FUND PROFILE
Income & Growth
INVESTOR CLASS
July _, 1998
[american century logo(reg.sm)
American
Century(reg.tm)
- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included in the
fund's prospectus. The fund's prospectus includes additional information
about the fund, including a more detailed description of the risks associated
with investing in the fund, that you may want to consider before you invest.
You may obtain the prospectus and other information about the fund at no cost by
calling us, accessing our Web site, or visiting one of our Investor Centers.
See the back cover for our phone numbers and address.
AMERICAN CENTURY GROUP
[front cover]
INCOME & GROWTH
1. WHAT IS INCOME & GROWTH'S INVESTMENT OBJECTIVE?
Income & Growth seeks dividend growth, current income and capital
appreciation by investing in common stocks.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund's investment strategy utilizes quantitative management
techniques in a two-step process that draws heavily on computer technology.
In the first step, the fund managers rank stocks, primarily the 1,500
largest publicly traded companies in the United States (measured by the
value of their stock), from most attractive to least attractive. This is
determined by using a computer model that combines measures of a stock's
value, as well as measures of its growth potential. To measure value, the
managers use ratios of stock price to book value and stock price to cash
flow. To measure growth, the managers use, among others, the rate of growth
of a company's earnings and changes in the earnings estimates for a
company, as predicted by industry analysts that follow the company.
In the second step, the managers use a technique called portfolio
optimization. In portfolio optimization, the managers use a computer to
build a portfolio of stocks that they believe will provide the optimal
balance between risk and expected return of the portfolio as measured in
the stock ranking completed in the first step. The goal is to create a fund
that provides better returns than the S&P 500 but without taking on
significant additional risk. When building the fund's portfolio, the
managers also attempt to create for the fund a dividend yield that will be
greater than that of the S&P 500.
The fund may invest in securities other than stocks, such as convertible
securities, interest rate futures contracts, foreign securities and
short-term instruments.
Additional information about Income & Growth's investments is available
in its annual and semiannual reports. In these reports you will find a
discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the most recent
six-month period. You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* The value of Income & Growth's shares depends on the value of the
stocks and other securities it owns. The value of the individual
securities Income & Growth owns will go up and down depending on the
performance of the companies that issued them, general market and
economic conditions, and investor confidence.
* Market performance tends to be cyclical, and in the various cycles,
certain investment styles may fall in and out of favor. If the market
is not favoring the fund's style, the fund's gains may not be as big,
or its losses may be bigger, than other equity funds using different
investment styles.
* As with all funds, at any given time the value of your shares of
Income & Growth may be worth more or less than the price you paid. If
you sell your shares when the value is less than the price you paid,
you will lose money. Additionally, an investment in the fund is not a
bank deposit, nor is it insured by the Federal Deposit Insurance
Corporation (FDIC) or any other government agency.
* Although the fund managers invest the fund's assets primarily in U.S.
stocks, Income & Growth can invest in securities of foreign companies.
Foreign securities can have certain unique risks, including
fluctuations in currency exchange rates, political and economic
developments, reduced availability of public information and the fact
that foreign issuers are not required to abide by the same financial
reporting or regulatory practices as U.S. issuers.
Fund Performance
The bar chart at the top of the following page shows the actual
performance of Income & Growth's Investor Class for each calendar year
since its inception on December 17, 1990.(1) It indicates the volatility of
the fund's historical returns from year to year. Neither it nor the
quarterly information below the bar chart is intended to indicate how the
fund will perform in the future.
(1) As of March 31, 1998, the end of the most recent calendar quarter,
Income & Growth's year-to-date return was 15.18%. Partial year
performance is not annualized.
INCOME & GROWTH AMERICAN CENTURY INVESTMENTS
[bar chart - data below]
- --------------------------------------------------------------------------------
Calendar Year-By-Year Returns
- --------------------------------------------------------------------------------
1991 1992 1993 1994 1995 1996 1997
Income &
Growth 39.08 7.86 11.31 -0.55 36.88 24.15 34.45
S&P 500 30.33 7.61 10.03 1.36 37.44 22.93 33.28
The fund's highest and lowest returns for a calendar quarter since the
fund's inception on December 17, 1990, are provided in the chart below to
indicate the fund's potential short-term volatility. Shareholders should be
aware, however, that Income & Growth is intended for investors with a
long-term investment horizon and is not managed for short-term results.
[bar chart - data below]
Highest and Lowest Quarterly Returns
Quarter Ended 3/31/91 17.72%
Quarter Ended 3/31/94 -4.50%
The table below shows the fund's average annual return for the periods
indicated. The S&P 500, an unmanaged index that reflects no operating
costs, is included as a benchmark for long-term performance comparisons
because it is viewed as a proxy for the entire U.S. stock market.
1 YR. 5 YRS. LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS
Income & Growth 52.16% 22.67% 22.65%
S&P 500 47.85% 22.35% 21.38%
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges to buy fund shares
directly from American Century, to reinvest dividends in additional shares,
to exchange into the Investor Class of shares of other American Century
funds, or to redeem your shares. The following table describes the fees and
expenses that you may pay if you buy and hold shares of the fund.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 0.70%(2)
Distribution and/or 12b-1 Fees None
Other Expenses(3) 0.01%
Total Annual Fund Operating Expenses 0.71%
(2) Based upon assets at December 31, 1997. The fund's management fee
decreases as fund assets increase. Please consult the fund's
Prospectus and Statement of Additional Information for more
information about the fund's management fee.
(3) Other expenses include the fees and expenses of the fund's independent
directors, their legal counsel, interest and extraordinary expenses.
EXAMPLE OF HYPOTHETICAL FUND COSTS
Assuming you
* invest $10,000 in the fund
* redeem your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same fund operating expenses shown above
your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$72 $227 $394 $880
Of course, actual costs may be higher or lower. Use this example
to compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment
advisory and management services for the fund. American Century uses teams
of portfolio managers, assistant portfolio managers and analysts working
together to manage our mutual funds. The portfolio managers on the Income &
Growth team are:
FUND PROFILE INCOME & GROWTH
JOHN SCHNIEDWIND, Senior Vice President and Group Leader--Quantitative
Equity, has been a member of the team that manages Income & Growth since
its inception. Mr. Schniedwind joined American Century in 1982 and also
supervises other portfolio management teams.
KURT BORGWARDT, Vice President and Director of Quantitative Equity
Research, joined American Century in 1990 and has served as the Director of
Quantitative Equity Research since then.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be $2,500 ($1,000 for traditional IRAs,
Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. If the value of your account
falls below the account minimum, your shares may be redeemed involuntarily
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You may also exchange your shares in Income & Growth
for shares in nearly 70 other mutual funds offered by American Century.
Depending on the options you select when you open your account, some
restrictions may apply. For your protection, some redemption requests
require a signature guarantee.
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Income & Growth pays distributions of substantially all of its income
quarterly. Distributions from realized capital gains are paid twice a year,
generally in March and December. Distributions may be taxable as ordinary
income, capital gains, or a combination of the two. Capital gains are taxed
at different rates depending on the length of time the fund held the
securities that were sold. Distributions are reinvested automatically in
additional shares unless you choose another option.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several service choices to make it easier for
you to manage your account, such as:
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You may find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web
site, or visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or through a financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call an Institutional Services Representative at 1-800-345-3533.
- -------------------------------------------------------------------------------
[american century logo(reg.sm)
American
Century(reg.tm)
American Century Investments
P.O. Box 419200
Kansas City, Missouri 64141-6200
www.americancentury.com
Investor Services
1-800-345-2021 or 816-531-5575
Automated Information Line
1-800-345-8765
Institutional, Corporate, Keogh, SEP/SARSEP,
SIMPLE and 403(b) Services
1-800-345-3533
Telecommunications Device for the Deaf
1-800-634-4113 or 816-444-3485
Fax
816-340-7962
Funds Distributor, Inc.
(c) 1998 American Century Services Corporation
SH-BRO-12620 9807
<PAGE>
FUND PROFILE
Equity Growth
INVESTOR CLASS
July _, 1998
[american century logo(reg.sm)
American
Century(reg.tm)
- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included in the
fund's prospectus. The fund's prospectus includes additional information
about the fund, including a more detailed description of the risks associated
with investing in the fund, that you may want to consider before you invest.
You may obtain the prospectus and other information about the fund at no cost by
calling us, accessing our Web site, or visiting one of our Investor Centers.
See the back cover for our phone numbers and address.
AMERICAN CENTURY GROUP
[front cover]
EQUITY GROWTH
1. WHAT IS EQUITY GROWTH'S INVESTMENT OBJECTIVE?
Equity Growth seeks capital appreciation by investing in common stocks.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund's investment strategy utilizes quantitative management
techniques in a two-step process that draws heavily on computer technology.
In the first step, the fund managers rank stocks, primarily the 1,500
largest publicly traded companies in the United States (measured by the
value of their stock), from most attractive to least attractive. This is
determined by using a computer model that combines measures of a stock's
value, as well as measures of its growth potential. To measure value, the
managers use ratios of stock price to book value and stock price to cash
flow. To measure growth, the managers use, among others, the rate of growth
of a company's earnings and changes in the earnings estimates for a
company, as predicted by industry analysts that follow the company.
In the second step, the managers use a technique called portfolio
optimization. In portfolio optimization, the managers use a computer to
build a portfolio of stocks that they believe will provide the optimal
balance between risk and expected return of the portfolio as measured in
the stock ranking completed in the first step. The goal is to create a fund
that provides better returns than the S&P 500 but without taking on
significant additional risk.
The fund may invest in securities other than stocks, such as convertible
securities, interest rate futures contracts, foreign securities and
short-term instruments.
Additional information about Equity Growth's investments is available in
its annual and semiannual reports. In these reports you will find a
discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the most recent
six-month period. You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* The value of Equity Growth's shares depends on the value of the stocks
and other securities it owns. The value of the individual securities
Equity Growth owns will go up and down depending on the performance of
the companies that issued them, general market and economic
conditions, and investor confidence.
* Market performance tends to be cyclical, and in the various cycles,
certain investment styles may fall in and out of favor. If the market
is not favoring the fund's style, the fund's gains may not be as big,
or its losses may be bigger, than other equity funds using different
investment styles.
* As with all funds, at any given time the value of your shares of
Equity Growth may be worth more or less than the price you paid. If
you sell your shares when the value is less than the price you paid,
you will lose money
* Although the fund managers invest the fund's assets primarily in U.S.
stocks, Equity Growth can invest in securities of foreign companies.
Foreign securities can have certain unique risks, including
fluctuations in currency exchange rates, political and economic
developments, reduced availability of public information and the fact
that foreign issuers are not required to abide by the same financial
reporting or regulatory practices as U.S. issuers.
FUND PERFORMANCE
The bar chart at the top of the following page shows the actual
performance of Equity Growth's Investor Class for each calendar year since
its inception on May 9, 1991.(1) It indicates the volatility of the fund's
historical returns from year to year. Neither it nor the quarterly
information below the bar chart is intended to indicate how the fund will
perform in the future.
(1) As of March 31, 1998, the end of the most recent calendar quarter,
Equity Growth's year-to-date return was 15.86%. Partial year
performance is not annualized.
EQUITY GROWTH AMERICAN CENTURY INVESTMENTS
[bar chart - data below]
- --------------------------------------------------------------------------------
CALENDAR YEAR-BY-YEAR RETURNS
- --------------------------------------------------------------------------------
1992 1993 1994 1995 1996 1997
Equity Growth 4.13 11.42 -0.23 34.56 27.34 36.06
S&P 500 7.61 10.03 1.36 37.44 22.93 33.28
The fund's highest and lowest returns for a calendar quarter since the
fund's inception on May 9, 1991, are provided in the chart below to
indicate the fund's potential short-term volatility. Shareholders should be
aware, however, that Equity Growth is intended for investors with a
long-term investment horizon and is not managed for short-term results.
[bar chart - data below]
HIGHEST AND LOWEST QUARTERLY REURNS
Quarter Ended 3/31/98 15.86%
Quarter Ended 3/31/92 -5.27%
The table below shows the fund's average annual return for the periods
indicated. The S&P 500, an unmanaged index that reflects no operating
costs, is included as a benchmark for long-term performance comparisons
because it is used as a proxy for the entire U.S. stock market.
1 YR. 5 YRS. LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS
Equity Growth 55.53% 23.52% 20.77%
S&P 500 47.85% 22.35% 19.59%
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges to buy fund shares
directly from American Century, to reinvest dividends in additional shares,
to exchange into the Investor Class of shares of other American Century
funds, or to redeem your shares. The following table describes the fees and
expenses that you may pay if you buy and hold shares of the fund.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 0.70%(2)
Distribution and/or 12b-1 Fees None
Other Expenses(3) 0.01%
Total Annual Fund Operating Expenses 0.71%
(2) Based on assets at December 31, 1997. The fund's management fee
decreases as fund assets increase. Please consult the fund's
Prospectus and Statement of Additional Information for more
information on the fund's management fee.
(3) Other expenses include the fees and expenses of the fund's independent
directors, their legal counsel, interest and extraordinary expenses.
EXAMPLE OF HYPOTHETICAL FUND COSTS
Assuming you
* invest $10,000 in the fund
* redeem your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same fund operating expenses shown above
your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$72 $227 $394 $880
Of course, actual costs may be higher or lower. Use this example
to compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment
advisory and management services for the fund. American Century uses teams
of portfolio managers, assistant portfolio managers and analysts working
together to manage our mutual funds. The portfolio managers on the Equity
Growth team are:
FUND PROFILE EQUITY GROWTH
JEFFREY R. TYLER, Senior Vice President, joined the team managing Equity
Growth in June 1997. He has been with American Century as a portfolio
manager since 1988.
WILLIAM MARTIN, Vice President, joined the team managing Equity Growth
in May 1997. He has been with American Century as a portfolio manager since
1989.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be $2,500 ($1,000 for traditional IRAs,
Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. If the value of your account
falls below the account minimum, your shares may be redeemed involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You may also exchange your shares in Equity Growth
for shares in nearly 70 other mutual funds offered by American Century.
Depending on the options you select when you open your account, some
restrictions may apply. For your protection, some redemption requests
require a signature guarantee.
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Equity Growth pays distributions of substantially all of its income
quarterly. Distributions from realized capital gains are paid twice a year,
generally in March and December. Distributions may be taxable as ordinary
income, capital gains, or a combination of the two. Capital gains are taxed
at different rates depending on the length of time the fund held the
securities that were sold. Distributions are reinvested automatically in
additional shares unless you choose another option.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several service choices to make it easier for
you to manage your account, such as:
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You may find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web
site, or visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or through a financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call an Institutional Services Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo(reg.sm)
American
Century(reg.tm)
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
INSTITUTIONAL, CORPORATE, KEOGH, SEP/SARSEP,
SIMPLE AND 403(B) SERVICES
1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX
816-340-7962
Funds Distributor, Inc.
(c) 1998 American Century Services Corporation
SH-BRO-12621 9807
