughout the period.

(3) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.

(4) Annualized.

(5) Disclosure of average commission paid per share of equity security traded
was not required prior to the year ended December 31, 1995.
</TABLE>

8 PERFORMANCE INFORMATION OF OTHER CLASS AMERICAN CENTURY INVESTMENTS

INFORMATION REGARDING THE FUNDS

INVESTMENT POLICIES OF THE FUNDS

INCOME & GROWTH

Income & Growth's investment objective is to seek dividend growth, current
income, and capital appreciation by investing in common stocks.

EQUITY GROWTH

RISK FACTORS AND INVESTMENT TECHNIQUES

The second approach is to use a technique referred to as portfolio
optimization. Using a computer, the manager constructs a portfolio (i.e.,
company names and shares held in each) that seeks the optimal tradeoff between
the risk of the portfolio relative to a benchmark (i.e., the S&P 500) and the
expected return of the portfolio as measured by the stock ranking model. With
respect to the Income & Growth fund, the portfolio optimization includes
targeting a dividend yield that exceeds that of the S&P 500.

The funds' portfolio holdings are drawn primarily from equity securities of
the 1,500 largest companies traded in the United States (ranked by market
capitalization). Equity Growth also may invest in small capitalization stocks of
companies that, in the manager's opinion, have growth potential consistent with
the fund's investment objective.

PROSPECTUS INFORMATION REGARDING THE FUNDS 9

OTHER INVESTMENT PRACTICES, THEIR
CHARACTERISTICS AND RISKS

For additional information, see "Investment Restrictions" in the Statement
of Additional Information.

PORTFOLIO TURNOVER

The portfolio turnover rates of the funds are shown in the financial
information of this Prospectus.

Investment decisions to purchase and sell securities are based on the
anticipated contribution of the security in question to a fund's objective. The
manager considers the rate of portfolio turnover when it determines a change is
in order to achieve the objective and accordingly, under normal conditions the
annual portfolio turnover rate is not anticipated to exceed 150%.

CONVERTIBLE SECURITIES

Although the funds' equity investments consist primarily of common stock,
each fund may buy securities convertible into common stock, such as convertible
bonds, convertible preferred stocks, and warrants. The manager may purchase
these securities if it believes that a company's convertible securities are
undervalued in the market.

FUTURES CONTRACTS AND OPTIONS THEREON

The funds may buy or sell futures contracts relating to groups of securities
or indices and write or buy put and call options relating to such futures
contracts.

See the Statement of Additional Information for further information about
these instruments and their risks.

SHORT-TERM INSTRUMENTS

For liquidity purposes, each fund may invest in high-quality money market
instruments with remaining maturities of one year or less.

10 INFORMATION REGARDING THE FUNDS AMERICAN CENTURY INVESTMENTS

Board of Directors. A repurchase agreement involves the purchase of a security
and a simultaneous agreement to sell the security back to the seller at a higher
price. Delays or losses could result if the party to the agreement defaults or
becomes bankrupt.

FOREIGN SECURITIES

OTHER TECHNIQUES

PERFORMANCE ADVERTISING

From time to time, the funds may advertise performance data. Fund
performance may be shown by presenting one or more performance measurements,
including cumulative total return or average annual total return, yield and
effective yield. Performance data may be quoted separately for the Investor
Class and for the other class.

PROSPECTUS INFORMATION REGARDING THE FUNDS 11

HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS

The following section explains how to purchase, exchange and redeem Advisor
Class shares of the funds offered by this Prospectus.

HOW TO PURCHASE AND SELL AMERICAN CENTURY FUNDS

One or more of the funds offered by this Prospectus is available as an
investment option under your employer-sponsored retirement or savings plan or
through or in connection with a program, product or service offered by a
financial intermediary, such as a bank, broker-dealer or insurance company.
Because all records of your share ownership are maintained by your plan sponsor,
plan recordkeeper, or other financial intermediary, all orders to purchase,
exchange and redeem shares must be made through your employer or other financial
intermediary, as applicable.

If you are purchasing through a financial intermediary, you should contact
your service representative at the financial intermediary for information about
how to select American Century funds.

If you have questions about a fund, see "Investment Policies of the Funds,"
page 9, or call one of our Institutional Service Representatives at
1-800-345-3533.

Orders to purchase shares are effective on the day we receive payment. See
"When Share Price Is Determined," page 13.

We may discontinue offering shares generally in the funds (including any
class of shares of a fund) or in any particular state without notice to
shareholders.

HOW TO EXCHANGE FROM ONE AMERICAN CENTURY
FUND TO ANOTHER

HOW TO REDEEM SHARES

Subject to any restrictions imposed by your employer's plan or financial
intermediary's program, you can sell (redeem) your shares at their net asset
value through the plan or financial intermediary. Your plan administrator,
trustee, financial intermediary or other designated person must provide us with
redemption instructions. The shares will be redeemed at the net asset value next
computed after receipt of the instructions in good order. See "When Share Price
Is Determined," page 13. If you have any questions about how to redeem, contact
your plan administrator, employee benefits office, or service representative at
your financial intermediary, as applicable.

TELEPHONE SERVICES

INVESTORS LINE

12 HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS AMERICAN CENTURY INVESTMENTS

ADDITIONAL INFORMATION YOU SHOULD KNOW

SHARE PRICE

WHEN SHARE PRICE IS DETERMINED

Investments by telephone pursuant to your prior authorization to us to draw
on your bank account are considered received at the time of your telephone call.

Investment and transaction instructions received by us on any business day
by mail prior to the time as of which the net asset value of the fund is
determined, will receive that day's price. Investments and instructions received
after that time will receive the price determined on the next business day.

HOW SHARE PRICE IS DETERMINED

The valuation of assets for determining net asset value may be summarized as
follows:

The portfolio securities of each fund, except as otherwise noted, listed or
traded on a domestic securities exchange are valued at the last sale price on
that exchange. Portfolio securities primarily traded on foreign securities
exchanges generally are valued at the preceding closing values of such
securities on the exchange where primarily traded. If no sale is reported, or if
local convention or regulation so provides, the mean of the latest bid and asked
prices is used. Depending on local convention or regulation, securities traded
over-the-counter are priced at the mean of the latest bid and asked prices, or
at the last sale price. When market quotations are not readily available,
securities and other assets are valued at fair

PROSPECTUS ADDITIONAL INFORMATION YOU SHOULD KNOW 13

value as determined in accordance with procedures adopted by the Board of
Directors.

Trading of these securities in foreign markets may not take place on every
New York Stock Exchange business day. In addition, trading may take place in
various foreign markets on Saturdays or on other days when the New York Stock
Exchange is not open and on which a fund's net asset value is not calculated.
Therefore, such calculation does not take place contemporaneously with the
determination of the prices of many of the portfolio securities used in such
calculation and the value of a fund's portfolio may be affected on days when
shares of the fund may not be purchased or redeemed.

WHERE TO FIND INFORMATION ABOUT SHARE PRICE

DISTRIBUTIONS

Distributions from net income will be declared and paid quarterly.
Distributions from net realized securities gains, if any, generally are declared
and paid once a year, but the fund may make distributions on a more frequent
basis to comply with the distribution requirements of the Internal Revenue Code,
in all events in a manner consistent with the provisions of the Investment
Company Act.

You will begin to participate in the distributions the day after your
purchase is effective. See "When Share Price Is Determined," page 13. If you
redeem shares, you will receive the distribution declared for the day of the
redemption. If all shares are redeemed, the distribution on the redeemed shares
will be included with your redemption proceeds.

Participants in employer-sponsored retirement or savings plans must reinvest
all distributions. For shareholders investing through taxable accounts,
distributions will be reinvested unless you elect to receive them in cash.
Distributions of less than $10 generally will be reinvested. Distributions made
shortly after a purchase by check or ACH may be held up to 15 days. You may
elect to have distributions on shares held in certain IRAs and 403(b) plans paid
in cash only if you are at least 59-1/2 years old or permanently and totally
disabled. Distribution checks normally are mailed within seven days after the
record date. Please consult our Investor Services Guide for further information
regarding your distribution options.

Because such gains and dividends are included in the price of your shares,
when they are distributed the price of your shares is reduced by the amount of

14 ADDITIONAL INFORMATION YOU SHOULD KNOW AMERICAN CENTURY INVESTMENTS

the distribution. If you buy your shares through a taxable account just before
the distribution, you will pay the full price for your shares, and then receive
a portion of the purchase price back as a taxable distribution. See "Taxes,"
this page.

TAXES

Each fund has elected to be taxed under Subchapter M of the Internal Revenue
Code, which means that to the extent its income is distributed to shareholders,
it pays no income tax.

TAX-DEFERRED ACCOUNTS

TAXABLE ACCOUNTS

If you have not complied with certain provisions of the Internal Revenue
Code and Regulations, we or your financial intermediary are required by federal
law to withhold and remit to the IRS 31% of reportable payments (which may
include dividends, capital gains distributions and redemptions). Those
regulations require you to certify that the Social Security number or tax
identification number you provide is correct and that you are not subject to 31%
withholding for previous under-reporting to the IRS. You will be asked to make
the appropriate certification on your application. Payments reported by us that
omit your Social Security number or tax identification number will subject us to
a penalty of $50, which will be charged against your account if you fail to
provide the certification by the time the report is filed. This charge is not
refundable.

Redemption of shares of a fund (including redemptions made in an exchange
transaction) will be a taxable transaction for federal income tax purposes, and

PROSPECTUS ADDITIONAL INFORMATION YOU SHOULD KNOW 15

shareholders generally will recognize a gain or loss in an amount equal to the
difference between the basis of the shares and the amount received. Assuming
that shareholders hold such shares as a capital asset, the gain or loss will be
a capital gain or loss and generally will be considered long-term subject to tax
at a maximum rate of 28% if shareholders have held such shares for a period of
more than 12 months but no more than 18 months and long-term subject to tax at a
maximum rate of 20% if shareholders have held such shares for a period of more
than 18 months. If a loss is realized on the redemption of fund shares, the
reinvestment in additional fund shares within 30 days before or after the
redemption may be subject to the "wash sale" rules of the Internal Revenue Code,
resulting in a postponement of the recognition of such loss for federal income
tax purposes.

MANAGEMENT

INVESTMENT MANAGEMENT

The manager supervises and manages the investment portfolio of each fund and
directs the purchase and sale of their investment securities. It utilizes teams
of portfolio managers, assistant portfolio managers and analysts acting together
to manage the assets of the funds. The teams meet regularly to review portfolio
holdings and to discuss purchase and sale activity. The teams adjust holdings in
the funds' portfolios as they deem appropriate in pursuit of the funds'
investment objectives. Individual portfolio manager members of the team also may
adjust portfolio holdings of a fund or of sectors of a fund as necessary between
team meetings.

The portfolio manager members of the teams managing the funds and their work
experience for the last five years are as follows:

JEFFREY R. TYLER, Senior Vice President and Portfolio Manager, joined
American Century in January 1988 as a Portfolio Manager. Mr. Tyler is a member
of the team that manages Equity Growth.

WILLIAM MARTIN, Vice President and Senior Portfolio Manager, joined the team
managing Equity Growth in May 1997.

16 ADDITIONAL INFORMATION YOU SHOULD KNOW AMERICAN CENTURY INVESTMENTS

applied to the assets of all of the funds managed by the manager (the Complex
Fee). The Investment Category Fee and the Complex Fee are then added to
determine the unified management fee payable by the fund to the manager.
Currently, the Investment Category Fee for each of the funds is an annual rate
of 0.40% of the average net assets of the fund. The Complex Fee is currently an
annual rate of 0.05% of the average net assets of a fund. Further information
about the calculation of the annual management fee is contained in the Statement
of Additional Information.

CODE OF ETHICS

TRANSFER AND ADMINISTRATIVE SERVICES

American Century Services Corporation, American Century Tower 4500 Main
Street, Kansas City, Missouri 64111, acts as transfer agent and dividend-paying
agent for the funds. It provides facilities, equipment and personnel to the
funds, and is paid for such services by the manager.

Pursuant to a Sub-Administration Agreement with the manager, Funds
Distributor Inc. (FDI) serves as the co-administrator for the funds. FDI is
responsible for (i) providing certain officers of the funds and (ii) reviewing
and filing marketing and sales literature on behalf of the funds. The fees and
expenses of FDI are paid by the manager.

YEAR 2000 ISSUES

PROSPECTUS ADDITIONAL INFORMATION YOU SHOULD KNOW 17

The manager will pay for the remediation effort with revenues from its
management fee, so that the funds will not directly bear any of the cost.

DISTRIBUTION OF FUND SHARES

The funds' shares are distributed by FDI, a registered broker-dealer. FDI is
a wholly owned, indirect subsidiary of Boston Institutional Group, Inc. FDI's
principal business address is 60 State Street, Suite 1300, Boston, Massachusetts
02109. As agent for the funds and the manager, the distributor enters into
contracts with various banks, broker-dealers, insurance companies and other
financial intermediaries with respect to the sale of the funds' shares and/or
the use of the funds' shares in various financial services. The manager (or an
affiliate) pays all expenses incurred in promoting sales of, and distributing,
the Advisor Class and in securing such services out of the Rule 12b-1 fees
described in the section that follows.

SERVICE AND DISTRIBUTION FEES

Rule 12b-1 adopted by the SEC under the Investment Company Act permits
investment companies that adopt a written plan to pay certain expenses
associated with the distribution of their shares. Pursuant to that rule, the
funds' Board of Directors and the initial shareholder of the funds' Advisor
Class shares have approved and entered into a Master Distribution and
Shareholder Services Plan (the Plan) with the distributor. Pursuant to the Plan,
each fund pays a shareholder services fee and a distribution fee, each equal to
0.25% (for a total of 0.50%) per annum of the average daily net assets of the
shares of the fund's Advisor Class. The shareholder services fee is paid for the
purpose of paying the costs of securing certain shareholder and administrative
services, and the distribution fee is paid for the purpose of paying the costs
of providing various distribution services. All or a portion of such fees are
paid by the manager, as paying agent for the funds, to the banks,
broker-dealers, insurance companies or other financial intermediaries through
which such shares are made available.

The Plan has been adopted and will be administered in accordance with the
requirements of Rule 12b-1 under the Investment Company Act. For additional
information about the Plan and its terms, see "Multiple Class Structure - Master
Distribution and Shareholder Services Plan" in the Statement of Additional
Information. Fees paid pursuant to the Plan may be paid for shareholder services
and the maintenance of accounts and therefore may constitute "service fees" for
purposes of applicable rules of the National Association of Securities Dealers.

FURTHER INFORMATION ABOUT AMERICAN CENTURY

American Century Quantitative Equity Funds is an open-end management
investment company. Its business and affairs are managed by its officers under
the direction of its Board of Directors.

American Century offers three classes of each of the funds offered by this
Prospectus: an Investor Class, an Institutional Class and an Advisor Class. The
shares offered by this Prospectus are Advisor Class shares.

The Investor Class is primarily made available to retail investors. The
Institutional Class is primarily offered to institutional investors or through

18 ADDITIONAL INFORMATION YOU SHOULD KNOW AMERICAN CENTURY INVESTMENTS

institutional distribution channels, such as employer-sponsored retirement plans
or through banks, broker- dealers, insurance companies or other financial
intermediaries. The other classes have different fees, expenses, and/or minimum
investment requirements than the Advisor Class. The difference in the fee
structures among the classes is the result of their separate arrangements for
shareholder and distribution services and not the result of any difference in
amounts charged by the manager for core investment advisory services.
Accordingly, the core investment advisory expenses do not vary by class.
Different fees and expenses will affect performance. For additional information
concerning the other classes of shares not offered by this Prospectus, call us
at 1-800-345-3533 or contact a sales representative or financial intermediary
who offers those classes of shares.

Except as described below, all classes of shares of a fund have identical
voting, dividend, liquidation and other rights, preferences, terms and
conditions. The only differences among the various classes are (a) each class
may be subject to different expenses specific to that class, (b) each class has
a different identifying designation or name, (c) each class has exclusive voting
rights with respect to matters solely affecting such class, (d) each class may
have different exchange privileges, and (e) the Institutional Class may provide
for automatic conversion from that class into shares of the Investor Class of
the same fund.

PROSPECTUS ADDITIONAL INFORMATION YOU SHOULD KNOW 19

NOTES

20 NOTES

NOTES

PROSPECTUS NOTES 21

P.O. Box 419385
Kansas City, Missouri
64141-6385

Institutional Services:
1-800-345-3533 or 816-531-5575

Telecommunications Device for the Deaf:
1-800-345-1833 or 816-444-3038

Fax: 816-340-4655

www.americancentury.com

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

9804 [recycled logo]
SH-BKT-11925 Recycled
<PAGE>
PROSPECTUS

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

MAY 1, 1998

AMERICAN
CENTURY
GROUP

Income & Growth
Equity Growth

INSTITUTIONAL CLASS

AMERICAN CENTURY INVESTMENTS
FAMILY OF FUNDS

AMERICAN CENTURY INVESTMENTS

BENHAM GROUP(reg.tm) AMERICAN CENTURY GROUP TWENTIETH CENTURY GROUP

MONEY MARKET FUNDS ASSET ALLOCATION &
GOVERNMENT BOND FUNDS BALANCED FUNDS GROWTH FUNDS
DIVERSIFIED BOND FUNDS CONSERVATIVE EQUITY FUNDS INTERNATIONAL FUNDS
MUNICIPAL BOND FUNDS SPECIALTY FUNDS

Income & Growth
Equity Growth

PROSPECTUS
MAY 1, 1998

Income & Growth
Equity Growth

INSTITUTIONAL CLASS

AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS

American Century Quantitative Equity Funds is a part of American Century
Investments, a family of funds that includes nearly 70 no-load mutual funds
covering a variety of investment opportunities. Two of the funds from our
American Century Group that seek capital appreciation are described in this
Prospectus. Their investment objectives are listed on page 2 of this Prospectus.
The other funds are described in separate prospectuses.

Each fund's shares offered in this Prospectus (the Institutional Class
shares) are sold at their net asset value with no sales charges or commissions.

The Institutional Class shares are made available for purchase by large
institutional shareholders, such as bank trust departments, corporations,
endowments, foundations and financial advisors that meet the funds' minimum
investment requirements. Institutional Class shares are not available for
purchase by insurance companies or participant-directed employer-sponsored
retirement plans.

This Prospectus gives you information about the funds that you should know
before investing. Please read this Prospectus carefully and retain it for future
reference. Additional information is included in the Statement of Additional
Information dated May 1, 1998, and filed with the Securities and Exchange
Commission. It is incorporated into this Prospectus by reference. To obtain a
copy without charge, call or write:

AMERICAN CENTURY INVESTMENTS
4500 Main Street o P.O. Box 419385
Kansas City, Missouri 64141-6385 o 1-800-345-3533
International calls: 816-531-5575
Telecommunications Device for the Deaf:
1-800-345-1833 o In Missouri: 816-444-3038
www.americancentury.com

Additional information, including this Prospectus and the Statement of
Additional Information, may be obtained by accessing the Web site maintained by
the SEC (www.sec.gov).

PROSPECTUS 1

INVESTMENT OBJECTIVES OF THE FUNDS

AMERICAN CENTURY INCOME & GROWTH FUND

Income & Growth seeks dividend growth, current income and capital
appreciation by investing in common stocks.

AMERICAN CENTURY EQUITY GROWTH FUND

Equity Growth seeks capital appreciation by investing in common stocks.

There is no assurance that the funds will achieve
their respective investment objectives.

2 INVESTMENT OBJECTIVES AMERICAN CENTURY INVESTMENTS

TABLE OF CONTENTS

Investment Objectives of the Funds ......................................... 2
Transaction and Operating Expense Table .................................... 4
Performance Information of Other Class ..................................... 5

INFORMATION REGARDING THE FUNDS

Investment Policies of the Funds ........................................... 7
Income & Growth ......................................................... 7
Equity Growth ........................................................... 7
Risk Factors and Investment Techniques ..................................... 7
Other Investment Practices, Their Characteristics
and Risks ............................................................... 8
Portfolio Turnover ...................................................... 8
Convertible Securities .................................................. 8
Futures Contracts
and Options Thereon ............................................... 8
Short-Term Instruments ............................................... 8
Foreign Securities ................................................... 9
Other Techniques ..................................................... 9
Performance Advertising .................................................... 9

HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS

American Century Investments ............................................... 10
Investing in American Century .............................................. 10
How to Open an Account ..................................................... 10
By Mail ......................................................... 10
By Wire ......................................................... 10
By Exchange ..................................................... 10
In Person ....................................................... 11
Subsequent Investments ............................................... 11
By Mail ......................................................... 11
By Telephone .................................................... 11
By Wire ......................................................... 11
In Person ....................................................... 11
Automatic Investment Plan ............................................ 11

Minimum Investment ......................................................... 11
How to Exchange from One Account to Another ................................ 11
By Mail ......................................................... 12
By Telephone .................................................... 12
How to Redeem Shares ....................................................... 12
By Mail ......................................................... 12
By Telephone .................................................... 12
By Check-A-Month ................................................ 12
Other Automatic Redemptions ..................................... 12
Redemption Proceeds .................................................. 12
By Check ........................................................ 12
By Wire and ACH ................................................. 12
Signature Guarantee ........................................................ 12
Special Shareholder Services ............................................... 13
Open Order Service .............................................. 13
Tax-Qualified Retirement Plans .................................. 13
Important Policies Regarding Your Investments .............................. 13
Reports to Shareholders .................................................... 14
Customers of Banks, Broker-Dealers and
Other Financial Intermediaries .......................................... 14

ADDITIONAL INFORMATION YOU SHOULD KNOW

Share Price ................................................................ 16
When Share Price Is Determined .......................................... 16
How Share Price Is Determined ........................................... 16
Where to Find Information About Share Price ............................. 17
Distributions .............................................................. 17
Taxes ...................................................................... 18
Tax-Deferred Accounts ................................................... 18
Taxable Accounts ........................................................ 18
Management ................................................................. 19
Investment Management ................................................... 19
Code of Ethics .......................................................... 20
Transfer and Administrative Services .................................... 20
Year 2000 Issues ........................................................ 20
Distribution of Fund Shares ................................................ 21
Further Information About American Century ................................. 21

PROSPECTUS TABLE OF CONTENTS 3

TRANSACTION AND OPERATING EXPENSE TABLE

Income & Growth Equity Growth

SHAREHOLDER TRANSACTION EXPENSES:

Maximum Sales Load
Imposed on Purchases .......................... none none

Maximum Sales Load Imposed
on Reinvested Dividends ....................... none none

Deferred Sales Load ........................... none none

Redemption Fee ................................ none none

Exchange Fee .................................. none none

ANNUAL FUND OPERATING EXPENSES:
(as a percentage of net assets)

Management Fees(1). ........................... 0.50% 0.50%

12b-1 Fees .................................... none none

Other Expenses. ............................... 0.01% 0.01%

Total Fund Operating Expenses. ................ 0.51% 0.51%

EXAMPLE

You would pay the following
expenses on a $1,000 investment, 1 year $ 5 $ 5
assuming a 5% annual return and 3 years 16 16
redemption at the end of each 5 years 29 29
time period: 10 years 64 64

(1) A portion of the management fee may be paid by American Century Investment
Management, Inc. (the manager) to unaffiliated third parties who provide
recordkeeping and administrative services that would otherwise be performed by
an affiliate of the manager. See "Management -- Transfer and Administrative
Services," page 20.

The shares offered by this Prospectus are Institutional Class shares. The
funds offer two other classes of shares, one of which is primarily made
available to retail investors and one that is primarily made available to
financial intermediaries. The other classes have different fee structures than
the Institutional Class.The difference in the fee structures among the classes
is the result of their separate arrangements for shareholder and distribution
services and not the result of any difference in amounts charged by the manager
for core investment advisory services. Accordingly, the core investment advisory
expenses do not vary by class. A difference in fees will result in different
performance for the other classes. For additional information about the various
classes, see "Further Information About American Century," page 21.

4 TRANSACTION AND OPERATING EXPENSE TABLE AMERICAN CENTURY INVESTMENTS

<TABLE>
<CAPTION>
PERFORMANCE INFORMATION OF OTHER CLASS

INCOME & GROWTH

The Institutional Class of the fund was established September 2, 1997,
however, no shares had been issued prior to the fund's fiscal year end. The
financial information in this table regarding selected per share data for the
fund reflects the performance of the fund's Investor Class of shares, which has
a total expense ratio that is 0.20% higher than the Institutional Class. Had the
Institutional Class been in existence for the fund for the time periods
presented, the fund's performance information would be higher as a result of the
lower expenses.

1997 1996 1995 1994 1993 1992 1991 1990(1)
PER-SHARE DATA

Net Asset Value,
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Beginning of Period ............ $20.16 $17.81 $13.92 $15.08 $14.11 $13.53 $10.12 $10.00
------- ------ ------ ------ ------ ------ ------ ------
Income From
Investment Operations

Net Investment Income ....... 0.43(2) 0.44 0.42 0.44 0.43 0.42 0.48 0.01

Net Realized and
Unrealized Gain
(Loss) on Investment
Transactions ................ 6.40 3.79 4.64 (0.53) 1.15 0.62 3.56 0.12
------- ------ ------ ------ ------ ------ ------ ------
Total From
Investment Operations ....... 6.83 4.23 5.06 (0.09) 1.58 1.04 4.04 0.13
------- ------ ------ ------ ------ ------ ------ ------
Distributions

From Net Investment Income .. (0.39) (0.44) (0.42) (0.43) (0.43) (0.41) (0.47) (0.01)

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating
Expensesto Average
Net Assets .................... 0.65% 0.62% 0.67% 0.73% 0.75% 0.75% 0.50% --

Ratio of Net
Investment Income
to Average Net Assets ....... 1.81% 2.32% 2.61% 2.96% 2.90% 3.16% 4.03% 2.09%(4)

Portfolio Turnover Rate ..... 102% 92% 70% 68% 31% 63% 140% --

Average Commission
Paid per Share of
Equity Security Traded ...... $0.0443 $0.0389 $0.0300 --(5) --(5) --(5) --(5) --(5)

Net Assets,
End of Period
(in thousands) .............$1,795,124 $717,695 $373,701 $224,939 $230,191 $141,221 $59,318 $991
- ----------

(1) December 17, 1990 (inception), through December 31, 1990.

(2) Computed using average shares outstanding throughout the period.

(3) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.

(4) Annualized.

(5) Disclosure of average commission paid per share of equity security traded
was not required prior to the year ended December 31, 1995.
</TABLE>

6 PROSPECTUS PERFORMANCE INFORMATION OF OTHER CLASS

<TABLE>
<CAPTION>
PERFORMANCE INFORMATION OF OTHER CLASS

EQUITY GROWTH

The Financial Highlights for the fiscal year ended December 31, 1997, have
been audited by Coopers & Lybrand, L.L.P., independent accountants, whose report
thereon appears in the fund's annual report, which is incorporated by reference
into the Statement of Additional Information. The annual report contains
additional performance information and will be made available upon request and
without charge. The Financial Highlights for the periods ended on or before
December 31, 1996, have been audited by other independent accounts. The
information presented is for a share outstanding throughout the period ended
December 31, except as noted.

1997 1996 1995 1994 1993 1992 1991(1)

PER-SHARE DATA

<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ............. $15.96 $14.25 $11.53 $12.12 $11.68 $11.57 $10.00
------ ------ ------ ------ ------ ------ ------
Income From Investment Operations

Net Investment Income .......................... 0.27(2) 0.27 0.26 0.30 0.23 0.26 0.34

Net Realized and Unrealized Gain
(Loss) on Investment Transactions .............. 5.36 3.55 3.70 (0.33) 1.10 0.23 1.65
------ ------ ------ ------ ------ ------ ------
Total From Investment Operations ............... 5.63 3.82 3.96 (0.03) 1.33 0.49 1.99
------ ------ ------ ------ ------ ------ ------
Distributions

From Net Investment Income ..................... (0.24) (0.26) (0.23) (0.30) (0.23) (0.23) (0.29)

From Net Realized Capital Gains
on Investment Transactions ..................... (2.31) (1.85) (1.01) (0.26) (0.66) (0.15) (0.13)
------ ------ ------ ------ ------ ------ ------
Total Distributions ............................ (2.55) (2.11) (1.24) (0.56) (0.89) (0.38) (0.42)
------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Period ................... $19.04 $15.96 $14.25 $11.53 $12.12 $11.68 $11.57
====== ====== ====== ====== ====== ====== ======
Total Return(3) ................................ 36.06% 27.34% 34.56% (0.23)% 11.42% 4.13% 17.48%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses
to Average Net Assets .......................... 0.67% 0.63% 0.71% 0.75% 0.75% 0.75% 0.35%(4)

Ratio of Net Investment Income
to Average Net Assets .......................... 1.39% 1.74% 1.96% 2.26% 2.04% 2.33% 3.29%(4)

Portfolio Turnover Rate ........................ 161% 131% 126% 94% 97% 114% 89%

Average Commission Paid per
Share of Equity Security Traded ................ $0.0441 $0.0385 $0.0320 --(5) --(5) --(5) --(5)

Net Assets, End of Period (in thousands) .......$773,425 $274,433 $159,450 $97,437 $96,284 $73,592 $38,951
- ----------

(1) May 9, 1991 (inception), through December 31, 1991.

(2) Computed using average shares outstanding throughout the period.

(3) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.

(4) Annualized.

(5) Disclosure of average commission paid per share of equity security traded
was not required prior to the year ended December 31, 1995.
</TABLE>

6 PERFORMANCE INFORMATION OF OTHER CLASS AMERICAN CENTURY INVESTMENTS

INFORMATION REGARDING THE FUNDS

INVESTMENT POLICIES OF THE FUNDS

INCOME & GROWTH

Income & Growth's investment objective is to seek dividend growth, current
income, and capital appreciation by investing in common stocks.

EQUITY GROWTH

RISK FACTORS AND INVESTMENT TECHNIQUES

PROSPECTUS INFORMATION REGARDING THE FUNDS 7

OTHER INVESTMENT PRACTICES, THEIR
CHARACTERISTICS AND RISKS

For additional information, see "Investment Restrictions" in the Statement
of Additional Information.

PORTFOLIO TURNOVER

The portfolio turnover rates of the funds are shown in the financial
information of this Prospectus.

Investment decisions to purchase and sell securities are based on the
anticipated contribution of the security in question to a fund's objective. The
manager considers the rate of portfolio turnover when it determines a change is
in order to achieve the objective and accordingly, under normal conditions the
annual portfolio turnover rate is not anticipated to exceed 150%.

CONVERTIBLE SECURITIES

FUTURES CONTRACTS AND OPTIONS THEREON

The funds may buy or sell futures contracts relating to groups of securities
or indices and write or buy put and call options relating to such futures
contracts.

For options sold, a fund will segregate cash or appropriate liquid assets,
including equity securities and debt securities of any grade equal to the value
of securities underlying the option unless the option is otherwise covered.

The funds may use futures and options transactions to maintain cash reserves
while remaining fully invested, to facilitate trading, to reduce transaction
costs or to pursue higher investment returns when a futures contract is priced
more attractively than its underlying security or index.

See the Statement of Additional Information for further information about
these instruments and their risks.

SHORT-TERM INSTRUMENTS

For liquidity purposes, each fund may invest in high-quality money market
instruments with remaining maturities of one year or less.

8 INFORMATION REGARDING THE FUNDS AMERICAN CENTURY INVESTMENTS

FOREIGN SECURITIES

OTHER TECHNIQUES

PERFORMANCE ADVERTISING

From time to time, the funds may advertise performance data. Fund
performance may be shown by presenting one or more performance measurements,
including cumulative total return or average annual total return yield and
effective yield. Performance data may be quoted separately for the Investor
Class and for the other class.

PROSPECTUS INFORMATION REGARDING THE FUNDS 9

HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS

AMERICAN CENTURY INVESTMENTS

The funds offered by this Prospectus are a part of the American Century
Investments family of mutual funds. Our family provides a full range of
investment opportunities, from the aggressive equity growth funds in our
Twentieth Century Group, to the fixed income funds in our Benham Group, to the
moderate risk and specialty funds in our American Century Group. Please call
1-800-345-3533 for a brochure or prospectuses for the other funds in the
American Century Investments family.

INVESTING IN AMERICAN CENTURY

If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or through a bank, broker-dealer or other
financial intermediary, the following sections, as well as the information
contained in our Investor Services Guide, may not apply to you. Please read
"Minimum Investment," page 11 and "Customers of Banks, Broker-Dealers and Other
Financial Intermediaries," page 15.

HOW TO OPEN AN ACCOUNT

You may invest in the following ways:

BY MAIL

Send a completed application and check or money order payable in U.S.
dollars to American Century Investments.

BY WIRE

You may make your initial investment by wiring funds. To do so, call us or
mail a completed application and provide your bank with the following
information:

o RECEIVING BANK AND ROUTING NUMBER:
Commerce Bank, N.A. (101000019)

o BENEFICIARY (BNF):
American Century Services Corporation
4500 Main St., Kansas City, Missouri 64111

o BENEFICIARY ACCOUNT NUMBER (BNF ACCT):
2804918

o REFERENCE FOR BENEFICIARY (RFB):
American Century account number into which you are investing. If more than
one, leave blank and see Bank to Bank Information below.

o ORIGINATOR TO BENEFICIARY (OBI):

Name and address of owner of account into which you are investing.

o BANK TO BANK INFORMATION
(BBI OR FREE FORM TEXT):

* Taxpayer identification or Social Security
number.

* If more than one account, account numbers and amount to be invested in
each account.

* Current tax year, previous tax year or rollover designation if an IRA.
Specify whether traditional IRA, Roth IRA, Education IRA, SEP-IRA,
SARSEP-IRA, SIMPLE Employer or SIMPLE Employee.

BY EXCHANGE

Call 1-800-345-3533 from 7 a.m. to 7 p.m. Central time to get information on
opening an account by exchanging from another American Century account. See page
13 for more information on exchanges.

10 HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS AMERICAN CENTURY INVESTMENTS

IN PERSON

If you prefer to work with a representative in person, please visit one of
our Investor Centers, located at:

4500 Main Street
Kansas City, Missouri 64111

4917 Town Center Drive
Leawood, Kansas 66211

1665 Charleston Road
Mountain View, California 94043

2000 S. Colorado Blvd.
Denver, Colorado 80222

SUBSEQUENT INVESTMENTS

BY MAIL

BY TELEPHONE

Once your account is open, you may make investments by telephone if you have
authorized us (by choosing "Full Services" on your application) to draw on your
bank account. You may call an Institutional Service Representative or use our
Automated Information Line.

BY WIRE

You may make subsequent investments by wire. Follow the wire transfer
instructions on page 10 and indicate your account number.

IN PERSON

You may make subsequent investments in person at one of our Investor
Centers. The locations of our Investor Centers are listed on this page.

AUTOMATIC INVESTMENT PLAN

MINIMUM INVESTMENT

The minimum investment is $5 million ($3 million for endowments and
foundations). If you invest with us through a bank, broker-dealer or other
financial intermediary, the minimum investment requirement may be met by
aggregating the investments of various clients of your financial intermediary.
The minimum investment requirement may be waived if you or your financial
intermediary, if applicable, has an aggregate investment in our family of funds
of $10 million or more ($5 million for endowments and foundations). If your
balance or the balance of your financial intermediary, if applicable, falls
below the minimum investment requirements due to redemptions or exchanges, we
reserve the right to convert your shares to Investor Class shares of the same
fund. The Investor Class shares have a unified management fee that is 0.20%
higher than the Institutional Class shares.

HOW TO EXCHANGE FROM ONE ACCOUNT TO ANOTHER

PROSPECTUS HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS 11

Trust and at the close of the Exchange for all of our other funds. See "When
Share Price Is Determined," page 16.

BY MAIL

You may direct us in writing to exchange your shares from one American
Century account to another. For additional information, please see our Investor
Services Guide.

BY TELEPHONE

You can make exchanges over the telephone if you have authorized us to
accept telephone instructions. You can authorize this by selecting "Full
Services" on your application or by calling us at 1-800-345-3533 to get the
appropriate form.

HOW TO REDEEM SHARES

We will redeem or "buy back" your shares at any time. Redemptions will be
made at the next net asset value determined after a complete redemption request
is received.

Please note that a request to redeem shares in an IRA or 403(b) plan must be
accompanied by an executed IRS Form W4-P and a reason for withdrawal as
specified by the IRS.

BY MAIL

BY TELEPHONE

If you have authorized us to accept telephone instructions, you may redeem
your shares by calling an Institutional Service Representative.

BY CHECK-A-MONTH

You may redeem shares by Check-A-Month. A Check-A-Month plan automatically
redeems enough shares each month to provide you with a check in an amount you
choose (minimum $50). To set up a Check-A-Month plan, please call and request
our Check-A-Month brochure.

OTHER AUTOMATIC REDEMPTIONS

You may elect to make redemptions automatically by authorizing us to send
funds to you or to your account at a bank or other financial institution. To set
up automatic redemptions, call an Institutional Service Representative.

REDEMPTION PROCEEDS

Redemption proceeds may be sent to you in one of the following ways:

BY CHECK

BY WIRE AND ACH

You may authorize us to transmit redemption proceeds by wire or ACH. These
services will be effective 15 days after we receive the authorization.

Your bank will usually receive wired funds within 48 hours of transmission.
Funds transferred by ACH may be received up to seven days after transmission.
Once the funds are transmitted, the time of receipt and the funds' availability
are not under our control.

SIGNATURE GUARANTEE

* redeeming more than $25,000; or

12 HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS AMERICAN CENTURY INVESTMENTS

* establishing or increasing a Check-A-Month or automatic transfer on an
existing account.

You can obtain a signature guarantee from a bank or trust company, credit
union, broker-dealer, securities exchange or association, clearing agency or
savings association, as defined by federal law.

We reserve the right to require a signature guarantee on any transaction, or
to change this policy at any time.

SPECIAL SHAREHOLDER SERVICES

Our special shareholder services include:

OPEN ORDER SERVICE

TAX-QUALIFIED RETIREMENT PLANS

Each fund is available for your tax-deferred retirement plan. Call or write
us and request the appropriate forms for:

* Individual Retirement Accounts (IRAs);

* 403(b) plans for employees of public school systems and non-profit
organizations; or

* Profit sharing plans and pension plans for corporations and other
employers.

You can also transfer your tax-deferred plan to us from another company or
custodian. Call or write us for a Request to Transfer form.

IMPORTANT POLICIES REGARDING YOUR INVESTMENTS

(1) We reserve the right for any reason to suspend the offering of shares for
a period of time, or to reject any specific purchase order (including
purchases by exchange). Additionally, purchases may be refused if, in the
opinion of the manager, they are of a size that would disrupt the
management of the fund.

(3) Shares being acquired must be qualified for sale in your state of
residence.

(4) Transactions requesting a specific price and date, other than open orders,
will be refused. Once you have mailed or otherwise transmitted your
transaction instructions to us, they may not be modified or canceled.

PROSPECTUS HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS 13

(5) If a transaction request is made by a corporation, partnership, trust,
fiduciary, agent or unincorporated association, we will require evidence
satisfactory to us of the authority of the individual making the request.

(6) We have established procedures designed to assure the authenticity of
instructions received by telephone. These procedures include requesting
personal identification from callers, recording telephone calls, and
providing written confirmations of telephone transactions. These
procedures are designed to protect shareholders from unauthorized or
fraudulent instructions. If we do not employ reasonable procedures to
confirm the genuineness of instructions, then we may be liable for losses
due to unauthorized or fraudulent instructions. The company, its transfer
agent and manager will not be responsible for any loss due to instructions
they reasonably believe are genuine.

(7) All signatures should be exactly as the name appears in the registration.
If the owner's name appears in the registration as Mary Elizabeth Jones,
she should sign that way and not as Mary E. Jones.

(8) Unusual stock market conditions have in the past resulted in an increase
in the number of shareholder telephone calls. If you experience difficulty
in reaching us during such periods, you may send your transaction
instructions by mail, express mail or courier service, or you may visit
one of our Investor Centers. You also may use our Automated Information
Line if you have requested and received an access code and are not
attempting to redeem shares.

(10)We will perform special inquiries on shareholder accounts. A research fee
of $15 per hour may be applied.

REPORTS TO SHAREHOLDERS

Carefully review all the information relating to transactions on your
statements and confirmations to ensure that your instructions were acted on
properly. Please notify us immediately in writing if there is an error. If you
fail to provide notification of an error with reasonable promptness (i.e.,
within 30 days of non-automatic transactions or within 30 days of the date of
your consolidated quarterly statement, in the case of automatic transactions) we
will deem you to have ratified the transaction.

No later than January 31 of each year, we will send you reports that you may
use in completing your U.S. income tax return. See the Investor Services Guide
for more information.

CUSTOMERS OF BANKS, BROKER-DEALERS
AND OTHER FINANCIAL INTERMEDIARIES

Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through a
bank, broker-dealer or other financial intermediary.

14 HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS AMERICAN CENTURY INVESTMENTS

If you own or are considering purchasing fund shares through a bank,
broker-dealer, or other financial intermediary, your ability to purchase,
exchange and redeem shares will depend on your agreement with, and the policies
of, such financial intermediary.

PROSPECTUS HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS 15

ADDITIONAL INFORMATION YOU SHOULD KNOW

SHARE PRICE

WHEN SHARE PRICE IS DETERMINED

Investments by telephone pursuant to your prior authorization to us to draw
on your bank account are considered received at the time of your telephone call.

We have contractual relationships with certain financial intermediaries in
which such intermediaries represent that they have systems to track the time at
which investment orders are received and to segregate orders received at
different times. Based on these representations, the funds have authorized such
intermediaries and their designees to accept purchase and redemption orders on
the funds' behalf up to the applicable cut-off time. The funds will be deemed to
have received such orders upon acceptance by the duly authorized intermediary,
and such orders will be priced at the funds' net asset values next determined
after acceptance on the funds' behalf by such intermediary.

HOW SHARE PRICE IS DETERMINED

The valuation of assets for determining net asset value may be summarized as
follows:

The portfolio securities of each fund, except as otherwise noted, listed or
traded on a domestic securities exchange are valued at the last sale price on
that exchange. Portfolio securities primarily traded on foreign securities
exchanges generally are valued at the preceding closing values of such
securities on the exchange where primarily traded. If no sale is reported, or if
local convention or regulation so provides, the mean of the latest bid and asked
prices is used. Depending on local convention or regulation, securities traded
over-the-counter are priced at the mean of the latest bid and asked prices, or
at the last sale price. When market quotations are not readily available,
securities and other assets are valued at fair value as determined in accordance
with procedures adopted by the Board of Directors.

16 ADDITIONAL INFORMATION YOU SHOULD KNOW AMERICAN CENTURY INVESTMENTS

Trading of these securities in foreign markets may not take place on every
New York Stock Exchange business day. In addition, trading may take place in
various foreign markets on Saturdays or on other days when the New York Stock
Exchange is not open and on which a fund's net asset value is not calculated.
Therefore, such calculation does not take place contemporaneously with the
determination of the prices of many of the portfolio securities used in such
calculation and the value of a fund's portfolio may be affected on days when
shares of the fund may not be purchased or redeemed.

WHERE TO FIND INFORMATION ABOUT SHARE PRICE

The net asset values of the Investor Class are published in leading
newspapers daily. The net asset value of the Institutional Class of each fund
may be obtained by calling us.

DISTRIBUTIONS

PROSPECTUS ADDITIONAL INFORMATION YOU SHOULD KNOW 17

TAXES

Each fund has elected to be taxed under Subchapter M of the Internal Revenue
Code, which means that to the extent its income is distributed to shareholders,
it pays no income tax.

TAX-DEFERRED ACCOUNTS

TAXABLE ACCOUNTS

Redemption of shares of a fund (including redemptions made in an exchange
transaction) will be a taxable transaction for federal income tax purposes, and
shareholders generally will recognize a gain or loss in an amount equal to the
difference between the basis of the shares and the amount received. Assuming
that shareholders hold such shares as a capital asset, the gain or loss will be
a capital gain or loss and generally

18 ADDITIONAL INFORMATION YOU SHOULD KNOW AMERICAN CENTURY INVESTMENTS

will be considered long term, subject to tax at a maximum rate of 28% if
shareholders have held such shares for a period of more than 12 months but no
more than 18 months and long term, subject to tax at a maximum rate of 20% if
shareholders have held such shares for a period of more than 18 months. If a
loss is realized on the redemption of fund shares, the reinvestment in
additional fund shares within 30 days before or after the redemption may be
subject to the "wash sale" rules of the Internal Revenue Code, resulting in a
postponement of the recognition of such loss for federal income tax purposes.

MANAGEMENT

INVESTMENT MANAGEMENT

The manager supervises and manages the investment portfolio of each fund and
directs the purchase and sale of their investment securities. It utilizes teams
of portfolio managers, assistant portfolio managers and analysts acting together
to manage the assets of the funds. The teams meet regularly to review portfolio
holdings and to discuss purchase and sale activity. The teams adjust holdings in
the funds' portfolios as they deem appropriate in pursuit of the funds'
investment objectives. Individual portfolio manager members of the team also may
adjust portfolio holdings of a fund or of sectors of a fund as necessary between
team meetings.

The portfolio manager members of the team managing the funds and their work
experience for the last five years are as follows:

JOHN SCHNIEDWIND, Senior Vice President and Group Leader-Quantitative
Equity, joined American Century in 1982, and has been a member of the team that
manages Income & Growth since its inception and has supervised the team that
manages Equity Growth since its inception.

JEFFREY R. TYLER, Senior Vice President and Portfolio Manager, joined
American Century in January 1988 as a Portfolio Manager. Mr. Tyler is a member
of the team that manages Equity Growth.

WILLIAM MARTIN, Vice President and Senior Portfolio Manager, joined the team
managing Equity Growth in May 1997.

The activities of the manager are subject only to directions of the fund's
Board of Directors. The manager pays all the expenses of the funds except
brokerage, taxes, interest, fees and expenses of the non-interested person
directors (including counsel fees) and extraordinary expenses.

For the services provided to the funds, the manager receives a monthly fee
based on a percentage of the average net assets of each fund. The annual rate at
which this fee is assessed is determined monthly in a two-step process. First, a
fee rate schedule is applied to the assets of all of the funds in a fund's
investment category that are managed by the manager (the Investment Category
Fee). The three investment categories are: Money Market Funds, Bond Funds and
Equity Funds. Second, a separate fee rate schedule is applied to the assets of
all of the funds managed by the manager (the Complex Fee). The Investment
Category Fee and the Complex Fee are then added to determine the unified
management fee payable by the fund to the manager. Currently, the Investment

PROSPECTUS ADDITIONAL INFORMATION YOU SHOULD KNOW 19

Category Fee for each of the funds is an annual rate of 0.40% of the average net
assets of the fund. The Complex Fee is currently an annual rate of 10% of the
average net assets of a fund. Further information about the calculation of the
annual management fee is contained in the Statement of Additional Information.

CODE OF ETHICS

TRANSFER AND ADMINISTRATIVE SERVICES

YEAR 2000 ISSUES

20 ADDITIONAL INFORMATION YOU SHOULD KNOW AMERICAN CENTURY INVESTMENTS

The manager will pay for the remediation effort with revenues from its
management fee, so that the funds will not directly bear any of the cost.

DISTRIBUTION OF FUND SHARES

The funds' shares are distributed by FDI, a registered broker-dealer. FDI is
a wholly owned, indirect subsidiary of Boston Institutional Group, Inc. FDI's
principal business address is 60 State Street, Suite 1300, Boston, Massachusetts
02109. The Institutional Class of shares does not pay any commissions or sales
loads to the distributor or to any other broker-dealers or financial
intermediaries in connection with the distribution of fund shares.

FURTHER INFORMATION ABOUT AMERICAN CENTURY

American Century Quantitative Equity Funds is an open-end management
investment company. Its business and offices are managed by its officers under
the direction of its Board of Directors.

The Investor Class is primarily made available to retail investors. The
Advisor Class is primarily offered to institutional investors or through
institutional distribution channels, such as employer-sponsored retirement plans
or through banks, broker-dealers, insurance companies or other financial
intermediaries. The other classes have different fees, expenses, and/or minimum
investment requirements than the Institutional Class. The difference in the fee
structures among the classes is the result of their separate arrangements for
shareholder and distribution services and not the result of any difference in
amounts charged by the manager for core investment advisory services.
Accordingly, the core investment advisory expenses do not vary by class.
Different fees and expenses will affect performance. For additional information
concerning the other classes of shares not offered by this Prospectus, call us
at 1-800-345-3533 or contact a sales representative or financial intermediary
who offers those classes of shares.

PROSPECTUS ADDITIONAL INFORMATION YOU SHOULD KNOW 21

specific to that class, (b) each class has a different identifying designation
or name, (c) each class has exclusive voting rights with respect to matters
solely affecting such class, (d) each class may have different exchange
privileges, and (e) the Institutional Class may provide for automatic conversion
from that class into shares of the Investor Class of the same fund.

22 ADDITIONAL INFORMATION YOU SHOULD KNOW AMERICAN CENTURY INVESTMENTS

NOTES

PROSPECTUS NOTES 23

NOTES

24 NOTES

NOTES

PROSPECTUS NOTES 23

P.O. Box 419385
Kansas City, Missouri
64141-6385

Institutional Services:
1-800-345-3533 or 816-531-5575

Telecommunications Device for the Deaf:
1-800-345-1833 or 816-444-3038

Fax: 816-340-4655

www.americancentury.com

[american century logo (reg.sm)]
American
Century(reg.tm)
9804 [recycled logo]
SH-BKT-11919 Recycled
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION

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

MAY 1, 1998

AMERICAN
CENTURY
GROUP

Income & Growth
Equity Growth

STATEMENT OF ADDITIONAL INFORMATION
MAY 1, 1998

AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS

This is the Statement of Additional Information for the American Century Income
& Growth Fund and American Century Equity Growth Fund. This Statement is not a
prospectus but should be read in conjunction with the funds' current Prospectus
dated May 1, 1998. The funds' annual report for the fiscal year ended December
31, 1997, is incorporated herein by reference. Please retain this document for
future reference. To obtain the Prospectus, call American Century Investments
toll free at 1-800-345-2021 (international calls: 816-531-5575), or write P.O.
Box 419200, Kansas City, Missouri 64141-6200.

TABLE OF CONTENTS

Investment Policies and Techniques ......................................... 2
Investment Restrictions .................................................... 8
Portfolio Turnover ......................................................... 9
Performance Advertising .................................................... 10
Capital Stock .............................................................. 11
Custodians ................................................................. 12
Independent Accountants .................................................... 12
Multiple Class Structure ................................................... 12
Brokerage .................................................................. 14
Officers and Directors ..................................................... 14
Management ................................................................. 16
Holidays ................................................................... 18
Financial Statements ....................................................... 18

STATEMENT OF ADDITIONAL INFORMATION 1

INVESTMENT POLICIES AND TECHNIQUES

U.S. GOVERNMENT SECURITIES

Each fund may invest in U.S. government securities, including bills, notes
and bonds issued by the U.S. Treasury and securities issued or guaranteed by
agencies or instrumentalities of the U.S. government. Some U.S. government
securities are supported by the direct full faith and credit pledge of the U.S.
government; others are supported by the right of the issuer to borrow from the
U.S. Treasury; others, such as securities issued by the Federal National
Mortgage Association, are supported by the discretionary authority of the U.S.
government to purchase the agencies' obligations; and others are supported only
by the credit of the issuing or guaranteeing instrumentality. There is no
assurance that the U.S. government will provide financial support to an
instrumentality it sponsors when it is not obligated by law to do so.

REPURCHASE AGREEMENTS

American Century Investment Management, Inc. (the manager) attempts to
minimize the risks associated with repurchase agreements by adhering to written
guidelines that govern repurchase agreements. These guidelines strictly govern
(i) the type of securities that may be acquired and held under repurchase
agreements; (ii) collateral requirements for sellers under repurchase
agreements; (iii) the amount of a fund's net assets that may be committed to
repurchase agreements that mature in more than seven days; and (iv) the manner
in which a fund must take delivery of securities subject to repurchase
agreements. Moreover, the Board of Directors reviews and approves, on a
quarterly basis, the creditworthiness of brokers, dealers and banks with whom a
fund may enter into repurchase agreements. A fund may enter into a repurchase
agreement only with an entity that appears on a list of entities that have been
approved by the Board as sufficiently creditworthy.

WHEN-ISSUED AND FORWARD COMMITMENT AGREEMENTS

In purchasing securities on a when-issued or forward commitment basis, a
fund will establish and maintain until the settlement date a segregated account
consisting of cash or appropriate liquid assets, including equity securities and
debt securities of any grade in an amount sufficient to meet the purchase price.
When the time comes to pay for the when-issued securities, a fund will meet its
obligations with available cash through the sale of securities, or, although it
would not normally expect to do so, by selling the when-issued securities
themselves (which

2 AMERICAN CENTURY INVESTMENTS

may have a market value greater or less than the fund's payment obligation).
Selling securities to meet when-issued or forward commitment obligations may
generate taxable capital gains or losses.

CONVERTIBLE SECURITIES

Each fund may buy securities that are convertible into common stock. Listed
below is a brief description of the various types of convertible securities the
funds may buy.

CONVERTIBLE BONDS are issued with lower coupons than nonconvertible bonds of
the same quality and maturity, but they give holders the option to exchange
their bonds for a specific number of shares of the company's common stock at a
predetermined price. This structure allows the convertible bond holder to
participate in share price movements in the company's common stock. The actual
return on a convertible bond may exceed its stated yield if the company's common
stock appreciates in value and the option to convert to common shares becomes
more valuable.

CONVERTIBLE PREFERRED STOCKS are nonvoting equity securities that pay a
fixed dividend. These securities have a convertible feature similar to
convertible bonds; however, they do not have a maturity date. Due to their
fixed-income features, convertible issues typically are more sensitive to
interest rate changes than the underlying common stock. In the event of
liquidation, bondholders would have claims on company assets senior to those of
stockholders; preferred stockholders would have claims senior to those of common
stockholders.

WARRANTS entitle the holder to buy the issuer's stock at a specific price
for a specific period of time. The price of a warrant tends to be more volatile
than, and does not always track, the price of its underlying stock. Warrants are
issued with expiration dates. Once a warrant expires, it has no value in the
market.

FOREIGN SECURITIES

Although the funds may buy securities of foreign issuers in foreign markets,
most of their foreign securities investments are made by purchasing American
Depositary Receipts (ADRs), "ordinary shares," or "New York shares." The funds
may invest in foreign-currency-denominated securities that trade in foreign
markets if the manager believes that such investments will be advantageous to
the funds.

Foreign markets may offer less protection to investors than U.S. markets.
Foreign issuers, brokers, and securities markets may be subject to less
governmental supervision. Foreign security trading practices, including those
involving the release of assets in advance of payment, may involve increased
risks in the event of a failed trade or the insolvency of a broker-dealer and
may involve substantial delays. It may also be difficult to enforce legal rights
in foreign countries.

Investing abroad carries political and economic risks distinct from those
associated with investing in the United States. Foreign investments may be
affected by actions of foreign governments adverse to the interests of U.S.
investors, including the possibility of expropriation or nationalization of
assets, confiscatory taxation, restrictions on U.S. investment, or restrictions
on the ability to repatriate assets or to convert currency into U.S. dollars.
There may be a

STATEMENT OF ADDITIONAL INFORMATION 3

greater possibility of default by foreign governments or
foreign-government-sponsored enterprises. Investments in foreign countries also
involve a risk of local political, economic, or social instability, military
action or unrest, or adverse diplomatic developments.

FOREIGN CURRENCY EXCHANGE TRANSACTIONS

A forward foreign currency exchange contract is an obligation to purchase or
sell a specific currency at a future date, which may be any fixed number of days
agreed upon by the parties, commencing with the date of the contract, at a price
set at the time of the contract. When the fund agrees to buy or sell a security
denominated in a foreign currency, it may enter into a forward contract to "lock
in" the U.S. dollar price of the security. By entering into a forward contract
to buy or sell the amount of foreign currency involved in a security transaction
for a fixed amount of U.S. dollars, the manager can protect a fund against
possible loss resulting from adverse changes in the relationship between the
U.S. dollar and the foreign currency between the date the security is purchased
or sold and the date on which payment is made or received. This type of
transaction is sometimes referred to as a "position hedge."

Successful use of forward contracts depends on the manager's skill in
analyzing and predicting currency values. Although they are used for settlement
purposes, forward contracts alter the fund's exposure to currency exchange rate
activity and could result in losses to a fund if currencies do not perform as
the manager anticipates. A fund may also incur significant costs when converting
assets from one currency to another.

The funds use forward contracts for currency hedging purposes only and not
for speculative purposes. The funds are not required to enter into forward
contracts with regard to their foreign holdings and will not do so unless it is
deemed appropriate by the manager.

Each fund's assets are valued daily in U.S. dollars, although foreign
currency holdings are not physically converted into U.S. dollars on a daily
basis.

DEPOSITARY RECEIPTS

American Depositary Receipts and European Depositary Receipts (ADRs and
EDRs) are receipts representing ownership of shares of a foreign-based issuer
held in trust by a bank or similar financial institution. These are designed for
U.S. and European securities markets as alternatives to purchasing underlying
securities in their corresponding national markets and currencies. ADRs and EDRs
can be sponsored or unsponsored.

RESTRICTED SECURITIES

4 AMERICAN CENTURY INVESTMENTS

expense, and a considerable period may elapse between the time it decides to
seek registration of the securities and the time it is permitted to sell them
under an effective registration statement. If, during this period, adverse
market conditions were to develop, the fund might obtain a less favorable price
than prevailed when it decided to try to register the securities.

SECURITIES LENDING

PUT OPTIONS ON INDIVIDUAL SECURITIES

Each fund may buy puts with respect to stocks underlying its convertible
security holdings. For example, if the manager anticipates a decline in the
price of the stock underlying a convertible security a fund holds, it may
purchase a put option on the stock. If the stock price subsequently declines, an
increase in the value of the put option could be expected to offset all or a
portion of the effect of the stock's decline on the value of the convertible
security.

FUTURES AND OPTIONS TRANSACTIONS

Futures contracts provide for the sale by one party and purchase by another
party of a specific security at a specified future time and price. Futures
contracts are traded on national futures exchanges. Futures exchanges and
trading are regulated under the Commodity Exchange Act by the Commodity Futures
Trading Commission (CFTC), a U.S. government agency.

After a futures contract position is opened, the value of the contract is
marked to market daily. If the futures contract price changes to the extent that
the margin on deposit does not satisfy margin requirements, the contract holder
is required to pay an additional "variation" margin. Conversely, changes in the
contract value may reduce the required margin, resulting in a repayment of
excess margin to the contract holder. Variation margin payments are made to or
from the futures broker as long as the contract remains open and do not
constitute margin transactions for purposes of a fund's investment restrictions.

Although techniques other than trading futures contracts can be used to
control a fund's exposure to market fluctuations, the use of futures contracts
may be a more effective means of hedging this exposure. While the funds pay
brokerage commissions in connection with opening and closing out futures
positions, these costs are generally lower than the transaction costs incurred
in the purchase and sale of the underlying securities.

STATEMENT OF ADDITIONAL INFORMATION 5

PURCHASING PUT AND CALL OPTIONS. By purchasing a put option, a fund obtains
the right (but not the obligation) to sell the option's underlying instrument at
a fixed "strike" price. In return for this right, the fund pays the current
market price for the option (known as the option premium). Options have various
types of underlying instruments, including specific securities, indexes of
securities prices, and futures contracts. A fund may terminate its position in a
put option it has purchased by allowing it to expire or by exercising the
option. If the option is allowed to expire, the fund will lose the entire
premium it paid. If the fund exercises the option, it completes the sale of the
underlying instrument at the strike price. The fund may also terminate a put
option position by closing it out in the secondary market at its current price
if a liquid secondary market exists.

WRITING PUT AND CALL OPTIONS. If a fund writes a put option, it takes the
opposite side of the transaction from the option's purchaser. In return for
receipt of the premium, the fund assumes the obligation to pay the strike price
for the option's underlying instrument if the other party chooses to exercise
the option. When writing an option on a futures contract, the fund will be
required to make margin payments to a broker or custodian as described above for
futures contracts. The fund may seek to terminate its position in a put option
before it is exercised by closing out the option in the secondary market at its
current price. If the secondary market is not liquid for a put option the fund
has written, however, the fund must continue to be prepared to pay the strike
price while the option is outstanding, regardless of price changes, and must
continue to set aside assets to cover its position.

Writing a call option obligates a fund to sell or deliver the option's
underlying instrument in return for the strike price upon exercise of the
option. The characteristics of writing call options are similar to those of
writing put options, except that writing calls generally is a profitable
strategy if prices remain the same or fall. Through receipt of the option
premium, a call writer mitigates the effects of a price decline. At the same
time, because a call writer must be prepared to deliver the underlying
instrument in return for the strike price even if its current value is greater,
a call writer gives up some ability to participate in security price increases.

COMBINED POSITIONS. A fund may purchase and write options in combination
with one another, or in combination with futures or forward contracts, in order
to adjust the risk and return characteristics of the overall position. For
example, a fund may purchase a put option and write a call option on the same
underlying instrument in order to construct a combined position whose risk and
return characteristics are similar to selling a futures contract. Another
possible combined position would involve writing a call option at one strike
price and buying a call option at a lower price in order to reduce the risk of
the written call option in the event of a substantial price increase. Because
combined options positions involve multiple trades, they result in higher
transaction costs and may be more difficult to open and close out.

OVER-THE-COUNTER OPTIONS. Unlike exchange-traded options, which are
standardized with respect to the underlying instrument, expiration date, con-

6 AMERICAN CENTURY INVESTMENTS

tract size, and strike price, the terms of over-the-counter (OTC) options
(options not traded on exchanges) generally are established through negotiation
with the other party to the option contract. While this type of arrangement
allows a fund greater flexibility in tailoring an option to its needs, OTC
options generally involve greater credit risk than exchange-traded options,
which are guaranteed by the clearing organizations of the exchanges where they
are traded. The risk of illiquidity is also greater with OTC options because
these options generally can be closed out only by negotiation with the other
party to the option.

OPTIONS ON FUTURES. By purchasing an option on a futures contract, a fund
obtains the right, but not the obligation, to sell the futures contract (a put
option) or to buy the contract (a call option) at a fixed "strike" price. The
fund can terminate its position in a put option by allowing it to expire or by
exercising the option. If the option is exercised, the fund completes the sale
of the underlying security at the strike price. Purchasing an option on a
futures contract does not require a fund to make margin payments unless the
option is exercised.

CORRELATION OF PRICE CHANGES. Price changes of a fund's futures and options
positions may not be well correlated with price changes of its other
investments. This may be because of differences between the underlying indexes
and the types of securities in which the fund invests. For example, if a fund
sold a broad-based index futures contract to hedge against a stock market
decline while completing sales of specific securities in its investment
portfolio, the prices of the securities could move in a different direction than
the broad market index represented by the index futures contract. In the case of
an S&P 500 futures contract purchased by a fund, either in anticipation of stock
purchases or in an effort to be fully invested, failure of the contract to track
the Index accurately could hinder the fund from achieving its investment
objective.

Options and futures prices can also diverge from the prices of their
underlying instruments even if the underlying instruments match the fund's
investments. Options and futures prices are affected by factors such as current
and anticipated short-term interest rates, changes in volatility of the
underlying instrument, and the time remaining until expiration of the contract;
these factors may not affect security prices the same way. Imperfect correlation
also may result from differing levels of demand in the options and futures
markets and the securities markets, from structural differences in how options
and futures and securities are traded, or from the imposition of daily price
fluctuation limits or trading halts. A fund may purchase or sell options and
futures contracts with a greater or lesser value than the securities it wishes
to hedge or intends to purchase in an effort to compensate for differences in
volatility between the contract and the securities, although this strategy may
not be successful in all cases. If price changes in a fund's options or futures
positions are poorly correlated with its other investments, the positions may
fail to produce anticipated gains or result in losses that are not offset by
gains in other investments.

LIQUIDITY OF FUTURES CONTRACTS AND OPTIONS. Futures and options have risks
associated with their use: possible default by the other party to the
transaction; illiquidity; and, to the extent the manager's interpretation of
certain market movements is incorrect, the risk that the use of such
transactions could result in losses greater than if they had not been used.
Losses resulting from the use of these transactions would reduce net asset value
and possibly income.

There is no assurance a liquid secondary market will exist for any
particular futures contract or option at any particular time. Options may have
relatively low trading volume and liquidity if their strike prices are not close
to the underlying instrument's current price. In addition, exchanges may
establish daily price fluctuation limits for futures contracts and options and
may halt trading if a contract's price moves upward or downward more than the
limit in a given day. On volatile trading days when the price fluctuation limit
is reached or a trading halt is imposed, it may be impossible for a fund to
enter into new positions or close out existing positions. If the secondary
market for a contract were not liquid because of price fluctuation limits or
otherwise, prompt liquidation of unfavorable positions could be difficult or
impossible, and the fund could be required to continue holding a position until
delivery or expiration regardless of changes in value. Under these
circumstances, the fund's access to assets held to cover its futures and options
positions also could be impaired.

STATEMENT OF ADDITIONAL INFORMATION 7

RESTRICTIONS ON THE USE OF FUTURES CONTRACTS AND OPTION. The funds have
filed a notice of eligibility for exclusion as a "commodity pool operator" with
the CFTC and the National Futures Association, which regulates trading in the
futures markets. The funds intend to comply with Section 4.5 of the regulations
under the Commodity Exchange Act, which limits the extent to which the funds can
commit assets to initial margin deposits and options premiums.

Each fund may enter into futures contracts, options, or options on futures
contracts, provided that such obligations represent no more than 20% of the
fund's net assets. Under the Commodity Exchange Act, a fund may enter into
futures and options transactions for hedging purposes without regard to the
percentage of assets committed to initial margin and option premiums and for
other than hedging purposes provided that assets committed to initial margin and
option premiums do not exceed 5% of the fund's net assets. To the extent
required by law, each fund will set aside cash and appropriate liquid assets in
a segregated account to cover its obligations related to futures contracts and
options.

The funds intend to comply with tax rules applicable to regulated investment
companies.

FUTURES AND OPTIONS RELATING TO FOREIGN CURRENCIES. Each fund may purchase
and sell currency futures and purchase and write currency options to increase or
decrease its exposure to different foreign currencies. Each fund may also
purchase and write currency options in conjunction with each other or with
currency futures or forward contracts.

The uses and risks of currency futures and options are similar to those of
futures and options relating to securities or indexes, as described above.
Currency futures and option values can be expected to correlate with exchange
rates, but may not reflect other factors that affect the value of a fund's
investments. A currency hedge, for example, should protect a deutsche-mark
denominated security from a decline in the deutsche mark, but it will not
protect the fund against a price decline resulting from a deterioration in the
issuer's creditworthiness. Because the value of a fund's
foreign-currency-denominated investments will change in response to many factors
other than exchange rates, it may not be possible to match the amount of
currency options and futures to the value of the fund's foreign investments over
time.

INVESTMENT RESTRICTIONS

AS A FUNDAMENTAL POLICY, EACH FUND SHALL NOT:

1) issue senior securities, except as permitted under the Investment Company
Act of 1940.

2) borrow money, except that the fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33(1)/(3)% of the fund's total assets (including the amount
borrowed) less liabilities (other than borrowings).

3) lend any security or make any other loan if, as
a result, more than 33(1)/(3)% of the fund's total assets would be lent to
other parties, except, (i) through the purchase of debt securities in
accordance with its investment objective, policies and limitations, or (ii)
by engaging in repurchase agreements with respect to portfolio securities.

4) purchase or sell real estate unless acquired as a result of ownership of
securities or other instruments. This policy shall not prevent the fund
from investment in securities or other instruments backed by real estate or
securities of companies that deal in real estate or are engaged in the real
estate business.

5) concentrate its investments in securities of

8 AMERICAN CENTURY INVESTMENTS

issuers in a particular industry (other than securities issued or
guaranteed by the U.S. government or any of its agencies or
instrumentalities).

6) act as an underwriter of securities issued by others, except to the extent
that the fund may be considered an underwriter within the meaning of the
Securities Act of 1933 in the disposition of restricted securities.

7) purchase or sell physical commodities unless acquired as a result of
ownership of securities or other instruments; provided that this limitation
shall not prohibit the fund from purchasing or selling options and futures
contracts or from investing in securities or other instruments backed by
physical commodities.

8) invest for purposes of exercising control over management.

In addition, the funds are subject to the following additional investment
restrictions which are not fundamental and may be changed by the Board of
Directors.

AS AN OPERATING POLICY, EACH FUND:

a) shall not purchase additional investment securities at any time during
which outstanding borrowings exceed 5% of the total assets of the fund.

b) shall not purchase any security or enter into a repurchase agreement if, as
a result, more than 15% of its net assets would be invested in repurchase
agreements not entitling the holder to payment of principal and interest
within seven days and in securities that are illiquid by virtue of legal or
contractual restrictions on resale or the absence of a readily available
market.

c) shall not sell securities short, unless it owns or has the right to obtain
securities equivalent in kind and amount to the securities sold short, and
provided that transactions in futures contracts and options are not deemed
to constitute selling securities short.

d) shall not purchase securities on margin, except that the fund may obtain
such short-term credits as are necessary for the clearance of transactions,
and provided that margin payments in connection with futures contracts and
options on futures contracts shall not constitute purchasing securities on
margin.

A fund shall not purchase any securities that would cause 25% or more of the
value of the fund's total assets at the time of purchase to be invested in the
securities of one or more issuers conducting their principal business activities
in the same industry, provided that (a) there is no limitation with respect to
obligations issued or guaranteed by the U.S. government, any state, territory or
possession of the United States, the District of Columbia or any of their
authorities, agencies, instrumentalities or political subdivisions and
repurchase agreements secured by such instruments, (b) wholly owned finance
companies will be considered to be in the industries of their parents if their
activities are primarily related to financing the activities of the parents, (c)
utilities will be divided according to their services, for example, gas, gas
transmission, electric and gas, electric and telephone will each be considered a
separate industry, and (d) personal credit and business credit businesses will
be considered industries.

PORTFOLIO TURNOVER

The portfolio turnover rates of funds are shown in the Financial Highlights
table in the prospectuses.

The funds intend to purchase a given security whenever the manager believes
it will contribute to the stated objectives of the funds. In order to achieve
each fund's investment objective, the manager will sell a given security, no
matter for how long or for how short a period it has been held in the portfolio,
and no matter whether the sale is at a gain or at a loss, if the manager
believes that the security is not fulfilling its purpose, either because, among
other things, it did not live up to the manager's expectations, or because it
may be replaced with another security holding greater promise, or because it has
reached its optimum potential, or because of a change in the

STATEMENT OF ADDITIONAL INFORMATION 9

circumstances of a particular company or industry or in general economic
conditions, or because of some combination of such reasons.

Since investment decisions are based on the anticipated contribution of the
security in question to the fund's objectives, the manager believes that the
rate of portfolio turnover is irrelevant when it believes a change is in order
to achieve those objectives, and the fund's annual portfolio turnover rate
cannot be anticipated and may be comparatively high. This disclosure regarding
portfolio turnover is a statement of fundamental policy and may be changed only
by a vote of the shareholders.

Since the manager does not take portfolio turnover rate into account in
making investment decisions, (1) the manager has no intention of accomplishing
any particular rate of portfolio turnover, whether high or low, and (2) the
portfolio turnover rates in the past should not be considered as a
representation of the rates that will be attained in the future.

PERFORMANCE ADVERTISING

The funds may quote performance in various ways. Historical performance
information will be used in advertising and sales literature and should not be
considered an indication of future results.

YIELD = 2 [(a - b + 1)(6) - 1]
-------
cd

Total returns quoted in advertising and sales literature reflect all aspects
of a fund's return, including the effect of reinvesting dividends and capital
gain distributions and any change in the fund's net asset value during the
period.

Average annual total returns are calculated by determining the growth or
decline in value of a hypothetical historical investment in a fund over a stated
period and then calculating the annually compounded percentage rate that would
have produced the same result if the rate of growth or decline in value had been
constant throughout the period. For example, a cumulative total return of 100%
over 10 years would produce an average annual total return of 7.18%, which is
the steady annual rate that would result in 100% growth on a compounded basis in
10 years. While average annual total returns are a convenient means of comparing
investment alternatives, investors should realize that a fund's performance is
not constant over time but changes from year-to-year, and that average annual
returns represent averaged figures as opposed to actual year to year
performance.

The funds' average annual total returns for the one-year, three-year,
five-year and life-of-fund periods ended December 31, 1997, are indicated in the
following table.

AVERAGE ANNUAL TOTAL RETURNS

One Three Five Life of
Fund Year Year Year Fund*
- -------------------------------------------------------------------

Income & Growth 34.52% 31.67% 20.39% 21.07%

Equity Growth 36.06% 32.57% 20.98% 18.96%

*Income & Growth commenced operations on December 17, 1990. Equity Growth
commenced operations on May 9, 1991.

In addition to average annual total returns, each fund may quote unaveraged
or cumulative total returns reflecting the simple change in value of an
investment over a stated period. Average annual and cumulative total returns may
be quoted as a percentage or as a dollar amount and may be calculated for a
single investment, a series of investments, or a series of redemptions over any
time period. Total returns

10 AMERICAN CENTURY INVESTMENTS

may be broken down into their components of income and capital (including
capital gains and changes in share price) in order to illustrate the
relationship of these factors and their contributions to total return.

The funds' performance may be compared with the performance of other mutual
funds tracked by mutual fund rating services or with other indexes of market
performance. This may include comparisons with funds that, unlike American
Century funds, are sold with a sales charge or deferred sales charge. Economic
data that may be used for such comparisons may include, but are not limited to:
U.S. Treasury bill, note, and bond yields, money market fund yields, U.S.
government debt and percentage held by foreigners, the U.S. money supply, net
free reserves, and yields on current-coupon GNMAs (source: Board of Governors of
the Federal Reserve System); the federal funds and discount rates (source:
Federal Reserve Bank of New York); yield curves for U.S. Treasury securities and
AA/AAA-rated corporate securities (source: Bloomberg Financial Markets); yield
curves for AAA-rated tax-free municipal securities (source: Telerate); yield
curves for foreign government securities (sources: Bloomberg Financial Markets
and Data Resources, Inc.); total returns on foreign bonds (source: J.P. Morgan
Securities Inc.); various U.S. and foreign government reports; the junk bond
market (source: Data Resources, Inc.); the CRB Futures Index (source: Commodity
Index Report); the price of gold (sources: London am/pm fixing and New York
Comex Spot Price); rankings of any mutual fund or mutual fund category tracked
by Lipper Analytical Services, Inc. or Morningstar, Inc.; mutual fund rankings
published in major, nationally distributed periodicals; data provided by the
Investment Company Institute; Ibbotson Associates, Stocks, Bonds, Bills, and
Inflation; major indexes of stock market performance; and indexes and historical
data supplied by major securities brokerage or investment advisory firms. The
funds may also utilize reprints from newspapers and magazines furnished by third
parties to illustrate historical performance.

Indexes may assume reinvestment of dividends, but generally they do not
reflect administrative and management costs such as those incurred by a mutual
fund.

Occasionally statistics may be used to illustrate fund volatility or risk.
Measures of volatility or risk generally are used to compare a fund's net asset
value or performance to a market index. One measure of volatility is "beta."
Beta expresses fund volatility relative to the total market as represented by
the S&P 500. A beta of more than 1.00 indicates volatility greater than the
market, and a beta of less than 1.00 indicates volatility less than the market.
Another measure of volatility or risk is "standard deviation." Standard
deviation is used to measure variability of net asset value or total return
relative to an average over a specified period of time. The premise is that
greater volatility connotes greater risk undertaken to achieve desired
performance.

CAPITAL STOCK

The funds' capital stock is described in the Prospectus under the heading
"Further Information About American Century."

The corporation currently has five series of shares. American Century Income
& Growth Fund and American Century Equity Growth Fund are described in this
Statement of Additional Information. The corporation may in the future issue one
or more additional series or classes of shares. The assets belonging to each
series or class of shares are held separately by the custodian and the shares of
each series or class represent a beneficial interest in the principal, earnings
and profit (or losses) of investment and other assets held for each series or
class. Your rights as a shareholder are the same for all series or classes of
securities unless otherwise stated. Within their

STATEMENT OF ADDITIONAL INFORMATION 11

respective series or class, all shares have equal redemption rights. Each share,
when issued, is fully paid and non-assessable. Each share, irrespective of
series or class, is entitled to one vote for each dollar of net asset value
represented by such share on all questions.

As of April 5, 1998, in excess of 5% of the outstanding shares of the
following funds were owned of record by:

Fund Income & Growth Fund
- --------------------------------------------------------------------------------
Shareholder Name and Charles Schwab & Co.
Address 101 Montgomery Street
San Francisco, CA 94104
- --------------------------------------------------------------------------------
# of Shares Held 20,434,732
- --------------------------------------------------------------------------------
% of Total Shares
Outstanding 21%
- --------------------------------------------------------------------------------

Fund Equity Growth Fund
- --------------------------------------------------------------------------------
Shareholder Name and Charles Schwab & Co.
Address 101 Montgomery Street
San Francisco, CA 94104
- --------------------------------------------------------------------------------
# of Shares Held 10,270,101
- --------------------------------------------------------------------------------
% of Total Shares
Outstanding 18%
- --------------------------------------------------------------------------------

CUSTODIANS

INDEPENDENT ACCOUNTANTS

KPMG Peat Marwick, LLP, 1000 Walnut, Suite 1600, Kansas City, Missouri
64106, served as independent accountants for the funds for the year ended
December 31, 1996 and for all prior periods.

MULTIPLE CLASS STRUCTURE

The Investor Class is made available to investors directly by the
investment manager through Funds Distributor, Inc., the funds' distributor for a
single unified management fee, without any load or commission. The Institutional
and Advisor Classes are made available to institutional shareholders or through
financial intermediaries that do not require the same level of shareholder and
administrative services from the manager as Investor Class shareholders. As a
result, the manager is able to charge these classes a lower unified management
fee. In addition to the management fee, however, the Advisor Class shares are
subject to a Master Distribution and Shareholder Services Plan (described
below). The plan has been adopted by the funds' Board of Directors and initial
shareholder in accordance with Rule 12b-1 adopted by the SEC under the
Investment Company Act.

RULE 12B-1

12 AMERICAN CENTURY INVESTMENTS

Class have approved and entered into a Master Distribution and Shareholder
Services Plan, with respect to the Advisor Class (the Plan) which is described
below.

In adopting the Plan, the Board of Directors [including a majority who are
not "interested persons" of the funds (as defined in the Investment Company
Act), hereafter referred to as the "independent directors"] determined that
there was a reasonable likelihood that the Plan would benefit the funds and the
shareholders of the affected class. Pursuant to Rule 12b-1, information with
respect to revenues and expenses under the Plan is presented to the Board of
Directors quarterly for its consideration in connection with its deliberations
as to the continuance of the Plan. Continuance of the Plan must be approved by
the Board of Directors (including a majority of the independent directors)
annually. The Plan may be amended by a vote of the Board of Directors (including
a majority of the independent directors), except that the Plan may not be
amended to materially increase the amount to be spent for distribution without
majority approval of the shareholders of the affected class. The Plan terminates
automatically in the event of an assignment and may be terminated upon a vote of
the majority of the independent directors or by vote of a majority of the
outstanding voting securities of the affected class.

All fees paid under the Plan will be made in accordance with Section 26 of
the Rules of Fair Practice of the National Association of Securities Dealers
(NASD).

MASTER DISTRIBUTION AND SHAREHOLDER SERVICES PLAN

As described in the Prospectuses, the funds' Advisor Class of shares is
made available to participants in employer-sponsored retirement or savings plans
and to persons purchasing through financial intermediaries, such as banks,
broker-dealers and insurance companies. The distributor enters into contracts
with various banks, broker-dealers, insurance companies and other financial
intermediaries with respect to the sale of the funds' shares and/or the use of
the funds' shares in various investment products or in connection with various
financial services.

To enable the funds' shares to be made available through such plans and
financial intermediaries, and to compensate them for such services, the funds'
investment manager has reduced its management fee by 0.25% per annum with
respect to the Advisor Class shares and the funds' Board of Directors has
adopted a Master Distribution and Shareholder Services Plan (the Distribution
Plan). Pursuant to such Plan, the Advisor Class shares pay the distributor a fee
of 0.50% annually of the aggregate average daily assets of the funds' Advisor
Class shares, 0.25% of which is paid for shareholder services (as described
above) and 0.25% of which is paid for distribution services.

Distribution services include any activity undertaken or expense incurred
that is primarily intended to result in the sale of Advisor Class shares, which
services may include but are not limited to, (a) the payment of sales
commission, ongoing commissions and other payments to brokers, dealers,
financial institutions or others who sell Advisor Class shares pursuant to
selling agreements; (b) compensation to registered representatives or other
employees of the distributor who engage in or support distribution of the funds'
Advisor Class shares; (c) compensation to, and expenses (including overhead and
telephone expenses) of the distributor; (d) the printing of prospectuses,
statements of additional information and reports for other than existing
shareholders; (e) the preparation, printing and distribution of sales literature
and advertising materials provided to the funds' shareholders and prospective
shareholders; (f) receiving and answering correspondence from prospective
shareholders, including distributing prospectuses, statements of additional
information, and shareholder reports; (g) the providing of facilities to answer
questions from prospective investors about fund shares; (h) complying with
federal and state securities laws pertaining to the sale of fund shares; (i)
assisting investors in completing application forms and selecting dividend and
other account options; (j) the providing of other reasonable assistance in

STATEMENT OF ADDITIONAL INFORMATION 13

connection with the distribution of fund shares; (k) the organizing and
conducting of sales seminars and payments in the form of transactional
compensation or promotional incentives; (l) profit on the foregoing; (m) the
payment of "service fees" for the provision of personal, continuing services to
investors, as contemplated by the Rules of Fair Practice of the NASD and (n)
such other distribution and services activities as the manager determines may be
paid for by the funds pursuant to the terms of the Distribution Plan and in
accordance with Rule 12b-1 of the Investment Company Act.

BROKERAGE

The manager receives statistical and other information and services without
cost from brokers and dealers. The manager evaluates such information and
services, together with all other information that it may have, in supervising
and managing the investments of the funds. Because such information and services
may vary in amount, quality and reliability, their influence in selecting
brokers varies from none to very substantial. The manager proposes to continue
to place some of the funds' brokerage business with one or more brokers who
provide information and services. Such information and services will be in
addition to and not in lieu of services required to be performed by the manager.
The manager does not utilize brokers that provide such information and services
for the purpose of reducing the expense of providing required services to the
funds.

In the years ended December 31, 1997, 1996 and 1995, the brokerage
commissions of each fund were as follows:

Years Ended December 31,
- ---------------------------------------------------------------------

FUND 1997 1996 1995
- ---------------------------------------------------------------------

Income & Growth $2,758,046 $1,029,549 $367,093

Equity Growth 1,585,817 495,709 320,306
- ---------------------------------------------------------------------

In 1997, $4,282,888 (99%) of the total brokerage commissions ($4,343,863)
were paid to brokers and dealers who provided information and services.

The staff of the SEC has expressed the view that the best price and
execution of over-the-counter transactions in portfolio securities may be
secured by dealing directly with principal market makers, thereby avoiding the
payment of compensation to another broker. In certain situations, the officers
of the funds and the manager believe that the facilities, expert personnel and
technological systems of a broker often enable the funds to secure as good a net
price by dealing with a broker instead of a principal market maker, even after
payment of the compensation to the broker. The funds regularly place their
over-the-counter transactions with principal market makers, but also may deal on
a brokerage basis when utilizing electronic trading networks or as circumstances
warrant.

OFFICERS AND DIRECTORS

The principal officers and directors of the corporation, their ages (listed
in parentheses), principal business experience during the past five years, and
their affiliation with the funds' investment manager, American Century
Investment Management, Inc. and its transfer agent, American Century Services
Corporation, are listed below. The address at which each director and officer
listed below may be contacted, with the exception of Messrs. Stowers III, Lyons,
Looby, May, Leach and Zindel and Ms. Roepke, is 1665 Charleston Road, Mountain
View, California 94043. The address of Messrs. Stowers III, Lyons, Looby, May,
Leach and Zindel and Ms. Roepke is American Century, 4500 Main Street, Kansas
City, Missouri 64111. All persons named as officers for the corporation also
serve in similar capacities for other funds advised by the manager. Those
directors who

14 AMERICAN CENTURY INVESTMENTS

are "interested persons" as defined in the Investment Company Act of 1940 are
indicated by an asterisk (*).

*WILLIAM M. LYONS (42), Director (1998). Mr. Lyons is President, Chief
Operating Officer and General Counsel of ACC; Executive Vice President and
General Counsel of ACS and ACIS; Assistant Secretary of ACC; and Secretary of
ACS and ACIS.

*JAMES E. STOWERS III (39), Chairman of the Board of Director (1998) and
Director (1995). Mr. Stowers III is Chief Executive Officer and Director of ACC;
Chief Executive Officer and Director of ACS and ACIS.

KENNETH E. SCOTT (69), Director (1988). Mr. Scott is Ralph M. Parsons
Professor of Law and Business at Stanford Law School (1972) and a Director of
RCM Capital Management (1994).

*DOUGLAS A. PAUL (51), Secretary (1988), Vice President (1990), and General
Counsel (1990); Vice President and Associate General Counsel, ACS.

*MARYANNE ROEPKE (42), CPA, Treasurer (1995) and Vice President (1998);
Senior Vice President and Assistant Treasurer of ACS.

*JON ZINDEL (30), Tax Officer (1997); Director of Taxation (1996); Vice
President of ACS (1998); Tax Manager, Price Waterhouse LLP (1989).

*ROBERT J. LEACH (31), CPA, Controller (1996).

STATEMENT OF ADDITIONAL INFORMATION 15

DIRECTOR COMPENSATION FOR THE FISCAL YEAR ENDED DECEMBER 31, 1997

Total Compensation
Aggregate From the
Name of Compensation American Century
Director* From Each Fund Family of Funds**
- -------------------------------------------------------------------

Albert A. Eisenstat $4,284 $69,250

Ronald J. Gilson $4,756 $74,000

Myron S. Scholes $4,107 $68,250

Kenneth E. Scott $4,851 $77,000

Ezra Solomon*** $249 $3,500

Isaac Stein $4,056 $69,500

Jeanne D. Wohlers $4,413 $72,500
- --------------------------------------------------------------------

* Interested Directors receive no compensation for their services as such.

** Includes compensation paid by the 15 investment company members of the
American Century family of funds.

*** Retired December, 1996.

As of April 7, 1997, the funds' Directors and officers as a group owned less
than 1% of the funds' outstanding shares.

No deferred fees were paid to any Director under the Plan during the fiscal
year ended October 31, 1997.

MANAGEMENT

A description of the responsibilities and method of compensation of the
funds' manager, American Century Investment Management, Inc., appears in the
Prospectus under the caption "Management."

The schedule by which the Investment Category Fee is determined is as
follows:

Category Assets Fee Rate
- --------------------------------------------------------------------------------

First $1 billion 0.5200%

Next $5 billion 0.4600%

Next $15 billion 0.4160%

Next $25 billion 0.3690%

Next $50 billion 0.3420%

Next $150 billion 0.3390%

Thereafter 0.3380%
- --------------------------------------------------------------------------------

16 AMERICAN CENTURY INVESTMENTS

The Complex Fee Schedule (Investor Class) is as follows:

Category Assets Fee Rate
- ---------------------------------------------------------------------------

First $2.5 billion 0.3100%

Next $7.5 billion 0.3000%

Next $15.0 billion 0.2985%

Next $25.0 billion 0.2970%

Next $50.0 billion 0.2960%

Next $100.0 billion 0.2950%

Next $100.0 billion 0.2940%

Next $200.0 billion 0.2930%

Next $250.0 billion 0.2920%

Next $500.0 billion 0.2910%

Thereafter 0.2900%
- ---------------------------------------------------------------------------

STATEMENT OF ADDITIONAL INFORMATION 19

In addition to managing the funds, the manager also acts as an investment
advisor to 12 institutional accounts and to the following registered investment
companies: American Century Mutual Funds, Inc., American Century World Mutual
Funds, Inc., American Century Premium Reserves, Inc., American Century Variable
Portfolios, Inc., American Century Capital Portfolios, Inc., American Century
Strategic Asset Allocations, Inc., American Century Municipal Trust, American
Century Government Income Trust, American Century Investment Trust, American
Century Target Maturities Trust, American Century California Tax-Free and
Municipal Funds, and American Century International Bond Funds.

Investment management fees paid by each fund to the manager for the fiscal
years ended December 31, 1997, 1996 and 1995 are indicated in the following
table. Fee amounts are net of any reimbursements under the prior agreement with
Benham Management Corporation.

UNIFIED MANAGEMENT FEES*

Fund 1997*
- -------------------------------------------------------------------------------

Income & Growth Fund 4,621,006

Equity Growth Fund $1,904,594
- -------------------------------------------------------------------------------

*From August 1 through December 31, 1997.

INVESTMENT ADVISORY FEES*

Fiscal Fiscal Fiscal

Fund 1996 1995 1994
- ----------------------------------------------------------------------------

Income & Growth Fund $1,653,298 $1,584,256 $857,968

Equity Growth Fund 650,862 601,691 412,627
- ----------------------------------------------------------------------------

*Net of reimbursements.

Prior to August 1, 1997, the funds paid American Century Services
Corporation directly for its services as transfer agent and administrative
services agent.

Administrative service and transfer agent fees paid by each fund for the
fiscal years ended December 31, 1997, 1996, and 1995, are indicated in the
following tables. Fee amounts are net of expense limitations.

ADMINISTRATIVE FEES

Fiscal Fiscal Fiscal
Fund 1996 1995 1994
- ------------------------------------------------------------------------

Income & Growth Fund $548,851 $506,544 $264,645

Equity Growth Fund 216,774 192,378 126,295
- ------------------------------------------------------------------------

TRANSFER AGENT FEES

Fiscal Fiscal Fiscal
Fund 1996 1995 1994
- ---------------------------------------------------------------------
Income & Growth Fund $732,727 $770,136 $472,699

Equity Growth Fund 347,736 301,615 240,686
- ---------------------------------------------------------------------

HOLIDAYS

FINANCIAL STATEMENTS

The financial statements of the funds, including the Statements of Assets
and Liabilities and the Statements of Operations for the fiscal year ended
December 31, 1997, and the Statements of Changes in Net Assets for the fiscal
years ended December 31, 1996 and 1997, are included in the Annual Reports to
shareholders for the fiscal year ended December 31, 1997. The report on the
financial highlights for the fiscal years 1993, 1994, 1995 and 1996 are included
in the Annual Reports to Shareholders for the fiscal year ended December 31,
1996. Each such Annual Report is incorporated herein by reference. You may
receive copies of the reports without charge upon request to American Century at
the address and phone number shown on the cover of this Statement of Additional
Information.

18 AMERICAN CENTURY INVESTMENTS

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

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

Automated Information Line:
1-800-345-8765

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

Fax: 816-340-7962

www.americancentury.com

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

9805 [recycled logo]
SH-BKT-11921 Recycled
<PAGE>

- --------------------------------------------------------------------------------

PART C OTHER INFORMATION

Item 24. Financial Statements and Exhibits

(a) Financial Statements

(i) Financial Statements filed in Part A of Registration Statement:

1. Financial Highlights

2. Financial Highlights for the fiscal years ended Dec. 31 1996,
1995, 1994 and 1993 are covered by the Independent Accountants
Report dated February 24, 1997 which is incorporated by reference
to the Registrant's Annual Reports dated December 31, 1996.

(ii) Financial Statements filed in Part B of the Registration Statement
(each of the following financial statements is contained in the
Registrant's Annual Reports dated December 31, 1997, which are
incorporated by reference in Part B of this Registration Statement):

1. Statement of Assets and Liabilities at December 31, 1997.

2. Statement of Operations for the year ended December 31, 1997.

3. Statement of Changes in Net Assets for the years ended December
31, 1997 and 1996.

4. Notes to Financial Statements as of December 31, 1997.

5. Schedule of Investments as of December 31, 1997.

6. Independent Accountants' Report dated February 10, 1998.

(b) Exhibits (all exhibits not filed herewith are being incorporated
herein by reference)

1. Amended and Restated Articles of Incorporation of American
Century Quantitative Equity Funds dated March 9, 1998 (filed
herewith as EX-99.B1).

2. Amended and Restated Bylaws of American Century Quantitative
Equity Funds dated March 9, 1998 (filed electronically as an
Exhibit to Post-Effective Amendment No. 21 on Form N-1A on April
15, 1998, File No. 33-19589).

3. Voting Trust Agreements - None.

4. (a) Specimen copy of the American Century Global Gold Fund share
certificate is incorporated herein by reference to Exhibit 4
to Pre-Effective Amendment No. 2 filed July 12,1988.

(b) Specimen copy of the American Century Income & Growth Fund
share certificate is incorporated herein by reference to
Exhibit 4 to Post-Effective Amendment No. 5 filed March 1,
1991.

(c) Specimen copy of the American Century Equity Growth Fund
share certificate is incorporated herein by reference to
Exhibit 4 to Post-Effective Amendment No. 5 filed March 1,
1991.

(d) Specimen copy of the American Century Utilities Fund share
certificate is incorporated herein by reference to Exhibit
4(d) to Post-Effective Amendment No. 11 filed February 28,
1993.

(e) Specimen copy of the American Century Global Natural
Resources Fund share certificate is incorporated herein by
reference to Exhibit 4(e) to Post-Effective Amendment No. 13
filed.

5. (a) Management Agreement - Investor Class between American
Century Quantitative Equity Funds and American Century
Investment Management, Inc., dated August 1, 1997, (filed
electronically as an Exhibit to Post-Effective Amendment No.
33 on Form N1-A of American Century Government Income Trust,
File No. 2-99222).

(b) Amendment to Management Agreement - Investor Class between
American Century Quantitative Equity Funds and American
Century Investment Management, Inc., dated March 9, 1998
(filed electronically as an Exhibit to Post-Effective
Amendment No. 23 on Form N-1A of American Century Municipal
Trust, File No. 2-91229).

(c) Management Agreement - Advisor Class between American
Century Quantitative Equity Funds and American Century
Investment Management, Inc., dated August 1, 1997, (filed
electronically as an Exhibit to Post-Effective Amendment No.
27 on Form N1-A of American Century Target Maturities Trust,
File No. 2-94608).

(d) Management Agreement - Institutional Class between American
Century Quantitative Equity Funds and American Century
Investment Management, Inc., dated August 1, 1997, (filed
electronically as an Exhibit to Post-Effective Amendment No.
20 on Form N1-A on August 29, 1997, File No. 33-19589).

6. Distribution Agreement between American Century Quantitative
Equity Funds and Funds Distributor, Inc., dated January 15, 1998
(filed electronically as an Exhibit to Post-Effective Amendment
No. 28 on Form N1-A of American Century Target Maturities Trust,
File No. 2-94608).

7. Bonus and Profit Sharing Plan, Etc. - None.

8. Global Custody Agreement between The Chase Manhattan Bank and the
Twentieth Century and Benham funds, dated August 9, 1996, (filed
electronically as an Exhibit to Post-Effective Amendment No. 31
on Form N1-A of American Century Government Income Trust, File
No. 2-99222).

9. Transfer Agency Agreement between American Century Quantitative
Equity Funds and American Century Services Corporation, dated
August 1, 1997, (filed electronically as an Exhibit to
Post-Effective Amendment No. 33 on Form N1-A of American Century
Government Income Trust, File No. 2-99222).

10. Opinion and Consent of Counsel (filed herewith as EX-99.B10).

11. (a) Consent of Coopers & Lybrand L.L.P. (filed herewith as
EX-99.B11a).

(b) Consent of KPMG Peat Marwick LLP (filed herewith as
EX-99.B11b).

12. (a) Annual Reports of the Registrant dated December 31, 1997
(filed electronically on February 24, 1998, File No.
33-19589).

(b) Annual Reports of the Registrant dated December 31, 1996
(filed electronically on February 26, 1997, File No.
33-19589).

13. Agreements for Initial Capital, Etc. - None.

14. (a) American Century Individual Retirement Account plan,
including all instructions and other relevant documents, is
incorporated herein by reference to Exhibit 14(a) to
Post-Effective Amendment No. 9 filed October 3, 1992.

(b) American Century Pension/Profit-Sharing plan, including all
instructions and other relevant documents, is incorporated
herein by reference to Exhibit 14(b) to Post-Effective
Amendment No. 9 filed October 3, 1992.

15. Master Distribution and Shareholder Services Plan of American
Century Government Income Trust, American Century International
Bond Fund, American Century Target Maturities Trust and American
Century Quantitative Equity Funds (Advisor Class) dated August 1,
1997, (filed electronically as an Exhibit to Post-Effective
Amendment No. 27 on Form N1-A of American Century Target
Maturities Trust, File No. 2-94608).

16. Schedules for Computation of Advertising Performance Quotations
(filed herewith as EX-99.B16).

17. Power of Attorney dated January 15, 1998 (filed electronically as
an Exhibit to Post-Effective Amendment No. 21 on Form N-1A on
April 15, 1998, File No. 33-19589).

18. Multiple Class Plan of American Century California Tax-Free and
Municipal Funds, American Century Government Income Trust,
American Century International Bond Funds, American Century
Investment Trust, American Century Municipal Trust, American
Century Target Maturities Trust and American Century Quantitative
Equity Funds dated August 1, 1997, (filed electronically as an
Exhibit to Post-Effective Amendment No. 27 on Form N1-A of
American Century Target Maturities Trust, File No. 2-94608).

Item 25. Persons Controlled by or Under Control with Registrant - None.

Item 26. Number of Holders of Securities.

As of July 31, 1997, the Funds had the following number of recordholders:

Investor Advisor Institutional
Class Class Class
----- ----- -----
American Century Global Gold Fund 21,797 0 0
American Century Income & Growth Fund 77,153 4 0
American Century Equity Growth Fund 51,172 5 1
American Century Utilities Fund 12,127 0 0
American Century Global Natural Resources 3,880 0 0

Item 27. Indemnification.

Under the laws of the State of California, the Directors are entitled and
empowered to purchase insurance for and to provide by resolution or in the
Bylaws for indemnification out of Corporation assets for liability and for
all expenses reasonably incurred or paid or expected to be paid by a
Director or officer in connection with any claim, action, suit, or
proceeding in which he or she becomes involved by virtue of his or her
capacity or former capacity with the Corporation. The provisions, including
any exceptions and limitations concerning indemnification, may be set forth
in detail in the Bylaws or in a resolution adopted by the Board of
Directors.

Registrant hereby incorporates by reference, as though set forth fully
herein, Article II, Section 16 of Registrant's Amended and Restated Bylaws,
dated May 31, 1995, appearing as Exhibit 2(c) of Post-Effective Amendment
No. 17 filed on February 26, 1996.

The Registrant has purchased an insurance policy insuring its officers and
directors against certain liabilities which such officers and directors may
incur while acting in such capacities and providing reimbursement to the
Registrant for sums which it may be permitted or required to pay to its
officers and directors by way of indemnification against such liabilities,
subject in either case to clauses respecting deductibility and
participation.

Item 28. Business and Other Connections of Investment Advisor.

American Century Investment Management, Inc., the investment manager to
each of the Registrant's Funds, is engaged in the business of managing
investments for deferred compensation plans and other institutional
investors.

Item 29. Principal Underwriters.

(a) Funds Distributor, Inc. (the "Distributor") acts as principal
underwriter for the following investment companies.

American Century California Tax-Free and Municipal Funds
American Century Capital Portfolios, Inc.
American Century Government Income Trust
American Century International Bond Funds
American Century Investment Trust
American Century Municipal Trust
American Century Mutual Funds, Inc.
American Century Premium Reserves, Inc.
American Century Quantitative Equity Funds
American Century Strategic Asset Allocations, Inc.
American Century Target Maturities Trust
American Century Variable Portfolios, Inc.
American Century World Mutual Funds, Inc.
BJB Investment Funds
The Brinson Funds
Dresdner RCM Capital Funds, Inc.
Dresdner RCM Equity Funds, Inc.
Harris Insight Funds Trust
HT Insight Funds, Inc. d/b/a Harris Insight Funds
J.P. Morgan Institutional Funds
J.P. Morgan Funds
The JPM Series Trust
The JPM Series Trust II
LaSalle Partners Funds, Inc.
Monetta Fund, Inc.
Monetta Trust
The Montgomery Funds
The Montgomery Funds II
The Munder Framlington Funds Trust
The Munder Funds Trust
The Munder Funds, Inc.
Orbitex Group of Funds
St. Clair Funds, Inc.
The Skyline Funds
Waterhouse Investors Family of Funds, Inc.
WEBS Index Fund, Inc.

The Distributor is registered with the Securities and Exchange
Commission as a broker-dealer and is a member of the National
Association of Securities Dealers. The Distributor is located at
60 State Street, Suite 1300, Boston, Massachusetts 02109. The
Distributor is an indirect wholly-owned subsidiary of Boston
Institutional Group, Inc., a holding company all of whose
outstanding shares are owned by key employees.

(b) The following is a list of the executive officers, directors and
partners of the Distributor:

<TABLE>
Name and Principal Business Positions and Offices with Positions and Offices with
Address* Underwriter Registrant

<S> <C> <C>
Marie E. Connolly Director, President and Chief none
Executive Officer

Richard W. Ingram Executive Vice President President, Principal Executive
and Principal Financial Officer

Donald R. Roberson Executive Vice President none

William S. Nichols Executive Vice President none

Michael S. Petrucelli Senior Vice President none

Joseph F. Tower, III Director, Senior Vice President, none
Treasurer and Chief Financial
Officer

Paula R. David Senior Vice President none

Allen B. Closser Senior Vice President none

Bernard A. Whalen Senior Vice President none

William J. Nutt Director none
- --------------------
* All addresses are 60 State Street, Suite 1300, Boston, Massachusetts 02109
</TABLE>

Item 30. Location of Accounts and Records.

American Century Investment Management, Inc., the Registrant, and its agent
for transfer and administrative services, American Century Services
Corporation, maintains their principal office at 4500 Main St., Kansas
City, MO 64111. American Century Services Corporation maintains physical
possession of each account, book, or other document, and shareholder
records as required by ss.31(a) of the 1940 Act and rules thereunder.

Item 31. Management Services - None.

Item 32. Undertakings.

a. Not Applicable.

b. Not Applicable.

c. Registrant hereby undertakes to furnish each person to whom a
prospectus is delivered a copy of Registrant's latest annual report to
shareholders, upon request and without charge.

d. Registrant hereby undertakes that it will, if requested to do so by
the holders of at least 10% of the Registrant's outstanding shares,
call a meeting of shareholders for the purpose of voting upon the
question of the removal of a director and to assist in communication
with other shareholders as required by Section 16(c).
<PAGE>
SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, American Century Quantitative Equity Funds, the
Registrant, has duly caused this Post-Effective Amendment No. 22/Amendment No.
24 to its Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Kansas City, State of Missouri, on the
30th day of April, 1998.

AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS (Registrant)

By: /s/ Patrick A. Looby
Patrick A. Looby
Vice President

Pursuant to the requirements of the Securities Act of 1933, this Post-Effective
Amendment No. 22/Amendment No. 24 has been signed below by the following persons
in the capacities and on the dates indicated.
<TABLE>
<CAPTION>
Date
<S> <C> <C>
*Richard W. Ingram President, Principal April 30, 1998
- --------------------------------- Executive and Principal
Richard W. Ingram Financial Officer

*Maryanne Roepke Vice President, Treasurer April 30, 1998
- --------------------------------- and Principal Accounting
Maryanne Roepke Officer

*Albert A. Eisenstat Director April 30, 1998
- ---------------------------------
Albert A. Eisenstat

*Ronald J. Gilson Director April 30, 1998
- ---------------------------------
Ronald J. Gilson

*William M. Lyons Director April 30, 1998
- ---------------------------------
William M. Lyons

*Myron S. Scholes Director April 30, 1998
- ---------------------------------
Myron S. Scholes

*Kenneth E. Scott Director April 30, 1998
- ---------------------------------
Kenneth E. Scott

*Isaac Stein Director April 30, 1998
- ---------------------------------
Isaac Stein

*James E. Stowers III Director April 30, 1998
- ---------------------------------
James E. Stowers III

*Jeanne D. Wohlers Director April 30, 1998
- ---------------------------------
Jeanne D. Wohlers
</TABLE>

*By /s/ Patrick A. Looby
Patrick A. Looby
Attorney-in-Fact

EXHIBIT DESCRIPTION

EX-99.B1 Amended and Restated Articles of Incorporation of American Century
Quantitative Equity Funds dated March 9, 1998.

EX-99.B2 Amended and Restated Bylaws dated March 9, 1998.(filed as a part of
Post-Effective Amendment No. 21 to the Registration Statement on
Form N1-A of the Registrant, File No. 33-19589, filed on April 15,
1998, and incorporated herein by reference).

EX-99.B4a Specimen copy of the American Century Global Gold Fund share
certificate is incorporated herein by reference to Exhibit 4 to
Pre-Effective Amendment No. 2 filed July 12, 1988.

EX-99.B4b Specimen copy of the American Century Income & Growth Fund share
certificate is incorporated herein by reference to Exhibit 4 to
Post-Effective Amendment No 5 filed March 1, 1991.

EX-99.B4c Specimen copy of the American Century Equity Growth Fund share
certificate is incorporated herein by reference to Exhibit 4 to
Post-Effective Amendment No 5 filed March 1, 1991.

EX-99.B4d Specimen copy of the American Century Utilities Fund share
certificate is incorporated herein by reference to Exhibit 4(d) to
Post-Effective Amendment No. 11 filed February 28, 1993.

EX-99.B4e Specimen copy of the American Century Global Natural Resources Fund
share certificate is incorporated herein by reference to Exhibit
4(e) to Post-Effective Amendment No. 13 filed.

EX-99.B5a Management Agreement - Investor Class between American Century
Quantitative Equity Funds and American Century Investment
Management, Inc., dated August 1, 1997 (filed as a part of
Post-Effective Amendment No. 33 to the Registration Statement on
Form N1-A of American Century Government Income Trust, File No.
2-99222, filed July 31, 1997, and incorporated herein by reference).

EX-99.B5b Management Agreement - Advisor Class between American Century
Quantitative Equity Funds and American Century Investment
Management, Inc., dated August 1, 1997 (filed as a part of
Post-Effective Amendment No. 27 to the Registration Statement on
Form N1-A of for American Century Target Maturities Trust, File No.
2-94608, filed on August 29, 1997, and incorporated herein by
reference).

EX-99.B5c Management Agreement - Institutional Class between American Century
Quantitative Equity Funds and American Century Investment
Management, Inc., dated August 1, 1997 (filed as a part of
Post-Effective Amendment No. 20 to the Registration Statement on
Form N1-A of the Registrant, File No. 33-19589, filed on August 29,
1997, and incorporated herein by reference).

EX-99.B6 Distribution Agreement between American Century Quantitative Equity
Funds and Funds Distributor, Inc., dated January 15, 1998 (filed as
a part of Post-Effective Amendment No. 28 to the Registration
Statement on Form N1-A of American Century Target Maturities Trust,
File No. 2-94608, filed on January 30, 1998, and incorporated herein
by reference).

EX-99.B8 Global Custody Agreement between The Chase Manhattan Bank and the
Twentieth Century and Benham funds, dated August 9, 1996
Post-Effective Amendment No. 31 to the Registration Statement on
Form N1-A of American Century Government Income Trust, File No.
2-99222, filed on February 7, 1997, and incorporated herein by
reference).

EX-99.B9 Transfer Agency Agreement between American Century Quantitative
Equity Funds and American Century Services Corporation, dated August
1, 1997 (filed as a part of Post-Effective Amendment No. 33 to the
Registration Statement on Form N1-A of American Century Government
Income Trust, File No. 2-99222, filed on July 31, 1997, and
incorporated herein by reference).

EX-99.B10 Opinion and Consent of Janet A. Nash, Esq.

EX-99.B11a Consent of Coopers & Lybrand L.L.P.

EX-99.B11b Consent of KPMG Peat Marwick LLP.

EX-99.B12a Annual Reports of the Registrant dated December 31, 1997 (filed
February 24, 1998, File No. 33-19589, and incorporated herein by
reference).

EX-99.B12b Annual Reports of the Registrant dated December 31, 1996 (filed
February 26, 1997, File No. 33-19589, and incorporated herein by
reference).

EX-99.B14a American Century Individual Retirement Account plan, including all
instructions and other relevant documents, is incorporated herein by
reference to Exhibit 14(a) to Post-Effective Amendment No. 9 filed
October 3, 1992.

EX-99.B14b American Century Pension/Profit-Sharing plan, including all
instructions and other relevant documents, is incorporated herein by
reference to Exhibit 14(b) to Post-Effective Amendment No. 9 filed
October 3, 1992.

EX-99.B15 Master Distribution and Shareholder Services Plan of American
Century Government Income Trust, American Century International Bond
Fund, American Century Target Maturities Trust and American Century
Quantitative Equity Funds (Advisor Class) dated August 1, 1997
(filed as a part of Post-Effective Amendment No. 27 to the
Registration Statement on Form N1-A for American Century Target
Maturities Trust, File No. 2-94608, filed on August 29, 1997, and
incorporated herein by reference.

EX-99.B16 Schedule of Computation for Performance Advertising Quotations.

EX-99.B17 Power of Attorney dated January 15, 1998 (filed as a part of
Post-Effective Amendment No. 21 to the Registration Statement on
Form N1-A of the Registrant, File No. 33-19589, filed on April 15,
1998, and incorporated herein by reference).

EX-99.B18 Multiple Class Plan of American Century California Tax-Free and
Municipal Funds, American Century Government Income Trust, American
Century International Bond Funds, American Century Investment Trust,
American Century Municipal Trust, American Century Target Maturities
Trust and American Century Quantitative Equity Funds dated August 1,
1997 (filed as a part of Post-Effective Amendment No. 27 to the
Registration Statement on Form N1-A for American Century Target
Maturities Trust, File No. 2-94608, filed on August 29, 1997, and
incorporated herein by reference).

EX-27.1.1 FDS - American Century Global Gold Fund.

EX-27.1.2 FDS - American Century Income & Growth Fund.

EX-27.1.3 FDS - American Century Equity Growth Fund.

EX-27.1.4 FDS - American Century Utilities Fund.

EX-27.1.5 FDS - American Century Global Natural Resources Fund.

AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS

Amended and Restated
Articles of Incorporation

================================================================================
AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS

ARTICLES OF INCORPORATION

Article I

The name of this corporation is

AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS

Article II

The purpose of this corporation is to engage in any lawful act or
activity for which a corporation may be organized under the General Corporation
Law of California other than the banking business, the trust company business or
the practice of a profession permitted to be incorporated by the California
Corporations Code.

Article III

This corporation is authorized to issue ten classes of shares of stock
to be designated as follows: A(1) Common, A(2) Common, A(3) Common, A(4) Common,
A(5) Common, A(6) Common, A(7) Common, A(8) Common, A(9) Common, and A(10)
Common. This corporation is authorized to issue two billion (2,000,000,000)
shares of each of such classes. The shares of each of such classes may be issued
in series.

The Board of Directors of this corporation is authorized to determine
or alter the rights, preferences, privileges and restrictions granted to or
imposed upon any wholly unissued series of any class, including but not limited
to the designation of any such series and the number of shares of any such
series.

Of the two billion (2,000,000,000) shares of A(1) Common stock that the
corporation is authorized to issue, one billion (1,000,000,000) shares are
classified into a series designated Series 1A(1) Common stock, to be referred to
as American Century Global Gold Fund--Investor Class; two hundred fifty million
(250,000,000) shares are classified into a series designated Series 2A(1) Common
stock, to be referred to as American Century Global Gold Fund--Advisor Class.

Of the two billion (2,000,000,000) shares of A(2) Common stock that the
corporation is authorized to issue, one billion (1,000,000,000) shares are
classified into a series designated Series 1A(2) Common stock, to be referred to
as American Century Income & Growth Fund--Investor Class; two hundred fifty
million (250,000,000) shares are classified into a series designated Series
2A(2) Common stock, to be referred to as American Century Income & Growth
Fund--Advisor Class; two hundred fifty million (250,000,000) shares are
classified into a series designated Series 3A(2) Common stock, to be referred to
as American Century Income & Growth Fund--Institutional Class.

Of the two billion (2,000,000,000) shares of A(3) Common stock that the
corporation is authorized to issue, one billion (1,000,000,000) shares are
classified into a series designated Series 1A(3) Common stock, to be referred to
as American Century Equity Growth Fund--Investor Class; two hundred fifty
million (250,000,000) shares are classified into a series designated Series
2A(3) Common stock, to be referred to as American Century Equity Growth
Fund--Advisor Class; two hundred fifty million (250,000,000) shares are
classified into a series designated Series 3A(3) Common stock, to be referred to
as American Century Equity Growth Fund--Institutional Class.

Of the two billion (2,000,000,000) shares of A(4) Common stock that the
corporation is authorized to issue, one billion (1,000,000,000) shares are
classified into a series designated Series 1A(4) Common stock, to be referred to
as American Century Utilities Fund--Investor Class; two hundred fifty million
(250,000,000) shares are classified into a series designated Series 2A(4) Common
stock, to be referred to as American Century Utilities Fund--Advisor Class.

Of the two billion (2,000,000,000) shares of A(5) Common stock that the
corporation is authorized to issue, one billion (1,000,000,000) shares are
classified into a series designated Series 1A(5) Common stock, to be referred to
as American Century Global Natural Resources Fund--Investor Class; two hundred
fifty million (250,000,000) shares are classified into a series designated
Series 2A(4) Common stock, to be referred to as American Century Global Natural
Resources Fund--Advisor Class.

Of the two billion (2,000,000,000) shares of A(6) Common stock that the
corporation is authorized to issue, one billion (1,000,000,000) shares are
classified into a series designated Series 1A(6) Common stock, to be referred to
as American Century Small Capitalization Quantitative Fund--Investor Class; two
hundred fifty million (250,000,000) shares are classified into a series
designated Series 2A(6) Common stock, to be referred to as American Century
Small Capitalization Quantitative Fund--Advisor Class; two hundred fifty million
(250,000,000) shares are classified into a series designated Series 3A(6) Common
stock, to be referred to as American Century Small Capitalization Quantitative
Fund--Institutional Class.

Shares of the American Century Global Gold Fund, American Century
Income & Growth Fund, American Century Equity Growth Fund, American Century
Utilities Fund, American Century Global Natural Resources Fund and American
Century Small Capitalization Quantitative Fund (each, a "Series") shall have the
following preferences and other rights, voting powers, restrictions, limitations
as to dividends, qualifications and terms and conditions of redemption:

(1) Assets Belonging to a Series. All consideration received by this
corporation for the issue or sale of shares of a Series of capital
stock, together with all assets in which such considerations is
invested and reinvested, income, earnings, profits and proceeds
thereof, including any proceeds derived from the sale, exchange or
liquidation thereof, and any funds or payments derived from any
reinvestment of such proceeds in whatever form the same may be, shall
for all purposes irrevocably belong to the Series of capital stock with
respect to which such consideration, assets, income, earnings, profits,
proceeds, funds or payments were received by the corporation, subject
only to the rights of creditors, and shall be so treated upon the books
of account of the corporation Any assets, income, earnings, profits,
proceeds, funds or payments which are not readily attributable to any
particular Series shall be allocated among any one or more of the
Series in such manner and on such basis as the Board of Directors, in
its sole discretion, shall deem fair and equitable. All consideration,
assets, income, earnings, profits, proceeds (including any assets in
whatever form derived from the reinvestment of proceeds), funds or
payments, belonging or allocated to a Series are herein referred to as
"assets belonging to" such Series.

(2) Liabilities Belonging to a Series. The assets belonging to a Series of
capital stock shall be charged with the liabilities in respect of such
Series and shall also be charged with such Series' share of the general
liabilities of the corporation determined as hereinafter provided. The
determination of the Board of Directors shall be conclusive as to the
amount of such liabilities, including the amount of accrued expenses
and reserves; as to any allocation of the same to a given Series; and
as to whether the same are allocable to one or more Series. Any
liabilities which are not readily attributable to any particular Series
shall be allocable among any one or more of the Series in such manner
and on such basis as the Board of Directors, in its sole discretion,
shall deem fair and equitable. The liabilities so allocated to a Series
are herein referred to as "liabilities belonging to" such Series.

(3) Dividends and Distributions. Shares of each Series of capital stock
shall be entitled to such dividends and distributions, in stock or in
cash or both, as may be declared with respect to such Series from time
to time by the Board of Directors, acting in its sole discretion,
provided, however, that dividends and distributions on shares of a
Series of capital stock shall be paid only out of the lawfully
available assets belonging to such Series, net of liabilities belonging
to such Series.

(4) Liquidating Dividends and Distributions. In the event of the
liquidation or dissolution of the corporation, shareholders of each
Series of capital stock shall be entitled to receive, as a Series, out
of the assets of the corporation available for distribution to
shareholders, but other than general assets not belonging to any
particular Series of capital stock, the assets belonging to such
Series, net of liabilities belonging to such Series; and the assets so
distributable to the shareholders of any Series of capital stock shall
be distributed among such shareholders in proportion to the number of
shares of such Series held by them and recorded on the books of the
corporation. In the event that there are any general assets available
for distribution that have not been allocated by the Board of Directors
to any particular Series of capital stock, such assets will be
distributed to the holders of stock of all Series of capital stock in
proportion to the asset values of the respective Series of capital
stock.

(5) Voting. A shareholder of each Series shall be entitled to one vote for
each dollar of net asset value per share of such Series (calculated as
of a record date specified by the Board of Directors), on any matter on
which such shareholder is entitled to vote and each fractional dollar
amount shall be entitled to a proportionate fractional vote. All
references in these Articles of Incorporation or the Bylaws to a vote
of or the holders of a percentage of Shares shall mean a vote of, or
the holders of, that percentage of total votes representing dollars of
net asset value of a Series or of the corporation, as the case may be.

(6) Redemption. To the extent the corporation has funds or other property
legally available therefor, each holder of shares of a Series of
capital stock of the corporation shall be entitled to require the
corporation to redeem all or any part of the shares standing in the
name of such holder on the books of the corporation, at the redemption
price of such shares in effect from time to time as may be determined
by the Board of Directors of the corporation in accordance with the
provisions hereof, subject to the right of the Board of Directors of
the corporation to suspend the right of redemption of shares of capital
stock of the corporation or postpone the date of payment of such
redemption price in accordance with provisions of applicable law.
Without limiting the generality of the foregoing, the corporation
shall, to the extent permitted by applicable law, have the right at any
time to redeem the shares owned by any holder of any Series of capital
stock of the corporation if (i) the value of such shares in the account
of such holder is less than the minimum investment amount applicable to
that account as set forth in the corporation's then-current
registration statement under the Investment Company Act of 1940, or
(ii) the holder fails to furnish the corporation with the holder's
correct taxpayer identification number or social security number and to
make such certifications with respect thereto as the corporation may
require; provided, however, that any such redemptions shall be subject
to such further terms and conditions as the Board of Directors of the
corporation may from time to time adopt. The redemption price of shares
of a Series of capital stock of the corporation shall be the net asset
value thereof as determined by, or pursuant to methods approved by, the
Board of Directors of the corporation from time to time in accordance
with the provisions of applicable law, less such redemption fee or
other charge, if any, as may be specified in the corporation's current
registration statement under the Investment Company Act of 1940 for
that Series. Payment of the redemption price shall be made in cash by
the corporation at such time and in such manner as may be determined
from time to time by the Board of Directors unless, in the opinion of
the Board of Directors, which shall be conclusive, conditions exist
which make payment wholly in cash unwise or undesirable; in such event
the corporation may make payment wholly or partly by securities or
other property included in the assets belonging or allocable to the
Series of the shares redemption of which is being sought the value of
which shall be determined as provided herein.

Article IV

The liability of the directors of the corporation for monetary damages
shall be eliminated to the fullest extent permissible under California law.

Article V

The Corporation is authorized to provide indemnification of agents (as
defined in Section 317 of the California Corporations Code) through bylaw
provisions, agreements with agents, vote of shareholders or disinterested
directors or otherwise, in excess of the indemnification otherwise permitted by
Section 317, subject to the applicable limits set forth in Section 204 of the
California Corporations Code with respect to actions for breach of duty to the
corporation and its shareholders.
================================================================================

Janet A. Nash
Attorney at Law
4500 Main Street * P.O. Box 418210
Kansas City, Missouri 64141-9210

April 30, 1998

American Century Quantitative Equity Funds
American Century Tower
4500 Main Street
Kansas City, Missouri 64111

Ladies and Gentlemen:

As counsel to American Century Quantitative Equity Funds (the
"Corporation"), I am generally familiar with its affairs. Based upon this
familiarity, and upon the examination of such documents as I deemed relevant, it
is my opinion that the shares of the Corporation described in the 1933 Act
Post-Effective Amendment No. 22 and 1940 Act Amendment No. 24 to its
Registration Statement on Form N-1A, to be filed with the Securities and
Exchange Commission on April 30, 1998, will, when issued, be validly issued,
fully paid and nonassessable.

For the record, it should be stated that I am an employee of American
Century Services Corporation, an affiliated corporation of American Century
Investment Management, Inc., the investment advisor of the Corporation.

I hereby consent to the use of this opinion as an exhibit to the
above-referenced Post-Effective Amendment.

Very truly yours,

/s/Janet A. Nash
Janet A. Nash

CONSENT OF INDEPENDENT ACCOUNTANTS

We consent to the incorporation by reference in Post-Effective Amendment No. 22
to the Registration Statement of American Century Equity Growth Fund, American
Century Income & Growth Fund, American Century Global Gold Fund, American
Century Global Natural Resources Fund, and American Century Utilities Fund (five
of the Funds comprising American Century Quantitative Equity Funds) on Form N-1A
of our report dated February 10, 1998 on our audits of the financial statements
and financial highlights of the American Century Equity Growth Fund, American
Century Income & Growth Fund, American Century Global Gold Fund, American
Century Global Natural Resources Fund, and American Century Utilities Fund,
which reports are included in the Annual Report to Shareholders for the year
ended December 31, 1997 which is incorporated by reference in the Post-Effective
Amendment to the Registration Statement. We also consent to the reference in the
Statement of Additional Information to our Firm under the caption "Independent
Accountants".

/s/Coopers & Lybrand L.L.P.
Coopers & Lybrand L.L.P.

Kansas City, Missouri

April 24, 1998

INDEPENDENT AUDITORS' CONSENT

The Board of Directors
American Century Quantitative Equity Funds:

We consent to the use of our report dated February 7, 1997 included in your
registration statement.

/s/KPMG Peat Marwick LLP
KPMG Peat Marwick LLP

Kansas City, Missouri
April 24, 1998

AMERICAN CENTURY GLOBAL GOLD FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97

Formula: T=(ERV/P)^1/N -1

P = A hypothetical initial payment of $1,000
ERV = Ending redeemable value of a hypothetical $1,000 payment made at the
beginning of the period
N = Number of years
T = Average annual total return

P ERV N T
-------------------------------------------------------------

One Year $1,000.00 $585.30 1.000000 -41.47%

Five Year $1,000.00 $938.20 5.000000 -1.27%

Ten Year $1,000.00 10.000000 N/A

Inception * $1,000.00 $716.80 9.371663 -3.49%

TR = Total return for period TR=(ERV/P)-1 -28.32%

*Date of Inception: 8/17/88
<PAGE>

AMERICAN CENTURY GLOBAL NATURAL RESOURCES FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97

Formula: T=(ERV/P)^1/N -1

P = A hypothetical initial payment of $1,000
ERV = Ending redeemable value of a hypothetical $1,000 payment made at the
beginning of the period
N = Number of years
T = Average annual total return

P ERV N T
---------------------------------------------------------------

One Year $1,000.00 $1,025.00 1.000000 2.50%

Five Year $1,000.00 5.000000 N/A

Ten Year $1,000.00 10.000000 N/A

Inception * $1,000.00 $1,306.70 3.293634 8.46%

TR = Total return for period TR=(ERV/P)-1 30.67%

*Date of Inception: 9/15/94
<PAGE>

AMERICAN CENTURY INCOME & GROWTH FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97

Formula: T=(ERV/P)^1/N -1

P = A hypothetical initial payment of $1,000
ERV = Ending redeemable value of a hypothetical $1,000 payment made at the
beginning of the period
N = Number of years
T = Average annual total return

P ERV N T
---------------------------------------------------------------

One Year $1,000.00 $1,344.50 1.000000 34.45%

Five Year $1,000.00 $2,528.90 5.000000 20.39%

Ten Year $1,000.00 10.000000 N/A

Inception * $1,000.00 $3,841.90 7.039014 21.07%

TR = Total return for period TR=(ERV/P)-1 284.19%

*Date of Inception: 12/17/90
<PAGE>

AMERICAN CENTURY EQUITY GROWTH FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97

Formula: T=(ERV/P)^1/N -1

P = A hypothetical initial payment of $1,000
ERV = Ending redeemable value of a hypothetical $1,000 payment made at the
beginning of the period
N = Number of years
T = Average annual total return

P ERV N T
----------------------------------------------------------------

One Year $1,000.00 $1,360.60 1.000000 36.06%

Five Year $1,000.00 $2,591.80 5.000000 20.98%

Ten Year $1,000.00 10.000000 N/A

Inception * $1,000.00 $3,170.50 6.647502 18.96%

TR = Total return for period TR=(ERV/P)-1 217.05%

*Date of Inception: 5/9/91
<PAGE>

AMERICAN CENTURY UTILITIES FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97

Formula: T=(ERV/P)^1/N -1

P = A hypothetical initial payment of $1,000
ERV = Ending redeemable value of a hypothetical $1,000 payment made at the
beginning of the period
N = Number of years
T = Average annual total return

P ERV N T
--------------------------------------------------------------

One Year $1,000.00 $1,358.20 1.000000 35.82%

Three Year $1,000.00 $1,932.00 3.000000 24.52%

Ten Year $1,000.00 10.000000 N/A

Inception * $1,000.00 $1,852.80 4.835044 13.60%

TR = Total return for period TR=(ERV/P)-1 85.28%

*Date of Inception: 3/1/93
<PAGE>

AMERICAN CENTURY UTILITIES FUND
YIELD CALCULATION
12/31/97

Formula: YIELD = 2[(A-B/C*D+1)^6-1]

A = Investment income earned during the period

B = Expenses accrued for the period (net of reimbursements)

C = The average daily number of shares outstanding during the period that
were entitled to receive dividends

D = The per share price on the last day of the period

A = $545,827.59
B = $104,301.62
C = 12,774,695.509
D = $14.24

Yield = 2.93%
<PAGE>

AMERICAN CENTURY INCOME & GROWTH FUND
YIELD CALCULATION
12/31/97

Formula: YIELD = 2[(A-B/C*D+1)^6-1]

A = Investment income earned during the period

B = Expenses accrued for the period (net of reimbursements)

C = The average daily number of shares outstanding during the period that
were entitled to receive dividends

D = The per share price on the last day of the period

A = $3,240,422.03
B = $1,001,071.90
C = 68,739,706.089
D = $24.30

Yield = 1.61%

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE ANNUAL
REPORT OF AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS, INC. AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000827060
<NAME> AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS
<SERIES>
<NUMBER> 1
<NAME> AMERICAN CENTURY GLOBAL GOLD FUND

<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 378,707,510 <F1>
<INVESTMENTS-AT-VALUE> 246,439,116
<RECEIVABLES> 6,241,379
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 252,680,495
<PAYABLE-FOR-SECURITIES> 2,854,644
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,810,539
<TOTAL-LIABILITIES> 6,665,183
<SENIOR-EQUITY> 388,319,610
<PAID-IN-CAPITAL-COMMON> 26,143,449
<SHARES-COMMON-STOCK> 38,831,961
<SHARES-COMMON-PRIOR> 38,181,507
<ACCUMULATED-NII-CURRENT> 1,568
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (36,176,413)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (132,272,902)
<NET-ASSETS> 246,015,312
<DIVIDEND-INCOME> 5,074,520
<INTEREST-INCOME> 526,720
<OTHER-INCOME> 0
<EXPENSES-NET> 2,347,570
<NET-INVESTMENT-INCOME> 3,253,670
<REALIZED-GAINS-CURRENT> (32,125,432)
<APPREC-INCREASE-CURRENT> (153,557,529)
<NET-CHANGE-FROM-OPS> (182,429,291)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,534,937
<DISTRIBUTIONS-OF-GAINS> 7,324,988
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 56,650,525
<NUMBER-OF-SHARES-REDEEMED> 57,572,936
<SHARES-REINVESTED> 1,572,865
<NET-CHANGE-IN-ASSETS> (186,571,237)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 3,211,312
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,534,300
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,347,570
<AVERAGE-NET-ASSETS> 348,332,226
<PER-SHARE-NAV-BEGIN> 11.33 <F2>
<PER-SHARE-NII> 0.09 <F2>
<PER-SHARE-GAIN-APPREC> (4.79)<F2>
<PER-SHARE-DIVIDEND> 0.09 <F2>
<PER-SHARE-DISTRIBUTIONS> 0.20 <F2>
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 6.34 <F2>
<EXPENSE-RATIO> 0.67 <F2>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00

<FN>
<F1>SCHEDULE REFLECTS THE TOTAL FOR ALL CLASSES, EXCEPT WHERE INDICATED.
<F2>INVESTOR CLASS INFORMATION ONLY.
</FN>

</TABLE>

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE ANNUAL
REPORT OF AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH REPORT. INFORMATION PRESENTED IS A TOTAL OF ALL
CLASSES, EXCEPT WHERE SUCH PRESENTATION IS NOT POSSIBLE(SUCH AS PER SHARE DATA).
IN THOSE CASES, ONLY THE INVESTOR CLASS INFORMATION IS PRESENTED.
</LEGEND>
<CIK> 0000827060
<NAME> AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS
<SERIES>
<NUMBER> 2
<NAME> AMERICAN CENTURY INCOME & GROWTH FUND

<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 1,516,904,388 <F1>
<INVESTMENTS-AT-VALUE> 1,800,236,747
<RECEIVABLES> 37,184,317
<ASSETS-OTHER> 10,562,912
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,847,983,976
<PAYABLE-FOR-SECURITIES> 44,230,615
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,910,050
<TOTAL-LIABILITIES> 49,140,665
<SENIOR-EQUITY> 740,095,430
<PAID-IN-CAPITAL-COMMON> 750,868,717
<SHARES-COMMON-STOCK> 74,009,543
<SHARES-COMMON-PRIOR> 35,591,885
<ACCUMULATED-NII-CURRENT> 2,534,900
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 21,940,625
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 283,403,639
<NET-ASSETS> 1,798,843,311
<DIVIDEND-INCOME> 27,444,322
<INTEREST-INCOME> 3,236,625
<OTHER-INCOME> 0
<EXPENSES-NET> 8,124,614
<NET-INVESTMENT-INCOME> 22,556,333
<REALIZED-GAINS-CURRENT> 154,430,003
<APPREC-INCREASE-CURRENT> 178,014,272
<NET-CHANGE-FROM-OPS> 355,000,608
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 20,595,061
<DISTRIBUTIONS-OF-GAINS> 152,542,696
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 49,995,498
<NUMBER-OF-SHARES-REDEEMED> 18,681,089
<SHARES-REINVESTED> 7,103,249
<NET-CHANGE-IN-ASSETS> 1,081,148,554
<ACCUMULATED-NII-PRIOR> 573,606
<ACCUMULATED-GAINS-PRIOR> 20,053,340
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 6,274,304
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 8,124,614
<AVERAGE-NET-ASSETS> 1,188,566,299
<PER-SHARE-NAV-BEGIN> 20.16<F2>
<PER-SHARE-NII> 0.43<F2>
<PER-SHARE-GAIN-APPREC> 6.40<F2>
<PER-SHARE-DIVIDEND> 0.39<F2>
<PER-SHARE-DISTRIBUTIONS> 2.29<F2>
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 24.31<F2>
<EXPENSE-RATIO> 0.65<F2>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00

<FN>
<F1>SCHEDULE REFLECTS THE TOTAL FOR ALL CLASSES, EXCEPT WHERE INDICATED.
<F2>INVESTOR CLASS INFORMATION ONLY.
</FN>

</TABLE>

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE ANNUAL
REPORT OF AMERICAN CENTURY QUANTITATIVE EQUTIY FUNDS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH REPORT. INFORMATION PRESENTED IS A TOTAL OF ALL
CLASSES, EXCEPT WHERE SUCH PRESENTATION IS NOT POSSIBLE(SUCH AS PER SHARE DATA).
IN THOSE CASES, ONLY THE INVESTOR CLASS INFORMATION IS PRESENTED.
</LEGEND>
<CIK> 0000827060
<NAME> AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS
<SERIES>
<NUMBER> 3
<NAME> AMERICAN CENTURY EQUITY GROWTH FUND

<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 707,460,567 <F1>
<INVESTMENTS-AT-VALUE> 785,697,563
<RECEIVABLES> 16,998,585
<ASSETS-OTHER> 4,715,315
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 807,411,463
<PAYABLE-FOR-SECURITIES> 31,152,570
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,280,356
<TOTAL-LIABILITIES> 33,432,926
<SENIOR-EQUITY> 406,415,450
<PAID-IN-CAPITAL-COMMON> 262,407,547
<SHARES-COMMON-STOCK> 40,641,545
<SHARES-COMMON-PRIOR> 17,195,889
<ACCUMULATED-NII-CURRENT> 291,999
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 26,550,921
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 78,312,620
<NET-ASSETS> 773,978,537
<DIVIDEND-INCOME> 9,073,157
<INTEREST-INCOME> 1,357,015
<OTHER-INCOME> 0
<EXPENSES-NET> 3,377,516
<NET-INVESTMENT-INCOME> 7,052,656
<REALIZED-GAINS-CURRENT> 95,280,432
<APPREC-INCREASE-CURRENT> 44,869,649
<NET-CHANGE-FROM-OPS> 147,202,737
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 6,916,697
<DISTRIBUTIONS-OF-GAINS> 79,804,495
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 31,564,947
<NUMBER-OF-SHARES-REDEEMED> 12,735,061
<SHARES-REINVESTED> 4,615,770
<NET-CHANGE-IN-ASSETS> 499,545,956
<ACCUMULATED-NII-PRIOR> 155,931
<ACCUMULATED-GAINS-PRIOR> 11,075,093
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,555,456
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,377,516
<AVERAGE-NET-ASSETS> 481,928,565
<PER-SHARE-NAV-BEGIN> 15.96<F2>
<PER-SHARE-NII> 0.27<F2>
<PER-SHARE-GAIN-APPREC> 5.36<F2>
<PER-SHARE-DIVIDEND> 0.24<F2>
<PER-SHARE-DISTRIBUTIONS> 2.31<F2>
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 19.04<F2>
<EXPENSE-RATIO> 0.67<F2>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00

<FN>
<F1>SCHEDULE REFLECTS THE TOTAL FOR ALL CLASSES, EXCEPT WHERE INDICATED.
<F2>INVESTOR CLASS INFORMATION ONLY.
</FN>

</TABLE>

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE ANNUAL REPORT OF AMERICAN CENTURY MUTUAL FUNDS, INC.
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000827060
<NAME> AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS
<SERIES>
<NUMBER> 4
<NAME> AMERICAN CENTURY UTILITIES FUND

<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 172,111,846
<INVESTMENTS-AT-VALUE> 214,743,538
<RECEIVABLES> 22,927,072
<ASSETS-OTHER> 1,471,744
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 221,142,354
<PAYABLE-FOR-SECURITIES> 10,009,329
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,171,305
<TOTAL-LIABILITIES> 11,180,634
<SENIOR-EQUITY> 147,466,800
<PAID-IN-CAPITAL-COMMON> 16,806,249
<SHARES-COMMON-STOCK> 14,746,680
<SHARES-COMMON-PRIOR> 12,613,458
<ACCUMULATED-NII-CURRENT> 249,655
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,807,296
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 42,631,720
<NET-ASSETS> 209,961,720
<DIVIDEND-INCOME> 5,686,312
<INTEREST-INCOME> 104,901
<OTHER-INCOME> 0
<EXPENSES-NET> 977,811
<NET-INVESTMENT-INCOME> 4,813,402
<REALIZED-GAINS-CURRENT> 14,150,655
<APPREC-INCREASE-CURRENT> 25,220,795
<NET-CHANGE-FROM-OPS> 44,184,852
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4,602,845
<DISTRIBUTIONS-OF-GAINS> 10,451,945
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8,043,039
<NUMBER-OF-SHARES-REDEEMED> 6,883,378
<SHARES-REINVESTED> 973,561
<NET-CHANGE-IN-ASSETS> 64,828,057
<ACCUMULATED-NII-PRIOR> 39,218
<ACCUMULATED-GAINS-PRIOR> (891,534)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 631,134
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 977,811
<AVERAGE-NET-ASSETS> 136,687,893
<PER-SHARE-NAV-BEGIN> 11.51
<PER-SHARE-NII> 0.43
<PER-SHARE-GAIN-APPREC> 3.57
<PER-SHARE-DIVIDEND> 0.42
<PER-SHARE-DISTRIBUTIONS> 0.85
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 14.24
<EXPENSE-RATIO> 0.72
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00

</TABLE>

<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 40,733,684
<INVESTMENTS-AT-VALUE> 45,880,802
<RECEIVABLES> 772,255
<ASSETS-OTHER> 292,136
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 46,945,193
<PAYABLE-FOR-SECURITIES> 184,675
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 204,311
<TOTAL-LIABILITIES> 388,986
<SENIOR-EQUITY> 40,568,410
<PAID-IN-CAPITAL-COMMON> 1,316,238
<SHARES-COMMON-STOCK> 4,056,841
<SHARES-COMMON-PRIOR> 5,542,442
<ACCUMULATED-NII-CURRENT> (5,062)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (469,273)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,145,894
<NET-ASSETS> 46,556,207
<DIVIDEND-INCOME> 1,291,158
<INTEREST-INCOME> 70,491
<OTHER-INCOME> 0
<EXPENSES-NET> 437,844
<NET-INVESTMENT-INCOME> 923,805
<REALIZED-GAINS-CURRENT> 1,041,706
<APPREC-INCREASE-CURRENT> 81,557
<NET-CHANGE-FROM-OPS> 2,047,068
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 938,125
<DISTRIBUTIONS-OF-GAINS> 1,946,841
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,448,117
<NUMBER-OF-SHARES-REDEEMED> 7,174,926
<SHARES-REINVESTED> 241,208
<NET-CHANGE-IN-ASSETS> (19,465,179)
<ACCUMULATED-NII-PRIOR> 31,595
<ACCUMULATED-GAINS-PRIOR> 411,802
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 281,767
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 458,403
<AVERAGE-NET-ASSETS> 57,980,792
<PER-SHARE-NAV-BEGIN> 11.91
<PER-SHARE-NII> 0.22
<PER-SHARE-GAIN-APPREC> 0.08
<PER-SHARE-DIVIDEND> 0.23
<PER-SHARE-DISTRIBUTIONS> 0.50
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.48
<EXPENSE-RATIO> 0.73
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00

</TABLE>