AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS, 485BPOS, 1999-03-31

AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS
485BPOS, 1999-03-31

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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]

Pre-Effective Amendment No. [ ]

Post-Effective Amendment No. 26 [X]

and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]

Amendment No. 28 [X]

(Check appropriate box or boxes.)

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

4500 Main Street, Kansas City, MO 64141-6200
_________________________________________________________________
(Address of Principal Executive Offices) (Zip Code)

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

William M. Lyons, 4500 Main Street, Kansas City, MO 64141-6200
_________________________________________________________________
(Name and Address of Agent for Service)

Approximate Date of Proposed Public Offering: April 1, 1999

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

[ ] immediately upon filing pursuant to paragraph (b)
[X] on April 1, 1999 pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(1)
[ ] on (date) pursuant to paragraph (a)(1)
[ ] 75 days after filing pursuant to paragraph (a)(2)
[ ] on (date) pursuant to paragraph (a)(2) of rule 485.

If appropriate, check the following box:

[ ] This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.

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<PAGE>

AMERICAN CENTURY

Prospectus

Income & Growth Fund
Equity Growth Fund
Small Cap Quantitative Fund

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

April 1, 1999

INVESTOR CLASS

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANYONE WHO
TELLS YOU OTHERWISE IS COMMITTING A CRIME.

Distributed by
Funds Distributor, Inc.

Dear Investor,

Reading a prospectus doesn't have to be a chore. We've done the hard work so
you can focus on what's important--learning about the funds. Take a look inside
and you'll see this prospectus is different from others. It takes a clear-cut
approach to fund information.

Here's what you'll find:

* The funds' primary investments and risks

* A description of who may or may not want to invest in the funds

* Fund performance, including returns for each year, best and worst
quarters and average annual returns compared to the funds' benchmarks

* An overview of services available and ways to manage your accounts

* Helpful tips and definitions of key investment terms

Whether you're a current investor or investing in mutual funds for the first
time, this prospectus will give you a clear understanding of the funds. If you
have questions, our Investor Relations Representatives are available weekdays, 7
a.m. to 7 p.m., and Saturdays, 9 a.m. to 2 p.m., Central time. Our toll-free
number is 1-800-345-2021. We look forward to helping you achieve your financial
goals.

Sincerely,
/s/Mark Killen
Mark Killen
Senior Vice President
American Century Investment Services, Inc.

[LEFT MARGIN]

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

American Century
Investments

P.O. Box 419200
Kansas City, MO
64141-6200

[END LEFT MARGIN]

TABLE OF CONTENTS

An Overview of the Funds .................................................... 2
Fund Performance History .................................................... 3
Fees and Expenses ........................................................... 4
Information about the Funds ................................................. 5
Income & Growth Fund
Equity Growth Fund
Small Cap Quantitative Fund
Management .................................................................. 7
Investing with American Century ............................................. 10
Share Price and Distributions ............................................... 14
Taxes ....................................................................... 15
Multiple Class Information .................................................. 16
Financial Highlights ........................................................ 17

[LEFT MARGIN]

Throughout this book you'll find definitions of key investment terms and
phrases. When you see a word printed in GREEN ITALICS, look for its definition
in the left margin.

[image of hand pointing index finger] This symbol highlights special information
and helpful tips.

[END LEFT MARGIN]

American Century Investments

AN OVERVIEW OF THE FUNDS

WHAT ARE THE FUNDS' INVESTMENT GOALS?

These funds seek long-term capital growth. For Income & Growth, current income
is a secondary consideration.

WHAT ARE THE FUNDS' PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

In selecting stocks for Income & Growth and Equity Growth, the fund managers
select primarily from the largest 1,500 publicly traded U.S. companies. For
Small Cap Quantitative, the fund managers select primarily from the equity
securities of smaller-capitalization U.S. companies. The managers use
quantitative, computer-driven models to construct the portfolios of stocks. A
more detailed description of the fund's investment strategies begins on page 5.

The funds' principal risks include:

* MARKET RISK -- The value of a fund's shares will go up and down based on the
performance of the companies whose securities it owns and other factors
affecting the securities market generally.

* PRICE VOLATILITY -- The value of a fund's shares may fluctuate significantly
in the short term.

* PRINCIPAL LOSS -- As with all mutual funds, if you sell your shares when
their value is less than the price you paid, you will lose money.

WHO MAY WANT TO INVEST IN THE FUNDS?

The funds may be a good investment if you are

* seeking long-term capital growth from your investment
* comfortable with the funds' short-term price volatility
* comfortable with the risks associated with the funds' investment strategy
* investing through an IRA or other tax-advantaged retirement plan

WHO MAY NOT WANT TO INVEST IN THE FUNDS?

The funds may not be a good investment if you are

* seeking current income from your investment in Equity Growth or Small Cap
Quantitative

* investing for a short period of time

* uncomfortable with short-term volatility in the value of your investment

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[image of hand pointing index finger] An investment in the funds is not a bank
deposit, and it is not insured or guaranteed by the Federal Deposit Insurance
Corporation (FDIC) or any other government agency.

[END LEFT MARGIN]

2 American Century Investments 1-800-345-2021

FUND PERFORMANCE HISTORY

INCOME & GROWTH FUND EQUITY GROWTH FUND

[bar chart]
Annual Total Returns

The following bar chart shows the performance of the funds' Investor Class
shares for each full calendar year in the life of the funds. It indicates the
volatility of the funds' historical returns from year to year.

Small Cap Quantitative is not included because it does not yet have a full
calendar year of performance.

Income & Growth Equity Growth
1998 27.67 25.45
1997 34.52 36.06
1996 24.15 27.34
1995 36.88 34.56
1994 -0.55 -0.23
1993 11.31 11.42
1992 7.86 4.13
1991 39.08

The highest and lowest quarterly returns for the period reflected in the bar
chart are:

Highest Lowest
- --------------------------------------------------------------------------------
Income & Growth 22.18% (4Q 1998) -11.29% (3Q 1998)
- --------------------------------------------------------------------------------
Equity Growth 23.10% (4Q 1998) -13.88% (3Q 1998)

Average Annual Returns

The following table shows the average annual returns of the funds' Investor
Class shares for the periods indicated during the life of the funds. The
benchmark is an unmanaged index that has no operating costs and is included in
the table for performance comparison. Small Cap Quantitative is not included
because it does not yet have a full calendar year of performance.

1 year 5 years Life of Fund(1)
- --------------------------------------------------------------------------------
Income & Growth 27.67% 23.74% 21.88%
- --------------------------------------------------------------------------------
Equity Growth 25.45% 23.88% 19.79%
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S&P 500 Index 28.68% 24.05% 19.39%

(1) The inception dates for the funds are: Income & Growth, December 17, 1990,
and Equity Growth, May 9, 1991.

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[image of hand pointing index finger] The performance information on this page
is designed to help you see how fund returns can vary. Keep in mind that past
performance does not predict how the funds will perform in the future.

[image of hand pointing index finger] For current performance information,
including yields, please call us at 1-800-345-2021 or visit American Century's
Web site at www.americancentury.com

[END LEFT MARGIN]

www.americancentury.com American Century Investments 3

FEES AND EXPENSES

There are no sales loads, fees or other charges

* to buy fund shares directly from American Century
* to reinvest dividends in additional shares
* to exchange into the Investor Class shares of other American Century funds
* to redeem your shares

The following table describes the fees and expenses that you will pay if you buy
and hold shares of the funds.

ANNUAL OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)

Distribution Total Annual
Management and Service Other Fund Operating
Fee(1) (12b-1) Fees Expenses(2) Expenses
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Income & Growth 0.69% None 0.00% 0.69%
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Equity Growth 0.69% None 0.00% 0.69%
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Small Cap Quantitative 0.88% None 0.00% 0.88%

(1) Based on expenses incurred during the funds' most recent fiscal year. The
funds have stepped fee schedules. As a result, the funds' management fee rate
generally decreases as fund assets increase. Please consult the Statement of
Additional Information for more details about the funds' management fees.

(2) Other expenses, which include the fees and expenses of the funds'
independent directors, their legal counsel, interest and extraordinary expenses,
are expected to be less than 0.005% for the current fiscal year.

EXAMPLE

The examples in the table below are intended to help you compare the costs of
investing in a fund with the costs of investing in other mutual funds. Assuming
you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:

1 year 3 years 5 years 10 years
- --------------------------------------------------------------------------------
Income & Growth $70 $220 $383 $856
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Equity Growth $70 $220 $383 $856
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Small Cap Quantitative $90 $280 $486 $1,080

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[image of hand pointing index finger] Use this example to compare the costs of
investing in other funds. Of course, your actual costs may be higher or lower.

[END LEFT MARGIN]

4 American Century Investments 1-800-345-2021

INFORMATION ABOUT THE FUNDS

INCOME & GROWTH FUND
EQUITY GROWTH FUND
SMALL CAP QUANTITATIVE FUND

WHAT ARE THE FUNDS' INVESTMENT OBJECTIVES?

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

Equity Growth seeks capital appreciation by investing in common stocks.

Small Cap Quantitative seeks capital appreciation by investing primarily in
common stocks of small companies.

HOW DO THE FUNDS PURSUE THEIR INVESTMENT OBJECTIVES?

The funds' 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) for Income
& Growth and Equity Growth, and primarily smaller companies for Small Cap
Quantitative, 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, among others. 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.

In the second step, the managers use a technique called portfolio optimization.
In portfolio optimization, the managers use a computer model to build a
portfolio of stocks from the ranking described earlier that they believe will
provide the optimal balance between risk and expected return. The goal is to
create a fund that provides better returns than the S&P 500 for Income & Growth
and Equity Growth, and the S&P Small Cap 600 for Small Cap Quantitative, without
taking on significant additional risk.

The funds' managers do not attempt to time the market. Instead, they intend to
keep the funds essentially fully invested in stocks regardless of the movement
of stock prices generally. When the managers believe that it is prudent, the
funds may invest in securities other than stocks, such as convertible
securities, foreign securities, short-term instruments and NON-LEVERAGED stock
index futures contracts. Stock index futures contracts, a type of derivative
security, can help the funds' cash assets remain liquid while performing more
like stocks. The funds have a policy governing stock index futures and similar
derivative securities to help manage the risk of these types of investments. A
complete description of the derivatives policy is included in the Statement of
Additional Information.

Additional information about the funds' investments is available in their annual
and semiannual reports. In these reports you will find a discussion of the
market conditions and investment strategies that significantly affected the
funds' performance during the most recent fiscal period. You may get these
reports at no cost by calling us.

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NON-LEVERAGED means that the fund may not invest in futures contracts where it
would be possible to lose more than the fund invested in those contracts.

[END LEFT MARGIN]

www.americancentury.com American Century Investments 5

WHAT ARE THE DIFFERENCES BETWEEN THE FUNDS?

* When building Income & Growth's portfolio, the fund managers also attempt to
create a dividend yield for the fund that will be greater than that of the
S&P 500.

* The fund managers do not consider dividend yield when building Equity
Growth's portfolio.

* Small Cap Quantitative's portfolio consists primarily of stocks of companies
that, at the time of investment, have market capitalization not greater than
that of the largest company in the S&P Small Cap 600.

WHAT ARE THE PRIMARY RISKS OF INVESTING IN THE FUNDS?

The value of a fund's shares depends on the value of the stocks and other
securities it owns. The value of the individual securities a fund owns will go
up and down depending on the performance of the companies that issued them,
general market and economic conditions, and investor confidence.

As with all funds, at any given time the value of your shares 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.

Because each fund is managed to an index (the S&P 500 for Income & Growth and
Equity Growth, and the S&P 600 for Small Cap Quantitative), a fund's performance
will be closely tied to the appropriate index's performance. If the index goes
down, it is likely that the fund's performance will go down.

Although current income is an objective for Income & Growth, if the stocks that
make up the S&P 500 do not have a high dividend yield, then Income & Growth's
dividend yield will not be high.

6 American Century Investments 1-800-345-2021

MANAGEMENT

WHO MANAGES THE FUNDS?

The Board of Directors, investment advisor and fund management team play key
roles in the management of the funds.

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the funds and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the funds, it has hired an investment advisor to do
so. More than two-thirds of the directors are independent of the funds' advisor;
that is, they are not employed by and have no financial interest in the advisor

THE INVESTMENT ADVISOR

The funds' investment advisor is American Century Investment Management, Inc.
The advisor has been managing mutual funds since 1958. American Century is
headquartered at 4500 Main Street, Kansas City, Missouri 64111.

The advisor is responsible for managing the investment portfolios of the funds
and directing the purchase and sale of their investment securities. The advisor
also arranges for transfer agency, custody and all other services necessary for
the funds to operate.

For the services it provided to the funds during the most recent fiscal year,
the advisor received a unified management fee based on a percentage of the
average net assets of the Investor Class of shares of the funds. The rate of the
management fee for a fund is determined on a class-by-class basis monthly using
a two-step formula that takes into account the fund's strategy (money market,
bond or equity) and the total amount of mutual fund assets the advisor manages.
The Statement of Additional Information contains detailed information about the
calculation of the management fee.

Out of that fee, the advisor paid all expenses of managing and operating the
funds except brokerage expenses, taxes, interest, fees and expenses of the
independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the management fee may be paid by the funds' advisor to
unaffiliated third parties who provide recordkeeping and administrative services
that would otherwise be performed by an affiliate of the advisor.

Management Fees Paid by the Funds to the Advisor as a Percentage of Average Net
Assets for the Most Recent Fiscal Year Ended December 31, 1998:
- --------------------------------------------------------------------------------
Income & Growth 0.69%
- --------------------------------------------------------------------------------
Equity Growth 0.69%
- --------------------------------------------------------------------------------
Small Cap Quantitative 0.88%

www.americancentury.com American Century Investments 7

THE FUND MANAGEMENT TEAM

The advisor uses teams of portfolio managers, assistant portfolio managers and
analysts to manage the funds. Teams meet regularly to review portfolio holdings
and discuss purchase and sale activity. Team members buy and sell securities for
a fund as they see fit, guided by the fund's investment objective and strategy.

The portfolio managers on the investment team are identified below:

JOHN SCHNIEDWIND
Mr. Schniedwind, Senior Vice President and Group Leader--Quantitative Equity,
has been a member of the team since the funds' inceptions. He joined American
Century in 1982 and also supervises other portfolio management teams. He has
degrees from Purdue University and an MBA in finance from the University of
California. He is a Chartered Financial Analyst.

JEFFREY R. TYLER
Mr. Tyler, Senior Vice President and Portfolio Manager, has been a member of
the team since June 1997. He joined American Century as a Portfolio Manager in
1988. He has a degree from the University of California and an MBA in finance
and economics from Northwestern University. He is a Chartered Financial Analyst.

KURT BORGWARDT
Mr. 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. He has been a member of the team
since June 1997. He has a degree from Stanford University and an MBA with a
specialization in finance from the University of Chicago. He is a Chartered
Financial Analyst.

WILLIAM MARTIN
Mr. Martin, Vice President and Senior Portfolio Manager, has been a member of
the team since June 1997. He joined American Century in 1989. He has a degree
from the University of Illinois and is a Chartered Financial Analyst.

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[image of hand pointing index finger] CODE OF ETHICS
American Century has a Code of Ethics designed to ensure that the interests of
fund shareholders come before the interests of the people who manage the funds.
Among other provisions, the Code of Ethics prohibits portfolio managers and
other investment personnel from buying securities in an initial public offering
or from profiting from the purchase and sale of the same security within 60
calendar days. In addition, the Code of Ethics requires portfolio managers and
other employees with access to information about the purchase or sale of
securities by the funds to obtain approval before executing permitted personal
trades.

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8 American Century Investments 1-800-345-2021

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the Statement of Additional
Information and the investment objectives of the funds may not be changed
without a shareholder vote. The Board of Directors may change any other policies
and investment strategies.

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. Because
this may impact the computer systems of various American Century-affiliated and
external service providers for the funds, American Century formally initiated a
Year 2000 readiness project in July 1997. It involves a team of information
technology professionals assisted by outside consultants and guided by a
senior-level steering committee. The team's goal is to assess the impact of the
Year 2000 on American Century's systems, renovate or replace noncompliant
critical systems and test those systems. In addition, the team has been working
to gather information about the Year 2000 efforts of the funds' other major
service providers.

Although American Century believes its critical systems will function properly
in the Year 2000, this is not guaranteed. If the efforts of American Century or
its external service providers are not successful, the funds' business,
particularly the provision of shareholder services, may be hampered.

In addition, the issuers of securities the funds own could have Year 2000
computer problems. Foreign issuers, especially those in emerging markets, may be
more susceptible to such problems than U.S. issuers. These problems could
negatively affect the value of issuers' securities, which, in turn, could impact
the funds' performance. The advisor has established a process to gather publicly
available information about the Year 2000 readiness of these issuers. However,
this process may not uncover all relevant information, and the information
gathered may not be complete and accurate. Moreover, an issuer's Year 2000
readiness is only one of many factors the fund managers may consider when making
investment decisions, and other factors may receive greater weight.

www.americancentury.com American Century Investments 9

INVESTING WITH AMERICAN CENTURY

SERVICES AUTOMATICALLY AVAILABLE TO YOU

You automatically will have access to the services listed below when you open
your account. If you do not want these services, see "Conducting Business in
Writing" below.

CONDUCTING BUSINESS IN WRITING

If you prefer to conduct business in writing only, you can indicate this on the
account application. If you choose this option, you must provide written
instructions to invest, exchange and redeem. All account owners must sign
transaction instructions (with signatures guaranteed for redemptions in excess
of $100,000). If you want to add services later, you can complete an Investor
Service Options form.

WAYS TO MANAGE YOUR ACCOUNT
- --------------------------------------------------------------------------------
BY TELEPHONE
Investor Relations
1-800-345-2021

Business, Not-For-Profit
and Employer-Sponsored
Retirement Plans
1-800-345-3533

Automated Information Line
1-800-345-8765

[image of telephone]

OPEN AN ACCOUNT
If you are a current investor, you can open an account by exchanging shares from
another American Century account.

EXCHANGE SHARES
Call us or use our Automated Information Line if you have authorized us to
accept telephone instructions.

MAKE ADDITIONAL INVESTMENTS
Call us or use our Automated Information Line if you have authorized us to
invest from your bank account.

SELL SHARES
Call an Investor Relations Representative.

- --------------------------------------------------------------------------------
BY MAIL OR FAX

P.O. Box 419200
Kansas City, MO 64141-6200

Fax
816-340-7962

[image of envelope]

OPEN AN ACCOUNT
Send a signed and completed application and check or money order payable to
American Century Investments.

EXCHANGE SHARES
Send us written instructions to exchange your shares from one American Century
account to another.

MAKE ADDITIONAL INVESTMENTS
Send us your check or money order for at least $50 with an investment slip or
$250 without an investment slip. If you don't have an investment slip, include
your name, address and account number on your check or money order.

SELL SHARES
Send us written instructions or a redemption form to sell shares. Call an
Investor Relations Representative to request a form.

- --------------------------------------------------------------------------------
ONLINE

www.americancentury.com

[image of computer and monitor]

OPEN AN ACCOUNT
If you are a current investor, you can open an account by exchanging shares from
another American Century account.

EXCHANGE SHARES
Exchange shares from another American Century account.

MAKE ADDITIONAL INVESTMENTS
Make an additional investment into an established American Century account if
you have authorized us to invest from your bank account.

SELL SHARES Not available.

10 American Century Investments 1-800-345-2021

A NOTE ABOUT MAILINGS TO SHAREHOLDERS

To reduce expenses and show respect for our environment, we will deliver most
financial reports, prospectuses and account statements to households in a single
envelope, even if the accounts are registered under different names. If you
would like additional copies of financial reports and prospectuses or separate
mailing of account statements, please call us.

YOUR GUIDE TO SERVICES AND POLICIES

When you open an account, you will receive a services guide, which explains the
services available to you and the policies of the funds and the transfer agent.

- --------------------------------------------------------------------------------
BY WIRE

[image of hand pointing index finger] Please remember that if you request
redemptions by wire, $10 will be deducted from the amount redeemed. Your bank
also may charge a fee.

[image of fax machine]

OPEN AN ACCOUNT
Call us to set up your account or mail a completed application to the address
provided in the "By mail" section and give your bank the following information

* Our bank information
Commerce Bank N.A.
Routing No. 101000019
Account No. 2804918

* The fund name
* Your American Century account number*
* Your name
* The contribution year (for IRAs only)

* For additional investments only

MAKE ADDITIONAL INVESTMENTS
Follow the wire instructions provided in the "Open an account" section.

SELL SHARES
You can receive redemption proceeds by wire or electronic transfer.

EXCHANGE SHARES Not applicable.

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AUTOMATICALLY

[three arrows forming circle]

OPEN AN ACCOUNT
Not available.

EXCHANGE SHARES
Send us written instructions to set up an automatic exchange of shares from one
American Century account to another.

MAKE ADDITIONAL INVESTMENTS
With the automatic investment privilege, you can purchase shares on a regular
basis. You must invest at least $600 per year per account.

SELL SHARES
If you have at least $10,000 in your account, you may sell shares automatically
by establishing Check-A-Month or Automatic Redemption plans.

- --------------------------------------------------------------------------------
IN PERSON

[image of person]

If you prefer to handle your transactions in person, visit one of the Investor
Centers listed below. A representative can help you open an account, make
additional investments, and sell or exchange shares.

4500 Main St.
Kansas City, Missouri
8 a.m. to 5:30 p.m., Monday - Friday

1665 Charleston Road
Mountain View, California
8 a.m. to 5 p.m., Monday -- Friday

4917 Town Center Drive
Leawood, Kansas
8 a.m. to 6 p.m., Monday - Friday
8 a.m. to noon, Saturday

9445 East County Line Road
Suite A
Englewood, Colorado
8 a.m. to 6 p.m., Monday - Friday
8 a.m. to noon, Saturday

www.americancentury.com American Century Investments 11

MINIMUM INITIAL INVESTMENT AMOUNTS

To open an account, the minimum investments are:
- --------------------------------------------------------------------------------
Individual or Joint $2,500
- --------------------------------------------------------------------------------
Traditional IRA $1,000
- --------------------------------------------------------------------------------
Roth IRA $1,000
- --------------------------------------------------------------------------------
Education IRA $500
- --------------------------------------------------------------------------------
UGMA/UTMA $1,000
- --------------------------------------------------------------------------------
403(b) No minimum
- --------------------------------------------------------------------------------
Qualified Retirement Plan $2,500*

*The minimum investment requirements may be different for some types of
retirement accounts.

If you establish an automatic investment plan of at least $50 per month, the
minimum may be waived.

REDEMPTION OF SHARES IN LOW-BALANCE ACCOUNTS

If your redemption activity causes your account balance to fall below the
minimum initial investment amount, we will notify you and give you 90 days to
meet the minimum or to establish an automatic monthly investment of at least $50
per month. If you do not meet the deadline, American Century will redeem the
shares in the account and send the proceeds to your address of record.

ABUSIVE TRADING PRACTICES

We do not permit market-timing or other abusive trading practices in our funds.

Excessive, short-term (market-timing) or other abusive trading practices may
disrupt portfolio management strategies and harm fund performance. To minimize
harm to the funds and their shareholders, we reserve the right to reject any
purchase order (including exchanges) from any investor we believe has a history
of abusive trading or whose trading, in our judgment, has been or may be
disruptive to a fund. In making this judgment, we may consider trading done in
multiple accounts under common ownership or control. We also reserve the right
to delay delivery of your redemption proceeds -- up to seven days -- or to honor
certain redemptions with securities, rather than cash, as described in the next
section.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the assets of the fund if that percentage is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of cash. If we make payment
in securities, we will value the securities, selected by the fund, in the same
manner as we do in computing the fund's net asset value. We may provide these
securities in lieu of cash without prior notice.

If your redemption would exceed this limit and you would like to avoid being
paid in securities, please provide us with an unconditional instruction to
redeem at least 15 days prior to the date on which the redemption transaction is
to occur. The instruction must specify the dollar amount or number of shares to
be redeemed and the date of the transaction. This minimizes the effect of the
redemption on the fund and its remaining shareholders.

12 American Century Investments 1-800-345-2021

INVESTING THROUGH FINANCIAL INTERMEDIARIES

If you do business with us through a financial intermediary or a retirement
plan, your ability to purchase, exchange and redeem shares will depend on the
policies of that entity. Some policy differences may include

* minimum investment requirements
* exchange policies
* fund choices
* cutoff time for investments

Please contact your financial intermediary or plan sponsor for a complete
description of its policies. Copies of the funds' annual reports, semiannual
reports and Statements of Additional Information are available from your
intermediary or plan sponsor.

Certain financial intermediaries perform for their clients recordkeeping and
administrative services that would otherwise be performed by American Century's
transfer agent. In some circumstances, American Century will pay the service
provider a fee for performing those services.

Although transactions in fund shares may be made directly with American Century
at no charge, you also may purchase, redeem and exchange fund shares through
financial intermediaries that charge a transaction-based or other fee for their
services. Those charges are retained by the intermediary and are not shared with
American Century or the funds.

American Century has contracts with certain financial intermediaries requiring
them to track the time investment orders are received and to comply with
procedures relating to the transmission of orders. The funds have authorized
those intermediaries to accept orders on their behalf up to the time at which
the net asset value is determined. If those orders are transmitted to American
Century and paid for in accordance with the contract, they will be priced at the
net asset value next determined after your request is received in the form
required by the intermediary on a fund's behalf.

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[image of hand pointing index finger] Financial intermediaries include banks,
broker-dealers, insurance companies and investment advisors.

[END LEFT MARGIN]

www.americancentury.com American Century Investments 13

SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century determines the NET ASSET VALUE (NAV) of the funds as of the
close of regular trading on the New York Stock Exchange (usually 4 p.m. Eastern
time) on each day the Exchange is open. On days when the Exchange is not open
(including certain U.S. holidays), we do not calculate the NAV. The NAV of a
fund share is the current value of the fund's assets, minus any liabilities,
divided by the number of fund shares outstanding.

If current market prices of securities owned by a fund are not readily
available, the advisor may determine their fair value in accordance with
procedures adopted by the fund's Board of Directors. Trading of securities in
foreign markets may not take place every day the Exchange is open. Also, trading
in some foreign markets may take place on weekends or holidays when a fund's NAV
is not calculated. So, the value of a fund's portfolio may be affected on days
when you can't purchase or redeem shares of the fund.

We will price your purchase, exchange or redemption at the NAV next determined
after we receive your transaction request in good order.

DISTRIBUTIONS

Federal tax laws require each fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means that the funds will not be subject to state
or federal income tax on amounts distributed. The distributions generally
consist of dividends and interest received, as well as CAPITAL GAINS realized on
the sale of investment securities.

The funds pay distributions of substantially all of their income quarterly.
Distributions from realized capital gains are paid twice a year, usually in
March and December. They may make more frequent distributions if necessary to
comply with Internal Revenue Code provisions. 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.

You will participate in fund distributions, when they are declared, starting on
the day after your purchase is effective. For example, if you purchase shares on
a day that a distribution is declared, you will not receive that distribution.
If you redeem shares, you will receive any distribution declared on the day you
redeem. If you redeem all shares, we will include any distributions received
with your redemption proceeds.

Participants in employer-sponsored retirement or savings plans must reinvest all
distributions. For shareholders investing through taxable accounts, we will
reinvest distributions unless you elect to receive them in cash. Please consult
your services guide for further information regarding distributions and your
distribution options.

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The NET ASSET VALUE of a fund is the price of the fund's shares.

CAPITAL GAINS are increases in the values of capital assets, such as stock, from
the time the assets are purchased. Tax becomes due on capital gains once an
asset is sold.

[END LEFT MARGIN]

14 American Century Investments 1-800-345-2021

TAXES

The tax consequences of owning shares of the funds will vary depending on
whether you own them through a taxable or tax-deferred account. Tax consequences
result from distributions by the funds of dividend and interest income they have
received or capital gains they have generated through their investment
activities. Tax consequences also result from sales of fund shares by investors
after the net asset value has increased or decreased.

Tax-Deferred Accounts

If you purchase fund shares through a tax-deferred account, such as an IRA or a
qualified employer-sponsored retirement or savings plan, income and capital
gains distributions usually will not be subject to current taxation, but will
accumulate in your account under the plan on a tax-deferred basis. Likewise,
moving from one fund to another fund within a plan or tax-deferred account
generally will not cause you to be taxed. For information about the tax
consequences of making purchases or withdrawals through an employer-sponsored
retirement or savings plan, or through an IRA, please consult your plan
administrator, your summary plan description or a professional tax advisor.

Taxable Accounts

If you own fund shares through a taxable account, distributions by the fund and
sales by you of fund shares may cause you to be taxed.

Taxability of Distributions

Fund distributions may consist of income earned by the fund from sources such as
dividends and interest, or capital gains generated from the sale of fund
investments. Distributions of income are taxed as ordinary income. Distributions
of capital gains are classified either as short term or long term and are taxed
as follows:

Tax Rate for
Type of Distribution Tax Rate for 15% Bracket 28% Bracket or above
- --------------------------------------------------------------------------------
Short-term capital gains Ordinary income rate Ordinary income rate
- --------------------------------------------------------------------------------
Long-term capital gains 10% 20%

The tax status of any distribution of capital gains is determined by how long
the fund held the underlying security that was sold, not by how long you have
been invested in the fund or whether you reinvest your distributions in
additional shares or take them in cash. American Century will send you the tax
status of fund distributions for each calendar year in an annual tax statement
from the fund.

Distributions also may be subject to state and local taxes. Because everyone's
tax situation is unique, always consult your tax professional about federal,
state and local tax consequences.

Taxes on Transactions

Your redemptions -- including exchanges to other American Century funds -- are
subject to capital gains tax. The table above can provide a general guide for
your potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss.

[LEFT MARGIN]

[image of hand pointing index finger] BUYING A DIVIDEND
Purchasing fund shares in a taxable account shortly before a distribution is
sometimes known as buying a dividend. In taxable accounts, you must pay income
taxes on the distribution whether you reinvest the distribution or take it in
cash. In addition, you will have to pay taxes on the distribution whether the
value of your investment decreased, increased or remained the same after you
bought the fund shares.

The risk in buying a dividend is that a fund's portfolio may build up taxable
gains throughout the period covered by a distribution, as securities are sold at
a profit. We distribute those gains to you, after subtracting any losses, even
if you did not own the shares when the gains occurred.

If you buy a dividend, you incur the full tax liability of the distribution
period, but you may not enjoy the full benefit of the gains realized in the
fund's portfolio.

[END LEFT MARGIN]

www.americancentury.com American Century Investments 15

MULTIPLE CLASS INFORMATION

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

American Century offers the other classes of shares primarily to institutional
investors through institutional distribution channels, such as
employer-sponsored retirement plans, or through banks, broker-dealers and
insurance companies. 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 advisor 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 for Advisor or Institutional Class shares. You also can
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.

16 American Century Investments 1-800-345-2021

FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The tables on the next few pages itemize what contributed to the changes in
share price during the period. They also show the changes in share price for
this period in comparison to changes over the last five fiscal years or less, if
the share class is not five years old.

On a per-share basis, each table includes as appropriate

* share price at the beginning of the period
* investment income and capital gains or losses
* distributions of income and capital gains paid to shareholders
* share price at the end of the period

Each table also includes some key statistics for the period as appropriate

* Total Return--the overall percentage of return of the fund, assuming the
reinvestment of all distributions

* Expense Ratio--operating expenses as a percentage of average net assets

* Net Income Ratio--net investment income as a percentage of average net asset

* Portfolio Turnover--the percentage of the fund's buying and selling activity

The Financial Highlights have been audited by PricewaterhouseCoopers LLP,
independent accountants. Their report is included in the funds' annual report
for the year ended December 31, 1998, which is incorporated by reference into
the Statement of Additional Information, and is available upon request.

www.americancentury.com American Century Investments 17

INCOME & GROWTH

<TABLE>
<CAPTION>
Investor Class

For a Share Outstanding Throughout the Years Ended December 31

PER-SHARE DATA
1998 1997 1996 1995 1994

Net Asset Value,
<S> <C> <C> <C> <C> <C>
Beginning of Year ............. $ 24.31 $ 20.16 $ 17.81 $ 13.92 $ 15.08
------------- ------------- ------------- ------------- -------------
Income From Investment Operations

Net Investment Income ......... 0.36(1) 0.43(1) 0.44 0.42 0.44

Net Realized and
Unrealized Gain (Loss) on
Investment Transactions .... 6.23 6.40 3.79 4.64 (0.53)
------------- ------------- ------------- ------------- -------------
Total From Investment
Operations ................. 6.59 6.83 4.23 5.06 (0.09)
------------- ------------- ------------- ------------- -------------
Distributions
From Net Investment Income .... (0.35) (0.39) (0.44) (0.42) (0.43)

From Net Realized
Gains on Investment
Transactions ............... (1.30) (2.29) (1.44) (0.75) (0.64)
------------- ------------- ------------- ------------- -------------
Total Distributions ........... (1.65) (2.68) (1.88) (1.17) (1.07)
------------- ------------- ------------- ------------- -------------
Net Asset Value, End of Year .... $ 29.25 $ 24.31 $ 20.16 $ 17.81 $ 13.92
============= ============= ============= ============= =============
Total Return(2) ............... 27.67% 34.52% 24.15% 36.88% (0.55)%

RATIOS/SUPPLEMENTAL DATA
1998 1997 1996 1995 1994

Ratio of Operating Expenses
to Average Net Assets ......... 0.69% 0.65% 0.62% 0.67% 0.73%

Ratio of Net Investment Income
to Average Net Assets ......... 1.31% 1.81% 2.32% 2.61% 2.96%

Portfolio Turnover Rate ......... 86% 102% 92% 70% 68%

Net Assets, End of Year
(in thousands) ................ $ 4,313,575 $ 1,795,124 $ 717,695 $ 373,701 $ 224,939

(1) Computed using average shares outstanding throughout the year.

(2) Total return assumes reinvestment of dividends and capital gains
distributions, if any.

18 American Century Investments 1-800-345-2021

EQUITY GROWTH

Investor Class

For a Share Outstanding Throughout the Years Ended December 31

PER-SHARE DATA

1998 1997 1996 1995 1994

Net Asset Value,
Beginning of Year ............ $ 19.04 $ 15.96 $ 14.25 $ 11.53 $ 12.12
------------- ------------- ------------- ------------- -------------
Income From Investment Operation

Net Investment Income ........ 0.22(1) 0.27(1) 0.27 0.26 0.30

Net Realized and
Unrealized Gain (Loss) on
Investment Transactions ... 4.53 5.36 3.55 3.70 (0.33)
------------- ------------- ------------- ------------- -------------
Total From Investment
Operations ................ 4.75 5.63 3.82 3.96 (0.03)
------------- ------------- ------------- ------------- -------------
Distributions

From Net Investment Income ... (0.20) (0.24) (0.26) (0.23) (0.30)

From Net Realized
Gains on Investment
Transactions .............. (0.88) (2.31) (1.85) (1.01) (0.26)
------------- ------------- ------------- ------------- -------------
Total Distributions .......... (1.08) (2.55) (2.11) (1.24) (0.56)
------------- ------------- ------------- ------------- -------------
Net Asset Value, End of Year ... $ 22.71 $ 19.04 $ 15.96 $ 14.25 $ 11.53
============= ============= ============= ============= =============
Total Return(2) .............. 25.45% 36.06% 27.34% 34.56% (0.23)%

RATIOS/SUPPLEMENTAL DATA

1998 1997 1996 1995 1994

Ratio of Operating Expenses
to Average Net Assets ........ 0.69% 0.67% 0.63% 0.71% 0.75%

Ratio of Net Investment Income
to Average Net Assets ........ 1.07% 1.39% 1.74% 1.96% 2.26%

Portfolio Turnover Rate ........ 89% 161% 131% 126% 94%

Net Assets, End of Year
(in thousands) ............... $ 2,026,304 $ 773,425 $ 274,433 $ 159,450 $ 97,437

(1) Computed using average shares outstanding throughout the year.

(2) Total return assumes reinvestment of dividends and capital gains
distributions, if any.

www.americancentury.com American Century Investments 19

SMALL CAP QUANTITATIVE
Investor Class

For a Share Outstanding Throughout the Period Indicated

PER-SHARE DATA
1998(1)

Net Asset Value, Beginning of Period ........................... $ 5.00
----------

Income From Investment Operations

Net Realized and Unrealized Gain on Investment Transactions .. 0.02
----------
Net Asset Value, End of Period ................................. $ 5.02
==========
Total Return(2) .............................................. 0.40%

RATIOS/SUPPLEMENTAL DATA
1998(1)

Ratio of Operating Expenses to Average Net Assets .............. 0.94%(3)

Ratio of Net Investment Income to Average Net Assets ........... 0.20%(3)

Portfolio Turnover Rate ........................................ 30%

Net Assets, End of Period (in thousands) ....................... $ 14,971
</TABLE>

(1) July 31, 1998 (inception) through December 31, 1998.

(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.

20 American Century Investments 1-800-345-2021

NOTES

www.americancentury.com American Century Investments 21

MORE INFORMATION ABOUT THE FUNDS IS CONTAINED IN THESE DOCUMENTS

ANNUAL AND SEMIANNUAL REPORTS

These reports contain more information about the funds' investments and the
market conditions and investment strategies that significantly affected the
funds' performance during the most recent fiscal period.

STATEMENT OF ADDITIONAL INFORMATION (SAI)

The SAI contains a more detailed, legal description of the funds' operations,
investment restrictions, policies and practices. The SAI is incorporated by
reference into this Prospectus. This means that it is legally part of this
Prospectus, even if you don't request a copy.

You may obtain a copy of the SAI or annual and semiannual reports at no charge
by contacting us at the telephone number or address below.

You also can get information about the funds (including the SAI) from the
Securities and Exchange Commission (SEC).

* In person SEC Public Reference Room
Washington, D.C.
Call 1-800-SEC-0330 for location
and hours.

* On the Internet www.sec.gov

* By mail SEC Public Reference Section
Washington, D.C. 20549-6009
(The SEC will charge a fee for copying
the documents.)

Investment Company Act File No. 811-5447

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

AMERICAN CENTURY INVESTMENTS
P.O. Box 419200
Kansas City, Missouri 64141-6200

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

9903
SH-PRS-15621
<PAGE>
AMERICAN CENTURY

Prospectus

Income & Growth Fund
Equity Growth Fund
Small Cap Quantitative Fund

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

APRIL 1, 1999

INSTITUTIONAL CLASS

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANYONE WHO
TELLS YOU OTHERWISE IS COMMITTING A CRIME.

Distributed by
Funds Distributor, Inc.

Dear Investor,

Here's what you'll find:

* The funds' primary investments and risks

* A description of who may or may not want to invest in the funds

* Fund performance, including returns for each year, best and worst
quarters, and average annual returns compared to the funds' benchmarks

* An overview of services available and ways to manage your accounts

* Helpful tips and definitions of key investment terms

Whether you're a current investor or investing in mutual funds for the first
time, this prospectus will give you a clear understanding of the funds. If you
have questions, our Service Representatives are available weekdays, 8 a.m. to 5
p.m., Central time. Our toll-free number is 1-800-345-3533. We look forward to
helping you achieve your financial goals.

Sincerely,
/S/Mark Killen
Mark Killen
Senior Vice President
American Century Investment Services, Inc.

[LEFT MARGIN]

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

American Century
Investments

P.O. Box 419385
Kansas City, MO
64141-6385

[END LEFT MARGIN]

TABLE OF CONTENTS

An Overview of the Funds .................................................... 2
Fund Performance History .................................................... 3
Fees and Expenses ........................................................... 4
Information about the Funds ................................................. 5
Income & Growth Fund
Equity Growth Fund
Small Cap Quantitative Fund
Management .................................................................. 7
Investing with American Century ............................................. 10
Share Price and Distributions ............................................... 13
Taxes ....................................................................... 14
Multiple Class Information .................................................. 15
Financial Highlights ........................................................ 16
Performance Information of Other Class ...................................... 19

[LEFT MARGIN]

Throughout this book you'll find definitions of key investment terms and
phrases. When you see a word printed in GREEN ITALICS, look for its definition
in the left margin.

[image of hand pointing index finger] This symbol highlights special information
and helpful tips.

[END LEFT MARGIN]

American Century Investments

AN OVERVIEW OF THE FUNDS

WHAT ARE THE FUNDS' INVESTMENT GOALS?

These funds seek long-term capital growth. For Income & Growth, current income
is a secondary consideration.

WHAT ARE THE FUNDS' PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

The funds' principal risks include:

* MARKET RISK -- The value of a fund's shares will go up and down based on the
performance of the companies whose securities it owns and other factors
affecting the securities market generally

* PRICE VOLATILITY -- The value of a fund's shares may fluctuate significantly
in the short term

* PRINCIPAL LOSS -- As with all mutual funds, if you sell your shares when
their value is less than the price you paid, you will lose money

WHO MAY WANT TO INVEST IN THE FUNDS?

The funds may be a good investment if you are

WHO MAY NOT WANT TO INVEST IN THE FUNDS?

The funds may not be a good investment if you are

* seeking current income from your investment in Equity Growth or Small Cap
Quantitative

* investing for a short period of time

* uncomfortable with short-term volatility in the value of your investment

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[END LEFT MARGIN]

2 American Century Investments 1-800-345-3533

FUND PERFORMANCE HISTORY

INCOME & GROWTH FUND EQUITY GROWTH FUND

When the Institutional Class of a fund has investment results for a full
calendar year, this section will feature charts that show

* Annual Total Returns

* Highest and Lowest Quarterly Returns

* Average Annual Returns, including a comparison of these returns to a
benchmark index for the Institutional Class of each fund

In addition, investors can examine the performance of the funds' Investor Class
shares. The Investor Class has a total expense ratio that is 0.20% higher than
the Institutional Class. If the Institutional Class had existed during the
periods presented, its performance would have been lower because of the
additional expense.

All past performance information is designed to help show you how fund returns
can vary. Keep in mind that past performance does not predict how the funds
perform in the future.

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[image of hand pointing index finger] For current performance information,
please call us at 1-800-345-3533.

[END LEFT MARGIN]

www.americancentury.com American Century Investments 3

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 Institutional Class shares of other American Century
funds
* to redeem your shares

The following table describes the fees and expenses that you will pay if you buy
and hold shares of the funds.

ANNUAL OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)

Distribution Total Annual
Management and Service Other Fund Operating
Fee(1) (12b-1) Fees Expenses(2) Expenses
- --------------------------------------------------------------------------------
Income & Growth 0.49% None 0.00% 0.49%
- --------------------------------------------------------------------------------
Equity Growth 0.49% None 0.00% 0.49%
- --------------------------------------------------------------------------------
Small Cap Quantitative 0.68% None 0.00% 0.68%

(1) Based on expenses incurred during the funds' most recent fiscal year. The
funds have stepped fee schedules. As a result, the funds' management fee
rate generally decreases as fund assets increase. Please consult the
Statement of Additional Information for more details about the funds'
management fees.

(2) Other expenses, which include the fees and expenses of the funds'
independent directors, their legal counsel, interest and extraordinary
expenses, are expected to be less than 0.005% for the current fiscal year.

EXAMPLE

The examples in the table below are intended to help you compare the costs of
investing in a fund with those of other mutual funds. Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:

1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------
Income & Growth $50 $157 $274 $615
- -----------------------------------------------------------------------
Equity Growth $50 $157 $274 $615
- -----------------------------------------------------------------------
Small Cap Quantitative $69 $217 $378 $844

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[image of hand pointing index finger] Use this example to compare the costs of
investing in other funds. Of course, your actual costs may be higher or lower.

[END LEFT MARGIN]

4 American Century Investments 1-800-345-3533

INFORMATION ABOUT THE FUNDS

INCOME & GROWTH FUND
EQUITY GROWTH FUND
SMALL CAP QUANTITATIVE FUND

WHAT ARE THE FUNDS' INVESTMENT OBJECTIVES?

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

Equity Growth seeks capital appreciation by investing in common stocks.

Small Cap Quantitative seeks capital appreciation by investing primarily in
common stocks of small companies.

HOW DO THE FUNDS PURSUE THEIR INVESTMENT OBJECTIVES?

In the second step, the managers use a technique called portfolio optimization.
In portfolio optimization, the managers use a computer model to build a
portfolio of stocks from the ranking described earlier that they believe will
provide the optimal balance between risk and expected return. The goal is to
create a fund that provides better returns than the S&P 500, for Income & Growth
and Equity Growth, and the S&P Small Cap 600, for Small Cap Quantitative,
without taking on significant additional risk.

The fund managers do not attempt to time the market. Instead, they intend to
keep the funds essentially fully invested in stocks regardless of the movement
of stock prices generally. When the managers believe that it is prudent, the
funds may invest in securities other than stocks, such as convertible
securities, foreign securities, short-term instruments and NON-LEVERAGED stock
index futures contracts. Stock index futures contracts, a type of derivative
security, can help the funds' cash assets remain liquid while performing more
like stocks. The funds have a policy governing stock index futures and similar
derivative securities to help manage the risk of these types of investments. A
complete description of the derivatives policy is included in the Statement of
Additional Information.

Additional information about the funds' investments is available in their annual
and semiannual reports. In these reports you will find a discussion of the
market conditions and investment strategies that significantly affected the
funds' performances during the most recent fiscal period. You may get these
reports at no cost by calling us.

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NON-LEVERAGED means that the fund may not invest in futures contracts where it
would be possible to lose more than the fund invested in those contracts.

[END LEFT MARGIN]

www.americancentury.com American Century Investments 5

WHAT IS THE DIFFERENCE BETWEEN THE FUNDS?

* When building Income & Growth's portfolio, the fund managers also attempt to
create a dividend yield for the fund that will be greater than that of the
S&P 500.

* The fund managers do not consider dividend yield when building Equity
Growth's portfolio.

WHAT ARE THE PRIMARY RISKS OF INVESTING IN THE FUNDS?

Because each fund is managed to an index (the S&P 500 for Income & Growth and
Equity Growth, and the S&P Small Cap 600 for Small Cap Quantitative), a fund's
performance will be closely tied to the appropriate index's performance. If the
index goes down, it is likely that the fund's performance will go down.

Although current income is an objective for Income & Growth, if the stocks that
make up the S&P 500 do not have a high dividend yield, then Income & Growth's
dividend yield will not be high.

6 American Century Investments 1-800-345-3533

MANAGEMENT

WHO MANAGES THE FUNDS?

The Board of Directors, investment advisor and fund management team play key
roles in the management of the funds.

THE BOARD OF DIRECTORS

THE INVESTMENT ADVISOR

For the services it provided to the funds during the most recent fiscal year,
the advisor received a unified management fee based on a percentage of the
average net assets of the Institutional Class of shares of the funds. The rate
of the management fee for a fund is determined on a class-by-class basis monthly
using a two-step formula that takes into account the fund's strategy (money
market, bond or equity) and the total amount of mutual fund assets the advisor
manages. The Statement of Additional Information contains detailed information
about the calculation of the management fee.

Management Fees Paid by the Funds to the Advisor as a Percentage of Average Net
Assets for the Most Recent Fiscal Year Ended December 31, 1998:
- --------------------------------------------------------------------------------
Income & Growth 0.49%
- --------------------------------------------------------------------------------
Equity Growth 0.49%
- --------------------------------------------------------------------------------
Small Cap Quantitative 0.68%

www.americancentury.com American Century Investments 7

THE FUND MANAGEMENT TEAM

The advisor uses teams of portfolio managers, assistant portfolio managers and
research analysts to manage the funds. Teams meet regularly to review portfolio
holdings and discuss purchase and sale activity. Team members buy and sell
securities for a fund as they see fit, guided by the fund's investment objective
and strategy.

The portfolio managers on the investment team for the funds are identified
below:

JEFFREY R. TYLER
Mr. Tyler, Senior Vice President and Portfolio Manager, has been a member of the
team since June 1997. He joined American Century as a Portfolio Manager in 1988.
He has a degree from the University of California and an MBA in finance and
economics from Northwestern University. He is a Chartered Financial Analyst.

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[image of hand pointing index finger]
CODE OF ETHICS
American Century has a Code of Ethics designed to ensure that the interests of
fund shareholders come before the interests of the people who manage the funds.
Among other provisions, the Code of Ethics prohibits portfolio managers and
other investment personnel from buying securities in an initial public offering
or from profiting from the purchase and sale of the same security within 60
calendar days. In addition, the Code of Ethics requires portfolio managers and
other employees with access to information about the purchase or sale of
securities by the funds to obtain approval before executing permitted personal
trades.

[END LEFT MARGIN]

8 American Century Investments 1-800-345-3533

FUNDAMENTAL INVESTMENT POLICIES

YEAR 2000 ISSUES

www.americancentury.com American Century Investments 9

INVESTING WITH AMERICAN CENTURY

ELIGIBILITY FOR INSTITUTIONAL CLASS SHARES

The Institutional Class shares are made available for purchase by large
institutional shareholders, such as bank trust departments, corporations,
retirement plans, endowments, foundations and financial advisors that meet the
funds' minimum investment requirements. Institutional Class shares are not
available for purchase by insurance companies for variable annuity and variable
life products.

MINIMUM INITIAL INVESTMENT AMOUNTS

The minimum investment is $5 million ($3 million for endowments and foundations)
per fund. If you invest with us through a 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). In addition, financial intermediaries or plan
recordkeepers may require retirement plans to meet certain additional
requirements, such as plan size or a minimum level of assets per participant, in
order to be eligible to purchase Institutional Class shares.

REDEMPTION OF SHARES IN BELOW-MINIMUM ACCOUNTS

If your balance or the balance of your financial intermediary, if applicable,
falls below the minimum investment requirement 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.

SERVICES AUTOMATICALLY AVAILABLE TO YOU

You automatically will have access to the services listed on the next page when
you open your account. If you do not want these services, see "Conducting
Business in Writing" below.

CONDUCTING BUSINESS IN WRITING

10 American Century Investments 1-800-345-3533

WAYS TO MANAGE YOUR ACCOUNT
- --------------------------------------------------------------------------------
BY TELEPHONE
Service Representative
1-800-345-3533

[image of telephone]

OPEN AN ACCOUNT
If you are a current investor, you can open an account by exchanging shares from
another American Century account.

EXCHANGE SHARES
Call us or use our Automated Information Line if you have authorized us to
accept telephone instructions.

MAKE ADDITIONAL INVESTMENTS
Call us if you have authorized us to invest from your bank account.

SELL SHARES
Call a Service Representative.

- --------------------------------------------------------------------------------
BY MAIL OR FAX
P.O. Box 419385
Kansas City, MO 64141-6385

Fax
816-340-4655

[image of envelope]

OPEN AN ACCOUNT
Send a signed and completed application and check or money order payable to
American Century Investments.

EXCHANGE SHARES
Send us written instructions to exchange your shares from one American Century
account to another.

SELL SHARES
Send us written instructions or a redemption form to sell shares. Call a Service
Representative to request a form.

- --------------------------------------------------------------------------------
BY WIRE
[image of hand pointing index finger] Please remember that if you request
redemptions by wire, $10 will be deducted from the amount redeemed. Your bank
also may charge a fee.

[image of fax machine]

OPEN AN ACCOUNT
Call us to set up your account or mail a completed application to the address
provided in the "By mail" section and give your bank the following information

* Our bank information
Commerce Bank N.A.
Routing No. 101000019
Account No. 2804918
* The fund name
* Your American Century account number*
* Your name
* The contribution year (for IRAs only)

* For additional investments only

MAKE ADDITIONAL INVESTMENTS
Follow the wire instructions provided in the "Open an account" section.

SELL SHARES
You can receive redemption proceeds by wire or electronic transfer.

EXCHANGE SHARES Not applicable.

- --------------------------------------------------------------------------------
AUTOMATICALLY

[three arrows forming circle]

OPEN AN ACCOUNT
Not available.

EXCHANGE SHARES
Send us written instructions to set up an automatic exchange of shares from one
American Century account to another.

MAKE ADDITIONAL INVESTMENTS
Select "Establish Automatic Investments" on your application to make automatic
purchases of shares on a regular basis. You must invest at least $600 per year
per account.

SELL SHARES
If you have at least $10,000 in your account, you may sell shares automatically
by establishing Check-A-Month or Automatic Redemption plans.

www.americancentury.com American Century Investments 11

ABUSIVE TRADING PRACTICES

We do not permit market-timing or other abusive trading practices in our funds.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

INVESTING THROUGH FINANCIAL INTERMEDIARIES

If you own or are considering purchasing shares through a financial intermediary
or a retirement plan, your ability to purchase, exchange and redeem shares will
depend on the policies of that entity. Some policy differences may include

* minimum investment requirements
* exchange policies
* fund choices
* cutoff time for investments

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[image of hand pointing index finger] Financial intermediaries include banks,
broker-dealers, insurance companies and investment advisors.

[END LEFT MARGIN]

12 American Century Investments 1-800-345-3533

SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century determines the NET ASSET VALUE (NAV) of the funds as of the
close of regular trading on the New York Stock Exchange (usually 4 p.m. Eastern
time) on each day the Exchange is open. On days when the Exchange is not open
(including certain U.S. holidays), we do not calculate the NAV. The NAV of a
fund share is the current value of the fund's investments, minus any
liabilities, divided by the number of fund shares outstanding.

We will price your purchase, exchange or redemption at the NAV next determined
after we receive your transaction request in good order.

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 cutoff 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.

DISTRIBUTIONS

Federal tax laws require each fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means that the funds will not be subjected to state
or federal income tax on amounts distributed. The distributions generally
consist of dividends and interest received, as well as CAPITAL GAINS realized on
the sale of investment securities.

The NET ASSET VALUE of a fund is the price of the fund's shares.

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CAPITAL GAINS are increases in the values of capital assets, such as stock, from
the time the assets are purchased. Tax becomes due on capital gains once an
asset is sold.

[END LEFT MARGIN]

www.americancentury.com American Century Investments 13

TAXES

Tax-Deferred Accounts

Taxable Accounts

If you own fund shares through a taxable account, distributions by the fund and
sales by you of fund shares may cause you to be taxed.

Taxability of Distributions

Distributions may consist of income earned by the fund from sources such as
dividends and interest, or capital gains generated from the sale of fund
investments. Distributions of income are taxed as ordinary income. Distributions
of capital gains are classified either as short term or long term and are taxed
as follows:

Tax Rate for Tax Rate for
Type of Distribution 15% Bracket 28% Bracket or above
- --------------------------------------------------------------------------------
Short-term capital gains Ordinary income rate Ordinary income rate
- --------------------------------------------------------------------------------
Long-term capital gains 10% 20%

Distributions also may be subject to state and local taxes. Because everyone's
tax situation is unique, always consult your tax professional about federal,
state and local tax consequences.

Taxes on Transactions

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If you buy a dividend, you incur the full tax liability of the distribution
period, but you may not enjoy the full benefit of the gains realized in the
fund's portfolio.

[END LEFT MARGIN]

14 American Century Investments 1-800-345-3533

MULTIPLE CLASS INFORMATION

American Century offers three classes of the funds: Investor Class,
Institutional Class and Advisor Class. The shares offered by this Prospectus are
Institutional Class shares and are offered primarily to institutional investors
through institutional distribution channels, such as employer-sponsored
retirement plans, or through banks, broker-dealers and insurance companies.

American Century offers another class of shares that has no up-front or deferred
charges, commissions or 12b-1 fees. The funds may offer a different class of
shares primarily to institutional investors through institutional distribution
channels, such as employer-sponsored retirement plans, or through banks,
broker-dealers and insurance companies. 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 advisor 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 for Investor Class shares
* 1-800-345-3533 for Advisor Class shares

You also can contact a sales representative or financial intermediary who offers
those classes of shares.

www.americancentury.com American Century Investments 15

FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

On a per-share basis, each table includes as appropriate

* share price at the beginning of the period
* investment income and capital gains or losses
* distributions of income and capital gains paid to shareholders
* share price at the end of the period

Each table also includes some key statistics for the period as appropriate

* Total Return--the overall percentage of return of the fund, assuming the
reinvestment of all distributions

* Expense Ratio--operating expenses as a percentage of average net assets

* Net Income Ratio--net investment income as a percentage of average net asset

* Portfolio Turnover--the percentage of the fund's buying and selling activity

The Financial Highlights have been audited by PricewaterhouseCoopers LLP,
independent accountants. Their report is included in the funds' annual report
for the year ended December 31, 1998 which is incorporated by reference into the
Statement of Additional Information, and is available upon request.

16 American Century Investments 1-800-345-3533

INCOME & GROWTH

Institutional Class

For a Share Outstanding Throughout the Period Indicated

PER-SHARE DATA
1998(1)

Net Asset Value, Beginning of Period ........................... $ 24.29

Income From Investment Operations

Net Investment Income(2) ..................................... 0.39

Net Realized and Unrealized Gain on Investment Transactions .. 6.26

Total From Investment Operations ............................. 6.65

Distributions

From Net Investment Income ................................... (0.37)

From Net Realized Gains on Investment Transactions ........... (1.30)

Total Distributions .......................................... (1.67)

Net Asset Value, End of Period ................................. $ 29.27

Total Return(3) .............................................. 27.87%

RATIOS/SUPPLEMENTAL DATA
1998(1)

Ratio of Operating Expenses to Average Net Assets .............. 0.49%(4)
Ratio of Net Investment Income to Average Net Assets ........... 1.51%(4)
Portfolio Turnover Rate ........................................ 86%
Net Assets, End of Period (in thousands) ....................... $ 38,926

(1) January 28, 1998 (commencement of sale) through December 31, 1998.

(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.

www.americancentury.com American Century Investments 17

EQUITY GROWTH
Institutional Class

For a Share Outstanding Throughout the Period Indicated

PER-SHARE DATA
1998(1)

Net Asset Value, Beginning of Period ........................... $ 19.06

Income From Investment Operations

Net Investment Income(2) ..................................... 0.27

Net Realized and Unrealized Gain on Investment Transactions .. 4.51

Total From Investment Operations ............................. 4.78

Distributions

From Net Investment Income ................................... (0.25)

From Net Realized Gains on Investment Transactions ........... (0.88)

Total Distributions .......................................... (1.13)

Net Asset Value, End of Period ................................. $ 22.71

Total Return(3) .............................................. 25.59%

RATIOS/SUPPLEMENTAL DATA
1998(1)

Ratio of Operating Expenses to Average Net Assets .............. 0.49%(4)
Ratio of Net Investment Income to Average Net Assets ........... 1.27%(4)
Portfolio Turnover Rate ........................................ 89%
Net Assets, End of Period (in thousands) ....................... $ 8,566

(1) January 2, 1998 (commencement of sale) through December 31, 1998.

(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.

18 American Century Investments 1-800-345-3533

PERFORMANCE INFORMATION OF OTHER CLASS

The following financial information is provided to show the performance of the
funds' original class of shares. This class, the Investor Class, has a total
expense ratio that is 0.20% higher than the Institutional Class. If the
Institutional Class had existed during the periods presented, its performance
would have been higher because of the lower expense.

The tables on the next few pages itemize what contributed to the changes in
share price during the period. They also show the changes in share price for
this period in comparison to changes over the last five fiscal years, or less if
the share class is not five years old.

On a per-share basis, each table includes as appropriate

* share price at the beginning of the period
* investment income and capital gains or losses
* distributions of income and capital gains paid to shareholders
* share price at the end of the period

Each table also includes some key statistics for the period as appropriate

* Total Return--the overall percentage of return of the fund, assuming the
reinvestment of all distributions

* Expense Ratio--operating expenses as a percentage of average net assets

* Net Income Ratio--net investment income as a percentage of average net asset

* Portfolio Turnover--the percentage of the fund's buying and selling activity

The following Financial Highlights have been audited by PricewaterhouseCoopers
LLP, independent accountants. Their report is in the funds' annual report for
the year ended December 31, 1998, which is incorporated by reference into the
Statement of Additional Information, and is available upon request.

www.americancentury.com American Century Investments 19

<TABLE>
<CAPTION>
INCOME & GROWTH

Investor Class

For a Share Outstanding Throughout the Years Ended December 31

PER-SHARE DATA

1998 1997 1996 1995 1994

Net Asset Value,
<S> <C> <C> <C> <C> <C>
Beginning of Year ............... $ 24.31 $ 20.16 $ 17.81 $ 13.92 $ 15.08

Income From Investment Operations

Net Investment Income ........... 0.36(1) 0.43(1) 0.44 0.42 0.44

Net Realized and Unrealized
Gain (Loss) on Investment
Transactions ................. 6.23 6.40 3.79 4.64 (0.53)

Total From
Investment Operations ......... 6.59 6.83 4.23 5.06 (0.09)

Distributions

From Net Investment Income ...... (0.35) (0.39) (0.44) (0.42) (0.43)

From Net Realized Gains
on Investment Transactions ... (1.30) (2.29) (1.44) (0.75) (0.64)

Total Distributions ............. (1.65) (2.68) (1.88) (1.17) (1.07)

Net Asset Value, End of Year ...... $ 29.25 $ 24.31 $ 20.16 $ 17.81 $ 13.92

Total Return(2) ................. 27.67% 34.52% 24.15% 36.88% (0.55)%

RATIOS/SUPPLEMENTAL DATA
1998 1997 1996 1995 1994

Ratio of Operating Expenses
to Average Net Assets ........ 0.69% 0.65% 0.62% 0.67% 0.73%

Ratio of Net Investment Income
to Average Net Assets ........ 1.31% 1.81% 2.32% 2.61% 2.96%

Portfolio Turnover Rate ........... 86% 102% 92% 70% 68%

Net Assets, End of Year
(in thousands) ............... $ 4,313,575 $ 1,795,124 $ 717,695 $ 373,701 $ 224,939

(1) Computed using average shares outstanding throughout the year.

(2) Total return assumes reinvestment of dividends and capital gains
distributions, if any.

20 American Century Investments 1-800-345-3533

EQUITY GROWTH

Investor Class

For a Share Outstanding Throughout the Years Ended December 31

PER-SHARE DATA

1998 1997 1996 1995 1994

Net Asset Value,
Beginning of Year .............. $ 19.04 $ 15.96 $ 14.25 $ 11.53 $ 12.12

Income From Investment Operations

Net Investment Income ........... 0.22(1) 0.27(1) 0.27 0.26 0.30

Net Realized and Unrealized
Gain (Loss) on Investment
Transactions ................. 4.53 5.36 3.55 3.70 (0.33)

Total From Investment
Operations ..................... 4.75 5.63 3.82 3.96 (0.03)

Distributions

From Net Investment Income ...... (0.20) (0.24) (0.26) (0.23) (0.30)

From Net Realized Gains on
Investment Transactions ...... (0.88) (2.31) (1.85) (1.01) (0.26)

Total Distributions ............. (1.08) (2.55) (2.11) (1.24) (0.56)

Net Asset Value, End of Year ...... $ 22.71 $ 19.04 $ 15.96 $ 14.25 $ 11.53

Total Return(2) ................. 25.45% 36.06% 27.34% 34.56% (0.23)%

RATIOS/SUPPLEMENTAL DATA

1998 1997 1996 1995 1994

Ratio of Operating Expenses
to Average Net Assets ........ 0.69% 0.67% 0.63% 0.71% 0.75%

Ratio of Net Investment Income
to Average Net Assets ........ 1.07% 1.39% 1.74% 1.96% 2.26%

Portfolio Turnover Rate ........... 89% 161% 131% 126% 94%

Net Assets, End of Year
(in thousands) ............... $ 2,026,304 $ 773,425 $ 274,433 $ 159,450 $ 97,437

(1) Computed using average shares outstanding throughout the year.

(2) Total return assumes reinvestment of dividends and capital gains
distributions, if any.

www.americancentury.com American Century Investments 21

SMALL CAP QUANTITATIVE

Investor Class

For a Share Outstanding Throughout the Period Indicated

PER-SHARE DATA
1998(1)

Net Asset Value, Beginning of Period ............................ $ 5.00

Income From Investment Operations

Net Realized and Unrealized Gain on Investment Transactions ... 0.02

Net Asset Value, End of Period .................................. $ 5.02

Total Return(2) ............................................... 0.40%

RATIOS/SUPPLEMENTAL DATA
1998(1)

Ratio of Operating Expenses to Average Net Assets ............... 0.94%(3)
Ratio of Net Investment Income to Average Net Assets ............ 0.20%(3)
Portfolio Turnover Rate ......................................... 30%
Net Assets, End of Period (in thousands) ........................ $ 14,971
</TABLE>

(1) July 31, 1998 (inception) through December 31, 1998.

(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.

22 American Century Investments 1-800-345-3533

NOTES

www.americancentury.com American Century Investments 23

NOTES

24 American Century Investments 1-800-345-3533

NOTES

www.americancentury.com American Century Investments 25

MORE INFORMATION ABOUT THE FUNDS IS CONTAINED IN THESE DOCUMENTS

ANNUAL AND SEMIANNUAL REPORTS

STATEMENT OF ADDITIONAL INFORMATION (SAI)

You may obtain a copy of the SAI or annual and semiannual reports at no charge
by contacting us at the telephone number or address below.

You also can get information about the funds (including the SAI) from the
Securities and Exchange Commission (SEC).

* In person SEC Public Reference Room
Washington, D.C.
Call 1-800-SEC-0330 for location
and hours.

* On the Internet www.sec.gov

* By mail SEC Public Reference Section
Washington, D.C. 20549-6009
(The SEC will charge a fee for copying
the documents.)

Investment Company Act File No. 811-0816

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

AMERICAN CENTURY INVESTMENTS
P.O. Box 419385
Kansas City, Missouri 64141-6385

1-800-345-3533 or 816-531-5575

9903
SH-PRS-15623
<PAGE>
AMERICAN CENTURY

Prospectus

Income & Growth Fund
Equity Growth Fund
Small Cap Quantitative Fund

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

APRIL 1, 1999

ADVISOR CLASS

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANYONE WHO
TELLS YOU OTHERWISE IS COMMITTING A CRIME.

Distributed by
Funds Distributor, Inc.

Dear Investor,

Here's what you'll find:

* The funds' primary investments and risks

* A description of who may or may not want to invest in the funds

* Fund performance, including returns for each year, best and worst
quarters, and average annual returns compared to the funds' benchmarks

* An overview of services available and ways to manage your accounts

* Helpful tips and definitions of key investment terms

Sincerely,
/s/Mark Killen
Mark Killen
Senior Vice President
American Century Investment Services, Inc.

[LEFT MARGIN]

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

American Century
Investments

P.O. Box 419385
Kansas City, MO
64141-6385

[END LEFT MARGIN]

TABLE OF CONTENTS
An Overview of the Funds .................................................... 2
Fund Performance History .................................................... 3
Fees and Expenses ........................................................... 4
Information about the Funds ................................................. 5
Income & Growth Fund
Equity Growth Fund
Small Cap Quantitative Fund
Management .................................................................. 7
Investing with American Century ............................................. 10
Share Price and Distributions ............................................... 12
Taxes ....................................................................... 13
Multiple Class Information .................................................. 14
Financial Highlights ........................................................ 15
Performance Information of Other Class ...................................... 18

[LEFT MARGIN]
Throughout this book you'll find definitions of key investment terms and
phrases. When you see a word printed in GREEN ITALICS, look for its definition
in the left margin.

[image of hand pointing index finger] This symbol highlights special information
and helpful tips.

American Century Investments

AN OVERVIEW OF THE FUNDS

WHAT ARE THE FUNDS' INVESTMENT GOALS?

These funds seek long-term capital growth. For Income & Growth, current income
is a secondary consideration.

WHAT ARE THE FUNDS' PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

In selecting stocks for Income & Growth and Equity Growth, the fund managers
select primarily from the largest 1,500 publicly traded U.S. companies. For
Small Cap Quantitative, the fund's managers select primarily from the equity
securities of smaller-capitalization U.S. companies. The managers use
quantitative, computer-driven models to construct the portfolios of stocks. A
more detailed description of the fund's investment strategies begins on page 5.

The funds' principal risks include:

* MARKET RISK -- The value of a fund's shares will go up and down based on the
performance of the companies whose securities it owns and other factors
affecting the securities market generally

* PRICE VOLATILITY -- The value of a fund's shares may fluctuate significantly
in the short term

* PRINCIPAL LOSS -- As with all mutual funds, if you sell your shares when their
value is less than the price you paid, you will lose money

WHO MAY WANT TO INVEST IN THE FUNDS?

The funds may be a good investment if you are

WHO MAY NOT WANT TO INVEST IN THE FUNDS?

The funds may not be a good investment if you are

* seeking current income from your investment in Equity Growth or
Small Cap Quantitative

* investing for a short period of time

* uncomfortable with short-term volatility in the value of your investment

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[END LEFT MARGIN]

2 American Century Investments 1-800-345-3533

FUND PERFORMANCE HISTORY

INCOME & GROWTH FUND EQUITY GROWTH FUND

[BAR CHART]
Annual Total Returns

The following bar chart shows the performance of Income & Growth's and Equity
Growth's Advisor Class shares for each full calendar year in the life of the
class. It indicates the volatility of the funds' historical returns from year to
year. Small Cap Quantitative is not included because it does not yet have a full
calendar year of performance.

Income & Growth Equity Growth
1998 27.37 25.14

The highest and lowest quarterly returns for the period reflected in the bar
chart are:

Highest Lowest
- --------------------------------------------------------------------------------
Income & Growth 22.12% (4Q 1998) -11.36% (3Q 1998)
- --------------------------------------------------------------------------------
Equity Growth 22.98% (4Q 1998) -13.93% (3Q 1998)

Average Annual Returns

The following table shows the average annual returns of Income & Growth's and
Equity Growth's Advisor Class shares for the periods indicated for the life of
the class. The benchmark is an unmanaged index that has no operating costs and
is included in the table for performance comparison. Small Cap Quantitative is
not included in the table because it does not yet have a full calendar year of
performance.

1 year Life of Fund(1)
- --------------------------------------------------------------------------------
Income & Growth 27.37% 27.63%
- --------------------------------------------------------------------------------
Equity Growth 25.14% 19.55%
- --------------------------------------------------------------------------------
S&P 500 Index 28.68% 23.20%

(1) The inception dates for the Advisor Class of the funds are: Income & Growth,
December 15, 1997, and Equity Growth, October 9, 1997.

Performance Information of Other Class

The original class of shares of the fund was the Investor Class. For information
about the historical performance of the original class of shares, see page 18.

[LEFT MARGIN]

[image of hand pointing index finger] For current performance information,
including yields, please call us at 1-800-345-3533 or visit American Century's
Web site at www.americancentury.com.

[END LEFT MARGIN]

www.americancentury.com American Century Investments 3

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 Advisor Class shares of other American Century funds
* to redeem your shares

The following table describes the fees and expenses that you will pay if you buy
and hold shares of the funds.

ANNUAL OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)

Distribution Total Annual
Management and Service Other Fund Operating
Fee(1) (12b-1)(2) Expenses(3) Expenses
- --------------------------------------------------------------------------------
Income & Growth 0.44% 0.50% 0.00% 0.94%
- --------------------------------------------------------------------------------
Equity Growth 0.44% 0.50% 0.00% 0.94%
- --------------------------------------------------------------------------------
Small Cap Quantitative 0.63% 0.50% 0.00% 1.13%

(1) Based on expenses incurred during the funds' most recent fiscal year. The
funds have stepped fee schedules. As a result, the funds' management fee
rate generally decreases as fund assets increase. Please consult the
Statement of Additional Information for more details about the funds'
management fees.

(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 advisor, and a portion is used to
compensate them for distribution and other shareholder services. See
"Service and Distribution Fees," page 14.

(3) Other expenses, which include the fees and expenses of the funds'
independent directors, their legal counsel, interest and extraordinary
expenses, are expected to be less than 0.005% for the current fiscal year.

EXAMPLE

The examples in the table below are intended to help you compare the costs of
investing in a fund with the costs of investing in other mutual funds. Assuming
you . . .

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

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

1 Year 3 Years 5 Years 10 Years
- -------------------------------------------------------------------------------
Income & Growth $96 $299 $519 $1,150
- -------------------------------------------------------------------------------
Equity Growth $96 $299 $519 $1,150
- -------------------------------------------------------------------------------
Small Cap Quantitative $115 $358 $620 $1,368

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[image of hand pointing index finger] Use this example to compare the costs of
investing in other funds. Of course, your actual costs may be higher or lower.

[END LEFT MARGIN]

4 American Century Investments 1-800-345-3533

INFORMATION ABOUT THE FUNDS

INCOME & GROWTH FUND
EQUITY GROWTH FUND
SMALL CAP QUANTITATIVE FUND

WHAT ARE THE FUNDS' INVESTMENT OBJECTIVES?

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

Equity Growth seeks capital appreciation by investing in common stocks.

Small Cap Quantitative seeks capital appreciation by investing primarily in
common stocks of small companies.

HOW DO THE FUNDS PURSUE THEIR INVESTMENT OBJECTIVES?

Additional information about the funds' investments is available in their annual
and semiannual reports. In these reports you will find a discussion of the
market conditions and investment strategies that significantly affected the
funds' performances during the most recent fiscal period. You may get these
reports at no cost by calling us.

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NON-LEVERAGED means that the fund may not invest in futures contracts where it
would be possible to lose more than the fund invested in those contracts.

[END LEFT MARGIN]

www.americancentury.com American Century Investments 5

WHAT ARE THE DIFFERENCES BETWEEN THE FUNDS?

* When building Income & Growth's portfolio, the fund managers also attempt to
create a dividend yield for the fund that will be greater than that of the
S&P 500.

* The fund managers do not consider dividend yield when building Equity
Growth's portfolio.

WHAT ARE THE PRIMARY RISKS OF INVESTING IN THE FUNDS?

Although current income is an objective for Income & Growth, if the stocks that
make up the S&P 500 do not have a high dividend yield, then Income & Growth's
dividend yield will not be high.

6 American Century Investments 1-800-345-3533

MANAGEMENT

WHO MANAGES THE FUNDS?

The Board of Directors, investment advisor and fund management team play key
roles in the management of the funds.

THE BOARD OF DIRECTORS

THE INVESTMENT ADVISOR

For the services it provided to the funds during the most recent fiscal year,
the advisor received a unified management fee based on a percentage of the
average net assets of the Advisor Class of shares of the funds. The rate of the
management fee for a fund is determined on a class-by-class basis monthly using
a two-step formula that takes into account the fund's strategy (money market,
bond or equity) and the total amount of mutual fund assets the advisor manages.
The Statement of Additional Information contains detailed information about the
calculation of the management fee.

Management Fees Paid by the Funds to the Advisor as a Percentage of Average Net
Assets for the Most Recent Fiscal Year Ended December 31, 1998:
- --------------------------------------------------------------------------------
Income & Growth 0.44%
- --------------------------------------------------------------------------------
Equity Growth 0.44%
- --------------------------------------------------------------------------------
Small Cap Quantitative 0.63%

www.americancentury.com American Century Investments 7

THE FUND MANAGEMENT TEAM

The portfolio managers on the investment team are identified below:

JOHN SCHNIEDWIND
Mr. Schniedwind, Senior Vice President and Group Leader--Quantitative Equity,
has been a member of the team since the funds' inception. He joined American
Century in 1982 and also supervises other portfolio management teams. He has
degrees from Purdue University and an MBA in finance from the University of
California. He is a Chartered Financial Analyst.

JEFFREY R. TYLER
Mr. Tyler, Senior Vice President and Portfolio Manager, has been a member of the
team since June 1997. He joined American Century as a Portfolio Manager in 1988.
He has a degree from the University of California and an MBA in finance and
economics from Northwestern University. He is a Chartered Financial Analyst.

[LEFT MARGIN]

[END LEFT MARGIN]

8 American Century Investments 1-800-345-3533

FUNDAMENTAL INVESTMENT POLICIES

YEAR 2000 ISSUES

In addition, the issuers of securities the funds own could have Year 2000
computer problems. Foriegn issuers, especially those in emerging markets, may be
more susceptible to such problems than U.S. issuers. These problems could
negatively affect the value of issuers' securities, which, in turn, could impact
the funds' performance. The advisor has established a process to gather publicly
available information about the Year 2000 readiness of these issuers. However,
this process may not uncover all relevant information, and the information
gathered may not be complete and accurate. Moreover, an issuer's Year 2000
readiness is only one of many factors the fund managers may consider when making
investment decisions, and other factors may receive greater weight.

www.americancentury.com American Century Investments 9

INVESTING WITH AMERICAN CENTURY

ELIGIBILITY FOR ADVISOR CLASS SHARES

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.

INVESTING THROUGH FINANCIAL INTERMEDIARIES

* minimum investment requirements
* exchange policies
* fund choices
* cutoff time for investments

[LEFT MARGIN]

[image of hand pointing index finger] Financial intermediaries include banks,
broker-dealers, insurance companies and investment advisors.

[END LEFT MARGIN]

10 American Century Investments 1-800-345-3533

ABUSIVE TRADING PRACTICES

We do not permit market-timing or other abusive trading practices in our funds.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

www.americancentury.com American Century Investments 11

SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century determines the NET ASSET VALUE (NAV) of the funds as of the
close of regular trading on the New York Stock Exchange (usually 4 p.m. Eastern
time) on each day the Exchange is open. On days when the Exchange is not open
(including certain U.S. holidays), we do not calculate the NAV. The NAV of a
fund share is the current value of the fund's investments, minus any
liabilities, divided by the number of fund shares outstanding.

We will price your purchase, exchange or redemption at the NAV next determined
after we receive your transaction request in good order.

DISTRIBUTIONS

Federal tax laws require each fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means that the funds will not be subjected to state
or federal income tax on amounts distributed. The distributions generally
consist of dividends and interest received, as well as CAPITAL GAINS realized on
the sale of investment securities.

[LEFT MARGIN]

The NET ASSET VALUE of a fund is the price of the fund's shares.

CAPITAL GAINS are increases in the values of capital assets, such as stock, from
the time the assets are purchased. Tax becomes due on capital gains once an
asset is sold.

[END LEFT MARGIN]

12 American Century Investments 1-800-345-3533

TAXES

Tax-Deferred Accounts

If you purchase fund shares through a tax-deferred account, such as an IRA or a
qualified employer-sponsored retirement or savings plan, income and capital
gains distributions usually will not be subject to current taxation, but will
accumulate in your account under the plan on a tax-deferred basis. Likewise,
moving from one fund to another fund within a plan or tax-deferred account
generally will not cause you to be taxed. For information about the tax
consequences of making purchases or withdrawals through an employer sponsored
retirement or savings plan, or through an IRA, please consult your plan
administrator, your summary plan description or a professional tax advisor.

Taxable Accounts

If you own fund shares through a taxable account, distributions by the fund and
sales by you of fund shares may cause you to be taxed.

Taxability of Distributions

Distributions also may be subject to state and local taxes. Because everyone's
tax situation is unique, always consult your tax professional about federal,
state and local tax consequences.

Taxes on Transactions

[LEFT MARGIN]

If you buy a dividend, you incur the full tax liability of the distribution
period, but you may not enjoy the full benefit of the gains realized in the
fund's portfolio.

[END LEFT MARGIN]

www.americancentury.com American Century Investments 13

MULTIPLE CLASS INFORMATION

American Century offers three classes of the funds: Investor Class,
Institutional Class and Advisor Class. The shares offered by this Prospectus are
Advisor Class shares and are offered primarily to institutional investors
through institutional distribution channels, such as employer-sponsored
retirement plans, or through banks, broker-dealers and insurance companies.

American Century offers another class of shares that has no up-front or deferred
charges, commissions or 12b-1 fees. The funds may offer a different class of
shares primarily to institutional investors through institutional distribution
channels, such as employer-sponsored retirement plans, or through banks,
broker-dealers and insurance companies. 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 advisor 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 for Investor Class shares

* 1-800-345-3533 for Institutional class shares

You also can contact a sales representative or financial intermediary who offers
those classes of shares.

SERVICE AND DISTRIBUTION FEES

Investment Company Act Rule 12b-1 permits mutual funds that adopt a written plan
to pay out of fund assets certain expenses associated with the distribution of
their shares. The funds' Advisor Class shares have a 12b-1 Plan. Under the Plan,
the fund pays an annual fee of 0.50% of fund assets, half for certain
shareholder and administrative services and half for distribution services. The
advisor, as paying agent for the funds, pays all or a portion of such fees to
the banks, broker-dealers and insurance companies that make such shares
available. Because these fees are paid out of the fund's assets on an on-going
basis, over time these fees will increase the cost of your investment and may
cost you more than paying other types of sales charges. 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.

14 American Century Investments 1-800-345-3533

FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

On a per-share basis, each table includes as appropriate

* share price at the beginning of the period
* investment income and capital gains or losses
* distributions of income and capital gains paid to shareholders
* share price at the end of the period

Each table also includes some key statistics for the period as appropriate

* Total Return--the overall percentage of return of the fund, assuming the
reinvestment of all distributions

* Expense Ratio--operating expenses as a percentage of average net assets

* Net Income Ratio--net investment income as a percentage of average net asset

* Portfolio Turnover--the percentage of the fund's buying and selling activity

www.americancentury.com American Century Investments 15

<TABLE>
<CAPTION>
INCOME & GROWTH FUND

Advisor Class

For a Share Outstanding Throughout the Years Ended December 31 (except as noted

PER-SHARE DATA

1998 1997(1)

<S> <C> <C>
Net Asset Value, Beginning of Period ................$ 24.30 $ 26.36

Income From Investment Operations

Net Investment Income(2) .......................... 0.31 0.01

Net Realized and Unrealized Gain on
Investment Transactions ......................... 6.22 0.25

Total From Investment Operations .................. 6.53 0.26

Distributions
From Net Investment Income ........................ (0.31) (0.03)

From Net Realized Gains on Investment Transactions (1.30) (2.29)

Total Distributions ............................... (1.61) (2.32)

Net Asset Value, End of Period ......................$ 29.22 $ 24.30

Total Return(3) ................................... 27.37% 1.28%

RATIOS/SUPPLEMENTAL DATA
1998 1997(1)

Ratio of Operating Expenses to Average Net Assets ... 0.94% 0.94%(4)
Ratio of Net Investment Income to Average Net Assets 1.06% 1.22%(4)
Portfolio Turnover Rate ............................. 86% 102%
Net Assets, End of Period (in thousands) ............$ 63,169 $ 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.

16 American Century Investments 1-800-345-3533

EQUITY GROWTH FUND

Advisor Class

For a Share Outstanding Throughout the Years Ended December 31 (except as noted

PER-SHARE DATA

1998 1997(1)

Net Asset Value, Beginning of Period .................. $ 19.04 $ 21.61

Income From Investment Operations

Net Investment Income(2) ............................ 0.16 0.05

Net Realized and Unrealized Gain (Loss)
on Investment Transactions ........................ 4.54 (0.25)

Total From Investment Operations .................... 4.70 (0.20)

Distributions

From Net Investment Income .......................... (0.16) (0.06)

From Net Realized Gains on
Investment Transactions .......................... (0.88) (2.31)

Total Distributions ................................. (1.04) (2.37)

Net Asset Value, End of Period ........................ $ 22.70 $ 19.04

Total Return(3) ..................................... 25.14% (0.50)%

RATIOS/SUPPLEMENTAL DATA
1998 1997(1)

Ratio of Operating Expenses to Average Net Assets ..... 0.94% 0.94%(4)
Ratio of Net Investment Income to Average Net Assets .. 0.82% 1.14%(4)
Portfolio Turnover Rate ............................... 89% 161%
Net Assets, End of Period (in thousands) .............. $ 72,954 $ 553
</TABLE>

(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.

www.americancentury.com American Century InvestmentS 17

PERFORMANCE INFORMATION OF OTHER CLASS

The following financial information is provided to show the performance of the
funds' original class of shares. This class, the Investor Class, has a total
expense ratio that is 0.25% lower than the Advisor Class. If the Advisor Class
had existed during the periods presented, its performance would have been lower
because of the additional expense.

This table itemizes what contributed to the changes in share price during the
period, and compares this to changes over the last five fiscal years or less, if
the share class is not five years old.

On a per-share basis, each table includes as appropriate

* share price at the beginning of the period
* investment income and capital gains or losses
* distributions of income and capital gains paid to shareholders
* share price at the end of the period

Each table also includes some key statistics for the period as appropriate

* Total Return--the overall percentage of return of the fund, assuming the
reinvestment of all distributions

* Expense Ratio--operating expenses as a percentage of average net assets

* Net Income Ratio--net investment income as a percentage of average net asset

* Portfolio Turnover--the percentage of the fund's buying and selling activity

The following Financial Highlights have been audited by PricewaterhouseCoopers
LLP, independent accountants. Their report is included in the funds' annual
report for the year ended December 31, 1998, which is incorporated by reference
into the Statement of Additional Information, and is available upon request.

18 American Century Investments 1-800-345-3533

<TABLE>
<CAPTION>
INCOME & GROWTH

Investor Class

For a Share Outstanding Throughout the Years Ended December 31

PER-SHARE DATA

1998 1997 1996 1995 1994

Net Asset Value,
<S> <C> <C> <C> <C> <C>
Beginning of Year .............. $ 24.31 $ 20.16 $ 17.81 $ 13.92 $ 15.08

Income From Investment Operations

Net Investment Income ........... 0.36(1) 0.43(1) 0.44 0.42 0.44

Net Realized and
Unrealized Gain (Loss)
on Investment Transactions .... 6.23 6.40 3.79 4.64 (0.53)

Total From Investment
Operations .................... 6.59 6.83 4.23 5.06 (0.09)

Distributions

From Net Investment Income ...... (0.35) (0.39) (0.44) (0.42) (0.43)

From Net Realized Gains on
Investment Transactions ...... (1.30) (2.29) (1.44) (0.75) (0.64)

Total Distributions ............. (1.65) (2.68) (1.88) (1.17) (1.07)

Net Asset Value, End of Year ...... $ 29.25 $ 24.31 $ 20.16 $ 17.81 $ 13.92

Total Return(2) ................. 27.67% 34.52% 24.15% 36.88% (0.55)%

RATIOS/SUPPLEMENTAL DATA

1998 1997 1996 1995 1994

Ratio of Operating Expenses
to Average Net Assets .......... 0.69% 0.65% 0.62% 0.67% 0.73%

Ratio of Net Investment
Income to Average Net Assets ... 1.31% 1.81% 2.32% 2.61% 2.96%

Portfolio Turnover Rate ........... 86% 102% 92% 70% 68%

Net Assets, End of Year
(in thousands) ................. $ 4,313,575 $ 1,795,124 $ 717,695 $ 373,701 $ 224,939

(1) Computed using average shares outstanding throughout the year.

(2) Total return assumes reinvestment of dividends and capital gains
distributions, if any.

www.americancentury.com American Century Investments 19

EQUITY GROWTH

Investor Class

For a Share Outstanding Throughout the Years Ended December 31

PER-SHARE DATA

1998 1997 1996 1995 1994

Net Asset Value,
Beginning of Year .............. $ 19.04 $ 15.96 $ 14.25 $ 11.53 $ 12.12

Income From Investment Operations

Net Investment Income ........... 0.22(1) 0.27(1) 0.27 0.26 0.30

Net Realized and Unrealized
Gain (Loss) on Investment
Transactions .................. 4.53 5.36 3.55 3.70 (0.33)

Total From Investment
Operations ................... 4.75 5.63 3.82 3.96 (0.03)

Distributions

From Net Investment Income ...... (0.20) (0.24) (0.26) (0.23) (0.30)

From Net Realized Gains
on Investment Transactions ... (0.88) (2.31) (1.85) (1.01) (0.26)

Total Distributions ............. (1.08) (2.55) (2.11) (1.24) (0.56)

Net Asset Value, End of Year ...... $ 22.71 $ 19.04 $ 15.96 $ 14.25 $ 11.53

Total Return(2) ................. 25.45% 36.06% 27.34% 34.56% (0.23)%

RATIOS/SUPPLEMENTAL DATA
1998 1997 1996 1995 1994

Ratio of Operating
Expenses to Average
Net Assets ..................... 0.69% 0.67% 0.63% 0.71% 0.75%

Ratio of Net Investment Income
to Average Net Assets .......... 1.07% 1.39% 1.74% 1.96% 2.26%

Portfolio Turnover Rate ........... 89% 161% 131% 126% 94%

Net Assets, End of Year
(in thousands) ................. $ 2,026,304 $ 773,425 $ 274,433 $ 159,450 $ 97,437

(1) Computed using average shares outstanding throughout the year.

(2) Total return assumes reinvestment of dividends and capital gains
distributions, if any.

20 American Century Investments 1-800-345-3533

SMALL CAP QUANTITATIVE

Investor Class

For a Share Outstanding Throughout the Period Indicated

PER-SHARE DATA

1998(1)

Net Asset Value, Beginning of Period ........................... $ 5.00

Income From Investment Operations

Net Realized and Unrealized Gain on Investment Transactions .. 0.02

Net Asset Value, End of Period ................................. $ 5.02

Total Return(2) .............................................. 0.40%

RATIOS/SUPPLEMENTAL DATA
1998(1)

Ratio of Operating Expenses to Average Net Assets .............. 0.94%(3)
Ratio of Net Investment Income to Average Net Assets ........... 0.20%(3)
Portfolio Turnover Rate ........................................ 30%
Net Assets, End of Period (in thousands) ....................... $ 14,971
</TABLE>

(1) July 31, 1998 (inception) through December 31, 1998.

(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.

www.americancentury.com American Century Investments 21

MORE INFORMATION ABOUT THE FUNDS IS CONTAINED IN THESE DOCUMENTS

ANNUAL AND SEMIANNUAL REPORTS

STATEMENT OF ADDITIONAL INFORMATION (SAI)

You may obtain a copy of the SAI or annual and semiannual reports at no charge
by contacting us at the telephone number or address below.

You also can get information about the funds (including the SAI) from the
Securities and Exchange Commission (SEC).

* In person SEC Public Reference Room
Washington, D.C.
Call 1-800-SEC-0330 for location
and hours.

* On the Internet www.sec.gov

* By mail SEC Public Reference Section
Washington, D.C. 20549-6009
(The SEC will charge a fee for copying
the documents.)

Investment Company Act File No. 811-5447

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

AMERICAN CENTURY INVESTMENTS
P.O. Box 419385
Kansas City, Missouri 64141-6385

1-800-345-3533 or 816-531-5575

9903
SH-PRS-15622
<PAGE>

AMERICAN CENTURY

Prospectus

Global Gold Fund
Global Natural Resources Fund
Utilities Fund

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

APRIL 1, 1999

INVESTOR CLASS

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANYONE WHO
TELLS YOU OTHERWISE IS COMMITTING A CRIME.

Distributed by Funds Distributor, Inc.

/front cover/

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

American Century
Investments

P.O. Box 419200
Kansas City, MO
64141-6200

Dear Investor,

Here's what you'll find:

* The funds' primary investments and risks

* A description of who may or may not want to invest in the funds

* Fund performance, including returns for each year, best and worst quarters,
and average annual returns compared to the funds' benchmarks

* An overview of services available and ways to manage your accounts

* Helpful tips and definitions of key investment terms

Sincerely,

/s/Mark Killen
Mark Killen
Senior Vice President
American Century Investment Services, Inc.

/inside front cover/

TABLE OF CONTENTS

An Overview of the Funds .................................................... 2
Fund Performance History .................................................... 3
Fees and Expenses ........................................................... 6
Information about the Funds ................................................. 7
Global Gold Fund ....................................................... 7
Global Natural Resources Fund .......................................... 9
Utilities Fund ......................................................... 11
Management .................................................................. 13
Investing with American Century ............................................. 16
Share Price and Distributions ............................................... 20
Taxes ....................................................................... 21
Multiple Class Information .................................................. 22
Financial Highlights ........................................................ 23

/left margin callout/

Throughout this book you'll find definitions of key investment terms and
phrases. When you see a word printed in GREEN ITALICS, look for its definition
in the left margin.

> This symbol highlights special information and helpful tips.

/end left margin callout/

American Century Investments

AN OVERVIEW OF THE FUNDS

WHAT ARE THE FUNDS' INVESTMENT GOALS?

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.

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

Utilities 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.

A more detailed description of the funds' investment strategies begins on page
7.

WHAT ARE THE FUNDS' PRINCIPAL RISKS?

The funds' principal risks include:

* Market Risk--The value of a fund's shares will go up and down based on the
performance of the companies whose securities it owns and other factors
affecting the securities market generally.

* Price Volatility--The value of a fund's shares may fluctuate significantly
in the short term.

* Principal Loss--As with all mutual funds, if you sell your shares when their
value is less than the price you paid, you will lose money.

WHO MAY WANT TO INVEST IN THE FUNDS?

The funds may be a good investment if you are

* seeking long-term capital growth from your investment

* comfortable with the funds' short-term price volatility

* comfortable with the risks associated with the funds' investment strategy

* investing through an IRA or other tax-advantaged retirement plan

* seeking current income from an investment in Utilities

WHO MAY NOT WANT TO INVEST IN THE FUNDS?

The funds may not be a good investment if you are

* seeking current income from an investment in Global Gold or Global Natural
Resources

* investing for a short period of time

* uncomfortable with short-term volatility in the value of your investment

/left margin callout/

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

/end left margin callout/

2 American Century Investments 1-800-345-2021

FUND PERFORMANCE HISTORY

GLOBAL GOLD FUND

[bar chart]
Annual Total Returns

The following bar chart shows the performance of the fund's Investor Class
shares for each of the last 10 calendar years. It indicates the volatility of
the fund's historical returns from year to year.

<TABLE>
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Global Gold -12.18% -41.47% -2.76% 9.25% -16.75% 81.22% -8.65% -11.23% -19.43% 29.93%
</TABLE>

The highest and lowest quarterly returns for the period reflected in the bar
chart are:

Highest Lowest
- --------------------------------------------------------------------------------
Global Gold 34.28% (2Q 1993) -31.35% (4Q 1997)

Average Annual Returns

The following table shows the average annual returns of the fund's Investor
Class shares for the periods indicated during the life of the fund. The
benchmarks are unmanaged indices that have no operating costs and are included
for performance comparison.

<TABLE>
1 year 5 years 10 years Life of Fund(1)
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>

Global Gold -12.18% -14.58% 3.51% -4.36%

MSCI World Stock Index 24.34% 17.77% 10.66% 11.89%(2)

Fund Benchmark -7.25% -14.43% -2.84% -3.54%(2)
</TABLE>

(1) The inception date for the fund is August 17, 1988.

(2) Benchmark from August 31, 1988.

/left margin callout/

> The performance information on this page is designed to help you see how fund
returns can vary. Keep in mind that past performance does not predict how the
fund will perform in the future.

> For current performance information, please call us at 1-800-345-2021 or visit
American Century's Web site at www.americancentury.com.

/end left margin callout/

www.americancentury.com American Century Investments 3

GLOBAL NATURAL RESOURCES FUND

Annual Total Returns

[bar chart]
The following bar chart shows the performance of the fund's Investor Class
shares for each full calendar year in the life of the fund. It indicates the
volatility of the fund's historical returns from year to year.

1998 1997 1996 1995
Global Natural Resources -6.30% 2.50% 15.45% 14.41%

The highest and lowest quarterly returns for the period reflected in the bar
chart are:

Highest Lowest
- --------------------------------------------------------------------------------
Global Natural Resources 8.13% (2Q 1997) -11.73% (4Q 1997)

Average Annual Returns

1 year Life of Fund(1)
- --------------------------------------------------------------------------------
Global Natural Resources -6.30% 4.83%

Dow Jones World Stock Index 21.27% 13.94%(2)

Fund Benchmark -2.85% 6.70%(2)

(1) The inception date for the fund is September 15, 1994.

(2) Benchmark from September 30, 1994.

/left margin callout/

> The performance information on this page is designed to help you see how fund
returns can vary. Keep in mind that past performance does not predict how the
fund will perform in the future.

> For current performance information, please call us at 1-800-345-2021 or visit
American Century's Web site at www.americancentury.com.

/end left margin callout/

4 American Century Investments 1-800-345-2021

UTILITIES FUND

Annual Total Returns

1998 1997 1996 1995 1994
Utilities 27.43% 35.82% 4.82% 35.70% -10.03%

The highest and lowest quarterly returns for the period reflected in the bar
chart are:

Highest Lowest
- --------------------------------------------------------------------------------
Utilities 18.04% (4Q 1997) -8.70% (1Q 1994)

Average Annual Returns

The following table shows the average annual returns of the fund's Investor
Class shares for the periods indicated for the life of the fund. The benchmarks
are unmanaged indices that have no operating costs and are included in the table
for performance comparison.

1 year 5 years Life of Fund(1)
- --------------------------------------------------------------------------

Utilities 27.43% 17.24% 15.86%

S&P 500 Index 28.68% 24.05% 21.96%

Fund Benchmark 33.29% 18.77% 17.06%

(1)The inception date for the fund is March 1, 1993.

/left margin callout/

> The performance information on this page is designed to help you see how fund
returns can vary. Keep in mind that past performance does not predict how the
fund will perform in the future.

> For current performance information, please call us at 1-800-345-2021 or visit
American Century's Web site at www.americancentury.com.

/end left margin callout/

www.americancentury.com American Century Investments 5

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

As of June 30, 1999, Global Gold will begin charging a redemption fee of 2.0% of
the value of the shares sold within 180 days of their purchase. This redemption
fee will be retained by the fund. It is intended to discourage short-term
investments in the fund as well as to decrease the negative impact that
short-term investors have on the shareholders remaining in the fund. Otherwise,
there are no fees or charges to exchange fund shares into the Investor Class
shares of other American Century funds or to redeem your shares.

The following table describes the fees and expenses you will pay if you buy and
hold shares of the funds.

SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT BEGINNING JUNE 30, 1999)
- --------------------------------------------------------------------------------
Global Gold Redemption Fee
(as a percentage of amount redeemed)
- --------------------------------------------------------------------------------
Shares held less than 180 days 2.0%
- --------------------------------------------------------------------------------
Shares held 180 days or more None

<TABLE>
<CAPTION>
ANNUAL OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)

Management Distribution and Other Total Annual Fund
Fee(1) Service (12b-1) Fees Expenses(2) Operating Expenses
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>

Global Gold 0.69% None 0.00% 0.69%
- --------------------------------------------------------------------------------------------------------

Global Natural Resources 0.69% None 0.00% 0.69%
- --------------------------------------------------------------------------------------------------------

Utilities 0.69% None 0.00% 0.69%
</TABLE>

(1) Based on expenses incurred during the funds' most recent fiscal year. The
funds have stepped fee schedules. As a result, the funds' management fee
rate generally decreases as fund assets increase. Please consult the
Statement of Additional Information for more details about the funds'
management fees.

(2) Other expenses, which include the fees and expenses of the funds'
independent directors, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.

EXAMPLE

The examples in the table below are intended to help you compare the costs of
investing in a fund with the costs of investing in other mutual funds. Assuming
you . . .

* invest $10,000 in the fund

* redeem all of your shares at the end of the periods shown below

* earn a 5% return each year

* incur the same operating expenses as shown above

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

1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------
Global Gold $70 $220 $383 $856
- ----------------------------------------------------------------------------
Global Natural Resources $70 $220 $383 $856
- ----------------------------------------------------------------------------
Utilities $70 $220 $383 $856

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> Use this example to compare the costs of investing in other funds. Of course,
your actual costs may be higher or lower.

/end left margin callout/

6 American Century Investments 1-800-345-2021

INFORMATION ABOUT THE FUNDS

GLOBAL GOLD FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

The fund's investment strategy utilizes quantitative management techniques as
well as fundamental stock selection in a two-part process. The first part
involves selecting stocks based on several valuation criteria, without comparing
the fund's holdings to the holdings of an index or benchmark.

In the second part of the process, the managers use a technique called portfolio
optimization. In portfolio optimization, the managers use a computer model to
build a portfolio of stocks that they believe will provide the optimal balance
between risk relative to the fund's benchmark, which is described below, and
expected return of the fund, as measured in the stock ranking completed in the
first step.

The managers use a proprietary benchmark that the fund advisor developed and
monitors that represents the worldwide gold equities market. This proprietary
benchmark contains securities of companies engaged in mining, processing,
exploring for or otherwise dealing with gold or other precious metals (Gold
Companies). To be included in the benchmark, Gold Companies must be a certain
size and receive a minimum percentage of their revenues from gold-related
activities or have a minimum percentage of their assets invested in gold-related
assets.

Global Gold will concentrate its investments in securities of Gold Companies.
Under normal circumstances, at least 65% of the value of the fund will be
invested in such companies. When the managers believe it is prudent, the fund
may invest in securities other than stocks, such as convertible securities,
sponsored or unsponsored American Depositary Receipts, gold, gold certificates,
gold futures, short-term investments and NON-LEVERAGED stock index futures
contracts. Stock index futures contracts, a type of derivative security, can
help the fund's cash assets remain liquid while performing more like stocks. The
fund has a policy governing stock index futures and similar derivative
securities to help manage the risk of these types of investments. A complete
description of the derivatives policy is included in the Statement of Additional
Information. Global Gold also may purchase debt securities, such as notes,
bonds, debentures or commercial paper.

Additional information about Global Gold's investments is available in its
annual and semiannual reports. In these reports you will find a discussion of
the market conditions and investment strategies that significantly affected the
fund's performance during the most recent fiscal period. You may get these
reports at no cost by calling us.

/left margin callout/

> Normally, the managers will invest in securities of companies in at least
three different countries.

NON-LEVERAGED means that the fund may not invest in futures contracts where it
would be possible to lose more than the fund invested in those contracts.

/end left margin callout/

www.americancentury.com American Century Investments 7

WHAT ARE THE PRIMARY RISKS OF INVESTING IN THE FUND?

The value of Global Gold's shares depends on the value of the stocks and other
securities it owns. The value of the individual securities Global Gold owns will
go up and down depending on the performance of the companies that issued them,
general market and economic conditions, and investor confidence.

Because Global Gold concentrates its investments in Gold Companies, it may be
subject to greater risks and market fluctuations than a portfolio representing a
broader range of industries. Gold stocks generally are considered speculative
because of their high share price volatility, and the fund's share price may be
affected by this volatility.

Many investors believe that gold investments hedge against inflation, currency
devaluations, and general stock market declines, but there is no guarantee that
these historical inverse relationships will continue.

Global Gold invests primarily in foreign securities, which generally involves
greater risks than investing in U.S. securities. These risks are summarized
below:

* Currency Risk. In addition to changes in the value of the fund's
investments, changes in the value of foreign currencies against the U.S.
dollar also could result in gains or losses to the fund. The value of a
share of Global Gold is determined in U.S. dollars. The fund's investments,
however, generally are held in the foreign currency of the country where
investments are made. As a result, the fund could recognize a gain or loss
based solely upon a change in the exchange rate between the foreign currency
and the U.S. dollar.

* Political and Economic Risk. Many countries where the fund invests are not
as politically or economically developed as the United States. As a result,
the economies and political and social structures of these countries could
be unstable and exert forces that could cause the value of the fund's
investments to decrease. The fund also could be unable to enforce its
ownership rights or pursue legal remedies in countries where it invests.

* Market and Trading Risk. The trading markets for many foreign securities are
not as active as U.S. markets and may have less governmental regulation and
oversight. Foreign markets also may have clearance and settlement procedures
that make it difficult for the fund to buy and sell securities. These
factors could result in a loss to the fund by causing the fund to be unable
to dispose of an investment, by causing the fund to miss an attractive
investment opportunity, or by causing fund assets to be uninvested for some
period of time.

* Availability of Information. Foreign companies generally are not subject to
the regulatory controls or uniform accounting, auditing and financial
reporting standards imposed on U.S. issuers. As a result, there may be less
publicly available information about foreign issuers than is available
regarding U.S. issuers.

8 American Century Investments 1-800-345-2021

GLOBAL NATURAL RESOURCES FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

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

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

Global Natural Resources will concentrate its investments in securities of
companies engaged in the natural resources industries. The fund's investment
strategy utilizes some quantitative management techniques as well as fundamental
stock selection. The fund managers build the fund's portfolio using a top-down
approach. They first consider factors in the global economy that affect the
supply and demand in commodity markets. The managers then review those factors
and how they affect particular industries, and determine whether to over- or
under-weight certain industries compared to the benchmark. The managers next
consider the cost structure of individual companies and analyze the economies of
the regions where the companies are located or operate. The managers then create
a selection list of stocks for the portfolio.

The selection list is then compared to the fund's benchmark using portfolio
optimization. In portfolio optimization, the managers use a computer model to
build a portfolio of stocks from the selection list that they believe will
provide the optimal balance between risk and expected return. The goal is to
create a fund that provides better returns than the benchmark without taking on
significant additional risk. The fund's benchmark is a subset of companies in
the energy and basic materials sector of the Dow Jones World Stock Index
(DJWSI)*.

The managers do not attempt to time the market. Instead, they intend to keep
Global Natural Resources essentially fully invested in stocks regardless of the
movement of stock prices generally. The managers also may invest up to 35% of
the fund's assets in when-issued and forward commitment agreements, if necessary
to purchase securities. When the managers believe that it is prudent, the fund
may invest a portion of its assets in convertible securities, foreign
securities, short-term investments, NON-LEVERAGED stock index futures contracts
and other similar securities. Stock index futures contracts, a type of
derivative security, can help the fund's cash assets remain liquid while
performing more like stocks. The fund has a policy governing stock index futures
and similar derivative securities to help manage the risk of these types of
investments. A complete description of the derivatives policy is included in the
Statement of Additional Information.

Additional information about Global Natural Resources' investments is available
in its annual and semiannual reports. In these reports you will find a
discussion of the market conditions and investment strategies that significantly
affected the fund's performance during the most recent fiscal period. You may
get these reports at no cost by calling us.

*The DJWSI is the property of Dow Jones & Co., Inc.

/left margin callout/

NON-LEVERAGED means that the fund may not invest in futures contracts where it
would be possible to lose more than the fund invested in those contracts.

/end left margin callout/

www.americancentury.com American Century Investments 9

WHAT ARE THE PRIMARY RISKS OF INVESTING IN THE FUND?

Because Global Natural Resources concentrates its investments in natural
resources companies, it may be subject to greater risks and market fluctuations
than a portfolio representing a broader range of industries. Historically, the
securities of some natural resources companies may be subject to broad price
fluctuations during periods of economic or financial instability. These
fluctuations may cause volatility in the fund's share price.

Many investors believe that investments in natural resources companies hedge
against commodity-price-driven inflation, but there is no guarantee that this
historical relationship will continue.

Depending on the composition of the benchmark, Global Natural Resources may
invest in foreign securities, which generally involves greater risks than
investing in U.S. securities. These risks are summarized below:

* Currency Risk. In addition to changes in the value of the fund's
investments, changes in the value of foreign currencies against the U.S.
dollar also could result in gains or losses to the fund. The value of a
share of Global Natural Resources is determined in U.S. dollars. The fund's
investments, however, generally are held in the foreign currency of the
country where investments are made. As a result, the fund could recognize a
gain or loss based solely upon a change in the exchange rate between the
foreign currency and the U.S. dollar.

10 American Century Investments 1-800-345-2021

UTILITIES FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

Utilities 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.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVES?

Utilities invests primarily in equity securities of companies engaged in the
utilities industry. The fund's investment strategy utilizes quantitative
management techniques in a two-part process. The first part involves ranking
stocks on the basis of their growth and valuation characteristics. Examples of
growth characteristics are earnings growth rates and changes in analyst earnings
estimates. Examples of valuation characteristics are price to earnings and price
to book ratios.

Under normal market conditions, Utilities invests at least 75% of its total
assets in stocks of companies engaged in the utilities industry. Within this 75%
category, the managers will not buy shares of a company unless 50% or more of
the company's revenues or net profits come from the ownership or operation of
facilities used to provide electricity, natural gas, telecommunications
services, cable television, water or sanitary services. Utilities may invest up
to 25% of its total assets in fixed-income securities.

When the managers believe that it is prudent, the fund may invest a portion of
its assets in convertible securities, foreign securities, short-term
investments, NON-LEVERAGED stock index futures contracts and other similar
securities. Stock index futures contracts, a type of derivative security, can
help the fund's cash assets remain liquid while performing more like stocks. The
fund has a policy governing stock index futures and similar derivative
securities to help manage the risk of these types of investments. A complete
description of the derivatives policy is included in the Statement of Additional
Information.

The fund's benchmark is a market capitalization weighted index of companies
engaged in the utilities industry as defined above and whose shares are traded
in the United States. It is an internally developed index maintained by the fund
advisor. The index is changed periodically to reflect corporate actions such as
mergers and acquisitions. It also may be changed to reflect underlying trends in
the utilities industry over time. Changes in the index may induce changes to the
fund's holdings.

Additional information about Utilities' investments is available in its annual
and semiannual reports. In these reports you will find a discussion of the
market conditions and investment strategies that significantly affected the
fund's performance during the most recent fiscal period. You may get these
reports at no cost by calling us.

/left margin callout/

NON-LEVERAGED means that the fund may not invest in futures contracts where it
would be possible to lose more than the fund invested in those contracts.

> As of the end of December 1998, the fund's benchmark was comprised of 163
companies with an aggregate market capitalization of almost $1.02 trillion. The
average market capitalization of the companies in the benchmark was $6.26
billion.

/end left margin callout/

www.americancentury.com American Century Investments

WHAT ARE THE PRIMARY RISKS OF INVESTING IN THE FUND?

Because Utilities concentrates its investments in utilities companies, it may be
subject to greater risks and market fluctuations than a portfolio representing a
broader range of industries. As an example of these risks, companies in the
telecommunications and electric utilities industries have experienced
substantial changes in the amount and type of regulation at the state and
federal levels. While creating opportunities for some companies, it also has
increased uncertainty for others with respect to future revenues and earnings.
This trend may continue for some time and increased share price volatility may
result.

Although the fund managers invest the fund's assets primarily in U.S. stocks,
Utilities can invest in securities of foreign companies. Foreign securities can
have certain unique risks, including fluctuations in currency exchange rates,
unstable political and economic structures, reduced availability of public
information, and lack of uniform financial reporting and regulatory practices
similar to those that apply to U.S. issuers.

12 American Century Investments 1-800-345-2021

MANAGEMENT

WHO MANAGES THE FUNDS?

The Board of Directors, investment advisor and fund management team play key
roles in the management of the funds.

THE BOARD OF DIRECTORS

THE INVESTMENT ADVISOR

The Statement of Additional Information contains detailed information about the
calculation of the management fee. Out of that fee, the advisor paid all
expenses of managing and operating the funds except brokerage expenses, taxes,
interest, fees and expenses of the independent directors (including legal
counsel fees) and extraordinary expenses. A portion of the management fee may be
paid by the funds' advisor to unaffiliated third parties who provide
recordkeeping and administrative services that would otherwise be performed by
an affiliate of the advisor.

Management Fees Paid by the Funds to the Advisor as a Percentage of Average Net
Assets for the Most Recent Fiscal Year Ended December 31, 1998
- --------------------------------------------------------------------------------
Global Gold 0.69%
- --------------------------------------------------------------------------------
Global Natural Resources 0.69%
- --------------------------------------------------------------------------------
Utilities 0.69%

www.americancentury.com American Century Investments 13

THE FUND MANAGEMENT TEAM

The portfolio managers on the investment team are identified below:

JOHN SCHNIEDWIND

Mr. Schniedwind, Senior Vice President and Group Leader--Quantitative Equity,
joined American Century in 1982, and supervises the portfolio management team
that manages Global Gold, Global Natural Resources and Utilities. He has degrees
from Purdue University and an MBA in finance from the University of California.
He is a Chartered Financial Analyst.

WILLIAM MARTIN

Mr. Martin, Vice President and Senior Portfolio Manager, has served on the
management team for Global Gold and Global Natural Resources since their
inception and joined the team managing the Utilities fund in December 1998. He
joined American Century in 1989. He has a degree from the University of Illinois
and is a Chartered Financial Analyst.

JOSEPH B. STERLING

Mr. Sterling, Portfolio Manager, joined the team managing Global Natural
Resources in November 1996 and the team managing the Utilities fund in May 1997.
Prior positions held by Mr. Sterling since joining American Century in 1989
include those of Associate Portfolio Manager and Research Analyst. He has a
degree from the University of California-Berkeley.

/left margin callout/

> CODE OF ETHICS

American Century has a Code of Ethics designed to ensure that the interests of
fund shareholders come before the interests of the people who manage the funds.
Among other provisions, the Code of Ethics prohibits portfolio managers and
other investment personnel from buying securities in an initial public offering
or from profiting from the purchase and sale of the same security within 60
calendar days. In addition, the Code of Ethics requires portfolio managers and
other employees with access to information about the purchase or sale of
securities by the funds to obtain approval before executing permitted personal
trades.

/end left margin callout/

14 American Century Investments 1-800-345-2021

FUNDAMENTAL INVESTMENT POLICIES

YEAR 2000 ISSUES

www.americancentury.com American Century Investments 15

INVESTING WITH AMERICAN CENTURY

SERVICES AUTOMATICALLY AVAILABLE TO YOU

You automatically will have access to the services listed below when you open
your account. If you do not want these services, see "Conducting Business in
Writing" below.

CONDUCTING BUSINESS IN WRITING

WAYS TO MANAGE YOUR ACCOUNT
- --------------------------------------------------------------------------------
BY TELEPHONE
Investor Relations 1-800-345-2021

Business, Not-For-Profit and Employer-Sponsored Retirement Plans
1-800-345-3533

Automated Information Line 1-800-345-8765

OPEN AN ACCOUNT

If you are a current investor, you can open an account by exchanging shares from
another American Century account.

EXCHANGE SHARES

Call us or use our Automated Information Line if you have authorized us to
accept telephone instructions.

MAKE ADDITIONAL INVESTMENTS

Call us or use our Automated Information Line if you have authorized us to
invest from your bank account.

SELL SHARES

Call an Investor Relations Representative.

- --------------------------------------------------------------------------------
BY MAIL OR FAX
P.O. Box 419200 Kansas City, MO 64141-6200

Fax
816-340-7962

OPEN AN ACCOUNT

Send a signed and completed application and check or money order payable to
American Century Investments.

EXCHANGE SHARES

Send us written instructions to exchange your shares from one American Century
account to another.

MAKE ADDITIONAL INVESTMENTS

Send us your check or money order for at least $50 with an investment slip or
$250 without an investment slip. If you don't have an investment slip, include
your name, address and account number on your check or money order.

SELL SHARES

Send us written instructions or a redemption form to sell shares. Call an
Investor Relations Representative to request a form.

- --------------------------------------------------------------------------------
ONLINE

www.americancentury.com

OPEN AN ACCOUNT

If you are a current investor, you can open an account by exchanging shares from
another American Century account.

EXCHANGE SHARES

Exchange shares from another American Century account.

MAKE ADDITIONAL INVESTMENTS

Make an additional investment into an established American Century account if
you have authorized us to invest from your bank account.

SELL SHARES

Not available.

16 American Century Investments 1-800-345-2021

A NOTE ABOUT MAILINGS TO SHAREHOLDERS

To reduce expenses and demonstrate respect for our environment, we will deliver
most financial reports, prospectuses and account statements to households in a
single envelope, even if the accounts are registered under different names. If
you would like additional copies of financial reports and prospectuses or
separate mailing of account statements, please call us.

YOUR GUIDE TO SERVICES AND POLICIES

When you open an account, you will receive a services guide, which explains the
services available to you and the policies of the fund and the transfer agent.

- --------------------------------------------------------------------------------
BY WIRE

> Please remember that if you request redemptions by wire, $10 will be deducted
from the amount redeemed. Your bank also may charge a fee.

OPEN AN ACCOUNT

Call us to set up your account or mail a completed application to the address
provided in the "By mail" section and give your bank the following information:

* Our bank information
Commerce Bank N.A.
Routing No. 101000019
Account No. 2804918

* The fund name

* Your American Century account number*

* Your name

* The contribution year (for IRAs only)

* For additional investments only

MAKE ADDITIONAL INVESTMENTS

Follow the wire instructions provided in the "Open an account" section.

SELL SHARES

You can receive redemption proceeds by wire or electronic transfer. (This
service is not available if you have chosen to do business in writing only.)

EXCHANGE SHARES

Not available.

- --------------------------------------------------------------------------------
AUTOMATICALLY

OPEN AN ACCOUNT

Not available.

EXCHANGE SHARES

Send us written instructions to set up an automatic exchange of shares from one
American Century account to another.

MAKE ADDITIONAL INVESTMENTS

With the automatic investment privilege, you can purchase shares on a regular
basis. You must invest at least $600 per year per account.

SELL SHARES

If you have at least $10,000 in your account, sell shares automatically by
establishing Check-A-Month or Automatic Redemption plans.

- --------------------------------------------------------------------------------
IN PERSON

If you prefer to handle your transactions in person, visit one of our Investor
Centers and a representative can help you open an account, make additional
investments, or sell or exchange shares. Here are the Investor Centers you can
visit

4500 Main St. 4917 Town Center Drive
Kansas City, Missouri Leawood, Kansas
8 a.m. to 5:30 p.m., Monday - Friday 8 a.m. to 6 p.m., Monday - Friday
8 a.m. to noon, Saturday

1665 Charleston Road 9445 East County Line Road
Mountain View, California Suite A
8 a.m. to 5 p.m., Monday - Friday Englewood, Colorado
8 a.m. to 6 p.m., Monday - Friday
8 a.m. to noon, Saturday

www.americancentury.com American Century Investments 17

MINIMUM INITIAL INVESTMENT AMOUNTS

*The minimum investment requirements may be different for some types of
retirement accounts.

If you establish an automatic investment plan of at least $50 per month, the
minimum may be waived.

REDEMPTION OF SHARES IN LOW-BALANCE ACCOUNTS

If redemption activity causes your account to fall below the minimum initial
investment amount we will notify you and give you 90 days to meet the minimum,
or to establish an automatic monthly investment of at least $50 per month. If
you do not meet the deadline, American Century will redeem the shares in the
account and send the proceeds to your address of record.

ABUSIVE TRADING PRACTICES

We do not permit market-timing or other abusive trading practices in our funds.

Excessive, short-term (market-timing) or other abusive trading practices may
disrupt portfolio management strategies and harm fund performance. To minimize
harm to the funds and their shareholders, we reserve the right to reject any
purchase order (including exchanges) from any investor we believe has a history
of abusive trading or whose trading, in our judgment, has been or may be
disruptive to a fund. In making this judgment, we may consider trading done in
multiple accounts under common ownership or control. We also reserve the right
to delay delivery of your redemption proceeds--up to seven days--or to honor
certain redemptions with securities, rather than cash, as described in the next
section.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

18 American Century Investments 1-800-345-2021

INVESTING THROUGH FINANCIAL INTERMEDIARIES

If you do business with us through a FINANCIAL INTERMEDIARY or a retirement
plan, your ability to purchase, exchange and redeem shares will depend on the
policies of that entity. Some policy differences may include

* minimum investment requirements

* exchange policies

* fund choices

* cutoff time for investments

Certain financial intermediaries perform recordkeeping and administrative
services for their clients that would otherwise be performed by American
Century's transfer agent. In some circumstances, American Century will pay the
service provider a fee for performing those services.

/left margin callout/

FINANCIAL INTERMEDIARIES include banks, broker-dealers, insurance companies and
investment advisors.

/end left margin callout/

www.americancentury.com American Century Investments 19

SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century determines the NET ASSET VALUE (NAV) of the funds as of the
close of regular trading on the New York Stock Exchange (usually 4 p.m. Eastern
time) each day the Exchange is open. On days when the Exchange is not open, we
do not calculate the NAV. The NAV of a fund share is the current value of the
fund's assets, minus any liabilities, divided by the number of fund shares
outstanding.

If current market prices of securities owned by a fund are not readily
available, the advisor may determine their fair value in accordance with
procedures adopted by the fund's Board of Directors. Trading of securities in
foreign markets may not take place on every day the Exchange is open. Also,
trading in some foreign markets may take place on weekends or holidays when a
fund's NAV is not calculated. So, the value of a fund's portfolio may be
affected on days when you can't purchase or redeem shares of the fund.

We will price your purchase, exchange or redemption at the NAV next determined
after we receive your transaction request in good order.

DISTRIBUTIONS

Federal tax laws require each fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means the funds will not be subject to state or
federal income tax on amounts distributed. The distributions generally consist
of dividends and interest received, as well as CAPITAL GAINS realized on the
sale of investment securities.

Global Gold and Global Natural Resources pay distributions of substantially all
of their income, if any, on a semiannual basis in June and December. Utilities
pays distributions of substantially all of its income quarterly. Distributions
from realized capital gains are paid twice a year, usually in March and
December. They may make more frequent distributions if necessary, to comply with
Internal Revenue Code provisions. 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.

/left margin callout/

The NET ASSET VALUE of a fund is the price of the fund's shares.

CAPITAL GAINS are increases in the values of capital assets, such as stock, from
the time the assets are purchased. Tax becomes due on capital gains once an
asset is sold.

/end left margin callout/

20 American Century Investments 1-800-345-2021

TAXES

The tax consequences of owning shares of the funds will vary depending on
whether you own them through a taxable or tax-deferred account. Tax consequences
result from distributions by the funds of dividend and interest income they have
received or capital gains they have generated through their investment
activities. Tax consequences also may result from sales of fund shares by
investors after the net asset value has increased or decreased.

Tax-Deferred Accounts

Taxable Accounts

If you own fund shares through a taxable account, distributions by the fund and
sales by you of fund shares may cause you to be taxed.

Taxability of Distributions

Type of Distribution Tax Rate for 15% Bracket Tax Rate for 28% Bracket
or above
- --------------------------------------------------------------------------------
Short-term capital gains Ordinary income rate Ordinary income rate
- --------------------------------------------------------------------------------
Long-term capital gains 10% 20%

Distributions also may be subject to state and local taxes. Because everyone's
tax situation is unique, always consult your tax professional about federal,
state and local tax consequences.

Taxes on transactions

/left margin callout/

> BUYING A DIVIDEND

Purchasing fund shares in a taxable account shortly before a distribution is
sometimes known as buying a dividend. In taxable accounts, you must pay income
taxes on the distribution whether you reinvest the distribution or take it in
cash. In addition, you will have to pay taxes on the distribution whether the
value of your investment decreased, increased or remained the same after you
bought the fund shares.

If you buy a dividend, you incur the full tax liability of the distribution
period, but you may not enjoy the full benefit of the gains realized in the
fund's portfolio.

/end left margin callout/

www.americancentury.com American Century Investments 21

MULTIPLE CLASS INFORMATION

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

American Century offers the other class of shares primarily to institutional
investors through institutional distribution channels, such as
employer-sponsored retirement plans, or through banks, broker-dealers and
insurance companies. The other class has different fees, expenses and/or minimum
investment requirements than the Investor Class. The difference in the fee
structures between 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 advisor 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 class of shares not offered by this Prospectus, call us at
1-800-345-3533 for Advisor Class shares. You also can contact a sales
representative or financial intermediary who offers that class 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 between the 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.

22 American Century Investments 1-800-345-2021

FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

On a per-share basis, each table includes as appropriate

* share price at the beginning of the period

* investment income and capital gains or losses

* distributions of income and capital gains paid to shareholders

* share price at the end of the period

Each table also includes some key statistics for the period as appropriate

* Total Return--the overall percentage of return of the fund, assuming the
reinvestment of all distributions

* Expense Ratio--operating expenses as a percentage of average net assets

* Net Income Ratio--net investment income as a percentage of average net asset

* Portfolio Turnover--the percentage of the fund's buying and selling activity

The Financial Highlights have been audited by PricewaterhouseCoopers LLP,
independent accountants. Their reports are included in the funds' annual reports
for the year ended December 31, 1998, which are incorporated by reference into
the Statement of Additional Information, and are available upon request.

www.americancentury.com American Century Investments 23

<TABLE>
<CAPTION>
GLOBAL GOLD FUND

Investor Class

For a Share Outstanding Throughout the Years Ended December 31

PER-SHARE DATA
1998 1997 1996 1995 1994

<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year .................... $ 6.34 $ 11.33 $ 12.37 $ 11.33 $ 13.67

Income From Investment Operations

Net Investment Income .............................. 0.05(1) 0.09 0.06 0.02 0.03

Net Realized and Unrealized Gain (Loss)
on Investment Transactions ......................... (0.82) (4.79) (0.40) 1.03 (2.32)

Total From Investment Operations ................... (0.77) (4.70) (0.34) 1.05 (2.29)

Distributions

From Net Investment Income ......................... (0.05) (0.09) (0.06) (0.01) (0.02)

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

In Excess of Net Realized Gains .................... -- -- -- -- (0.03)

Total Distributions ................................ (0.05) (0.29) (0.70) (0.01) (0.05)

Net Asset Value, End of Year .......................... $ 5.52 $ 6.34 $ 11.33 $ 12.37 $ 11.33

Total Return(2) .................................... (12.18)% (41.47)% (2.76)% 9.25% (16.75)%

RATIOS/SUPPLEMENTAL DATA
1998 1997 1996 1995 1994

Ratio of Operating Expenses to Average Net Assets ..... 0.69% 0.67% 0.62% 0.61% 0.61%

Ratio of Net Investment Income to Average Net Assets .. 0.75% 0.92% 0.46% 0.17% 0.20%

Portfolio Turnover Rate ............................... 68% 28% 45% 28% 42%

Net Assets, End of Year (in thousands) ................ $ 228,771 $ 246,015 $ 432,587 $ 537,693 $ 568,030

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

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

24 American Century Investments 1-800-345-2021

GLOBAL NATURAL RESOURCES FUND

Investor Class

For a Share Outstanding Throughout the Years Ended December 31 (except as noted)

PER-SHARE DATA

1998 1997 1996 1995 1994(1)

Net Asset Value, Beginning of Period .................. $ 11.48 $ 11.91 $ 10.66 $ 9.61 $ 10.00

Income From Investment Operations

Net Investment Income .............................. 0.19 0.22 0.17 0.16 0.07

Net Realized and Unrealized Gain (Loss)
on Investment Transactions ......................... (0.90) 0.08 1.46 1.22 (0.42)

Total From Investment Operations ................... (0.71) 0.30 1.63 1.38 (0.35)

Distributions

From Net Investment Income ......................... (0.18) (0.23) (0.17) (0.16) (0.04)

From Net Realized Gains on
Investment Transactions ............................ -- (0.50) (0.21) (0.17) --

Total Distributions ................................ (0.18) (0.73) (0.38) (0.33) (0.04)

Net Asset Value, End of Period ........................ $ 10.59 $ 11.48 $ 11.91 $ 10.66 $ 9.61

Total Return(2) .................................... (6.30)% 2.50% 15.45% 14.41% (3.48)%

RATIOS/SUPPLEMENTAL DATA
1998 1997 1996 1995 1994(1)

Ratio of Operating Expenses to Average Net Assets ..... 0.69% 0.73%(3) 0.76% 0.76% --

Ratio of Net Investment Income to Average Net Assets .. 1.70% 1.55%(3) 1.78% 2.02% 2.74%(4)

Portfolio Turnover Rate ............................... 76% 41% 53% 39% --

Net Assets, End of Period (in thousands) .............. $ 39,759 $ 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.

www.americancentury.com American Century Investments 25

UTILITIES FUND

Investor Class

For a Share Outstanding Throughout the Years Ended December 31

PER-SHARE DATA
1998 1997 1996 1995 1994

Net Asset Value, Beginning of Year .................... $ 14.24 $ 11.51 $ 11.44 $ 8.79 $ 10.24

Income From Investment Operations

Net Investment Income ............................... 0.37 0.43 0.45 0.42 0.44

Net Realized and Unrealized Gain (Loss)
on Investment Transactions .......................... 3.39 3.57 0.08 2.65 (1.45)

Total From Investment Operations .................... 3.76 4.00 0.53 3.07 (1.01)

Distributions

From Net Investment Income .......................... (0.38) (0.42) (0.46) (0.42) (0.44)

From Net Realized Gains on Investment Transactions .. (1.66) (0.85) -- -- --

Total Distributions ................................. (2.04) (1.27) (0.46) (0.42) (0.44)

Net Asset Value, End of Year .......................... $ 15.96 $ 14.24 $ 11.51 $ 11.44 $ 8.79

Total Return(1) ..................................... 27.43% 35.82% 4.82% 35.70% (10.03)%

RATIOS/SUPPLEMENTAL DATA
1998 1997 1996 1995 1994

Ratio of Operating Expenses to Average Net Assets ..... 0.69% 0.72% 0.71% 0.75% 0.75%

Ratio of Net Investment Income to Average Net Assets .. 2.51% 3.56% 3.88% 4.31% 4.67%

Portfolio Turnover Rate ............................... 98% 92% 93% 68% 61%

Net Assets, End of Year (in thousands) ................ $ 307,777 $ 209,962 $ 145,134 $ 218,794 $ 152,570
</TABLE>

(1) Total return assumes reinvestment of dividends and capital gains
distributions, if any.

26 American Century Investments 1-800-345-2021

NOTES

www.americancentury.com American Century Investments 27

NOTES

28 American Century Investments 1-800-345-2021

NOTES

www.americancentury.com American Century Investments 29

MORE INFORMATION ABOUT THE FUNDS IS CONTAINED IN THESE DOCUMENTS

ANNUAL AND SEMIANNUAL REPORTS

STATEMENT OF ADDITIONAL INFORMATION (SAI)

You may obtain a copy of the SAI or annual and semiannual reports at no charge
by contacting us at the telephone number or address below.

You also can get information about the funds (including the SAI) from the
Securities and Exchange Commission (SEC).

* In person SEC Public Reference Room
Washington, D.C.
Call 1-800-SEC-0330 for location and hours.

* On the Internet www.sec.gov

* By mail SEC Public Reference Section
Washington, D.C. 20549-6009
(The SEC will charge a fee for copying the documents.)

Investment Company Act File No. 811-5447

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

AMERICAN CENTURY INVESTMENTS
P.O. Box 419200
Kansas City, Missouri 64141-6200

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

SH-PRS-15544 9903
<PAGE>
AMERICAN CENTURY

Prospectus

Global Gold Fund

Global Natural Resources Fund

Utilities Fund

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

APRIL 1, 1999

ADVISOR CLASS

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANYONE WHO
TELLS YOU OTHERWISE IS COMMITTING A CRIME.

Distributed by Funds Distributor, Inc.

/front cover/

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

American Century

Investments

P.O. Box 419385

Kansas City, MO

64141-6385

Dear Investor,

Here's what you'll find:

* The funds' primary investments and risks

* A description of who may or may not want to invest in the funds

* Fund performance, including returns for each year, best and worst
quarters, and average annual returns compared to the funds' benchmarks

* An overview of services available and ways to manage your accounts

* Helpful tips and definitions of key investment terms

Sincerely,

/s/Mark Killen
Mark Killen
Senior Vice President
American Century Investment Services, Inc.

/inside front cover/

TABLE OF CONTENTS

An Overview of the Funds .................................................... 2
Fund Performance History .................................................... 3
Fees and Expenses ........................................................... 4
Information about the Funds
Global Gold Fund ....................................................... 5
Global Natural Resources Fund .......................................... 7
Utilities Fund ......................................................... 9
Management .................................................................. 11
Investing with American Century ............................................. 14
Share Price and Distributions ............................................... 16
Taxes ....................................................................... 17
Multiple Class Information .................................................. 18
Financial Highlights ........................................................ 19
Performance Information of Other Class ...................................... 22

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Throughout this book you'll find definitions of key investment terms and
phrases. When you see a word printed in GREEN ITALICS, look for its definition
in the left margin.

> This symbol highlights special information and helpful tips.

/end left margin callout/

American Century Investments

AN OVERVIEW OF THE FUNDS

WHAT ARE THE FUNDS' INVESTMENT GOALS?

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

Utilities 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.

A more detailed description of the funds' investment strategies begins on page
5.

WHAT ARE THE FUNDS' PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

The funds' principal risks include

* Market Risk--The value of a fund's shares will go up and down based on the
performance of the companies whose securities it owns and other factors
affecting the securities market generally.

* Price Volatility--The value of a fund's shares may fluctuate significantly
in the short term.

* Principal Loss--As with all mutual funds, if you sell your shares when their
value is less than the price you paid, you will lose money.

WHO MAY WANT TO INVEST IN THE FUNDS?

The funds may be a good investment if you are

* seeking long-term capital growth from your investment

* comfortable with the funds' short-term price volatility

* comfortable with the risks associated with the funds' investment strategy

* investing through an IRA or other tax-advantaged retirement plan

* seeking current income from an investment in Utilities

WHO MAY NOT WANT TO INVEST IN THE FUNDS?

The funds may not be a good investment if you are

* seeking current income from an investment in Global Gold or Global Natural
Resources

* investing for a short period of time

* uncomfortable with short-term volatility in the value of your investment

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

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2 American Century Investments 1-800-345-3533

FUND PERFORMANCE HISTORY

GLOBAL GOLD FUND
GLOBAL NATURAL RESOURCES FUND
UTILITIES FUND

When the Advisor Class of a fund has investment results for a full calendar
year, this section will feature charts that show

* Annual Total Returns

* Highest and Lowest Quarterly Returns

* Average Annual Returns, including a comparison of these returns to a benchmark
index for the Advisor Class of the fund

In addition, investors can examine the performance of the fund's Investor Class
of shares. The Investor Class has a total expense ratio that is 0.25% lower than
the Advisor Class. If the Advisor Class had existed during the periods
presented, its performance would have been lower because of the additional
expense.

All past performance information is designed to help show you how fund returns
can vary. Keep in mind that past performance does not predict how the funds will
perform in the future.

www.americancentury.com American Century Investments 3

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

The following table describes the fees and expenses you will pay if you buy and
hold shares of the funds.

SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT BEGINNING JUNE 30, 1999)
- --------------------------------------------------------------------------------
Global Gold Redemption Fee (as a percentage of amount redeemed)
- --------------------------------------------------------------------------------
Shares held less
than 180 days 2.0%
- --------------------------------------------------------------------------------
Shares held 180
days or more None

<TABLE>
<CAPTION>
ANNUAL OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)

Management Distribution and Other Total Annual Fund
Fee(1) Service (12b-1) Fees(2) Expenses(3) Operating Expenses
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Global Gold 0.44% 0.50% 0.00% 0.94%
- --------------------------------------------------------------------------------------------------------
Global Natural Resources 0.44% 0.50% 0.00% 0.94%
- --------------------------------------------------------------------------------------------------------
Utilities 0.44% 0.50% 0.00% 0.94%
</TABLE>

(1) Based on expenses incurred during the funds' most recent fiscal year. The
funds have stepped fee schedules. As a result, the funds' management fee
rate generally decreases as fund assets increase. Please consult the
Statement of Additional Information for more details about the funds'
management fees.

(2) The 12b-1 fee is designed to permit investors to purchase Advisor Class
shares through banks, broker-dealers, 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 advisor, and a portion is used to
compensate them for distribution and other shareholder services. See
"Service and Distribution Fees," page 18.

(3) Other expenses, which include the fees and expenses of the funds'
independent directors, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.

EXAMPLE

The examples in the table below are intended to help you compare the costs of
investing in a fund with the costs of investing in other mutual funds. Assuming
you . . .

* invest $10,000 in the fund

* redeem all of your shares at the end of the periods shown below

* earn a 5% return each year

* incur the same operating expenses as shown above

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

1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------
Global Gold $96 $299 $519 $1,150
- ------------------------------------------------------------------------------
Global Natural Resources $96 $299 $519 $1,150
- ------------------------------------------------------------------------------
Utilities $96 $299 $519 $1,150

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> Use this example to compare the costs of investing in other funds. Of course,
your actual costs may be higher or lower.

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4 American Century Investments 1-800-345-3533

INFORMATION ABOUT THE FUNDS

GLOBAL GOLD FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

Global Gold will concentrate its investments in securities of Gold Companies.
Under normal circumstances, at least 65% of the value of the fund will be
invested in such companies. When the managers believe that it is prudent, the
fund may invest in securities other than stocks, such as convertible securities,
sponsored or unsponsored American Depositary Receipts, gold, gold certificates,
gold futures, short-term investments and NON-LEVERAGED stock index futures
contracts. Stock index futures contracts, a type of derivative security, can
help the fund's cash assets remain liquid while performing more like stocks. The
fund has a policy governing stock index futures and similar derivative
securities to help manage the risk of these types of investments. A complete
description of the derivatives policy is included in the Statement of Additional
Information. Global Gold also may purchase debt securities, such as notes,
bonds, debentures or commercial paper.

WHAT ARE THE PRIMARY RISKS OF INVESTING IN THE FUND?

Because Global Gold concentrates its investments in Gold Companies, it may be
subject to greater risks and market fluctuations than a portfolio representing a
broader range of

/left margin callout/

> Normally, the managers will invest in securities of companies in at least
three different countries.

NON-LEVERAGED means that the fund may not invest in futures contracts where it
would be possible to lose more than the fund invested in those contracts.

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www.americancentury.com American Century Investments 5

industries. Gold stocks generally are considered speculative because of their
high share price volatility, and the fund's share price may be affected by this
volatility.

Many investors believe gold investments hedge against inflation, currency
devaluations and general stock market declines, but there is no guarantee that
these historical inverse relationships will continue.

Global Gold invests primarily in foreign securities, which generally involve
greater risks than investing in U.S. securities. These risks are summarized
below:

6 American Century Investments 1-800-345-3533

GLOBAL NATURAL RESOURCES FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

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

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

The managers do not attempt to time the market. Instead, they intend to keep
Global Natural Resources essentially fully invested in stocks regardless of the
movement of stock prices generally. The managers also may invest up to 35% of
the fund's assets in when-issued and forward commitment agreements if necessary
to purchase securities. When the managers believe it is prudent, the fund may
invest a portion of its assets in convertible securities, foreign securities,
short-term investments, NON-LEVERAGED stock index futures contracts and other
similar securities. Stock index futures contracts, a type of derivative
security, can help the fund's cash assets remain liquid while performing more
like stocks. The fund has a policy governing stock index futures and similar
derivative securities to help manage the risk of these types of investments. A
complete description of the derivatives policy is included in the Statement of
Additional Information.

WHAT ARE THE PRIMARY RISKS OF INVESTING IN THE FUND?

As with all funds, at any given time, the value of your shares 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.

*The DJWSI is the property of Dow Jones & Co., Inc.

/left margin callout/

NON-LEVERAGED means that the fund may not invest in futures contracts where it
would be possible to lose more than the fund invested in those contracts.

/end left margin callout/

www.americancentury.com American Century Investments 7

Because Global Natural Resources concentrates its investments in natural
resources companies, it may be subject to greater risks and market fluctuations
than a portfolio representing a broader range of industries. Historically, the
securities of some natural resources companies may be subject to broad price
fluctuations during periods of economic or financial instability, and
fluctuations may cause volatility in the fund's share price.

Many investors believe investments in natural resources companies hedge against
commodity-price-driven inflation, but there is no guarantee that this historical
relationship will continue.

Depending on the composition of the benchmark, Global Natural Resources may
invest in foreign securities, which generally involve greater risks than
investing in U.S. securities. These risks are summarized below:

* Currency Risk. In addition to changes in the value of the fund's
investments, changes in the value of foreign currencies against the U.S.
dollar also could result in gains or losses to the fund. The value of a
share of Global Natural Resources is determined in U.S. dollars. The fund's
investments, however, generally are held in the foreign currency of the
country where investments are made. As a result, the fund could recognize a
gain or loss based solely upon a change in the exchange rate between the
foreign currency and the U.S. dollar.

8 American Century Investments 1-800-345-3533

UTILITIES FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

Utilities 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.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVES?

Under normal market conditions, Utilities invests at least 75% of its total
assets in stocks of companies engaged in the utilities industry. Of this 75%,
the managers will not buy shares of a company unless 50% or more of the
company's revenues or net profits come from the ownership or operation of
facilities used to provide electricity, natural gas, telecommunications
services, cable television, water or sanitary services. Utilities may invest up
to 25% of its total assets in fixed-income securities.

/left margin callout/

NON-LEVERAGED means that the fund may not invest in futures contracts where it
would be possible to lose more than the fund invested in those contracts.

/end left margin callout/

www.americancentury.com American Century Investments 9

WHAT ARE THE PRIMARY RISKS OF INVESTING IN THE FUND?

Because Utilities concentrates its investments in utilities companies, it may be
subject to greater risks and market fluctuations than a portfolio representing a
broader range of industries. As an example of these risks, companies in the
telecommunications and electric utilities industries have experienced
substantial changes in the amount and type of regulation at the state and
federal levels. While creating opportunities for some companies, it has
increased uncertainty for others with respect to future revenues and earnings.
This trend may continue for some time and increased share price volatility may
result.

10 American Century Investments 1-800-345-3533

MANAGEMENT

WHO MANAGES THE FUNDS?

The Board of Directors, investment advisor and fund management team play key
roles in the management of the funds.

THE BOARD OF DIRECTORS

THE INVESTMENT ADVISOR

Management Fees Paid by the Funds to the Advisor as a Percentage of Average Net
Assets for the Most Recent Fiscal Year Ended December 31, 1998
- --------------------------------------------------------------------------------
Global Gold 0.44%
- --------------------------------------------------------------------------------
Global Natural Resources 0.44%
- --------------------------------------------------------------------------------
Utilities 0.44%

www.americancentury.com American Century Investments 11

THE FUND MANAGEMENT TEAM

The advisor uses teams of portfolio managers, assistant portfolio managers and
research analysts to manage the funds. Teams meet regularly to review portfolio
holdings and to discuss purchase and sale activity. Team members buy and sell
securities for a fund as they see fit, guided by the fund's investment objective
and strategy.

The portfolio managers on the investment team are identified below:

JOHN SCHNIEDWIND

Mr. Schniedwind, Senior Vice President and Group Leader-Quantitative Equity,
joined American Century in 1982, and supervises the portfolio management team
that manages Global Gold, Global Natural Resources and Utilities. He has degrees
from Purdue University and an MBA in finance from the University of California.
He is a Chartered Financial Analyst.

WILLIAM MARTIN

JOSEPH B. STERLING

/left margin callout/

> CODE OF ETHICS

/end left margin callout/

12 American Century Investments 1-800-345-3533

FUNDAMENTAL INVESTMENT POLICIES

YEAR 2000 ISSUES

In addition, the issuers of securities the funds own could have Year 2000
computer problems. Foreign issuers, especially those in emerging markets may be
more susceptible to such problems than U.S. issuers. These problems could
negatively affect the value of issuers' securities, which, in turn, could impact
the funds' performance. The advisor has established a process to gather publicly
available information about the Year 2000 readiness of these issuers. However,
this process may not uncover all relevant information, and the information
gathered may not be complete and accurate. Moreover, an issuer's Year 2000
readiness is only one of many factors the fund managers may consider when making
investment decisions, and other factors may receive greater weight.

www.americancentury.com American Century Investments 13

INVESTING WITH AMERICAN CENTURY

ELIGIBILITY FOR ADVISOR CLASS SHARES

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

INVESTING THROUGH FINANCIAL INTERMEDIARIES

* minimum investment requirements

* exchange policies

* fund choices

* cutoff time for investments

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FINANCIAL INTERMEDIARIES include banks, broker-dealers, insurance companies and
investment advisors.

/end left margin callout/

14 American Century Investments 1-800-345-3533

ABUSIVE TRADING PRACTICES

We do not permit market-timing or other abusive trading practices in our funds.

Excessive, short-term (market-timing) or other abusive trading practices may
disrupt portfolio management strategies and harm fund performance. To minimize
harm to the funds and their shareholders, we reserve the right to reject any
purchase order (including exchanges) from any investor we believe has a history
of abusive trading or whose trading, in our judgment, has been or may be
disruptive to a fund. In making this judgment, we may consider trading done in
multiple accounts under common ownership or control. We also reserve the right
to delay delivery of your redemption proceeds--up to seven days--or to honor
certain redemptions with securities, rather than cash, as described in the next
section.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

www.americancentury.com American Century Investments 15

SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

If current market prices of securities owned by a fund are not readily
available, the advisor may determine their fair value in accordance with
procedures adopted by the fund's Board of Directors. Trading of securities in
foreign markets may not take place on every day the Exchange is open. Also,
trading in some foreign markets may take place on weekends or holidays when a
fund's NAV is not calculated. So, the value of a fund's portfolio may be
affected on days when you can't purchase or redeem shares of the fund.

We will price your purchase, exchange or redemption at the NAV next determined
after we receive your transaction request in good order.

DISTRIBUTIONS

Federal tax laws require each fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means the funds will not be subject to state or
federal income tax on amounts distributed. The distributions generally consist
of dividends and interest received, as well as CAPITAL GAINS realized on the
sale of investment securities.

/left margin callout

The NET ASSET VALUE of a fund is the price of the fund's shares.

CAPITAL GAINS are increases in the values of capital assets, such as stock, from
the time the assets are purchased. Tax becomes due on capital gains once an
asset is sold.

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16 American Century Investments 1-800-345-3533

TAXES

The tax consequences of owning shares of the funds will vary depending on
whether you own them through a taxable or tax-deferred account. Tax consequences
result from distributions by the funds of dividend and interest income they have
received or capital gains they have generated through their investment
activities. Tax consequences also may result from sales of fund shares by
investors after the net asset value has increased or decreased.

Tax-Deferred Accounts

If you purchase fund shares through a tax-deferred account, such as an IRA or a
qualified employer-sponsored retirement or savings plan, income and capital
gains distributions usually will not be subject to current taxation, but will
accumulate in your account under the plan on a tax-deferred basis. Likewise,
moving from one fund to another fund within a plan or tax-deferred account
generally will not cause you to be taxed. For information about the tax
consequences of making purchases or withdrawals through an employer- sponsored
retirement or savings plan, or through an IRA, please consult your plan
administrator, your summary plan description or a professional tax advisor.

Taxable Accounts

If you own fund shares through a taxable account, distributions by the fund and
sales by you of fund shares may cause you to be taxed.

Taxability of Distributions

Distributions also may be subject to state and local taxes. Because everyone's
tax situation is unique, always consult your tax professional about federal,
state and local tax consequences.

Taxes on transactions

/left margin callout/

> BUYING A DIVIDEND

If you buy a dividend, you incur the full tax liability of the distribution
period, but you may not enjoy the full benefit of the gains realized in the
fund's portfolio.

/end left margin callout/

www.americancentury.com American Century Investments 17

MULTIPLE CLASS INFORMATION

American Century offers two classes of the funds: Investor Class and Advisor
Class. The shares offered by this Prospectus are Advisor Class shares and are
offered primarily to institutional investors, through institutional distribution
channels, such as employer-sponsored retirement plans, or through banks,
broker-dealers and insurance companies.

American Century offers another class of shares that has no up-front or deferred
charges, commissions or 12b-1 fees. The other class has different fees, expenses
and/or minimum investment requirements than the Advisor Class. The difference in
the fee structures between 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 advisor 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 class of shares not offered by this Prospectus,
call us at 1-800-345-2021 for Investor Class shares. You also can contact a
sales representative or financial intermediary who offers that class 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 between the 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.

SERVICE AND DISTRIBUTION FEES

Investment Company Act Rule 12b-1 permits mutual funds that adopt a written plan
to pay out of fund assets certain expenses associated with the distribution of
their shares. The funds' Advisor Class shares have a 12b-1 Plan. Under the Plan,
the funds pay an annual fee of 0.50% of fund assets, half for certain
shareholder and administrative services and half for distribution services. The
advisor, as paying agent for the funds, pays all or a portion of such fees to
the banks, broker-dealers and insurance companies that make such shares
available. Because these fees are paid out of the funds' assets on an ongoing
basis, over time these fees will increase the cost of your investment and may
cost you more than paying other types of sales charges. 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.

18 American Century Investments 1-800-345-3533

FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

On a per-share basis, each table includes as appropriate

* share price at the beginning of the period

* investment income and capital gains or losses

* distributions of income and capital gains paid to shareholders

* share price at the end of the period

Each table also includes some key statistics for the period as appropriate

* Total Return--the overall percentage of return of the fund, assuming the
reinvestment of all distributions

* Expense Ratio--operating expenses as a percentage of average net assets

* Net Income Ratio--net investment income as a percentage of average net asset

* Portfolio Turnover--the percentage of the fund's buying and selling activity

www.americancentury.com American Century Investments 19

GLOBAL GOLD FUND

Advisor Class

For a Share Outstanding Throughout the Period Indicated

PER-SHARE DATA
1998(1)

Net Asset Value, Beginning of Period ........................... $ 7.31

Income From Investment Operations

Net Investment Income(2) ..................................... 0.01

Net Realized and Unrealized Loss on Investment Transactions .. (1.76)

Total From Investment Operations ............................. (1.75)

Distributions

From Net Investment Income ................................... (0.04)

Net Asset Value, End of Period ................................. $ 5.52

Total Return(3) .............................................. (24.00)%

RATIOS/SUPPLEMENTAL DATA
1998(1)

Ratio of Operating Expenses to Average Net Assets .............. 0.94%(4)

Ratio of Net Investment Income to Average Net Assets ........... 0.20%(4)

Portfolio Turnover Rate ........................................ 68%

Net Assets, End of Period ...................................... $ 16,938

(1) May 6, 1998 (commencement of sale) through December 31, 1998.

(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.

20 American Century Investments 1-800-345-3533

UTILITIES FUND

Advisor Class

For a Share Outstanding Throughout the Period Indicated

PER-SHARE DATA
1998(1)

Net Asset Value, Beginning of Period ............................ $ 14.90

Income From Investment Operations

Net Investment Income .......................................... 0.16

Net Realized and Unrealized Gain on Investment Transactions .... 2.52

Total From Investment Operations ............................... 2.68

Distributions

From Net Investment Income ..................................... (0.19)

From Net Realized Gains on Investment Transactions ............. (1.43)

Total Distributions ............................................ (1.62)

Net Asset Value, End of Period .................................. $ 15.96

Total Return(2) ................................................ 18.43%

RATIOS/SUPPLEMENTAL DATA
1998(1)

Ratio of Operating Expenses to Average Net Assets ............... 0.94%(3)

Ratio of Net Investment Income to Average Net Assets ............ 1.94%(3)

Portfolio Turnover Rate ......................................... 98%

Net Assets, End of Period (in thousands) ........................ $ 76

(1) June 25, 1998 (commencement of sale) through December 31, 1998.

(2) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total return is not annualized.

(3) Annualized.

www.americancentury.com American Century Investments 21

PERFORMANCE INFORMATION OF OTHER CLASS

The following financial information is provided to show the performance of the
funds' original class of shares. This class, the Investor Class, has a total
expense ratio that is 0.25% lower than the Advisor Class. If the Advisor Class
had existed during the periods presented, its performance would have been lower
because of the additional expense.

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

On a per-share basis, each table includes as appropriate

* share price at the beginning of the period

* investment income and capital gains or losses

* distributions of income and capital gains paid to shareholders

* share price at the end of the period

Each table also includes some key statistics for the period as appropriate

* Total Return--the overall percentage of return of the fund, assuming the
reinvestment of all distributions

* Expense Ratio--operating expenses as a percentage of average net assets

* Net Income Ratio--net investment income as a percentage of average net asset

* Portfolio Turnover--the percentage of the fund's buying and selling activity

22 American Century Investments 1-800-345-3533

<TABLE>
<CAPTION>
GLOBAL GOLD FUND

Investor Class

For a Share Outstanding Throughout the Years Ended December 31

PER-SHARE DATA
1998 1997 1996 1995 1994

<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year .................... $ 6.34 $ 11.33 $ 12.37 $ 11.33 $ 13.67

Income From Investment Operations

Net Investment Income ............................... 0.05(1) 0.09 0.06 0.02 0.03

Net Realized and Unrealized Gain (Loss)
on Investment Transactions .......................... (0.82) (4.79) (0.40) 1.03 (2.32)

Total From Investment Operations .................... (0.77) (4.70) (0.34) 1.05 (2.29)

Distributions

From Net Investment Income .......................... (0.05) (0.09) (0.06) (0.01) (0.02)

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

In Excess of Net Realized Gains ..................... -- -- -- -- (0.03)

Total Distributions ................................. (0.05) (0.29) (0.70) (0.01) (0.05)

Net Asset Value, End of Year .......................... $ 5.52 $ 6.34 $ 11.33 $ 12.37 $ 11.33

Total Return(2) ..................................... (12.18)% (41.47)% (2.76)% 9.25% (16.75)%

RATIOS/SUPPLEMENTAL DATA
1998 1997 1996 1995 1994

Ratio of Operating Expenses to Average Net Assets ..... 0.69% 0.67% 0.62% 0.61% 0.61%

Ratio of Net Investment Income to Average Net Assets .. 0.75% 0.92% 0.46% 0.17% 0.20%

Portfolio Turnover Rate ............................... 68% 28% 45% 28% 42%

Net Assets, End of Year (in thousands) ................ $ 228,771 $ 246,015 $ 432,587 $ 537,693 $ 568,030

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

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

www.americancentury.com American Century Investments 23

GLOBAL NATURAL RESOURCES FUND

Investor Class

For a Share Outstanding Throughout the Years Ended December 31 (except as noted

PER-SHARE DATA
1998 1997 1996 1995 1994(1)

Net Asset Value, Beginning of Period .................. $ 11.48 $ 11.91 $ 10.66 $ 9.61 $ 10.00

Income From Investment Operations

Net Investment Income ............................... 0.19 0.22 0.17 0.16 0.07

Net Realized and Unrealized Gain (Loss)
on Investment Transactions .......................... (0.90) 0.08 1.46 1.22 (0.42)

Total From Investment Operations .................... (0.71) 0.30 1.63 1.38 (0.35)

Distributions

From Net Investment Income .......................... (0.18) (0.23) (0.17) (0.16) (0.04)

From Net Realized Gains on
Investment Transactions ............................. -- (0.50) (0.21) (0.17) --

Total Distributions ................................. (0.18) (0.73) (0.38) (0.33) (0.04)

Net Asset Value, End of Period ........................ $ 10.59 $ 11.48 $ 11.91 $ 10.66 $ 9.61

Total Return(2) ..................................... (6.30)% 2.50% 15.45% 14.41% (3.48)%

RATIOS/SUPPLEMENTAL DATA
1998 1997 1996 1995 1994(1)

Ratio of Operating Expenses to Average Net Assets ..... 0.69% 0.73%(3) 0.76% 0.76% --

Ratio of Net Investment Income to Average Net Assets .. 1.70% 1.55%(3) 1.78% 2.02% 2.74%(4)

Portfolio Turnover Rate ............................... 76% 41% 53% 39% --

Net Assets, End of Period (in thousands) .............. $ 39,759 $ 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.

24 American Century Investments 1-800-345-3533

UTILITIES FUND

Investor Class

For a Share Outstanding Throughout the Years Ended December 31

PER-SHARE DATA
1998 1997 1996 1995 1994

Net Asset Value, Beginning of Year .................... $ 14.24 $ 11.51 $ 11.44 $ 8.79 $ 10.24

Income From Investment Operations

Net Investment Income ............................... 0.37 0.43 0.45 0.42 0.44

Net Realized and Unrealized Gain (Loss)
on Investment Transactions .......................... 3.39 3.57 0.08 2.65 (1.45)

Total From Investment Operations .................... 3.76 4.00 0.53 3.07 (1.01)

Distributions

From Net Investment Income .......................... (0.38) (0.42) (0.46) (0.42) (0.44)

From Net Realized Gains on Investment Transactions .. (1.66) (0.85) -- -- --

Total Distributions ................................. (2.04) (1.27) (0.46) (0.42) (0.44)

Net Asset Value, End of Year .......................... $ 15.96 $ 14.24 $ 11.51 $ 11.44 $ 8.79

Total Return(1) ..................................... 27.43% 35.82% 4.82% 35.70% (10.03)%

RATIOS/SUPPLEMENTAL DATA
1998 1997 1996 1995 1994

Ratio of Operating Expenses to Average Net Assets ..... 0.69% 0.72% 0.71% 0.75% 0.75%

Ratio of Net Investment Income to Average Net Assets .. 2.51% 3.56% 3.88% 4.31% 4.67%

Portfolio Turnover Rate ............................... 98% 92% 93% 68% 61%

Net Assets, End of Year (in thousands) ................ $ 307,777 $ 209,962 $ 145,134 $ 218,794 $ 152,570
</TABLE>

(1) Total return assumes reinvestment of dividends and capital gains
distributions, if any.

www.americancentury.com American Century Investments 25

MORE INFORMATION ABOUT THE FUNDS IS CONTAINED IN THESE DOCUMENTS

ANNUAL AND SEMIANNUAL REPORTS

STATEMENT OF ADDITIONAL INFORMATION (SAI)

You may obtain a copy of the SAI or annual and semiannual reports at no charge
by contacting us at the telephone number or address below.

You also can get information about the funds (including the SAI) from the
Securities and Exchange Commission (SEC).

* In person SEC Public Reference Room
Washington, D.C.
Call 1-800-SEC-0330 for location and hours.

* On the Internet www.sec.gov

* By mail SEC Public Reference Section
Washington, D.C. 20549-6009
(The SEC will charge a fee for copying the documents.)

Investment Company Act File No. 811-5447

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

AMERICAN CENTURY INVESTMENTS
P.O. Box 419385
Kansas City, Missouri 64141-6385

1-800-345-3533 or 816-531-5575

SH-PRS-15545 9903
<PAGE>

AMERICAN CENTURY

Statement of
Additional Information

Income & Growth Fund
Equity Growth Fund
Small Cap Quantitative Fund
Global Gold Fund
Global Natural Resources Fund
Utilities Fund

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

APRIL 1, 1999

THIS STATEMENT OF ADDITIONAL INFORMATION ADDS TO THE DISCUSSION IN THE
FUNDS' PROSPECTUSES, DATED APRIL 1, 1999, BUT IS NOT A PROSPECTUS. IF YOU WOULD
LIKE A COPY OF A PROSPECTUS, PLEASE CONTACT US AT ONE OF THE ADDRESSES OR
TELEPHONE NUMBERS LISTED ON THE BACK COVER OR VISIT AMERICAN CENTURY'S WEB SITE
AT WWW.AMERICANCENTURY.COM.

THIS STATEMENT OF ADDITIONAL INFORMATION INCORPORATES BY REFERENCE
CERTAIN INFORMATION THAT APPEARS IN THE FUNDS' ANNUAL AND SEMIANNUAL REPORTS,
WHICH ARE DELIVERED TO ALL SHAREHOLDERS. YOU MAY OBTAIN A FREE COPY OF THE
FUNDS' ANNUAL OR SEMIANNUAL REPORTS BY CALLING 1-800-345-2021.

Distributed by Funds Distributor, Inc.

/front cover/

STATEMENT OF ADDITIONAL INFORMATION

APRIL 1, 1999

TABLE OF CONTENTS

The Funds' History .......................................................... 2

Fund Investment Guidelines .................................................. 2

Income & Growth, Equity Growth, Small Cap
Quantitative and Global Natural Resources ............................... 2
Global Gold ............................................................. 3
Utilities ............................................................... 4

Detailed Information About The Funds ........................................ 5
Investment Strategies and Risks ......................................... 5
Investment Policies ..................................................... 13
Portfolio Turnover ...................................................... 15

Management .................................................................. 16
The Board of Directors .................................................. 16
Officers ................................................................ 18

The Funds' Principal Shareholders ........................................... 20

Service Providers ........................................................... 21
Investment Advisor ...................................................... 21
Transfer Agent and Administrator ........................................ 23
Distributor ............................................................. 24

Other Service Providers ..................................................... 24
Custodian Banks ......................................................... 24
Independent Accountant .................................................. 24

Brokerage Allocation ........................................................ 24

Information About Fund Shares ............................................... 25
Multiple Class Structure ................................................ 25
Buying and Selling Fund Shares .......................................... 27
Valuation of a Fund's Securities ........................................ 27

Taxes ....................................................................... 28
Federal Income Tax ...................................................... 28
State and Local Income Tax .............................................. 29

How Fund Performance
Information Is Calculated ................................................... 29
Performance Comparisons ................................................. 31
Permissible Advertising Information ..................................... 31
Multiple Class Performance Advertising .................................. 32

Financial Statements ........................................................ 32

Statement of Additional Information

THE FUNDS' HISTORY

American Century Quantitative Equity Funds is a registered open-end management
investment company that was organized as a California corporation named Benham
Equities, Inc. on December 31, 1987. From August 18, 1988, to January 1, 1997,
it was known as Benham Equity Funds. Throughout the Statement of Additional
Information, we refer to American Century Quantitative Equity Funds as the
corporation.

Each fund described in this Statement of Additional Information is a separate
series of the corporation and operates for many purposes as if it were an
independent company. Each fund has its own investment objective, strategy,
management team, assets, tax identification and stock registration number.

<TABLE>

Investor Class Advisor Class Institutional Class
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ticker Inception Ticker Inception Ticker Inception
Fund Symbol Date Symbol Date Symbol Date
- ---------------------------------------------------------------------------------------
Income & Growth BIGRX 12/17/1990 AMADX 12/15/1997 AMGIX 01/28/1998
- ---------------------------------------------------------------------------------------
Equity Growth BEQGX 05/09/1991 BEQAX 10/09/1997 AMEIX 01/02/1998
- ---------------------------------------------------------------------------------------
Small Cap
Quantitative ASQIX 07/31/1998 N/A N/A N/A N/A
- ---------------------------------------------------------------------------------------
Global Gold BGEIX 08/17/1988 N/A 05/06/1998 N/A N/A
- ---------------------------------------------------------------------------------------
Global Natural
Resources BGRIX 09/15/1994 N/A N/A N/A N/A
- ---------------------------------------------------------------------------------------
Utilities BULIX 03/01/1993 N/A 06/25/1998 N/A N/A
- ---------------------------------------------------------------------------------------
</TABLE>

FUND INVESTMENT GUIDELINES

This section explains the extent to which the funds' advisor, American
Century Investment Management, Inc., can use various investment vehicles and
strategies in managing a fund's assets. Descriptions of the investment
techniques and risks associated with individual funds also appear herein, while
techniques and risks applicable to all of the funds appear in the section,
"Investment Strategies and Risks," which begins on page 5. In the case of the
funds' principal investment strategies, these descriptions elaborate upon
discussions contained in the Prospectuses.

Each fund is a diversified open-end investment company as defined in the
Investment Company Act of 1940 (the Investment Company Act). Diversified means
that, with respect to 75% of its total assets, each fund will not invest more
than 5% of its total assets in the securities of a single issuer.

To meet federal tax requirements for qualification as a regulated investment
company, each fund must limit its investments so that at the close of each
quarter of its taxable year (1) no more than 25% of its total assets are
invested in the securities of a single issuer (other than the U.S. government or
a regulated investment company), and (2) with respect to at least 50% of its
total assets, no more than 5% of its total assets are invested in the securities
of a single issuer.

INCOME & GROWTH, EQUITY GROWTH, SMALL CAP QUANTITATIVE AND GLOBAL NATURAL
RESOURCES

In general, within the restrictions outlined here and in the funds'
Prospectuses, the fund managers have broad powers to decide how to invest fund
assets, including the power to hold them uninvested.

Investments are varied according to what is judged advantageous under
changing economic conditions. It is the advisor's policy to retain maximum
flexibility in management without restrictive provisions as to the proportion of
one or another class of securities that may be held, subject to the investment
restrictions described below. It is the advisor's intention that each fund will
generally consist of domestic and foreign common stocks and equity equivalent
securities. However, subject to the specific limitations applicable to a fund,
the funds' management teams may invest the assets of each fund in varying
amounts in other instruments, such as those discussed under "Investment
Strategies and Risks," when such a course is deemed appropriate in order to
attempt to attain a

2 American Century Investments

fund's investment objective. Senior securities that, in the opinion of the
manager, are high-grade issues also may be purchased for defensive purposes.

So long as a sufficient number of such securities are available, the
managers intend to keep the funds fully invested in stocks that demonstrate
accelerating growth, regardless of the movement of stock prices, generally. In
most circumstances, the funds' actual level of cash and cash equivalents will be
less than 10%. The managers may use S&P 500 Index futures as a way to expose the
funds' cash assets to the market, while maintaining liquidity. As mentioned in
the Prospectuses, the managers may not leverage the funds' portfolios, so there
is no greater market risk to the funds than if they purchase stocks. See
"Short-Term Securities," page 10, "Futures and Options," page 10, and
"Derivative Securities," page 8.

GLOBAL GOLD

In general, within the restrictions outlined here and in the funds'
Prospectus, the fund managers have broad power to decide how to invest fund
assets, including the power to hold them unrestricted. One of the non-stock
investments the fund managers may make is in gold itself, as described below.

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 Company 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 also is 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 generally will 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 fund managers' 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 and insurance
expenses, and 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.

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 elsewhere in
this Statement of Additional Information, 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,

Statement of Additional Information 3

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 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 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 fund
managers 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.

UTILITIES

Because the Utilities Fund concentrates its assets in the utilities
industry, its performance depends in part on how favorably investors perceive
this sector

4 American Century Investments

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.

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.

DETAILED INFORMATION ABOUT THE FUNDS

INVESTMENT STRATEGIES AND RISKS

This section describes various investment vehicles and techniques that the
fund managers can use in managing a fund's assets. It also details the risks
associated with each, because each technique contributes to a fund's overall
risk profile.

FOREIGN SECURITIES

Each fund may invest an unlimited amount of its assets in the securities of
foreign issuers, including foreign governments, when these securities meet its
standards of selection. Securities of foreign issuers may trade in the U.S. or
foreign securities markets.

Investments in foreign securities may present certain risks, including:

Currency Risk: The value of the foreign investments held by the funds may be
significantly affected by changes in currency exchange rates. The dollar value
of a foreign security generally decreases when the value of the dollar rises
against the foreign currency in which the security is denominated and tends to
increase when the value of the dollar falls against such currency. In addition,
the value of fund assets may be affected by losses and other expenses incurred
in converting between various currencies in order to purchase and sell foreign
securities and by currency restrictions, exchange control regulation, currency
devaluations and political developments.

Political and Economic Risk. The economies of many of the countries in which
the funds may invest are not as developed as the economy of the United States
and may be subject to significantly different forces. Political or social
instability, expropriation,

Statement of Additional Information 5

nationalization, or confiscatory taxation, and limitations on the removal of
funds or other assets, could also adversely affect the value of investments.
Further, the funds may encounter difficulties or be unable to enforce ownership
rights, pursue legal remedies or obtain judgments in foreign courts.

Regulatory Risk. Foreign companies generally are not subject to the
regulatory controls imposed on U.S. issuers and, in general, there is less
publicly available information about foreign securities than is available about
domestic securities. Many foreign companies are not subject to uniform
accounting, auditing and financial reporting standards, practices and
requirements comparable to those applicable to domestic companies. Income from
foreign securities owned by the funds may be reduced by a withholding tax at the
source, which would reduce dividend income payable to shareholders.

Market and Trading Risk. Brokerage commission rates in foreign countries,
which are generally fixed rather than subject to negotiation as in the United
States, are likely to be higher. The securities markets in many of the countries
in which the funds may invest will have substantially less trading volume than
the principal U.S. markets. As a result, the securities of some companies in
these countries may be less liquid and more volatile than comparable U.S.
securities. Furthermore, one securities broker may represent all or a
significant part of the trading volume in a particular country, resulting in
higher trading costs and decreased liquidity due to a lack of alternative
trading partners. There is generally less government regulation and supervision
of foreign stock exchanges, brokers and issuers, which may make it difficult to
enforce contractual obligations.

Clearance and Settlement Risk. Foreign securities markets also have
different clearance and settlement procedures, and in certain markets there have
been times when settlements have been unable to keep pace with the volume of
securities transactions, making it difficult to conduct such transactions.
Delays in clearance and settlement could result in temporary periods when assets
of the funds are uninvested and no return is earned thereon. The inability of
the funds to make intended security purchases due to clearance and settlement
problems could cause the funds to miss attractive investment opportunities.
Inability to dispose of portfolio securities due to clearance and settlement
problems could result either in losses to the funds due to subsequent declines
in the value of the portfolio security or, if the funds have entered into a
contract to sell the security, liability to the purchaser.

Ownership Risk. Evidence of securities ownership may be uncertain in many
foreign countries. In many of these countries, the most notable of which is the
Russian Federation, the ultimate evidence of securities ownership is the share
register held by the issuing company or its registrar. While some companies may
issue share certificates or provide extracts of the company's share register,
these are not negotiable instruments and are not effective evidence of
securities ownership. In an ownership dispute, the company's share register is
controlling. As a result, there is a risk that a fund's trade details could be
incorrectly or fraudulently entered on the issuer's share register at the time
of the transaction, or that a fund's ownership position could thereafter be
altered or deleted entirely, resulting in a loss to the fund.

DEPOSITORY 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.

6 American Century Investments

dollars, which protects the fund from the foreign settlement risks described
under the section titled "Foreign Securities."

FORWARD CURRENCY EXCHANGE CONTRACTS

Each fund may purchase and sell foreign currency on a spot (i.e. cash) basis
and may engage in forward currency contracts, currency options and futures
transactions for hedging or any lawful purpose. See "Derivative Securities" on
page 8.

The funds expect to use forward contracts under two circumstances:

(1) When the fund managers wish to lock in the U.S. dollar price of a
security when a fund is purchasing or selling a security denominated in a
foreign currency, the fund would be able to enter into a forward contract to do
so; or

(2) When the fund managers believe that the currency of a particular foreign
country may suffer a substantial decline against the U.S. dollar, a fund would
be able to enter into a forward contract to sell foreign currency for a fixed
U.S. dollar amount approximating the value of some or all of its portfolio
securities either denominated in, or whose value is tied to, such foreign
currency.

In the first circumstance, when a fund enters into a trade for the purchase
or sale of a security denominated in a foreign currency, it may be desirable to
establish (lock in) the U.S. dollar cost or proceeds. By entering into forward
contracts in U.S. dollars for the purchase or sale of a foreign currency
involved in an underlying security transaction, the fund will be able to protect
itself against a possible loss between trade and settlement dates resulting from
the adverse change in the relationship between the U.S. dollar at the subject
foreign currency.

Under the second circumstance, when the fund managers believe that the
currency of a particular country may suffer a substantial decline relative to
the U.S. dollar, a fund could enter into a foreign contract to sell for a fixed
dollar amount the amount in foreign currencies approximating the value of some
or all of its portfolio securities either denominated in, or whose value is tied
to, such foreign currency. The fund will segregate on its records cash or
securities in an amount sufficient to cover its obligations under the contract.

The precise matching of forward contracts in the amounts and values of
securities involved generally would not be possible because the future values of
such foreign currencies will change as a consequence of market movements in the
values of those securities between the date the forward contract is entered into
and the date it matures. Predicting short-term currency market movements is
extremely difficult, and the successful execution of short-term hedging strategy
is highly uncertain. The fund managers do not intend to enter into such
contracts on a regular basis. Normally, consideration of the prospect for
currency parities will be incorporated into the long-term investment decisions
made with respect to overall diversification strategies. However, the managers
believe that it is important to have flexibility to enter into such forward
contracts when they determine that a fund's best interests may be served.

At the maturity of the forward contract, the fund may either sell the
portfolio security and make delivery of the foreign currency, or it may retain
the security and terminate the obligation to deliver the foreign currency by
purchasing an offsetting forward contract with the same currency trader
obligating the fund to purchase, on the same maturity date, the same amount of
the foreign currency.

It is impossible to forecast with absolute precision the market value of
portfolio securities at the expiration of the forward contract. Accordingly, it
may be necessary for a fund to purchase additional foreign currency on the spot
market (and bear the expense of such purchase) if the market value of the
security is less than the amount of foreign currency the fund is obligated to
deliver and if a decision is made to sell the security and make delivery of the
foreign currency the fund is obligated to deliver.

CONVERTIBLE SECURITIES

A convertible security is a fixed-income security that offers the potential
for capital appreciation through a conversion feature that enables the holder to
convert the fixed-income security into a stated number of shares of common
stock. As fixed-income securities, convertible securities provide a stable
stream of income, with generally higher yields than common stocks. Because
convertible securities offer the potential to benefit from increases in the
market price of

Statement of Additional Information 7

the underlying common stock, however, they generally offer lower yields than
non-convertible securities of similar quality. Of course, like all fixed-income
securities, there can be no assurance of current income because the issuers of
the convertible securities may default on their obligations. In addition, there
can be no assurance of capital appreciation because the value of the underlying
common stock will fluctuate.

Convertible securities generally are subordinated to other similar but
non-convertible securities of the same issuer, although convertible bonds, as
corporate debt obligations, enjoy seniority in right of payment to all equity
securities, and convertible preferred stock is senior to common stock of the
same issuer. Because of the subordination feature, however, convertible
securities typically have lower ratings than similar non-convertible securities.

Unlike a convertible security that is a single security, a synthetic
convertible security is comprised of two distinct securities that together
resemble convertible securities in certain respects. Synthetic convertible
securities are created by combining non-convertible bonds or preferred stocks
with warrants or stock call options. The options that will form elements of
synthetic convertible securities will be listed on a securities exchange or on
the National Association of Securities Dealers Automated Quotation Systems. The
two components of a synthetic convertible security, which will be issued with
respect to the same entity, generally are not offered as a unit, and may be
purchased and sold by the fund at different times. Synthetic convertible
securities differ from convertible securities in certain respects, including
that each component of a synthetic convertible security has a separate market
value and responds differently to market fluctuations. Investing in synthetic
convertible securities involves the risk normally found in holding the
securities comprising the synthetic convertible security.

SHORT SALES

A fund may engage in short sales if, at the time of the short sale, the fund
owns or has the right to acquire securities equivalent in kind and amount to the
securities being sold short.

In a short sale, the seller does not immediately deliver the securities sold
and is said to have a short position in those securities until delivery occurs.
To make delivery to the purchaser, the executing broker borrows the securities
being sold short on behalf of the seller. While the short position is
maintained, the seller collateralizes its obligation to deliver the securities
sold short in an amount equal to the proceeds of the short sale plus an
additional margin amount established by the Board of Governors of the Federal
Reserve. If a fund engages in a short sale, the collateral account will be
maintained by the fund's custodian. While the short sale is open, the fund will
maintain in a segregated custodial account an amount of securities convertible
into, or exchangeable for, such equivalent securities at no additional cost.
These securities would constitute the fund's long position.

A fund may make a short sale, as described above, when it wants to sell the
security it owns at a current attractive price, but also wishes to defer
recognition of gain or loss for federal income tax purposes. There will be
certain additional transaction costs associated with short sales, but the fund
will endeavor to offset these costs with income from the investment of the cash
proceeds of short sales.

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.

DERIVATIVE SECURITIES

To the extent permitted by its investment objectives and policies, each of
the funds may invest in securities that are commonly referred to as derivative
securities. Generally, a derivative is a financial arrangement the value of
which is based on, or derived from, a traditional security, asset, or market
index. Certain derivative securities are more accurately described as
index/structured securities. Index/structured securities are derivative
securities whose value or performance is linked to other equity securities (such
as depositary receipts), currencies, interest rates, indices or other financial
indicators (reference indices).

Some derivatives such as mortgage-related and

8 American Century Investments

other asset-backed securities are in many respects like any other investment,
although they may be more volatile or less liquid than more traditional debt
securities.

There are many different types of derivatives and many different ways to use
them. Futures and options are commonly used for traditional hedging purposes to
attempt to protect a fund from exposure to changing interest rates, securities
prices, or currency exchange rates and for cash management purposes as a
low-cost method of gaining exposure to a particular securities market without
investing directly in those securities.

No fund may invest in a derivative security unless the reference index or
the instrument to which it relates is an eligible investment for the fund. For
example, a security whose underlying value is linked to the price of oil would
not be a permissible investment because the funds may not invest in oil and gas
leases or futures.

The return on a derivative security may increase or decrease, depending upon
changes in the reference index or instrument to which it relates.

There are a range of risks associated with derivative investments,
including:

* the risk that the underlying security, interest rate, market index or other
financial asset will not move in the direction the fund managers anticipate;

* the possibility that there may be no liquid secondary market, or the
possibility that price fluctuation limits may be imposed by the exchange,
either of which may make it difficult or impossible to close out a position
when desired;

* the risk that adverse price movements in an instrument can result in a loss
substantially greater than a fund's initial investment; and

* the risk that the counterparty will fail to perform its obligations.

The Board of Directors has approved the advisor's policy regarding
investments in derivative securities. That policy specifies factors that must be
considered in connection with a purchase of derivative securities. The policy
also establishes a committee that must review certain proposed purchases before
the purchases can be made. The advisor will report on fund activity in
derivative securities to the Board of Directors as necessary. In addition, the
Board will review the advisor's policy for investments in the derivative
securities annually.

INVESTMENTS IN COMPANIES WITH LIMITED OPERATING HISTORIES

The funds may invest a portion of their assets in the securities of issuers
with limited operating history. The managers consider an issuer to have a
limited operating history if that issuer has a record of less than three years
of continuous operation. The managers will consider periods of capital
formation, incubation, consolidations, and research and development in
determining whether a particular issuer has a record of three years of
continuous operation.

Investments in securities of issuers with limited operating history may
involve greater risks than investments in securities of more mature issuers. By
their nature, such issuers present limited operating history and financial
information upon which the managers may base their investment decision on behalf
of the funds. In addition, financial and other information regarding such
issuers, when available, may be incomplete or inaccurate.

REPURCHASE AGREEMENTS

Each fund may invest in repurchase agreements when such transactions present
an attractive short-term return on cash that is not otherwise committed to the
purchase of securities pursuant to the investment policies of that fund.

A repurchase agreement occurs when, at the time the fund purchases an
interest-bearing obligation, the seller (a bank or a broker-dealer registered
under the Securities Exchange Act of 1934) agrees to purchase it on a specified
date in the future at an agreed-upon price. The repurchase price reflects an
agreed-upon interest rate during the time the fund's money is invested in the
security.

Because the security purchased constitutes security for the repurchase
obligation, a repurchase agreement can be considered a loan collateralized by
the security purchased. The fund's risk is the ability of the seller to pay the
agreed-upon repurchase price on the repurchase date. If the seller defaults, the
fund may incur costs in disposing of the collateral, which would reduce the
amount realized thereon. If the seller seeks relief under the bankruptcy laws,
the

Statement of Additional Information

disposition of the collateral may be delayed or limited. To the extent the
value of the security decreases, the fund could experience a loss.

The funds will limit repurchase agreement transactions to securities issued by
the U.S. government, its agencies and instrumentalities, and will enter into
such transactions with those banks and securities dealers who are deemed
creditworthy pursuant to criteria adopted by the funds' Board of Directors.

No fund will invest more than 15% of its assets in repurchase agreements
maturing in more than seven days.

WHEN-ISSUED AND FORWARD COMMITMENT AGREEMENTS

The funds may sometimes purchase new issues of securities 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. 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. While the fund will make commitments
to purchase or sell securities 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, cash equivalents or other appropriate liquid securities in
an amount sufficient to meet the purchase price. When the time comes to pay for
the when-issued securities, the 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 the fund's payment obligation). Selling
securities to meet when-issued or forward commitment obligations may generate
taxable capital gains or losses.

SHORT-TERM SECURITIES

In order to meet anticipated redemptions, to hold pending the purchase of
additional securities for a fund's portfolio, or, in some cases, for temporary
defensive purposes, the funds may invest a portion of their assets in money
market and other short-term securities.

Examples of those securities include:

* Securities issued or guaranteed by the U.S. government and its agencies and
instrumentalities;

* Commercial Paper;

* Certificates of Deposit and Euro Dollar Certificates of Deposit;

* Bankers' Acceptances;

* Short-term notes, bonds, debentures, or other debt instruments; and

* Repurchase agreements.

OTHER INVESTMENT COMPANIES

Each of the funds may invest up to 10% of its total assets in any other
mutual fund, including those of the advisor, provided that the investment is
consistent with the fund's investment policies and restrictions. Under the
Investment Company Act, the fund's investment in such securities, subject to
certain exceptions, currently is limited to (a) 3% of the total voting stock of
any one investment company, (b) 5% of the fund's total assets with respect to
any one investment company and (c) 10% of the fund's total assets in the
aggregate. Such purchases will be made in the open market where no commission or
profit to a sponsor or dealer results from the purchase other than the customary
brokers' commissions. As a shareholder of another investment company, a fund
would bear, along with other shareholders, its pro rata portion of the other
investment company's expenses, including advisory fees. These expenses would be
in addition to the management fee that each fund bears directly in connection
with its own operations.

FUTURES AND OPTIONS

Each fund may enter into futures contracts, options or options on futures
contracts. Funds may not, however, enter into a futures transaction for
speculative purposes. Generally, futures transactions will be used to:

10 American Century Investments

* protect against a decline in market value of the fund's securities (taking a
short futures position), or

* protect against the risk of an increase in market value for securities in
which the fund generally invests at a time when the fund is not
fully-invested (taking a long futures position), or

* provide a temporary substitute for the purchase of an individual security
that may be purchased in an orderly fashion.

Some futures and options strategies, such as selling futures, buying puts
and writing calls, hedge a fund's investments against price fluctuations. Other
strategies, such as buying futures, writing puts and buying calls, tend to
increase market exposure.

Although other techniques may 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 lower than the
transaction costs incurred in the purchase and sale of the underlying
securities.

For example, the sale of a future by a fund means the fund becomes obligated
to deliver the security (or securities, in the case of an index future) at a
specified price on a specified date. The "purchase" of a future means the fund
becomes obligated to buy the security (or securities) at a specified price on a
specified date. 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.
The fund may engage in futures and options transactions based on securities
indexes that are consistent with the fund's investment objectives. Examples of
indices that may be used include the Bond Buyer Index of Municipal Bonds for
fixed-income funds, or the S&P 500 Index for equity funds. The fund also may
engage in futures and options transactions based on specific securities, such as
U.S. Treasury bonds or notes. 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.

Index futures contracts differ from traditional futures contracts in that
when delivery takes place, no stocks or bonds change hands. Instead, these
contracts settle in cash at the spot market value of the index. Although other
types of futures contracts by their terms call for actual delivery or acceptance
of the underlying securities, in most cases the contracts are closed out before
the settlement date. A futures position may be closed 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).

Unlike when the fund purchases or sells a bond, no price is paid or received
by the fund upon the purchase or sale of the future. Initially, the fund will be
required to deposit an amount of cash or securities equal to a varying specified
percentage of the contract amount. This amount is known as initial margin. The
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. A margin deposit does not constitute margin
transactions for purposes of the funds' investment restrictions. Minimum initial
margin requirements are established by the futures exchanges and may be revised.
In addition, brokers may establish margin deposit requirements that are higher
than the exchange minimums. Cash held in the margin account is not income
producing. Subsequent payments, called variation margin, to and from the broker,
will be made on a daily basis as the price of the underlying debt securities or
index fluctuates, making the future more or less valuable, a process known as
marking the contract to market. Changes in variation margin are recorded by the
fund as unrealized gains or losses. At any time prior to expiration of the
future, the fund may elect to close the position by taking an opposite position
that will operate to terminate its position in the future. A final determination
of variation margin is then made; additional cash is required to be paid by or
released to the fund and the fund realizes a loss or gain.

RISKS RELATED TO FUTURES AND OPTIONS TRANSACTIONS

Futures and options prices can be volatile, and trading in these markets
involves certain risks. If the fund managers apply a hedge at an inappropriate
time or judge interest rate or equity market trends

Statement of Additional Information 11

incorrectly, futures and options strategies may lower a fund's return.

A fund could suffer losses if it is unable to close out its position because
of an illiquid secondary market. Futures contracts may be closed out only on an
exchange that provides a secondary market for these contracts, and there is no
assurance that a liquid secondary market will exist for any particular futures
contract at any particular time. Consequently, it may not be possible to close a
futures position when the fund managers consider it appropriate or desirable to
do so. In the event of adverse price movements, a fund would be required to
continue making daily cash payments to maintain its required margin. If the fund
had insufficient cash, it might have to sell portfolio securities to meet daily
margin requirements at a time when the fund managers would not otherwise elect
to do so. In addition, a fund may be required to deliver or take delivery of
instruments underlying futures contracts it holds. The fund manager will seek to
minimize these risks by limiting the contracts entered into on behalf of the
funds to those traded on national futures exchanges and for which there appears
to be a liquid secondary market.

A fund could suffer losses if the prices of its futures and options
positions were poorly correlated with its other investments, or if securities
underlying futures contracts purchased by a fund had different maturities than
those of the portfolio securities being hedged. Such imperfect correlation may
give rise to circumstances in which a fund loses money on a futures contract at
the same time that it experiences a decline in the value of its "hedged"
portfolio securities. A fund also could lose margin payments it has deposited
with a margin broker, if, for example, the broker became bankrupt.

Most futures exchanges limit the amount of fluctuation permitted in futures
contract prices during a single trading day. The daily limit establishes the
maximum amount that the price of a futures contract may vary either up or down
from the previous day's settlement price at the end of the trading session. Once
the daily limit has been reached in a particular type of contract, no trades may
be made on that day at a price beyond the limit. However, the daily limit
governs only price movement during a particular trading day and, therefore, does
not limit potential losses. In addition, the daily limit may prevent liquidation
of unfavorable positions. Futures contract prices have occasionally moved to the
daily limit for several consecutive trading days with little or no trading,
thereby preventing prompt liquidation of futures positions and subjecting some
futures traders to substantial losses.

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.

Although they do not currently intend to do so, the funds may write (or
sell) call options that obligate it to sell (or deliver) the option's underlying
instrument upon exercise of the option. While the receipt of option premiums
would mitigate the effects of price declines, the funds would give up some
ability to participate in a price increase on the underlying security. If a fund
were to engage in options transactions, it would own the futures contract at the
time a call were written and would keep the contract open until the obligation
to deliver it pursuant to the call expired.

RESTRICTIONS ON THE USE OF FUTURES CONTRACTS AND OPTIONS

Each fund may enter into futures contracts, options or options on futures
contracts.

Under the Commodity Exchange Act, a fund may enter into futures and options
transactions (a) for hedging purposes without regard to the percentage of assets
committed to initial margin and option premiums or (b) for other than hedging
purposes, provided that assets committed to initial margin and option premiums
do not exceed 5% of the fund's total assets. To the extent required by law, each
fund will segregate cash or securities, in an amount sufficient on its records
to cover its obligations under the futures contracts and options.

RESTRICTED AND ILLIQUID SECURITIES

The funds may, from time to time, purchase restricted or illiquid
securities, including Rule 144A

12 American Century Investments

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.

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. Accordingly, the Board of Directors is responsible for
developing and establishing the guidelines and procedures for determining the
liquidity of Rule 144A securities. As allowed by Rule 144A, the Board of
Directors of the funds has delegated the day-to-day function of determining the
liquidity of Rule 144A securities to the fund managers. 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 or other
security that is illiquid. In such an event, the fund manager will consider
appropriate remedies to minimize the effect on such fund's liquidity.

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.

INVESTMENT POLICIES

Unless otherwise indicated, with the exception of the percentage limitations
on borrowing, the restrictions apply at the time transactions are entered.
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.

FUNDAMENTAL INVESTMENT POLICIES

The funds' investment restrictions are set forth on the following page.
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.

For purposes of the investment restriction relating to concentration, 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 separate industries.

Statement of Additional Information 13

Subject Policy
- --------------------------------------------------------------------------------
Senior Securities A fund may not issue senior securities, except
as permitted under the Investment Company Act.
- --------------------------------------------------------------------------------
Borrowing A fund may not borrow money, except 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).
- --------------------------------------------------------------------------------
Lending A fund may not 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.
- --------------------------------------------------------------------------------
Real Estate A fund may not purchase or sell real estate unless
acquired as a result of ownership of securities or other
instruments. This policy shall not prevent a fund from
investing 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.
- --------------------------------------------------------------------------------
Concentration Income & Growth, Equity Growth and Small Cap
Quantitative may not concentrate their investments in
securities of issuers in a particular industry (other than
securities issued or guaranteed by the U.S. government
or any of its agencies or instrumentalities). The other
funds may not deviate from their policies of
concentrating investments in securities of issuers
as follows: 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 natural resources industry [Global Natural
Resources only]; or engaged in the utilities industry
[Utilities only].
- --------------------------------------------------------------------------------
Underwriting A fund may not 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.
- --------------------------------------------------------------------------------
Commodities For all funds except Global Gold: A fund may not
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.

For Global Gold only: The fund may not 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.
- --------------------------------------------------------------------------------
Control A fund may not invest for purposes of exercising control
over management.
- --------------------------------------------------------------------------------

14 American Century Investments

NONFUNDAMENTAL INVESTMENT POLICIES

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

Subject Policy
- -------------------------------------------------------------------------------
Diversification For all funds except Global Gold and Global Natural
Resources: A fund may not purchase additional investment
securities at any time during which outstanding borrowings
exceed 5% of the total assets of the fund.

For Global Gold and Global Natural Resources only: In order
to meet federal tax requirements for qualification as a
regulated investment company, each fund 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% 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. Each 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.
- -------------------------------------------------------------------------------
Liquidity A fund may 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.
- -------------------------------------------------------------------------------
Short Sales A fund may 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.
- -------------------------------------------------------------------------------
Margin A fund may not purchase securities on margin, except to
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.
- -------------------------------------------------------------------------------

The Investment Company Act imposes certain additional restrictions upon
acquisition by the funds of securities issued by insurance companies,
broker-dealers, underwriters or investment advisors, and upon transactions with
affiliated persons as therein defined. It also defines and forbids the creation
of cross and circular ownership. Neither the Securities and Exchange Commission
nor any other agency of the federal or state agency participates in or
supervises the management of the funds or their investment practices or
policies.

The Investment Company Act also provides that the funds may not invest more
than 25% of their assets in the securities of issuers engaged in a single
industry. In determining industry groups for purposes of this restriction, the
SEC ordinarily uses the Standard Industry Classification codes developed by the
United States Office of Management and Budget. In the interest of ensuring
adequate diversification, the funds monitor industry concentration using a more
restrictive list of industry groups than that recommended by the SEC. The funds
believe that these classifications are reasonable and are not so broad that the
primary economic characteristics of the companies in a single class are
materially different. The use of these restrictive industry classifications may,
however, cause the funds to forego investment possibilities that may otherwise
be available to them under the Investment Company Act.

PORTFOLIO TURNOVER

The portfolio turnover rates of the funds are shown in the Financial
Highlights tables in the prospectuses.

INCOME & GROWTH, EQUITY GROWTH, UTILITIES AND SMALL CAP QUANTITATIVE

The fund managers will consider the length of time a security has been held
in determining whether to sell it. Accordingly, the funds' rate of portfolio
turnover is not expected to exceed 150%.

Statement of Additional Information 15

GLOBAL GOLD AND GLOBAL NATURAL RESOURCES

With respect to these funds, the managers 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. The fund managers
intend to purchase a given security whenever the managers believe it will
contribute to the stated objective of the fund. In order to achieve each fund's
investment objective, the managers may 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 managers believe that the
security is not fulfilling its purpose, either because, among other things, it
did not live up to the managers' 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 circumstances of a particular
company or industry or in general economic conditions, or because of some
combination of such reasons.

Because investment decisions are based on the anticipated contribution of
the security in question to the fund's objectives, the managers believe that the
rate of portfolio turnover is irrelevant when they believe a change is in order
to achieve those objectives. As a result, the funds' annual portfolio turnover
rate cannot be anticipated and may be higher than other mutual funds with
similar investment objectives. Higher turnover would generate correspondingly
greater brokerage commissions, which is a cost the funds pay directly. Portfolio
turnover also may affect the character of capital gains realized and distributed
by the fund, if any, since short-term capital gains are taxable as ordinary
income. This disclosure regarding portfolio turnover is a statement of
fundamental policy and may be changed only by a vote of the shareholders.

Because the managers do not take portfolio turnover rate into account in
making investment decisions, (1) the managers have 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 representative
of the rates that will be attained in the future.

MANAGEMENT

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the funds and meets at
least quarterly to review reports about fund operations. Although the Board of
Directors does not manage the funds, it has hired the advisor to do so.
Two-thirds of the directors are independent of the funds' advisor; that is, they
are not employed by and have no financial interest in the advisor.

The individuals listed in the table on the next page whose names are marked
by an asterisk (*) are interested persons of the funds (as defined in the
Investment Company Act) by virtue of, among other considerations, their
affiliation with either the funds; the advisor, American Century Investment
Management, Inc. (ACIM); the funds' agent for transfer and administrative
services, American Century Services Corporation (ACSC); the parent corporation,
American Century Companies, Inc. (ACC) or ACC's subsidiaries; the funds'
distribution agent and co-administrator, Funds Distributor, Inc. (FDI); or other
funds advised by the advisor. Each director listed below serves as a director of
six registered investment companies in the American Century family of funds,
which are also advised by the advisor.

16 American Century Investments

Name (Age) Position(s) Held Principal Occupation(s)
Address With Fund During Past Five Years
- --------------------------------------------------------------------------------
James E. Stowers III* (40) Director, Chief Executive Officer
4500 Main Street Chairman of and Director, ACC
Kansas City, MO 64111 the Board President, Chief Executive
Officer and Director, ACSC
and ACIS
Son of James E. Stowers,
Jr. (founder)
- --------------------------------------------------------------------------------
Albert A. Eisenstat (68) Director Independent Director,
1665 Charleston Road Commercial Metals Co.
Mountain View, CA 94043 (1982 to present)
Independent Director, Sungard
Data Systems (1991 to present)
Independent Director, Business
Objects S/A (software &
programming, 1994 to present)
- --------------------------------------------------------------------------------
Ronald J. Gilson (52) Director Charles J. Meyers Professor
1665 Charleston Road of Law and Business,
Mountain View, CA 94043 Stanford Law School
(since 1979)
Mark and Eva Stern Professor
of Law and Business, Columbia
University School of Law
(since 1992);
Counsel, Marron, Reid & Sheehy
(a San Francisco law firm,
since 1984)
- --------------------------------------------------------------------------------
William M. Lyons* (43) Director President, Chief Operating
4500 Main Street Officer and Assistant
Kansas City, MO 64111 Secretary, ACC
Executive Vice President,
Chief Operating Officer,
Secretary and Director,
ACSC and ACIS
- --------------------------------------------------------------------------------
Myron S. Scholes (57) Director Limited Partner, Long-Term
1665 Charleston Road Capital Management
Mountain View, CA 94043 (since February 1999)
Principal, Long-Term Capital
Management (investment
advisor, 1993 to January 1999)
Frank E. Buck Professor of
Finance, Stanford Graduate
School of Business
- --------------------------------------------------------------------------------
Kenneth E. Scott (70) Director Ralph M. Parsons Professor of
1665 Charleston Road Law and Business, Stanford Law
Mountain View, CA 94043 School (since 1972)
Director, RCM Capital Funds,
Inc. (since 1994)
- --------------------------------------------------------------------------------
Isaac Stein (52) Director Director, Raychem Corporation
1665 Charleston Road (electrical equipment, since
Mountain View, CA 94043 1993)
President, Waverley
Associates, Inc. (private
investment firm, since 1983)
Director, ALZA Corporation
(pharmaceuticals, since 1987).
Trustee, Stanford University
(since 1994)
Chairman, Stanford Health
Services (since 1994)
- --------------------------------------------------------------------------------
Jeanne D. Wohlers (53) Director Private Investor
1665 Charleston Road Director and Partner, Windy
Mountain View, CA 94043 Hill Productions, LP
Vice President and Chief
Financial Officer, Sybase,
Inc. (software company,
1988 to 1992)
- --------------------------------------------------------------------------------

Statement of Additional Information 17

COMMITTEES

The Board has four committees to oversee specific functions of the funds'
operations. Information about these committees appears in the table below:

<TABLE>
Committee Members Function of Committee
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Audit Albert A. Eisenstat The Audit Committee selects and oversees the activities of the Trust's
Kenneth E. Scott independent auditor. The Committee receives reports from the advisor's
Jeanne D. Wohlers Internal Audit Department, which is accountable solely to the
Committee. The Committee also receives reporting about compliance
matters affecting the Trust.
- --------------------------------------------------------------------------------------------------------------
Nominating Albert A. Eisenstat The Nominating Committee primarily considers and recommends individuals
Ronald J. Gilson for nomination as trustees. The names of potential trustee candidates
Myron S. Scholes are drawn from a number of sources, including recommendations from
Kenneth E. Scott members of the Board, management and shareholders. This committee
Isaac Stein also reviews and makes recommendations to the Board with respect to
Jeanne D. Wohlers the composition of Board committees and other Board-related matters,
including its organization, size, composition, responsibilities, functions
and compensation.
- --------------------------------------------------------------------------------------------------------------
Portfolio William M. Lyons The Portfolio Committee reviews quarterly the investment activities
Ronald J. Gilson and strategies used to manage fund assets. The Committee regularly
Myron S. Scholes receives reports from portfolio managers, credit analysts and other
Isaac Stein investment personnel concerning the funds' investments.
- --------------------------------------------------------------------------------------------------------------
Quality of William M. Lyons The Quality of Service Committee reviews the level and quality of
Service Ronald J. Gilson transfer agent and administrative services provided to the funds and
Myron S. Scholes their shareholders. It receives and reviews reports comparing those
Isaac Stein services to fund competitors and seeks to improve such services where
feasible and appropriate.
- --------------------------------------------------------------------------------------------------------------
</TABLE>

COMPENSATION OF DIRECTORS

The directors also serve as directors for six American Century investment
companies other than the corporation. Each director who is not an interested
person as defined in the Investment Company Act receives compensation for
service as a member of the Board of all seven such companies based on a schedule
that takes into account the number of meetings attended and the assets of the
funds for which the meetings are held. These fees and expenses are divided among
the seven investment companies based, in part, upon their relative net assets.
Under the terms of the management agreement with the advisor, the funds are
responsible for paying such fees and expenses.

The table presented shows the aggregate compensation paid by the corporation
for the periods indicated and by the seven investment companies served by this
Board to each director who is not an interested person as defined in the
Investment Company Act.

Aggregate Director Compensation for Fiscal Year Ended December 31, 1998
- --------------------------------------------------------------------------------
Total Compensation
Total from the
Compensation American Century
Name of Director from the Funds(1) Family of Funds(2)
- --------------------------------------------------------------------------------

Albert A. Eisenstat $9,226 $65,750

Ronald J. Gilson 11,083 73,000

Myron S. Scholes 7,987 61,750

Kenneth E. Scott 11,061 73,000

Isaac Stein 9,437 67,500

Jeanne D. Wohlers 11,061 73,000
- --------------------------------------------------------------------------------

(1) Includes compensation paid to the directors during the fiscal year ended
December 31, 1998, and also includes amounts deferred at the election of the
directors under the American Century Mutual Funds Deferred Compensation Plan
for Non-Interested Directors and Trustees. The total amount of deferred
compensation included in the preceding table is as follows: Mr. Eisenstat,
$9,226; Mr. Gilson, $5,542; Mr. Scholes, $7,987; Mr. Scott, $5,531; and Ms.
Wohlers, $5,531

(2) Includes compensation paid by the seven investment company members of the
American Century family of funds served by this Board.

18 American Century Investments

The funds have adopted the American Century Deferred Compensation Plan for
Non-Interested Directors and Trustees. Under the plan, the independent directors
may defer receipt of all or any part of the fees to be paid to them for serving
as directors of the funds.

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, the funds have 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 funds. 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, 1998.

OFFICERS

Background information for the officers of the funds is provided in the
following table. All persons named as officers of the funds also serve in
similar capacities for the 12 other investment companies advised by ACIM. Not
all officers of the funds are listed; only those officers with policy-making
functions for the funds are listed. No officer is compensated for his or her
service as an officer of the funds. The individuals listed in the following
table are interested persons of the funds (as defined in the Investment Company
Act) by virtue of, among other considerations, their affiliation with either the
funds, ACC, ACC's subsidiaries (including ACIM and ACSC), or the funds'
distributor (FDI), as specified in the following table.

Statement of Additional Information 19

Name (Age) Position(s) Held Principal Occupation(s)
Address With Fund During Past Five Years
- --------------------------------------------------------------------------------
George A. Rio (44) President Executive Vice President and
60 State Street, Director of Client Services,
Suite 1300 FDI (March 1998 to present).
Boston, MA 02109 Senior Vice President and
Senior Key Account Manager,
Putnam Mutual Funds (June 1995
to March 1998) Director
Business Development, First
Data Corporation (May 1994 to
June 1995) Senior Vice
President and Manager of
Client Services and Director
of Internal Audit, The Boston
Company, Inc. (September 1983
to May 1994)
- --------------------------------------------------------------------------------
Christopher J. Kelley (34) Vice President Vice President and Associate
60 State Street, General Counsel, FDI
Suite 1300 (since July 1996) Assistant
Boston, MA 02109 Counsel, Forum Financial Group
(from April 1994 to July 1996)
Compliance Officer, Putnam
Investments (1992 to 1994).
- --------------------------------------------------------------------------------
Mary A. Nelson (34) Vice President Vice President and Manager of
60 State Street, Treasury Services and
Suite 1300 Administration of FDI (1994
Boston, MA 02109 to present). Assistant Vice
President and Client
Manager, The Boston Company,
Inc. (1989 to 1994)
- --------------------------------------------------------------------------------
David C. Tucker (40) Vice President Senior Vice President and
4500 Main Street General Counsel ACSC and ACIM
Kansas City, MO 64111 (June 1998 to present)
General Counsel, ACC
Consultant to Mutual Fund
Industry (May 1997 to April
1998) Vice President and
General Counsel, Janus
Companies (1990 to May 1997).
- --------------------------------------------------------------------------------
Maryanne Roepke, CPA (43) Vice President Senior Vice President,
4500 Main Street and Treasurer Treasurer and Principal
Accounting Officer, ACSC
- --------------------------------------------------------------------------------
Douglas A. Paul (52) Secretary and Vice President and Associate
1665 Charleston Road Vice President General Counsel, ACSC
Mountain View, CA 94043
- --------------------------------------------------------------------------------
Robert J. Leach (32) Controller Controller-Fund Accounting,
4500 Main Street ACSC
Kansas City, MO 64111
- --------------------------------------------------------------------------------
Merele A. May (36) Controller Controller-Fund Accounting,
4500 Main Street ACSC
Kansas City, MO 64111
- --------------------------------------------------------------------------------
C. Jean Wade (35) Controller Controller-Fund Accounting,
4500 Main Street ACSC
Kansas City, MO 64111
- --------------------------------------------------------------------------------
Jon Zindel (31) Tax Officer Director of Taxation, ACSC
4500 Main Street (since 1996)
Kansas City, MO 64111 Tax Manager, Price Waterhouse
LLPC (1989 to 1996)
- --------------------------------------------------------------------------------

20 American Century Investments

THE FUNDS' PRINCIPAL SHAREHOLDERS

As of February 26, 1999, the following companies were the record owners of
more than 5% of a fund's outstanding shares. The funds are unaware of any other
shareholders, beneficial or of record, who own more than 5% of a fund's
outstanding shares. As of February 26, 1999, the officers and directors of the
funds, as a group, own less than 1% of any fund's outstanding shares.

Percentage
of Shares
Fund Shareholder Outstanding
- --------------------------------------------------------------------------------
Income & Growth Charles Schwab & Company
San Francisco, California 22.4
- --------------------------------------------------------------------------------
Equity Growth Charles Schwab & Company
San Francisco, California 19.2
- --------------------------------------------------------------------------------
Small Cap Quantitative UMB as Trustee for
American Century Services 10.8
- --------------------------------------------------------------------------------
Global Gold Charles Schwab & Company
San Francisco, California 17.2
- --------------------------------------------------------------------------------
Global Natural Resources Charles Schwab & Company
San Francisco, California 32.3
- --------------------------------------------------------------------------------
Utilities Charles Schwab & Company

Statement of Additional Information 21

SERVICE PROVIDERS

The funds have no employees. To conduct the funds' day-to-day activities,
the funds have hired a number of service providers. Each service provider has a
specific function to fill on behalf of the funds and is described below.

ACIM and ACSC, are both wholly owned by ACC. James E. Stowers Jr., Chairman
of ACC, controls ACC by virtue of his ownership of a majority of its voting
stock.

INVESTMENT ADVISOR

Each fund has an investment management agreement with the advisor, American
Century Investment Management, Inc., dated August 1, 1997. This agreement was
approved by the shareholders of Income & Growth, Equity Growth, Global Gold,
Global Natural Resources and Utilities on July 30, 1997 and by the shareholders
of Small Cap Quantitative on July 29, 1998.

A description of the responsibilities of the advisor appears in each
Prospectus under the heading "Management."

For the services provided to the funds, the advisor receives a monthly fee
based on a percentage of the average net assets of the 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 of its investment
category managed by the advisor (the Investment Category Fee). For example, when
calculating the fee for a money market fund, all of the assets of the money
market funds managed by the advisor are aggregated. 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 advisor (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 advisor.

The schedules by which the Investment Category Fees are determined are as
follows:

INVESTMENT CATEGORY FEE SCHEDULE FOR

* Income & Growth
* Equity Growth
* Global Gold
* Global Natural Resources
* Utilities

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%
- --------------------------------------------------------------------------------

INVESTMENT CATEGORY FEE SCHEDULE FOR

* Small Cap Quantitative

Category Assets Fee Rate
- --------------------------------------------------------------------------------
First $1 billion 0.7200%
Next $5 billion 0.6600%
Next $15 billion 0.6160%
Next $25 billion 0.5690%
Next $50 billion 0.5420%
Next $150 billion 0.5390%
Thereafter 0.5380%
- --------------------------------------------------------------------------------

The Complex Fee (investor Class) is as follows:

COMPLEX FEE SCHEDULE

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%
- --------------------------------------------------------------------------------

22 American Century Investments

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 $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 advisor for the previous month at the specified rate. The fee for the
previous month is calculated by multiplying the applicable fee for the 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 advisor, 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 outstanding votes, on 60 days' written notice to the advisor, and
that it shall be automatically terminated if it is assigned.

The management agreement provides that the advisor 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 advisor 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 advisor. 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 fund, or in different
amounts and at different times for more than one but less than all clients or
funds. In addition, purchases or sales of the same security may be made for two
or more clients or funds on the same date. Such transactions will be allocated
among clients in a manner believed by the advisor 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 advisor may aggregate purchase and sale orders of the funds with
purchase and sale orders of its other clients when the advisor believes that
such aggregation provides the best execution for the funds. The corporation's
Board of Directors has approved the policy of the advisor 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 advisor 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 advisor receives no additional compensation or remuneration as a result of
such aggregation.

Prior to August 1, 1997, Benham Management Corporation served as the
investment advisor to the funds. Benham Management Corporation was merged into
the advisor in late 1997.

Unified management fees incurred by each fund for the fiscal periods ended
December 31, 1998, 1997 and 1996, are indicated in the following table. Fee
amounts are net of amounts reimbursed or recouped under the funds' previous
investment advisory agreement with Benham Management Corporation.

Statement of Additional Information 23

UNIFIED MANAGEMENT FEES*

Fund 1998 1997**
- --------------------------------------------------------------------------------
Income & Growth
Investor $20,761,820 $4,621,006
Advisor 85,755
Institutional 128,089
Equity Growth
Investor 9,768,776 1,904,594
Advisor 103,002
Institutional 23,566
Small Cap Quantitative
Investor 25,213 N/A
Global Gold
Investor 1,760,165 900,609
Advisor 100
Global Natural Resources
Investor 297,762 161,611
Utilities
Investor 1,604,996 423,153
Advisor 58
- --------------------------------------------------------------------------------

INVESTMENT ADVISORY FEES*

Fund 1997*** 1996
- --------------------------------------------------------------------------------
Income & Growth $1,653,298 $1,584,256
Equity Growth 650,862 601,691
Small Cap Quantitative N/A N/A
Global Gold 633,691 1,645,729
Global Natural Resources 120,156 74,093
Utilities 207,981 526,012
- --------------------------------------------------------------------------------

* Net of reimbursements.

** From August 1 through December 31, 1997.

*** 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 and 1996, are indicated in the following
tables. Fee amounts are net of expense limitations.

ADMINISTRATIVE FEES*

Fund 1997 1996
- ----------------------------------------------------------------------
Income & Growth 548,851 $506,544
Equity Growth 216,774 192,378
Small Cap Quantitative N/A N/A
Global Gold 210,125 525,854
Global Natural Resources 34,367 45,527
Utilities Fund 70,612 160,940
- ----------------------------------------------------------------------

* Net of reimbursements

TRANSFER AGENT FEES*

Fund 1997 1996
- ----------------------------------------------------------------------
Income & Growth 732,727 $770,136
Equity Growth 347,736 301,615
Small Cap Quantitative N/A N/A
Global Gold 320,161 644,392
Global Natural Resources 63,879 113,382
Utilities 158,168 370,118
- ----------------------------------------------------------------------

* Net of reimbursements

OTHER ADVISORY RELATIONSHIPS

In addition to managing the funds, the advisor also acts as an investment
advisor to 9 institutional accounts and to the following registered investment
companies:

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 Mutual Funds, Inc.

American Century International Bond Funds

American Century California Tax-Free and Municipal Funds

TRANSFER AGENT AND ADMINISTRATOR

American Century Services Corporation, 4500 Main Street, Kansas City,
Missouri 64111, acts as transfer agent and dividend-paying agent for the funds.
It provides physical facilities, computer

24 American Century Investments

hardware and software and personnel, for the day-to-day administration of
the funds and of the advisor. The advisor pays ACSC for such services.

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

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 advisor out of its unified fee.

DISTRIBUTOR

The funds' shares are distributed by FDI a registered broker-dealer. The
distributor is a wholly owned indirect subsidiary of Boston Institutional Group,
Inc. The distributor's principal business address is 60 State Street, Suite
1300, Boston, Massachusetts 02109.

The distributor is the principal underwriter of the funds' shares. The
distributor makes a continuous, best efforts underwriting of the funds' shares.
This means that the distributor has no liability for unsold shares.

OTHER SERVICE PROVIDERS

CUSTODIAN BANKS

Chase Manhattan Bank, 770 Broadway, 10th Floor, New York, New York
10003-9598, and Commerce Bank, N.A., 1000 Walnut, Kansas City, Missouri 64105,
each serves as custodian of the assets of the funds. The custodians take no part
in determining the investment policies of the funds or in deciding which
securities are purchased or sold by the funds. The funds, however, may invest in
certain obligations of the custodians and may purchase or sell certain
securities from or to the custodians.

INDEPENDENT ACCOUNTANT

PricewaterhouseCoopers LLP is the independent accountant of the funds. The
address of PricewaterhouseCoopers LLP is 1055 Broadway, 10th Floor, Kansas City,
Missouri 64105. As the independent accountant of the funds,
PricewaterhouseCoopers provides services including (1) audit of the annual
financial statements for each fund, (2) assistance and consultation in
connection with SEC filings and (3) review of the annual federal income tax
return filed for each fund.

BROKERAGE ALLOCATION

Under the management agreement between the funds and the advisor, the
advisor 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 advisor may take into consideration the factors discussed below when
selecting brokers.

The advisor receives statistical and other information and services,
including research, without cost from brokers and dealers. The advisor 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 advisor
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 advisor. The advisor 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, 1998, 1997 and 1996, the brokerage
commissions of each fund were as follows:

Fund 1998 1997 1996
- -------------------------------------------------------------------------
Income & Growth 9,085,557 $2,758,046 $1,029,549
Equity Growth 4,424,628 1,585,817 495,709
Small Cap Quantitative 14,349 N/A N/A
Global Gold 1,071,884 588,515 1,350,735
Global Natural Resources 96,444 119,686 144,442
Utilities Fund 621,666 327,582 442,714
- -------------------------------------------------------------------------

The brokerage commissions paid by the funds may exceed those which another
broker might have charged

Statement of Additional Information 25

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 advisor
in servicing all of its accounts, and not all such services may be used by the
advisor 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 advisor 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 may also deal on
a brokerage basis when utilizing electronic trading networks or as circumstances
warrant.

INFORMATION ABOUT FUND SHARES

Each of the six funds named on the front of this Statement of Additional
Information is a series of shares issued by the corporation, and shares of each
fund have equal voting rights. In addition, each series (or fund) may be divided
into separate classes. See "Multiple Class Structure" that follows. Additional
funds and classes may be added without a shareholder vote.

Each fund votes separately on matters affecting that fund exclusively.
Voting rights are not cumulative, so that investors holding more than 50% of the
corporation (i.e., all funds') outstanding shares may be able to elect a Board
of Directors. The corporation undertakes dollar-based voting, meaning that the
number of votes you are entitled to is based upon the dollar amount of your
investment. The election of directors is determined by the votes received from
all the corporation's shareholders without regard to whether a majority of
shares of any one fund voted in favor of a particular nominee or all nominees as
a group.

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.

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.

Each shareholder has rights to dividends and distributions declared by the
fund he or she owns and to the net assets of such fund upon its liquidation or
dissolution proportionate to his or her share ownership interest in the fund.

MULTIPLE CLASS STRUCTURE

The corporation's Board of Directors has adopted a multiple class plan (the
Multiclass Plan) pursuant to Rule 18f-3 adopted by the SEC. Pursuant to such
plan, the funds may issue up to three classes of shares: an Investor Class, an
Institutional Class and an Advisor 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 advisor as Investor Class shareholders. As a
result, the advisor is able to charge these classes a lower total management
fee. In addition to the management fee, however the Advisor Class shares are
subject to a Master Distribution and Shareholder Services Plan (described
beginning on page 26). 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

26 American Century Investments

Class have approved and entered into a Master Distribution and Shareholder
Services Plan, with respect to the Advisor Class (the Plan). The Plan is
described below.

In adopting the Plan, the Board of Directors (including a majority of
directors 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 classes. 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 Plan will be made in accordance with Section 26 of
the Rules of Fair Practice of the National Association of Securities Dealers.

MASTER DISTRIBUTION AND SHAREHOLDER SERVICES PLAN

As described in the Prospectuses, the funds' Advisor Class of shares are
also 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.

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'
advisor 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. Pursuant to the Plan, the Advisor
Class shares pay 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 below) and 0.25% of which is paid for distribution
services.

Payments may be made for a variety of shareholder services, including, but
are not limited to, (a) receiving, aggregating and processing purchase, exchange
and redemption requests from beneficial owners (including contract owners of
insurance products that utilize the funds as underlying investment media) of
shares and placing purchase, exchange and redemption orders with the
distributor; (b) providing shareholders with a service that invests the assets
of their accounts in shares pursuant to specific or pre-authorized instructions;
(c) processing dividend payments from a fund on behalf of shareholders and
assisting shareholders in changing dividend options, account designations and
addresses; (d) providing and maintaining elective services such as check writing
and wire transfer services; (e) acting as shareholder of record and nominee for
beneficial owners; (f) maintaining account records for shareholders and/or other
beneficial owners; (g) issuing confirmations of transactions; (h) providing
subaccounting with respect to shares beneficially owned by customers of third
parties or providing the information to a fund as necessary for such
subaccounting; (i) preparing and forwarding shareholder communications from the
funds (such as proxies, shareholder reports, annual and semi-annual financial
statements and dividend, distribution and tax notices) to shareholders and/or
other beneficial owners; and (j) providing other similar administrative and
sub-transfer agency services. Shareholder Services do not include those
activities and expenses that are primarily intended to result in the sale of
additional shares of the funds.

Statement of Additional Information 27

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
commissions, on going 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 distributor who engage in or support distribution of the funds'
Advisor Class shares; (c) compensation to, and expenses (including overhead and
telephone expenses) of, 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 and
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 advisor determines may be
paid for by the funds pursuant to the terms of this Agreement and in accordance
with Rule 12b-1 of the Investment Company Act.

BUYING AND SELLING FUND SHARES

Information about buying, selling and exchanging fund shares is contained in
the American Century Investor Services Guide. The guide is available to
investors without charge and may be obtained by calling us.

VALUATION OF A FUND'S SECURITIES

Each fund's net asset value per share (NAV) is calculated as of the close of
business of the New York Stock Exchange (the Exchange), usually at 4 p.m.
Eastern time each day the Exchange is open for business. The Exchange has
designated the following holiday closings for 1999: New Year's Day (observed),
Martin Luther King Jr. Day, Presidents' Day, Good Friday, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Although the
funds expect the same holiday schedule to be observed in the future, the
Exchange may modify its holiday schedule at any time.

Each fund's NAV is calculated by adding the value of all portfolio
securities and other assets, deducting liabilities and dividing the result by
the number of shares outstanding. Expenses and interest earned on portfolio
securities are accrued daily.

The portfolio securities of the 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 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.

Because there are hundreds of thousands of municipal issues outstanding, and
the majority of them do not trade daily, the prices provided by pricing services
for these types of securities are generally determined without regard to bid or
last sale prices. In valuing securities, the pricing services generally

28 American Century Investments

take into account institutional trading activity, trading in similar groups of
securities, and any developments related to specific securities. The methods
used by the pricing service and the valuations so established are reviewed by
the advisor under the general supervision of the Board of Directors. There are a
number of pricing services available, and the advisor, on the basis of ongoing
evaluation of these services, may use other pricing services or discontinue the
use of any pricing service in whole or in part.

Securities maturing within 60 days of the valuation date may be valued at
cost, plus or minus any amortized discount or premium, unless the trustees
determine that this would not result in fair valuation of a given security.
Other assets and securities for which quotations are not readily available are
valued in good faith at their fair value using methods approved 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 Exchange, if that is earlier.
That value is then translated 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 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
Exchange business day. In addition, trading may take place in various foreign
markets on Saturdays or on other days when the Exchange is not open and on which
the 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 the fund's
portfolio may be affected on days when shares of the fund may not be purchased
or redeemed.

TAXES

FEDERAL INCOME TAXES

Each fund intends to qualify annually as a regulated investment company
under Subchapter M of the Internal Revenue Code of 1986, as amended (the Code).
By so qualifying, a fund will be exempt from federal income taxes to the extent
that it distributes substantially all of its net investment income and net
realized capital gains (if any) to shareholders. If a fund fails to qualify as a
regulated investment company, it will be liable for taxes, significantly
reducing its distributions to shareholders and eliminating shareholders' ability
to treat distributions of the funds in the manner they were realized by the
funds.

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. The dividends from net income may quality 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 greater than 12 months 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 distributions of long-term capital gain to you with respect
to such shares.

Dividends and interest received by a fund on foreign securities may give
rise to withholding and other taxes imposed by foreign countries. Tax
conventions between certain countries and the United States may reduce or
eliminate such taxes. Foreign countries generally do not impose taxes on capital
gains in respect of investments by non-resident investors. The foreign taxes
paid by a fund will reduce its dividends.

If more than 50% of the value of a fund's total assets at the end of each
quarter of its fiscal year consists of securities of foreign corporations, the
fund may qualify for and make an election with the Internal Revenue Service with
respect to such fiscal year so that fund shareholders may be able to claim a
foreign tax credit in lieu of a deduction for foreign income taxes paid by the
fund. If such an election is

Statement of Additional Information 29

made, the foreign taxes paid by the fund will be treated as income received by
you. In order for the shareholder to utilize the foreign tax credit, the mutual
fund shares must have been held for 16 days or more during the 30-day period,
beginning 15 days prior to the ex-dividend date for the mutual fund shares. The
mutual fund must meet a similar holding period requirement with respect to
foreign securities to which a dividend is attributable. Any portion of the
foreign tax credit that is ineligible as a result of the fund not meeting the
holding period requirement will be separately disclosed and may be eligible as
an itemized deduction.

If a fund purchases the securities of certain foreign investment funds or
trusts called passive foreign investment companies (PFIC), capital gains on the
sale of such holdings will be deemed to be ordinary income regardless of how
long the fund holds its investment. The fund also may be subject to corporate
income tax and an interest charge on certain dividends and capital gains earned
from these investments, regardless of whether such income and gains are
distributed to shareholders. In the alternative, the fund may elect to recognize
cumulative gains on such investments as of the last day of its fiscal year and
distribute it to shareholders. Any distribution attributable to a PFIC is
characterized as ordinary income.

If you have not complied with certain provisions of the Internal Revenue
Code and Regulations, either we or your financial intermediary is 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, and is not
refundable.

Redemption of shares of a fund (including redemption made in an exchange
transaction) will be a taxable transaction for federal income tax purposes and
shareholders will generally recognize gain or loss in an amount equal to the
difference between the basis of the shares and the amount received. 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 Code, resulting in a postponement of the recognition of such
loss for federal income tax purposes.

STATE AND LOCAL TAXES

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.

HOW FUND PERFORMANCE INFORMATION IS CALCULATED

The funds may quote performance in various ways. Fund performance may be
shown by presenting one or more performance measurements, including cumulative
total return, average annual total return or yield.

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.

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

30 American Century Investments

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, 1998, Utilities' yield was 2.44%.

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 during 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 equal 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 the funds' 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 following tables set forth the average annual total return for the
various classes of the funds for the one-, five- and 10-year periods (or the
period since inception) ended December 31, 1998, the last day of the funds'
fiscal year.

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 total returns, each fund may quote unaveraged
or cumulative total returns reflecting the simple change in value of an
investment over a stated period, including periods other than one, five and 10
years. Average annual and cumulative total returns may be quoted as percentages
or as dollar amounts 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) to illustrate the relationship of these
factors and their contributions to total return.

AVERAGE ANNUAL TOTAL RETURNS -- INVESTOR CLASS

Fund 1 year 5 years 10 years Life of Fund
- -------------------------------------------------------------------------------
Income & Growth(1) 27.67 23.74 N/A 21.88

Equity Growth(2) 25.45 23.88 N/A 19.79

Small Cap Quantitative(3) N/A N/A N/A .40

Global Gold(4) -12.18 -14.58 -3.51 -4.36

Global Natural Resources(5) -6.30 N/A N/A 4.83

Utilities(6) 27.43 17.24 N/A 15.86
- -------------------------------------------------------------------------------

(1) Commenced operations on December 17, 1990.

(2) Commenced operations on May 9, 1991.

(3) Commenced operations on July 31, 1998.

(4) Commenced operations on August 17, 1988.

(5) Commenced operations on September 15, 1994.

(6) Commenced operations on March 1, 1993.

Statement of Additional Information 31

AVERAGE ANNUAL TOTAL RETURNS -- INSTITUTIONAL CLASS

Fund Life of Fund
- --------------------------------------------------------------------------------
Income & Growth(1) 27.87

Equity Growth(2) 25.59
- --------------------------------------------------------------------------------

(1) Commenced operations on January 28, 1998.

(2) Commenced operations on January 2, 1998.

AVERAGE ANNUAL TOTAL RETURNS -- ADVISOR CLASS

Fund 1 year Life of Fund
- --------------------------------------------------------------------------------
Income & Growth(1) 27.37 27.63

Equity Growth(2) 25.14 19.55

Global Gold(3) N/A -24.00

Utilities(4) N/A 18.43
- --------------------------------------------------------------------------------

(1) Commenced operations on December 15, 1997.

(2) Commenced operations on October 9, 1997.

(3) Commenced operations on May 6, 1998.

(4) Commenced operations on June 25, 1998.

PERFORMANCE COMPARISONS

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 the American
Century funds, are sold with a sales charge or deferred sales charge, and with
indexes which do not reflect administrative and management costs such as those
incurred by mutual funds. Sources of 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 a.m./p.m. fixing and New York Comex Spot Price);
rankings of any mutual fund or mutual fund category tracked by Lipper 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 or to provide general information about the funds.

PERMISSIBLE ADVERTISING INFORMATION

From time to time, the funds may, in addition to any other permissible
information, include the following types of information in advertisements,
supplemental sales literature and reports to shareholders: (1) discussions of
general economic or financial principles (such as the effects of compounding and
the benefits of dollar-cost averaging); (2) discussions of general economic
trends, including illustrations of particular markets (like the gold market);
(3) presentations of statistical data to supplement such discussions and to
illustrate historical and projected demand for certain commodities; (4)
descriptions of past or anticipated portfolio holdings for one or more of the
funds; (5) descriptions of investment strategies for one or more of the funds;
(6) descriptions or comparisons of various savings and investment products
(including, but not limited to, qualified retirement plans and individual stocks
and bonds), which may or may not include the funds; (7) comparisons of
investment products (including the funds) with relevant market or industry
indices or other appropriate benchmarks; (8) discussions of fund rankings or
ratings by recognized rating organizations; and (9) testimonials describing the
experience of persons that have invested in one or more of the funds. The funds
may also include calculations, such as hypothetical compounding examples, which
describe hypothetical investment results. Such performance examples will be
based on an express set of assumptions and are not indicative of the performance
of any of the funds.

32 American Century Investments

MULTIPLE CLASS PERFORMANCE ADVERTISING

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's performance will be restated to reflect the expenses of the new
class and for periods after the first full quarter after inception, actual
performance of the new class will be used.

FINANCIAL STATEMENTS

The financial statements of the funds are included in the Annual Reports to
shareholders for the fiscal year ended December 31, 1998. The Annual Reports are
incorporated herein by reference. You may receive copies of the reports without
charge upon request to American Century at the address and telephone number
shown on the back cover of this

Statement of Additional Information. 33

MORE INFORMATION ABOUT THE FUNDS IS CONTAINED IN THESE DOCUMENTS

ANNUAL AND SEMIANNUAL REPORTS

These contain more information about the funds' investments and the market
conditions and investment strategies that significantly affected the funds'
performance during the most recent fiscal period. The annual and semiannual
reports are incorporated by reference into this SAI. This means that these are
legally part of this SAI.

You can receive a free copy of the annual and semiannual reports, and ask any
questions about the funds, by contacting us at one of the addresses or telephone
numbers listed below.

If you own or are considering purchasing fund shares through

* an employer-sponsored retirement plan
* a bank
* a broker-dealer
* an insurance company
* another financial intermediary

you can receive the annual and semiannual reports directly from them.

You also can get information about the funds from the Security and Exchange
Commission (SEC).

* In person SEC Public Reference Room
Washington, D.C.
Call 1-800-SEC-0330 for location and hours.

* On the Internet www.sec.gov

* By mail SEC Public Reference Section
Washington, D.C. 20549-6009
(The SEC will charge a fee for copying the documents.)

Investment Company Act File No. 811-5447

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

AMERICAN CENTURY INVESTMENTS
P.O. Box 419200
Kansas City, Missouri 64141-6200

INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575

AUTOMATED INFORMATION LINE
1-800-345-8765

WWW.AMERICANCENTURY.COM

FAX
816-340-7962

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

BUSINESS; NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353

SH-SAI-15624 9903
<PAGE>

- --------------------------------------------------------------------------------

PART C OTHER INFORMATION

Item 23 Exhibits

(a) Amended and Restated Articles of Incorporation of American
Century Quantitative Equity Funds dated March 1, 1999 is included
herein.

(b) 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).

(c) Registrant hereby incorporates by reference, as though set forth
fully herein, Article III and Article V of Registrants Amended
and Restated Articles of Incorporation, appearing as an Exhibit
to Post-Effective Amendment No. 25 to the Registration Statement
on Form N-1A of the Registrant, and Article I, Article IV,
Article V and Article VII of Registrants Amended and Restated
Bylaws, appearing as Exhibit (b)(2) to Post-Effective Amendment
No. 21 to the Registration Statement on Form N-1A of the
Registrant.

(d) (1)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).

(2) 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).

(3) 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).

(4) Amendment to Management Agreement - Advisor Class between
American Century Quantitative Equity Funds and American Century
Investment Management, Inc., dated June 29, 1998 (filed
electronically as an Exhibit to Post-Effective Amendment No. 23
on Form N-1A on June 29, 1998, File No. 33-19589).

(5) 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) Amendment to Management Agreement - Institutional Class
between American Century Quantitative Equity Funds and American
Century Investment Management, Inc., dated June 29, 1998 (filed
electronically as an Exhibit to Post-Effective Amendment No. 23
on Form N-1A on June 29, 1998, File No. 33-19589).

(e) (1) 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).

(2) Amendment No. 1 to Distribution Agreement between American
Century Quantitative Equity Funds and Funds Distributor, Inc.,
dated June 1, 1998 (filed electronically as an Exhibit to
Post-Effective Amendment No. 23 on Form N-1A on June 29, 1998,
File No. 33-19589).

(3) Amendment No. 2 to Distribution Agreement between American
Century Quantitative Equity Funds and Funds Distributor, Inc.,
dated December 1, 1998 (filed electronically as an Exhibit to
Post-Effective Amendment No. 12 of American Century World Mutual
Funds, Inc. on November 13, 1998).

(4) Amendment No. 3 to Distribution Agreement between American
Century Quantitative Equity Funds and Funds Distributor, Inc.,
dated January 29, 1999 (filed electronically as an Exhibit to
Post-Effective Amendment No. 28 of American Century California
Tax-Free and Municipal Funds on December 28, 1998).

(f) Not Applicable.

(g) 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, on February 28, 1997).

(h) (1) 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).

(2) Amendment to Transfer Agency Agreement between American
Century Quantitative Equity Funds and American Century Services
Corporation, dated June 29, 1998 (filed electronically as an
Exhibit to Post-Effective Amendment No. 23 on Form N-1A on June
29, 1998, File No. 33-19589).

(i) Opinion and Consent of Counsel is included herein.

(j) (1) Consent of PricewaterhouseCoopers LLP, is included herein.

(2) Power of Attorney dated December 18, 1998 (filed
electronically as an Exhibit to Post-Effective Amendment No. 24
on Form N-1A on January 5, 1999, File No. 33-19589).

(k) Not Applicable.

(l) Not Applicable.

(m) (1) 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).

(2) Amendment No. 1 to Master Distribution and Shareholder
Services Plan of American Century Quantitative Equity Funds
(Advisor Class) dated June 29, 1998 (filed electronically as an
Exhibit to Post-Effective Amendment No. 23 on Form N-1A on June
29, 1998, File No. 33-19589).

(n) (1) Financial Data Schedule for American Century Global Gold Fund
is included herein.

(2) Financial Data Schedule for American Century Income & Growth
Fund is included herein.

(3) Financial Data Schedule for American Century Equity Growth
Fund is included herein.

(4) Financial Data Schedule for American Century Utilities Fund
is included herein.

(5) Financial Data Schedule for American Century Global Natural
Resources Fund is included herein.

(6) Financial Data Schedule for American Century Small Cap
Quantitative Fund is included herein.

(o) (1) 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).

(2) Amendment to Multiple Class Plan of American Century
Quantitative Equity Funds dated June 29, 1998 (filed
electronically as an Exhibit to Post-Effective Amendment No. 23
on Form N-1A on June 29, 1998, File No. 33-19589).

Item 24. Persons Controlled by or Under Common Control with Registrant.

None.

Item 25. 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 March 9, 1998, appearing as Exhibit B(2) of Post-Effective Amendment
No. 21 filed on April 15, 1998.

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 26. Business and Other Connections of Investment Advisor.

None.

Item 27. 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.
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
JPM Series Trust
JPM Series Trust II
LaSalle Partners Funds, Inc.
Kobrick-Cendant Investment Trust
Merrimac Series
Monetta Fund, Inc.
Monetta Trust
The Montgomery Funds I
The Montgomery Funds II
The Munder Framlington Funds Trust
The Munder Funds Trust
The Munder Funds, Inc.
National Investors Cash Management Fund, Inc.
Orbitex Group of Funds
SG Cowen Funds, Inc.
SG Cowen Income + Growth Fund, Inc.
SG Cowen Standby Reserve Fund, Inc.
SG Cowen Standby Tax-Exempt Reserve Fund, Inc.
SG Cowen Series Funds, Inc.
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

George A. Rio Executive Vice President President, Principal Executive
and Principal Financial Officer

Donald R. Roberson Executive Vice President none

William S. Nichols Executive Vice President none

Margaret W. Chambers Senior Vice President, none
General Counsel, Chief
Compliance Officer,
Secretary and Clerk

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

Gary S. MacDonald Senior Vice President none

Judith K. Benson Senior Vice President none

William J. Nutt Chairman and Director none
- --------------------
* All addresses are 60 State Street, Suite 1300, Boston, Massachusetts 02109
</TABLE>

Item 28. Location of Accounts and Records.

All accounts, books and other documents required to be maintained by
Section 31(a) of the 1940 Act, and the rules promulgated thereunder, are in
the possession of the Registrant, American Century Services Corporation and
American Century Investment Management, Inc., all located at American
Century Tower, 4500 Main Street, Kansas City, Missouri 64111.

Item 29. Management Services.

Not Applicable.

Item 30. Undertakings.

Not Applicable.
<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 certifies that it meets all the requirements for effectiveness of
this Post-Effective Amendment No. 26 to its Registration Statement pursuant to
Rule 485(b) promulgated under the Securities Act of 1933, as amended, and has
duly caused this Post-Effective Amendment No. 26/Amendment No. 28 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 31st day
of March, 1999.

AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS
(Registrant)

By: /*/George A. Rio
George A. Rio
President and Principal Executive Officer

Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment No. 26/Amendment No. 28 has been signed below by the
following persons in the capacities and on the dates indicated.

Signature Title Date

*George A. Rio President, Principal March 31, 1999
- --------------------------------- Executive and Principal
George A. Rio Financial Officer

*Maryanne Roepke Vice President, Treasurer March 31, 1999
- --------------------------------- and Principal Accounting
Maryanne Roepke Officer

*Albert A. Eisenstat Director March 31, 1999
- ---------------------------------
Albert A. Eisenstat

*Ronald J. Gilson Director March 31, 1999
- ---------------------------------
Ronald J. Gilson

*William M. Lyons Director March 31, 1999
- ---------------------------------
William M. Lyons

*Myron S. Scholes Director March 31, 1999
- ---------------------------------
Myron S. Scholes

*Kenneth E. Scott Director March 31, 1999
- ---------------------------------
Kenneth E. Scott

*Isaac Stein Director March 31, 1999
- ---------------------------------
Isaac Stein

*James E. Stowers III Director March 31, 1999
- ---------------------------------
James E. Stowers III

*Jeanne D. Wohlers Director March 31, 1999
- ---------------------------------
Jeanne D. Wohlers

*By /s/Charles A. Etherington
Charles A. Etherington
Attorney-in-Fact

EXHIBIT DESCRIPTION

EX-99.a Amended and Restated Articles of Incorporation of American Century
Quantitative Equity Funds dated March 1, 1999.

EX-99.b 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.d1 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.d2 Amendment to Management Agreement - Investor Class between American
Century Quantitative Equity Funds and American Century Investment
Management, Inc., dated March 9, 1998 (filed as a part of
Post-Effective Amendment No. 23 to the Registration Statement on
Form N-1A of American Century Municipal Trust, File No. 2-91229,
filed March 26, 1998, and incorporated herein by reference).

EX-99.d3 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.d4 Amendment to Management Agreement - Advisor Class between American
Century Quantitative Equity Funds and American Century Investment
Management, Inc., dated June 29, 1998 (filed as a part of
Post-Effective Amendment No. 23 to the Registration Statement on
Form N-1A of the Registrant, File No. 33-19589, filed on June 29,
1998, and incorporated herein by reference).

EX-99.d5 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.d6 Amendment to Management Agreement - Institutional Class between
American Century Quantitative Equity Funds and American Century
Investment Management, Inc., dated June 29, 1998 (filed as a part of
Post-Effective Amendment No. 23 to the Registration Statement on
Form N-1A of the Registrant, File No. 33-19589, filed on June 29,
1998, and incorporated herein by reference).

EX-99.e1 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.e2 Amendment to Distribution Agreement between American Century
Quantitative Equity Funds and Funds Distributor, Inc., dated June 1,
1998 (filed as a part of Post-Effective Amendment No. 23 to the
Registration Statement on Form N-1A of the Registrant, File No.
33-19589, filed on June 29, 1998, and incorporated herein by
reference).

EX-99.g 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.h1 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.h2 Amendment to Transfer Agency Agreement between American Century
Quantitative Equity Funds and American Century Services Corporation,
dated June 29, 1998 (filed as a part of Post-Effective Amendment No.
23 to the Registration Statement on Form N-1A of the Registrant,
File No. 33-19589, filed on June 29, 1998, and incorporated herein
by reference).

EX-99.i Opinion and Consent of Charles A. Etherington, Esq.

EX-99.j1 Consent of PricewaterhouseCoopers LLP.

EX-99.j2 Power of Attorney (filed as a part of Post-Effective Amendment No.
24 on Form N-1A of the Registrant, File No. 33-19589, filed on
January 5, 1999, and incorporated herein by reference).

EX-99.m1 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.m2 Amendment No. 1 to Master Distribution and Shareholder Services Plan
of American Century Quantitative Equity Funds (Advisor Class) dated
June 29, 1998 (filed as a part of Post-Effective Amendment No. 23 to
the Registration Statement on Form N-1A of the Registrant, File No.
33-19589, filed on June 29, 1998, and incorporated herein by
reference).

EX-99.o1 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-99.o2 Amendment to Multiple Class Plan of American Century Quantitative
Equity Funds dated June 29, 1998 (filed as a part of Post-Effective
Amendment No. 23 to the Registration Statement on Form N-1A of the
Registrant, File No. 33-19589, filed on June 29, 1998, 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.

EX-27.1.6 FDS - American Century Small Cap Quantitative Fund.

AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS

AMENDED AND RESTATED
ARTICLES OF INCORPORATION

The undersigned hereby certify that:

1. They are the President and Secretary, respectively, of American Century
Quantitative Equity Funds, a California corporation.

2. The Articles of Incorporation of this corporation are amended and restated
to read as follows:

- --------------------------------------------------------------------------------
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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 Small Capitalization Quantitative Fund--Institutional Class.

Shares of the Global Gold Fund, Income & Growth Fund, Equity Growth Fund,
Utilities Fund, Global Natural Resources Fund and 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.
- --------------------------------------------------------------------------------

3. The foregoing amendment and restatement of Articles of Incorporation has
been duly approved by the Board of Directors.

4. The foregoing amendment may be adopted by the Board of Directors alone
without approval of the corporation's shareholders. The amendment is solely
to remove the "American Century" moniker from the names of the series as
described in Article III.

The undersigned declare under penalty of perjury and the laws of the State of
California that the matters set forth in this certificate are true and correct
of their own knowledge.

/s/GEORGE RIO DATED: MARCH 1, 1999
GEORGE RIO
President

DATED: MARCH 1, 1999
/s/DOUGLAS A. PAUL
DOUGLAS A. PAUL
Secretary

CHARLES A. ETHERINGTON
ATTORNEY AT LAW

4500 MAIN STREET
KANSAS CITY, MISSOURI 64111

TELEPHONE (816)340-4051
TELECOPIER (816)340-4964

March 31, 1999

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 1933 Act
Post-Effective Amendment No. 26 and 1940 Act Amendment No. 28 to its
Registration Statement on Form N-1A, to be filed with the Securities and
Exchange Commission on March 31, 1999, 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 Post-Effective
Amendment No. 26 and Amendment No. 28, referenced above.

Very truly yours,

/s/Charles A. Etherington
Charles A. Etherington

CONSENT OF INDEPENDENT ACCOUNTANTS

We consent to the incorporation by reference in Post-Effective Amendment No. 26
to the Registration Statement of America Century Income & Growth Fund, American
Century Equity Growth Fund, American Century Small Cap Quantitative Fund,
American Century Global Gold Fund, American Century Global Natural Resources
Fund and American Century Utilities Fund (all of the funds comprising the
American Century Quantitative Equity Funds), on Form N1-A of our reports dated
February 1, 1999 on our audits of the financial statements and financial
highlights of American Century Income & Growth Fund, American Century Equity
Growth Fund, American Century Small Cap Quantitative Fund, American Century
Global Gold Fund, American Century Global Natural Resources Fund and American
Century Utilities Fund, which reports are included in the Annual Reports to
Shareholders for the year ended December 31, 1998, which is incorporated by
reference in Post-Effective Amendment No. 26 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/PricewaterhouseCoopers LLP

Kansas City, Missouri
March 31, 1999

<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> 1
<NAME> AMERICAN CENTURY GLOBAL GOLD FUND

<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 315,303,855 <F1>
<INVESTMENTS-AT-VALUE> 230,538,158
<RECEIVABLES> 69,940
<ASSETS-OTHER> 577,153
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 231,185,251
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,396,882
<TOTAL-LIABILITIES> 2,396,882
<SENIOR-EQUITY> 414,413
<PAID-IN-CAPITAL-COMMON> 427,376,978
<SHARES-COMMON-STOCK> 41,441,328
<SHARES-COMMON-PRIOR> 38,831,961
<ACCUMULATED-NII-CURRENT> (19,006)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (114,218,432)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (84,765,584)
<NET-ASSETS> 228,788,369
<DIVIDEND-INCOME> 3,512,161
<INTEREST-INCOME> 196,940
<OTHER-INCOME> 0
<EXPENSES-NET> 1,776,744
<NET-INVESTMENT-INCOME> 1,932,357
<REALIZED-GAINS-CURRENT> (77,995,127)
<APPREC-INCREASE-CURRENT> 47,507,318
<NET-CHANGE-FROM-OPS> (28,555,452)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,999,823
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 104,280,117
<NUMBER-OF-SHARES-REDEEMED> 102,004,280
<SHARES-REINVESTED> 333,530
<NET-CHANGE-IN-ASSETS> (17,226,943)
<ACCUMULATED-NII-PRIOR> 1,568
<ACCUMULATED-GAINS-PRIOR> (36,176,413)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,760,265
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,776,744
<AVERAGE-NET-ASSETS> 256,380,983
<PER-SHARE-NAV-BEGIN> 6.34 <F2>
<PER-SHARE-NII> 0.05 <F2>
<PER-SHARE-GAIN-APPREC> (0.82)<F2>
<PER-SHARE-DIVIDEND> 0.05 <F2>
<PER-SHARE-DISTRIBUTIONS> 0.00 <F2>
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 5.52 <F2>
<EXPENSE-RATIO> 0.69 <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-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 3,566,956,976 <F1>
<INVESTMENTS-AT-VALUE> 4,395,501,727
<RECEIVABLES> 21,831,274
<ASSETS-OTHER> 42,274,743
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 4,459,607,744
<PAYABLE-FOR-SECURITIES> 34,597,492
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9,339,645
<TOTAL-LIABILITIES> 43,937,137
<SENIOR-EQUITY> 1,509,851
<PAID-IN-CAPITAL-COMMON> 3,578,225,059
<SHARES-COMMON-STOCK> 150,985,127
<SHARES-COMMON-PRIOR> 74,009,549
<ACCUMULATED-NII-CURRENT> 1,065,613
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (7,640,088)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 842,510,172
<NET-ASSETS> 4,415,670,607
<DIVIDEND-INCOME> 55,769,162
<INTEREST-INCOME> 5,586,073
<OTHER-INCOME> 0
<EXPENSES-NET> 21,136,460
<NET-INVESTMENT-INCOME> 40,218,775
<REALIZED-GAINS-CURRENT> 142,119,705
<APPREC-INCREASE-CURRENT> 559,106,533
<NET-CHANGE-FROM-OPS> 741,445,013
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 41,688,062
<DISTRIBUTIONS-OF-GAINS> 171,700,418
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 121,461,009
<NUMBER-OF-SHARES-REDEEMED> 51,899,105
<SHARES-REINVESTED> 7,413,680
<NET-CHANGE-IN-ASSETS> 2,616,827,296
<ACCUMULATED-NII-PRIOR> 2,534,900
<ACCUMULATED-GAINS-PRIOR> 21,940,625
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 20,975,664
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 21,136,460
<AVERAGE-NET-ASSETS> 3,072,478,183
<PER-SHARE-NAV-BEGIN> 24.31 <F2>
<PER-SHARE-NII> 0.36 <F2>
<PER-SHARE-GAIN-APPREC> 6.22 <F2>
<PER-SHARE-DIVIDEND> 0.35 <F2>
<PER-SHARE-DISTRIBUTIONS> 1.30 <F2>
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 29.24 <F2>
<EXPENSE-RATIO> 0.69 <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>

<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 1,759,840,573 <F1>
<INVESTMENTS-AT-VALUE> 2,104,161,066
<RECEIVABLES> 4,684,755
<ASSETS-OTHER> 9,615,653
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,118,461,474
<PAYABLE-FOR-SECURITIES> 7,048,682
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,588,294
<TOTAL-LIABILITIES> 10,636,976
<SENIOR-EQUITY> 928,252
<PAID-IN-CAPITAL-COMMON> 1,753,155,192
<SHARES-COMMON-STOCK> 92,825,208
<SHARES-COMMON-PRIOR> 40,641,545
<ACCUMULATED-NII-CURRENT> 582,907
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,957,496
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 351,200,651
<NET-ASSETS> 2,107,824,498
<DIVIDEND-INCOME> 22,734,592
<INTEREST-INCOME> 2,801,849
<OTHER-INCOME> 0
<EXPENSES-NET> 10,050,016
<NET-INVESTMENT-INCOME> 15,486,425
<REALIZED-GAINS-CURRENT> 35,760,449
<APPREC-INCREASE-CURRENT> 272,888,031
<NET-CHANGE-FROM-OPS> 324,134,905
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 15,195,517
<DISTRIBUTIONS-OF-GAINS> 60,353,874
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 83,378,827
<NUMBER-OF-SHARES-REDEEMED> 34,609,711
<SHARES-REINVESTED> 3,414,547
<NET-CHANGE-IN-ASSETS> 1,333,845,961
<ACCUMULATED-NII-PRIOR> 291,999
<ACCUMULATED-GAINS-PRIOR> 26,550,921
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 9,895,344
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 10,050,016
<AVERAGE-NET-ASSETS> 1,452,613,173
<PER-SHARE-NAV-BEGIN> 19.04 <F2>
<PER-SHARE-NII> 0.22 <F2>
<PER-SHARE-GAIN-APPREC> 4.53 <F2>
<PER-SHARE-DIVIDEND> 0.20 <F2>
<PER-SHARE-DISTRIBUTIONS> 0.88 <F2>
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 22.71 <F2>
<EXPENSE-RATIO> 0.69 <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>

<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 235,702,327 <F1>
<INVESTMENTS-AT-VALUE> 307,998,431
<RECEIVABLES> 790,685
<ASSETS-OTHER> 1,097,078
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 309,886,194
<PAYABLE-FOR-SECURITIES> 1,324,499
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 709,526
<TOTAL-LIABILITIES> 2,034,025
<SENIOR-EQUITY> 192,909
<PAID-IN-CAPITAL-COMMON> 234,554,083
<SHARES-COMMON-STOCK> 19,290,927
<SHARES-COMMON-PRIOR> 14,746,680
<ACCUMULATED-NII-CURRENT> 246,713
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 561,823
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 72,296,641
<NET-ASSETS> 307,852,169
<DIVIDEND-INCOME> 7,341,118
<INTEREST-INCOME> 138,175
<OTHER-INCOME> 0
<EXPENSES-NET> 1,621,709
<NET-INVESTMENT-INCOME> 5,857,584
<REALIZED-GAINS-CURRENT> 25,812,319
<APPREC-INCREASE-CURRENT> 29,664,921
<NET-CHANGE-FROM-OPS> 61,334,824
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 5,859,230
<DISTRIBUTIONS-OF-GAINS> 28,059,088
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 15,422,169
<NUMBER-OF-SHARES-REDEEMED> 12,882,858
<SHARES-REINVESTED> 2,000,202
<NET-CHANGE-IN-ASSETS> 97,890,449
<ACCUMULATED-NII-PRIOR> 249,655
<ACCUMULATED-GAINS-PRIOR> 2,807,296
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,605,054
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,621,709
<AVERAGE-NET-ASSETS> 233,837,776
<PER-SHARE-NAV-BEGIN> 14.24 <F2>
<PER-SHARE-NII> 0.37 <F2>
<PER-SHARE-GAIN-APPREC> 3.39 <F2>
<PER-SHARE-DIVIDEND> 0.38 <F2>
<PER-SHARE-DISTRIBUTIONS> 1.66 <F2>
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 15.96 <F2>
<EXPENSE-RATIO> 0.69 <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.
</LEGEND>
<CIK> 0000827060
<NAME> AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS
<SERIES>
<NUMBER> 5
<NAME> AMERICAN CENTURY GLOBAL NATURAL RESOURCES FUND

<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 36,824,603
<INVESTMENTS-AT-VALUE> 40,013,806
<RECEIVABLES> 69,841
<ASSETS-OTHER> 270,812
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 40,354,459
<PAYABLE-FOR-SECURITIES> 490,246
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 105,433
<TOTAL-LIABILITIES> 595,679
<SENIOR-EQUITY> 37,560
<PAID-IN-CAPITAL-COMMON> 38,316,503
<SHARES-COMMON-STOCK> 3,755,984
<SHARES-COMMON-PRIOR> 4,056,841
<ACCUMULATED-NII-CURRENT> 44,512
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,829,504)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,189,709
<NET-ASSETS> 39,758,780
<DIVIDEND-INCOME> 996,024
<INTEREST-INCOME> 42,879
<OTHER-INCOME> 0
<EXPENSES-NET> 301,190
<NET-INVESTMENT-INCOME> 737,713
<REALIZED-GAINS-CURRENT> (1,325,843)
<APPREC-INCREASE-CURRENT> (34,388)
<NET-CHANGE-FROM-OPS> (2,578,703)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 688,139
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,504,958
<NUMBER-OF-SHARES-REDEEMED> 6,865,254
<SHARES-REINVESTED> 59,439
<NET-CHANGE-IN-ASSETS> (6,797,427)
<ACCUMULATED-NII-PRIOR> (5,062)
<ACCUMULATED-GAINS-PRIOR> (469,273)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 297,762
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 301,190
<AVERAGE-NET-ASSETS> 43,367,949
<PER-SHARE-NAV-BEGIN> 11.48
<PER-SHARE-NII> 0.19
<PER-SHARE-GAIN-APPREC> (0.90)
<PER-SHARE-DIVIDEND> 0.18
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.59
<EXPENSE-RATIO> 0.69
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00

</TABLE>

<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> 6
<NAME> AMERICAN SMALL CAP QUANTITATIVE

<S> <C>
<PERIOD-TYPE> 5-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 13,648,366
<INVESTMENTS-AT-VALUE> 14,926,275
<RECEIVABLES> 141,719
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 480,818
<TOTAL-ASSETS> 15,548,812
<PAYABLE-FOR-SECURITIES> 567,029
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 11,129
<TOTAL-LIABILITIES> 578,158
<SENIOR-EQUITY> 29,820
<PAID-IN-CAPITAL-COMMON> 13,641,111
<SHARES-COMMON-STOCK> 2,981,965
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 5,774
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (152)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,294,101
<NET-ASSETS> 14,970,654
<DIVIDEND-INCOME> 21,665
<INTEREST-INCOME> 10,914
<OTHER-INCOME> 0
<EXPENSES-NET> 26,805
<NET-INVESTMENT-INCOME> 5,774
<REALIZED-GAINS-CURRENT> (152)
<APPREC-INCREASE-CURRENT> 1,294,101
<NET-CHANGE-FROM-OPS> 1,299,723
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,340,662
<NUMBER-OF-SHARES-REDEEMED> 1,358,697
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 14,970,654
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 25,213
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 26,805
<AVERAGE-NET-ASSETS> 6,754,703
<PER-SHARE-NAV-BEGIN> 5.00
<PER-SHARE-NII> 0.02
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 5.02
<EXPENSE-RATIO> 0.94
<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>