FUND PROFILE
Small Cap Quantitative
INVESTOR CLASS
August _, 1998
[american century logo(reg.sm)]
American
Century(reg.tm)
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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
SMALL CAP QUANTITATIVE
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Small Cap Quantitative 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 smaller
companies (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 Small Cap 600 but without taking
on significant additional risk.
The fund invests primarily in common stocks of companies which, at the
time of investment, have market capitalization not greater than that of the
largest company in the S&P Small Cap 600 Index. The S&P Small Cap 600 Index
is an unmanaged stock index that tracks the performance of equity
securities of smaller companies. As of March 31, 1998, the largest company
in the index had a market capitalization of approximately $3.7 billion,
while the median company in the index had a market capitalization of
approximately $554 million.
The fund may invest in securities other than stocks, such as convertible
securities, interest rate futures contracts, foreign securities and
short-term instruments.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* The value of the fund's shares depends on the value of the stocks and
other securities it owns. The value of the individual securities Small
Cap Quantitative 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
as, 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
Small Cap Quantitative 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, Small Cap Quantitative 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.
Small Cap Quantitative American Century Investments
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 0.90%(1)
Distribution and/or 12b-1 Fees None
Other Expenses(2) 0.01%
Total Annual Fund Operating Expenses 0.91%
(1) Based on no assets in the fund. 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.
(2) 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
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$93 $289 $502 $1,115
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 Small
Cap Quantitative team are:
JOHN SCHNIEDWIND, Senior Vice President and Group Leader--Quantitative
Equity, supervises the team that manages the fund.
KURT BORGWARDT, Vice President, Portfolio Manager and Director of
Quantitative Equity Research, joined American Century in 1990, and has
managed the quantitative equity research effort since then.
WILLIAM MARTIN, Vice President and Portfolio Manager, joined American
Century in 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 also may 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?
Small Cap Quantitative 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.
Fund Profile Small Cap Quantitative
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as:
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You 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.
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[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
SH-BRO-12625 9807 Funds Distributor, Inc.
(c) 1998 American Century Services Corporation
