AMERICAN CENTURY WORLD MUTUAL FUNDS INC
497, 1997-01-15
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                                   PROSPECTUS

                                 [company logo]

                               SEPTEMBER 3, 1996
                            REVISED JANUARY 1, 1997

                                   TWENTIETH
                                   CENTURY(R)
                                     GROUP

                              International Growth
                            International Discovery

ADVISOR CLASS

                                 [front cover]


AMERICAN CENTURY INVESTMENTS
FAMILY OF FUNDS


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


                          AMERICAN CENTURY INVESTMENTS


BENHAM GROUP(R)          AMERICAN CENTURY GROUP        TWENTIETH CENTURY GROUP 
                                                                               
MONEY MARKET FUNDS       ASSET ALLOCATION &            GROWTH FUNDS            
GOVERNMENT BOND FUNDS    BALANCED FUNDS                INTERNATIONAL FUNDS     
DIVERSIFIED BOND FUNDS   CONSERVATIVE EQUITY FUNDS                             
MUNICIPAL BOND FUNDS     SPECIALTY FUNDS               International Growth    
                                                       International Discovery 
                                                       
                              [inside front cover]


                                   PROSPECTUS
                               SEPTEMBER 3, 1996
                            REVISED JANUARY 1, 1997

                              International Growth
                            International Discovery

                                 ADVISOR CLASS

                   AMERICAN CENTURY WORLD MUTUAL FUNDS, INC.

     American  Century  World Mutual Funds,  Inc. is a part of American  Century
Investments,  a family of funds that  includes  nearly 70 no-load  and  low-load
mutual funds  covering a variety of investment  opportunities.  Two of the funds
from our  Twentieth  Century  Group  are  described  in this  Prospectus.  Their
investment  objectives  are  described on page 2 of this  Prospectus.  The other
funds are described in separate prospectuses.

     The  funds  described  in  this  Prospectus   invest  primarily  in  equity
securities of foreign  issuers.  Investment  in  securities  of foreign  issuers
typically  involves  a  greater  degree  of risk  than  investment  in  domestic
securities (see "Risk Factors," page 9).

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

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

     This Prospectus gives you information  about the funds that you should know
before investing. Please read this Prospectus carefully and retain it for future
reference.  Additional  information  is included in the  Statement of Additional
Information  dated September 3, 1996, and filed with the Securities and Exchange
Commission. It is incorporated into this Prospectus by reference.
To obtain a copy without charge, call or write:

                          AMERICAN CENTURY INVESTMENTS
                       4500 Main Street o P.O. Box 419385
               Kansas City, Missouri 64141-6385 o 1-800-345-3533
                       International calls: 816-531-5575
                    Telecommunications Device for the Deaf:
                   1-800-345-1833 o In Missouri: 816-753-0700
                       Internet: www.americancentury.com

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

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

Prospectus                                                                     1


INVESTMENT OBJECTIVES OF THE FUNDS

AMERICAN CENTURY -- TWENTIETH CENTURY
INTERNATIONAL GROWTH FUND

     The investment  objective of International  Growth (formerly  International
Equity)  is  capital  growth.  The fund  will  seek to  achieve  its  investment
objective by investing primarily in an internationally  diversified portfolio of
equity  securities  that are  considered  by the manager to have  prospects  for
appreciation.  The fund will  invest  primarily  in  securities  of  issuers  in
developed markets.

AMERICAN CENTURY -- TWENTIETH CENTURY
INTERNATIONAL DISCOVERY FUND

     The investment objective of International Discovery (formerly International
Emerging Growth) is capital growth. The fund will seek to achieve its investment
objective by investing primarily in an internationally  diversified portfolio of
equity securities of issuers having comparatively smaller market capitalizations
(less  than U.S.  $1  billion in market  capitalization  or less than U.S.  $500
million  in  public  float).  The fund may  invest  up to 50% of its  assets  in
securities of issuers in emerging market countries. All such investments will be
considered by the investment manager to have prospects for appreciation.  Due to
the risks  associated with such  investments,  an investment in this fund may be
considered speculative.

     SHARES OF THE FUND EXCHANGED OR REDEEMED  WITHIN 180 DAYS OF THEIR PURCHASE
ARE SUBJECT TO A REDEMPTION FEE OF 2.0% OF THE VALUE OF THE SHARES  EXCHANGED OR
REDEEMED.  This  redemption  fee is  retained  by the  fund and is  intended  to
discourage  shareholders from exchanging or redeeming their shares shortly after
their  purchase,  as well as minimize the impact such exchanges and  redemptions
have on fund performance and, hence, on the other shareholders of the fund.

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

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

2    Investment Objectives                          American Century Investments


TABLE OF CONTENTS

Transaction and Operating Expense Table ..............................4
Financial Highlights .................................................5

INFORMATION REGARDING THE FUNDS

Investment Policies of the Funds .....................................7
   International Growth ..............................................7
   International Discovery ...........................................7
   Policies Applicable to Both Funds .................................8
Risk Factors .........................................................9
   Investing in Foreign Securities Generally .........................9
   Speculative Nature of International Discovery ....................10
   Investing in Emerging Market Countries ...........................10
   Investing in Smaller Companies ...................................11
   Investing in Lower Quality Debt Instruments ......................11
Other Investment Practices, Their Characteristics and Risks .........11
   Forward Currency Exchange Contracts ..............................11
   Indirect Foreign Investment ......................................12
   Sovereign Debt Obligations .......................................12
   Portfolio Turnover ...............................................12
   Repurchase Agreements ............................................13
   When-Issued Securities ...........................................13
   Short Sales ......................................................13
   Rule 144A Securities .............................................13
Performance Advertising .............................................14

HOW TO INVEST WITH AMERICAN CENTURY INVESTMENTS

How to Purchase and Sell American Century Funds .....................15
How to Exchange from One American Century Fund to Another ...........15
How to Redeem Shares ................................................15
Special Requirements for Large Redemptions ..........................16
Telephone Services ..................................................16
   Investors Line ...................................................16

ADDITIONAL INFORMATION YOU SHOULD KNOW

Share Price .........................................................17
   When Share Price Is Determined ...................................17
   How Share Price Is Determined ....................................17
   Where to Find Information About Share Price ......................18
Distributions .......................................................18
Taxes ...............................................................18
   Tax-Deferred Accounts ............................................18
   Taxable Accounts .................................................18
Management ..........................................................20
   Investment Management ............................................20
   Code of Ethics ...................................................21
   Transfer and Administrative Services .............................21
Distribution of Fund Shares .........................................21
   Services and Distribution Fees ...................................21
Further Information About American Century ..........................22

Prospectus                                                Table of Contents    3


TRANSACTION AND OPERATING EXPENSE TABLE

                                                  International    International
                                                     Growth          Discovery

SHAREHOLDER TRANSACTION EXPENSES:

Maximum Sales Load Imposed on Purchases .............. none           none
Maximum Sales Load Imposed on Reinvested Dividends ... none           none
Deferred Sales Load .................................. none           none
Redemption Fee ....................................... none           none(1)
Exchange Fee ......................................... none           none

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

Management Fees(2) ..................................  1.20%(3)       1.50%(3)
12b-1 Fees(4) .......................................  0.50%          0.50%
Other Expenses(5) ...................................  0.00%          0.00%
Total Fund Operating Expenses(2) ....................  1.70%(3)       2.00%(3)

EXAMPLE:

You would pay the following expenses        1 year     $ 17           $ 20
on a $1,000 investment, assuming a         3 years       53             62
5% annual return and redemption at         5 years       92            107
the end of each time period(5):           10 years      199            231

(1)  Shares of  International  Discovery Fund  exchanged or redeemed  within 180
     days of their purchase are subject to a redemption fee of 2.0% of the value
     of the shares exchanged or redeemed. This redemption fee is retained by the
     fund. See "How to Exchange from One American Century Fund to Another," page
     15 and "How to Redeem Shares," page 15.

(2)  Assumes, in accordance with Securities and Exchange Commission  guidelines,
     that the assets of International Growth and International  Discovery remain
     constant at $1,210,441,553  and $114,579,142,  respectively,  the assets of
     the funds as of November 30, 1995, and that the reduced management fees for
     International  Growth  and  International  Discovery  had  been  in  effect
     throughout the periods indicated.

(3)  International Growth pays an annual management fee of 1.25% of the first $1
     billion of average net assets,  0.95% of the next $1 billion of average net
     assets, and 0.85% of average net assets over $2 billion,  and International
     Discovery pays an annual  management fee of 1.50% of the first $500 million
     of average net assets,  1.15% of the next $500 million  average net assets,
     and 0.95% of average net assets over $1 billion.

(4)  The 12b-1 fee is designed to permit  investors  to purchase  Advisor  Class
     shares  through  broker-dealers,   banks,  insurance  companies  and  other
     financial  intermediaries.  A portion of the fee is used to compensate them
     for ongoing recordkeeping and administrative  services that would otherwise
     be  performed  by an  affiliate  of the  manager,  and a portion is used to
     compensate  them for  distribution  and  other  shareholder  services.  See
     "Service and Distribution Fees," page 21.

(5)  Other  expenses,  which  includes  the fees and expenses  (including  legal
     counsel  fees) of  those  directors  who are not  "interested  persons"  as
     defined in the  Investment  Company  Act,  were .001 of 1% of  average  net
     assets for the most recent fiscal year.

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

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

     The shares offered by this  Prospectus are Advisor Class shares.  The funds
offer three other  classes of shares,  one of which is  primarily  available  to
retail  investors  and  two  that  are  primarily   available  to  institutional
investors.  The other  classes have  different fee  structures  than the Advisor
Class,  resulting in different  performance  for those  classes.  For additional
information about the various classes,  see "Further  Information About American
Century," at page 22.

4    Transaction and Operating Expense Table        American Century Investments


FINANCIAL HIGHLIGHTS

INTERNATIONAL GROWTH

     The  Advisor  Class of the fund was  established  September  3,  1996.  The
financial  information in this table regarding  selected  per-share data for the
fund reflects the performance of the fund's Investor Class of shares,  which has
a total  expense  ratio that is 0.25%  lower  than the  Advisor  Class.  Had the
Advisor Class been in existence for the fund for the time periods presented, the
fund's  performance  information  would be lower as a result  of the  additional
expense.

     The  Financial  Highlights  for each of the  periods  presented  have  been
audited by Baird,  Kurtz & Dobson,  independent  certified  public  accountants.
Their report thereon appears in the fund's annual report,  which is incorporated
by reference  into the Statement of Additional  Information.  The semiannual and
annual  reports  contain  additional  performance  information  and will be made
available upon request and without charge.  The  information  presented is for a
share outstanding throughout the years ended November 30, except as noted.
<TABLE>

                                                                       1995         1994         1993          1992      1991(1)

PER-SHARE DATA
<S>                                                                   <C>          <C>          <C>           <C>         <C>  
Net Asset Value, Beginning of Period ..............................   $7.47        $7.34        $5.79         $5.33       $5.10
                                                                    -------      -------      -------       -------     -------
Income from Investment Operations

     Net Investment Income (Loss)(2) ..............................     .01        (.04)        (.04)           .06         .01

     Net Realized and Unrealized Gains on Investments
        and Foreign Currency Transactions .........................     .40          .57         1.78           .41         .22
                                                                    -------      -------      -------       -------     -------
     Total from Investment Operations .............................     .41          .53         1.74           .47         .23
                                                                    -------      -------      -------       -------     -------
Distributions

     From Net Investment Income ...................................      --           --       (.036)        (.005)          --

     In Excess of Net Investment Income ...........................      --           --       (.155)        (.002)          --

     From Net Realized Gains on Investment Transactions ...........  (.372)       (.402)           --            --          --
                                                                    -------      -------      -------       -------     -------
     Total Distributions ..........................................  (.372)       (.402)       (.191)        (.007)          --
                                                                    -------      -------      -------       -------     -------
Net Asset Value, End of Period ....................................   $7.51        $7.47        $7.34         $5.79       $5.33
                                                                    -------      -------      -------       -------     -------
     Total Return(3) ..............................................   5.93%        7.28%       31.04%         8.77%       4.51%

RATIOS/SUPPLEMENTAL DATA

     Ratio of Operating Expenses to Average Net Assets ............   1.77%        1.84%        1.90%         1.91%       1.93%(4)

     Ratio of Net Investment Income (Loss) to Average Net Assets ..    .25%       (.53)%       (.34)%           95%        .26%(4)

     Portfolio Turnover Rate ......................................    169%         242%         255%          180%         84%

     Average Commission Paid per Investment Security Traded .......   $.002        --(5)        --(5)         --(5)       --(5)

     Net Assets, End of Period (in thousands) ....................$1,210,442  $1,316,642     $759,238      $215,346     $43,076
</TABLE>

(1)  May 9, 1991 (inception) through November 30, 1991.

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

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

(4)  Annualized.

(5)  Not computed for period indicated.

Prospectus                                             Financial Highlights    5


FINANCIAL HIGHLIGHTS

INTERNATIONAL DISCOVERY

     The  Advisor  Class of the fund was  established  September  3,  1996.  The
financial  information in this table regarding  selected  per-share data for the
fund reflects the performance of the fund's Investor Class of shares,  which has
a total  expense  ratio that is 0.25%  lower  than the  Advisor  Class.  Had the
Advisor Class been in existence for the fund for the time periods presented, the
fund's  performance  information  would be lower as a result  of the  additional
expense.

     The  Financial  Highlights  for each of the  periods  presented  have  been
audited by Baird,  Kurtz & Dobson,  independent  certified  public  accountants.
Their report thereon appears in the fund's annual report,  which is incorporated
by reference  into the Statement of Additional  Information.  The semiannual and
annual  reports  contain  additional  performance  information  and will be made
available upon request and without charge.  The  information  presented is for a
share outstanding throughout the years ended November 30, except as noted.
<TABLE>
                                                                             1995         1994(1)

PER-SHARE DATA
<S>                                                                         <C>          <C>  
Net Asset Value, Beginning of Period ....................................   $5.39        $5.00
                                                                          -------      -------
Income from Investment Operations

     Net Investment Income (Loss)(2) ....................................     .03        (.02)

     Net Realized and Unrealized Gains on Investments and 
         Foreign Currency Transactions ..................................     .28          .41
                                                                          -------      -------
     Total from Investment Operations ...................................     .31          .39
                                                                          -------      -------
Distributions

     From Net Investment Income .........................................     --            --

     In Excess of Net Investment Income .................................     --            --

     From Net Realized Gains on Investment Transactions .................     --            --
                                                                          -------      -------
     Total Distributions ................................................     --            --
                                                                          -------      -------
Net Asset Value, End of Period ..........................................   $5.70        $5.39
                                                                          -------      -------
     Total Return(3) ....................................................    5.75%        7.80%

RATIOS/SUPPLEMENTAL DATA

     Ratio of Operating Expenses to Average Net Assets ..................    2.00%        2.00%(4)

     Ratio of Net Investment Income (Loss) to Average Net Assets ........     .27%       (.48)%(4)

     Portfolio Turnover Rate ............................................     168%          56%

     Average Commission Paid per Investment Security Traded .............   $.004         --(5)

     Net Assets, End of Period (in thousands) ........................... $114,579    $111,201
</TABLE>
(1)  April 1, 1994 (inception) through November 30, 1994.

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

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

(4)  Annualized.

(5)  Not computed for period indicated.

6    Financial Highlights                           American Century Investments


INFORMATION REGARDING THE FUNDS

INVESTMENT POLICIES OF THE FUNDS

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

     YOU  SHOULD  READ  AND  CAREFULLY  CONSIDER  THE  INFORMATION  UNDER  "RISK
FACTORS," PAGE 9 BEFORE MAKING AN INVESTMENT IN EITHER FUND.

INTERNATIONAL GROWTH

     The investment  objective of  International  Growth is capital growth.  The
fund will seek to achieve its  investment  objective by  investing  primarily in
securities  of foreign  issuers  that meet  certain  fundamental  and  technical
standards  of selection  (relating  primarily  to  acceleration  of earnings and
revenues) and have, in the opinion of the manager,  potential for  appreciation.
The fund will invest  primarily in issuers in developed  markets.  The fund will
invest primarily in equity securities (defined to include equity equivalents) of
such issuers.  The fund will attempt to stay fully invested in such  securities,
regardless of the movement of stock prices generally.

     Although the primary investment of the fund will be equity securities,  the
fund  may  also  invest  in  other  types  of  securities  consistent  with  the
accomplishment  of the fund's  objectives.  When the manager  believes  that the
total  return  potential  of other  securities  equals or exceeds the  potential
return  of  equity  securities,  the fund  may  invest  up to 35% in such  other
securities.

     The  other  securities  the fund may  invest in are  bonds,  notes and debt
securities of companies and  obligations of domestic or foreign  governments and
their  agencies.  The fund  will  limit  its  purchases  of debt  securities  to
investment  grade  obligations.  For long-term  debt  obligations  this includes
securities that are rated Baa or better by Moody's  Investors  Service,  Inc. or
BBB or  better  by  Standard  & Poor's  Corporation,  or that are not  rated but
considered  by the manager to be of  equivalent  quality.  According to Moody's,
bonds rated Baa are medium grade and possess some speculative characteristics. A
BBB rating by S&P indicates S&P's belief that a security exhibits a satisfactory
degree of safety and capacity for repayment,  but is more  vulnerable to adverse
economic   conditions   or  changing   circumstances   than  is  the  case  with
higher-quality  debt securities (see "An Explanation of Fixed Income  Securities
Ratings," in the Statement of Additional Information).

INTERNATIONAL DISCOVERY

     The investment objective of International  Discovery is capital growth. The
fund will seek to achieve its investment  objective by investing primarily in an
internationally  diversified portfolio of equity securities of issuers that meet
certain  fundamental and technical standards of selection (relating primarily to
acceleration  of  earnings  and  revenues).  The fund  will  invest  its  assets
primarily in equity securities of smaller foreign issuers (those issuers having,
at the time of investment,  a market capitalization of less than U.S. $1 billion
or a public  float of less than U.S.  $500  million).  The "public  float" of an
issuer is defined as the  aggregate  market  value of the  issuer's  outstanding
securities held by non-affiliates  of the issuer.  The fund may invest up to 50%
of its assets in securities of issuers in emerging market countries.

     The manager will  purchase  securities of issuers that have, in the opinion
of the manager,  significant  growth potential.  The fund will seek to invest in
securities  of issuers  with one or more  identifiable  catalysts  that,  in the
opinion  of  the  manager,   are  likely  to  cause  the  issuer  to  experience
accelerating growth.

Prospectus                                  Information Regarding the Funds    7


Such catalysts may include a change in the issuer's operating  environment,  the
development of a significant or potentially significant new product,  service or
technology,  an improvement in business  outlook for the issuer or other similar
factors.

     As  noted,  the fund may  invest in  smaller  foreign  issuers  in both (i)
countries  characterized  as  having  developed  markets  and in (ii)  countries
characterized  as  having  emerging  markets.   DUE  TO  THE  SIGNIFICANT  RISKS
ASSOCIATED WITH THE FUND'S INVESTMENT STRATEGY, AN INVESTMENT IN THE FUND MAY BE
CONSIDERED  TO  BE  SPECULATIVE  (see   "Speculative   Nature  of  International
Discovery," page 10).

     The  fund  may  invest  in  securities  of any  type of  issuer,  including
closed-end investment companies,  governments and governmental entities, as well
as  corporations,  partnerships  and other business  organizations.  The manager
believes  that common stocks and other equity and equity  equivalent  securities
ordinarily  offer the  greatest  potential  for  capital  appreciation  and will
constitute the majority of the fund's investments. The fund may invest, however,
in any security the manager believes has the potential for capital appreciation.
The other  securities  the fund may  invest  in  include  bonds,  notes and debt
securities of companies and  obligations of domestic or foreign  governments and
their  agencies.  The fund will attempt to stay fully  invested in  appreciating
securities, regardless of the movement of stock and bond prices generally.

     There are no credit  quality or  maturity  restrictions  with regard to the
bonds,  corporate debt securities,  and government obligations in which the fund
may  invest,  although  less than 35% of the fund's  assets  will be invested in
below  investment  grade fixed income  securities  (see "An Explanation of Fixed
Income  Securities  Ratings" in the Statement of Additional  Information).  Debt
securities,  especially those of issuers in emerging market countries, may be of
poor quality and speculative in nature. While these securities will primarily be
chosen for their  appreciation  potential,  the fund may also take the potential
for income into account when selecting investments.

     To enhance the fund's liquidity,  at least 50% of the fund's assets will be
invested in developed market countries at all times.  However, the percentage of
the assets of the fund invested in developed and emerging  markets will vary as,
in the opinion of the manager,  market conditions  warrant.  No more than 15% of
the fund's assets may be invested in illiquid investments at any time.

POLICIES APPLICABLE TO BOTH FUNDS

     The  funds  may  make  foreign   investments  either  directly  in  foreign
securities, or indirectly by purchasing depositary receipts or depositary shares
or similar instruments  ("DRs") for foreign securities.  DRs are securities that
are listed on exchanges or quoted in over-the-counter markets in one country but
represent  shares of issuers  domiciled in another  country.  The funds may also
purchase  securities  of such  issuers  in  foreign  markets,  either on foreign
securities exchanges or in the over-the-counter markets.

     The  funds  may  also  invest  in  other  equity   securities   and  equity
equivalents.  Other equity securities and equity equivalents  include securities
that  permit  the  funds  to  receive  an  equity  interest  in an  issuer,  the
opportunity to acquire an equity  interest in an issuer,  or the  opportunity to
receive a return on its  investment  that  permits the fund to benefit  from the
growth over time in the equity of an issuer. Examples of other equity securities
and equity  equivalents  are preferred  stock,  convertible  preferred stock and
convertible  debt  securities.  Equity  equivalents may also include  securities
whose  value or return  is  derived  from the  value or  return  of a  different
security. An example of one type of derivative security in which the funds might
invest is a depositary receipt.

     Notwithstanding  the funds'  respective  investment  objectives  of capital
growth,  under  exceptional  market  or  economic  conditions,   each  fund  may
temporarily  invest  all or a  substantial  portion  of its  assets  in  cash or
investment-grade  short-term securities  (denominated in U.S. dollars or foreign
currencies).

     To the extent a fund assumes a defensive position,  it will not be pursuing
its investment objective of capital growth.

     In addition to other  factors that will affect their value,  the value of a
fund's investments in fixed income securities will change as prevailing interest
rates change.  In general,  the prices of such  securities  vary  inversely with
interest rates. As prevailing interest rates fall, the prices of bonds and other
securities that trade on a yield basis rise. When prevailing inter-

8    Information Regarding the Funds                American Century Investments


est rates  rise,  bond  prices  generally  fall.  These  changes  in value  may,
depending  upon  the  particular  amount  and type of  fixed  income  securities
holdings of a fund,  impact the net asset value of that fund's  shares (see "How
Share Price is Determined," page 17).

     Under normal  conditions,  each fund will invest at least 65% of its assets
in equity and  equity  equivalent  securities  of  issuers  from at least  three
countries outside of the United States.  While securities of U.S. issuers may be
included in the  portfolio  from time to time,  it is the primary  intent of the
manager  to  diversify  investments  in a fund  across a broad  range of foreign
issuers. The manager defines "foreign issuer" as an issuer of securities that is
domiciled  outside the United States,  derives at least 50% of its total revenue
from  production  or sales  outside the United  States,  and/or whose  principal
trading market is outside the United States.

     In order to  achieve  maximum  investment  flexibility,  the funds have not
established   geographic   limits   on   asset   distribution,   on   either   a
country-by-country or region-by-region basis. The manager expects to invest both
in issuers in developed markets (such as Germany,  the United Kingdom and Japan)
and in issuers in emerging market countries.

     The funds  consider  "emerging  market  countries" to include all countries
that are generally  considered  to be  developing  or emerging  countries by the
International Bank for  Reconstruction and Development  (commonly referred to as
the World Bank) and the  International  Finance  Corporation  (IFC),  as well as
countries that are  classified by the United  Nations as developing.  Currently,
the  countries  not  included in this  category are the United  States,  Canada,
Japan, the United Kingdom,  Germany,  Austria,  France, Italy,  Ireland,  Spain,
Belgium,  the  Netherlands,   Switzerland,  Sweden,  Finland,  Norway,  Denmark,
Australia and New Zealand. In addition, as used in this Prospectus,  "securities
of issuers in emerging  market  countries"  means (i)  securities of issuers the
principal  securities  trading market for which is an emerging  market  country,
(ii) securities,  regardless of where traded, of issuers that derive 50% or more
of their total revenue from either goods or services produced in emerging market
countries or sales made in emerging  market  countries,  or (iii)  securities of
issuers having their principal place of business or principal office in emerging
market countries.

     The principal criteria for inclusion of a security in a fund's portfolio is
its ability to meet the fundamental and technical standards of selection and, in
the opinion of the manager, to achieve better-than-average  appreciation. If, in
the opinion of the manager,  a particular  security  satisfies  these  principal
criteria,  the security may be included in the fund's  portfolio,  regardless of
the location of the issuer or the  percentage of the fund's  investments  in the
issuer's country (subject to the investment  policies of the particular fund) or
region.

     At the same time,  however,  the manager recognizes that both the selection
of a fund's individual  securities and the allocation of the portfolio's  assets
across  different  countries  and regions are  important  factors in managing an
international  portfolio.  For this  reason,  the manager  will also  consider a
number of other factors in making investment selections including: the prospects
for relative economic growth among countries or regions,  economic and political
conditions,  expected  inflation rates,  currency exchange  fluctuations and tax
considerations.

RISK FACTORS

INVESTING IN FOREIGN SECURITIES GENERALLY

     Investing in securities of foreign issuers generally involves greater risks
than investing in the securities of domestic  companies.  As with any investment
in  securities,  the value of an investment in the funds can decrease as well as
increase,  depending  upon a variety of factors  which may affect the values and
income  generated by the funds' portfolio  securities.  Investments in the funds
should  not  be  considered  a  complete  investment  program  and  may  not  be
appropriate for an individual with limited investment resources or who is unable
to tolerate  fluctuations  in the value of the investment.  Potential  investors
should carefully consider the following factors:

     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

Prospectus                                  Information Regarding the Funds    9


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 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,  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 pursue legal remedies or obtain judgments in foreign courts.

     Regulatory  Risk.  Foreign  companies  are  generally  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  (see "Taxes,"
page 18).

     Market and Trading Risk.  Brokerage  commission rates in foreign countries,
which are generally fixed rather than subject to negotiation as in the U.S., are
likely to be higher.  The  securities  markets in many of the countries in which
the funds 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.

SPECULATIVE NATURE OF INTERNATIONAL DISCOVERY

     In   addition  to  the  risks   posed  by  foreign   investing   generally,
International  Discovery will be investing in the securities of companies having
comparatively  small  market  capitalizations  and may  invest  up to 50% of its
assets in issuers in  emerging  market  countries  (see  "Investing  in Emerging
Market Countries," this page and "Investing in Smaller  Companies," page 11). As
a result, an investment in the fund should be considered to be speculative.  The
fund is intended for  aggressive  investors  seeking  significant  gains through
investments in foreign  securities.  Those investors must be willing and able to
accept the significantly  greater risks associated with the investment  strategy
that  International  Discovery will pursue. An investment in the fund should not
be  considered  a  complete  investment  program  and  is  not  appropriate  for
individuals  with  limited  investment  resources  or who are unable to tolerate
fluctuations in the value of their investment.

INVESTING IN EMERGING MARKET COUNTRIES

     Each of the funds  included in this  Prospectus may invest in securities of
issuers in emerging market  countries.  Investing in emerging  market  countries
involves exposure to significantly  higher risk than investing in countries with
developed markets.  Emerging market countries may have economic  structures that
are generally less diverse and mature and political systems that can be expected
to be less stable than those of developed countries.

     Securities  prices in emerging market countries can be  significantly  more
volatile than in developed  countries,  reflecting the greater  uncertainties of
investing in lesser  developed  markets and economies.  In particular,  emerging
market countries may have relatively unstable  governments,  and may present the
risk of nationalization of businesses, expropriation,  confiscatory taxation or,
in certain instances,  reversion to closed market,  centrally planned economies.
Such countries may also have  restrictions on foreign  ownership or prohibitions
on the  repatriation of assets,  and may have less protection of property rights
than developed countries.

     The economies of emerging market  countries may be  predominantly  based on
only a few industries or dependent on revenues from particular commodities or on
international aid or development assistance,

10   Information Regarding the Funds                American Century Investments


may be highly vulnerable to changes in local or global trade conditions, and may
suffer from extreme and volatile debt burdens or inflation  rates.  In addition,
securities  markets in emerging  market  countries  may trade a small  number of
securities  and may be unable to respond  effectively  to  increases  in trading
volume,  potentially  resulting in a lack of liquidity and greater volatility in
the price of securities traded on those markets.

     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 value  of the  portfolio
security  or, if the fund has  entered  into a  contract  to sell the  security,
liability to the purchaser.

INVESTING IN SMALLER COMPANIES

     International  Discovery  will invest  primarily in securities of companies
having, at the time of investment,  a market capitalization of less than U.S. $1
billion  or a  public  float of less  than  U.S.  $500  million.  These  smaller
companies may present greater  opportunities for capital  appreciation,  but may
also involve greater risks than large,  mature issuers.  Such companies may have
limited product lines, markets or financial resources,  and their securities may
trade less  frequently  and in more limited volume than the securities of larger
companies. In addition,  available information regarding these smaller companies
may be less available and, when available, may be incomplete or inaccurate.  The
securities of such companies may also be more likely to be delisted from trading
on their  primary  domestic  exchange.  As a result,  the  securities of smaller
companies may experience  significantly more price volatility and less liquidity
than securities of larger  companies,  and this volatility and limited liquidity
may be reflected in the net asset value of the fund.

INVESTING IN LOWER QUALITY DEBT INSTRUMENTS

     There are no credit,  maturity or  investment  amount  restrictions  on the
bonds,   corporate  debt   securities   and  government   obligations  in  which
International  Discovery  may  invest.  Debt  securities,  especially  those  in
emerging market  countries,  may be of poor quality,  unrated and speculative in
nature.  Debt securities  rated lower than Baa by Moody's or BBB by S&P or their
equivalent,  sometimes  referred to as junk bonds,  are considered by many to be
predominately  speculative  (see  "An  Explanation  of Fixed  Income  Securities
Ratings,"  in the  Statement  of  Additional  Information).  Changes in economic
conditions or other circumstances are more likely to lead to a weakened capacity
to make principal and interest payments on such securities than is the case with
higher quality debt securities. Regardless of rating levels, all debt securities
considered for purchase by the fund are analyzed by the manager to determine, to
the extent reasonably  possible,  that the planned investment is sound given the
investment objective of the fund.

OTHER INVESTMENT PRACTICES, THEIR
CHARACTERISTICS AND RISKS

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

FORWARD CURRENCY EXCHANGE CONTRACTS

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

     To protect against adverse movements in exchange rates between  currencies,
a fund may, for hedging purposes only, enter into forward currency exchange

Prospectus                                  Information Regarding the Funds   11


contracts.  A forward currency exchange contract obligates a fund to purchase or
sell a specific currency at a future date at a specific price.

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

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

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

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

     If a fund enters into a forward currency exchange contract,  the fund, when
required,  will  instruct  its  custodian  bank  to  segregate  cash  or  liquid
high-grade securities in a separate account in an amount sufficient to cover its
obligation under the contract.  Those assets will be valued at market daily, and
if  the  value  of  the  segregated  securities  declines,  additional  cash  or
securities  will be added so that the value of the  account is not less than the
amount of the fund's commitment. At any given time, no more than 10% of a fund's
assets will be committed to a segregated  account in connection  with  portfolio
hedging transactions.

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

INDIRECT FOREIGN INVESTMENT

     Subject to certain  restrictions  contained in the Investment  Company Act,
each  fund may  invest  up to 10% of its  assets in  certain  foreign  countries
indirectly  through  investment  funds  and  registered   investment   companies
authorized  to invest in those  countries.  If the  funds  invest in  investment
companies,  the funds will bear their proportionate shares of the costs incurred
by such companies, including investment advisory fees, if any.

SOVEREIGN DEBT OBLIGATIONS

     The funds may purchase  sovereign debt instruments  issued or guaranteed by
foreign  governments  or  their  agencies,  including  debt of  emerging  market
countries. Sovereign debt may be in the form of conventional securities or other
types of debt instruments such as loans or loan  participations.  Sovereign debt
of emerging market countries may involve a high degree of risk and may present a
risk of default or renegotiation or rescheduling of debt payments.

PORTFOLIO TURNOVER

     The  portfolio  turnover  rates of the  funds  are  shown in the  Financial
Highlights table on pages 5-6 of this Prospectus.

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

     The  portfolio  turnover of each fund may be higher than other mutual funds
with   similar   investment   objectives.   Higher   turnover   would   generate
correspondingly  greater brokerage  commissions,  which is a cost that the funds
pay directly. It may also

12   Information Regarding the Funds                American Century Investments


affect the character of capital  gains,  if any,  realized and  distributed by a
fund since short-term capital gains are taxable as ordinary income.

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  broker-dealer  registered
under  the  Securities  Exchange  Act of  1934)  agrees  to  repurchase  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.

     Since  the  security  purchased  constitutes  security  for the  repurchase
obligation, a repurchase agreement can be considered as 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  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 commercial banks and  broker-dealers who are deemed
creditworthy pursuant to criteria adopted by the funds' Board of Directors.

     The  funds  will not  invest  more than 15% of their  respective  assets in
repurchase agreements maturing in more than seven days.

WHEN-ISSUED SECURITIES

     Each fund may  purchase new issues of  securities  on a  when-issued  basis
without limit when, in the opinion of the  investment  manager,  such  purchases
will further the  investment  objectives of the fund.  The price of  when-issued
securities  is  established  at the time the  commitment to purchase is made. In
developed markets,  delivery of and payment for these securities typically occur
15 to 45 days after the commitment to purchase.  In emerging  markets,  delivery
and payment may take significantly longer.

     Market rates of interest on debt  securities at the time of delivery may be
higher  or  lower  than  those  contracted  for  on  the  when-issued  security.
Accordingly,  the value of such  security may decline  prior to delivery,  which
could result in a loss to the fund. A separate  account for each fund consisting
of cash or  high-quality  liquid debt  securities in an amount at least equal to
the  when-issued  commitments  will  be  established  and  maintained  with  the
custodian. No income will accrue to the fund prior to delivery.

SHORT SALES

     Each fund may engage in short sales if, at the time of the short sale,  the
fund owns or has the right to acquire an equal amount of the security being sold
short at no additional  cost. These  transactions  allow a fund to hedge against
price fluctuations by locking in a sale price for securities it does not wish to
sell immediately.

     A fund may make a short sale 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 and for purposes of  satisfying  certain  tests
applicable to regulated investment companies under the Internal Revenue Code.

RULE 144A SECURITIES

     The  funds  may  invest up to 15% of their  respective  assets in  illiquid
securities  (securities  that may not be sold within seven days at approximately
the price used in  determining  the net asset value of fund  shares),  including
restricted securities. Although securities which may be resold only to qualified
institutional investors in accordance with the provisions of Rule 144A under the
Securities Act of 1933 are  considered  "restricted  securities,"  each fund may
purchase  Rule 144A  securities  without  regard to the  percentage  limitations
described  above  when Rule 144A  securities  present an  attractive  investment
opportunity and otherwise meet the fund's  criteria of selection,  and also meet
the liquidity guidelines established for Rule 144A securities.

     With respect to securities  eligible for resale under Rule 144A,  the staff
of the Securities and Exchange

Prospectus                                  Information Regarding the Funds   13


Commission  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 have delegated the day-to-day function of determining the
liquidity  of  144A   securities   to  the  manager.   The  Board   retains  the
responsibility to monitor the implementation of the guidelines and procedures it
has adopted.

     Since the secondary  market for such  securities will be limited to certain
qualified  institutional  investors,  their liquidity may be limited accordingly
and a fund may from time to time hold a Rule 144A security that is illiquid.  In
such an event,  the manager will consider  appropriate  remedies to minimize the
effect on the fund's liquidity.

PERFORMANCE ADVERTISING

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

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

     Each fund may also include in  advertisements  data  comparing  performance
with the  performance  of  non-related  investment  media,  published  editorial
comments and performance rankings compiled by independent organizations (such as
Lipper  Analytical  Services) and  publications  that monitor the performance of
mutual  funds.  Performance  information  may be  quoted  numerically  or may be
presented in a table, graph or other illustration.  Fund performance may also be
compared to  well-known  indices of market  performance,  such as the Standard &
Poor's 500 Index,  the Dow Jones World Index, the IFC Global Composite Index and
the Morgan Stanley Capital International Europe, Australia, Far East Index (EAFE
Index). Fund performance may also be compared to the rankings prepared by Lipper
Analytical Services,  Inc. In addition,  fund performance may be compared,  on a
relative  basis,  to other funds in our fund family.  This relative  comparison,
which may be based upon historical or expected fund  performance,  volatility or
other fund  characteristics,  may be presented  numerically,  graphically  or in
text.  Fund  performance may also be combined or blended with other funds in our
fund family.  Such combined or blended  performance  may be compared to the same
indices to which individual funds may be compared.

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

14   Information Regarding the Funds                American Century Investments


HOW TO INVEST WITH
AMERICAN CENTURY INVESTMENTS

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

HOW TO PURCHASE AND SELL AMERICAN
CENTURY FUNDS

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

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

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

     If you have questions about a fund, see "Investment Policies of the Funds,"
page 7, or call an Institutional Service Representative at 1-800-345-3533.

     Orders to purchase shares are effective on the day we receive payment.  See
"When Share Price is Determined," page 17.

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

HOW TO EXCHANGE FROM ONE AMERICAN CENTURY
FUND TO ANOTHER

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

     Exchanges are made at the respective net asset values,  next computed after
receipt of the exchange instruction by us. If in any 90-day period, the total of
the exchanges and  redemptions  from the account of any one plan  participant or
financial  intermediary  client exceeds the lesser of $250,000 or 1% of a fund's
assets,  further exchanges may be subject to special requirements to comply with
our  policy  on  large   redemptions.   See  "Special   Requirements  for  Large
Redemptions," page 16.

     IN ORDER TO DISCOURAGE  THE EXCHANGE OF SHARES OF  INTERNATIONAL  DISCOVERY
SHORTLY AFTER THEIR PURCHASE,  EXCHANGE OF THOSE SHARES WITHIN 180 DAYS OF THEIR
PURCHASE WILL BE SUBJECT TO A REDEMPTION  FEE OF 2.0% OF THE VALUE OF THE SHARES
EXCHANGED.  This fee will be  retained by the fund to help  minimize  the impact
such exchanges have on fund performance and, hence, on the other shareholders of
the fund. For the purposes of determining the  applicability of this fee, shares
first  purchased  will be deemed to be the  shares  first  exchanged.  The funds
reserve the right to modify their policy  regarding  this  redemption  fee or to
waive such policy in whole or in part for certain classes of investors.

HOW TO REDEEM SHARES

     Subject to any  restrictions  imposed by your  employer's plan or financial
intermediary's  program, you can sell ("redeem") your shares through the plan or
financial  intermediary  at their net  asset  value.  Your  plan  administrator,
trustee,  or financial  intermediary or other designated  person must provide us
with redemption instructions. The shares will be redeemed at the net asset value
next computed after receipt of the  instructions in good order.  See "When Share
Price Is  Determined,"  page 17. If you have any questions  about how to redeem,
contact  your  plan   administrator,   employee   benefits  office,  or  service
representative at your financial intermediary, as applicable.

     IN  ORDER  TO  DISCOURAGE  THE   REDEMPTION  OF  SHARES  OF   INTERNATIONAL
DISCOVERY SHORTLY AFTER THEIR PUR-

Prospectus                  How to Invest with American Century Investments   15


CHASE,  REDEMPTION  OF THOSE SHARES  WITHIN 180 DAYS OF THEIR  PURCHASE  WILL BE
SUBJECT TO A REDEMPTION  FEE OF 2.0% OF THE VALUE OF THE SHARES  REDEEMED.  This
fee will be retained by the fund to help  minimize  the impact such  redemptions
have on fund performance and, hence, on the other  shareholders of the fund. For
the  purposes  of  determining  the  applicability  of this  fee,  shares  first
purchased will be deemed to be the shares first redeemed.  The funds reserve the
right to modify  their policy  regarding  this  redemption  fee or to waive such
policy in whole or in part for certain classes of investors.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

     We have elected to be governed by Rule 18f-1 under the  Investment  Company
Act, which obligates each fund to redeem shares in cash, with respect to any one
participant account during any 90-day period, up to the lesser of $250,000 or 1%
of the assets of the fund.  Although  redemptions  in excess of this  limitation
will also  normally be paid in cash,  the funds reserve the right to honor these
redemptions  by  making  payment  in  whole  or in  part in  readily  marketable
securities (a "redemption-in-kind").

     If payment is made in securities,  the  securities  will be selected by the
fund,  will be valued in the same manner as they are in computing the fund's net
asset value and will be provided to the redeeming plan  participant or financial
intermediary in lieu of cash without prior notice.

     If you  expect  to make a large  redemption  and  would  like to avoid  any
possibility of being paid in  securities,  you may do so by providing 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.
Receipt of your  instruction 15 days prior to the transaction  provides the fund
with  sufficient  time  to  raise  the  cash  in an  orderly  manner  to pay the
redemption  and thereby  minimizes the effect of the  redemption on the fund and
its remaining shareholders.

     Despite the fund's right to redeem shares through a redemption-in-kind,  we
do not expect to exercise  this option  unless a fund has an unusually low level
of cash to meet redemptions and/or is experiencing  unusually strong demands for
its  cash.  Such a demand  might be  caused,  for  example,  by  extreme  market
conditions  that  result in an  abnormally  high  level of  redemption  requests
concentrated in a short period of time.  Absent these or similar  circumstances,
the funds  expect  redemptions  in excess of  $250,000 to be paid in cash in any
fund with  assets of more than $50  million  if total  redemptions  from any one
account in any 90-day period do not exceed one-half of 1% of the total assets of
the fund.

TELEPHONE SERVICES

INVESTORS LINE

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

16 How to Invest with American Century Investments  American Century Investments


ADDITIONAL INFORMATION YOU SHOULD KNOW

SHARE PRICE

WHEN SHARE PRICE IS DETERMINED

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

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

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

     It  is  the   responsibility   of  your  plan   recordkeeper  or  financial
intermediary to transmit your purchase,  exchange and redemption requests to the
funds' transfer agent prior to the applicable  cut-off time for receiving orders
and to make payment for any purchase  transactions in accordance with the funds'
procedures  or  any  contractual  arrangement  with  the  funds  or  the  funds'
distributor in order for you to receive that day's price.

HOW SHARE PRICE IS DETERMINED

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

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

     The value of an  exchange-traded  foreign  security  is  determined  in its
national currency as of the close of trading on the foreign exchange on which it
is traded or as of the close of business on the New York Stock Exchange, if that
is earlier.  That value is then converted to dollars at the  prevailing  foreign
exchange rate.

     Trading in securities on European and Far Eastern securities  exchanges and
over-the-counter markets is normally completed at various times before the close
of  business on each day that the New York Stock  Exchange is open.  If an event
were to occur after the value of a security was  established  but before the net
asset value per share was determined  which was likely to materially  change the
net asset value,  then that security would be valued at fair value as determined
in accordance with procedures adopted by the Board of Directors.

     Trading of these  securities in foreign markets may not take place on every
New York Stock  Exchange  business  day. In addition,  trading may take place in
various foreign markets on Saturdays or on other days

Prospectus                           Additional Information You Should Know   17


when the New York  Stock  Exchange  is not open and on which a fund's  net asset
value is not  calculated.  Therefore,  such  calculation  does  not  take  place
contemporaneously  with the determination of the prices of many of the portfolio
securities used in such  calculation and the value of a fund's  portfolio may be
significantly  affected on days when shares of the fund may not be  purchased or
redeemed.

WHERE TO FIND INFORMATION ABOUT SHARE PRICE

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

DISTRIBUTIONS

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

     THE OBJECTIVE OF EACH FUND IS CAPITAL  APPRECIATION  AND NOT THE PRODUCTION
OF DISTRIBUTIONS. YOU SHOULD MEASURE THE SUCCESS OF YOUR INVESTMENT BY THE VALUE
OF YOUR INVESTMENT AT ANY GIVEN TIME AND NOT BY THE DISTRIBUTIONS YOU RECEIVE.

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

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

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

TAXES

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

TAX-DEFERRED ACCOUNTS

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

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

TAXABLE ACCOUNTS

     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.  Distributions  from net long-term capital gains are taxable as
long-term  capital  gains  regardless  of the  length  of time you have held the
shares on which such distributions are paid.  However,  you should note that any
loss  realized upon the sale or redemption of shares held for six months or less
will be treated as a long-term capital loss to the extent of any distribution of
long-term capital gain to you with respect to such shares.

18   Additional Information You Should Know         American Century Investments


     Dividends and interest received by a fund on foreign securities, as well as
capital  gains  realized  upon the  sale of such  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. 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 close of the
taxable year consist 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 made,  the foreign  taxes paid by the fund will be treated as income
received by you.

     If a fund purchases the securities of certain foreign  investment  funds or
trusts called passive foreign investment companies, 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 may also 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.

     Distributions  on fund shares are taxable to you regardless of whether they
are taken in cash or reinvested,  even if the value of your shares is below your
cost. If you purchase shares shortly before a distribution,  you must pay income
taxes on the  distribution,  even though the value of your investment (plus cash
received, if any) remains the same. In addition, the share price at the time you
purchase  shares may  include  unrealized  gains in the  securities  held in the
investment  portfolio of a fund. If these portfolio  securities are subsequently
sold and the gains are realized,  they will, to the extent not offset by capital
losses, be paid to you as a distribution of capital gains and will be taxable to
you as short-term or long-term capital gains (see "Distributions," page 18).

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

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

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

     Redemption of shares of a fund (including  redemptions  made in an exchange
transaction)  will be a taxable  transaction for federal income tax purposes and
shareholders  will  generally  recognize  gain or loss in an amount equal to the
difference  between  the basis of the shares and the amount  received.  Assuming
that  shareholders hold such shares as a capital asset, the gain or loss will be
a capital gain or loss and will generally be long term if shareholders have held
such  shares for a period of more than one year.  If a loss is  realized  on the
redemption of fund shares,  the reinvestment in additional fund shares within 30
days before or after the  redemption  may be subject to the "wash sale" rules of
the Internal  Revenue Code,  resulting in a postponement  of the  recognition of
such loss for federal income tax purposes.

Prospectus                           Additional Information You Should Know   19


MANAGEMENT

INVESTMENT MANAGEMENT

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

     In June 1995, American Century Companies,  Inc. ("ACC"),  the parent of the
manager,  acquired Benham  Management  International,  Inc. In the  acquisition,
Benham  Management  Corporation  ("BMC"),  the investment  advisor to the Benham
Group of  mutual  funds,  became  a  wholly  owned  subsidiary  of ACC.  Certain
employees of BMC provide investment  management services to funds managed by the
manager,  while certain employees of the manager provide  investment  management
services to funds managed by BMC.

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

     The portfolio  manager members of the teams managing the funds described in
this  Prospectus  and their  work  experience  during the past five years are as
follows:

     THEODORE J. TYSON,  Vice President and Portfolio  Manager,  joined American
Century  in  1988  and  has  been a  member  of  the  International  Growth  and
International Discovery team since its inception in 1991.

     HENRIK  STRABO,  Vice  President and  Portfolio  Manager,  joined  American
Century  in  1993 as an  Investment  Analyst  of the  International  Growth  and
International Discovery team and has been a Portfolio Manager member of the team
since 1994.  Prior to joining American  Century,  Mr. Strabo was Vice President,
International  Equity  Sales with  Barclays  de Zoete Wedd from 1991 to 1993 and
obtained  international  equity sales experience at Cresvale  International from
1990 to 1991.

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

     For the services  provided to the Advisor  Class of the funds,  the manager
receives an annual  management fee calculated as a percentage of the average net
assets of the fund as follows:

Fund                                          Percent of Average Net Assets
- -----------------------------------------------------------------------------
International Growth                              1.25% of first $1 billion
                                               0.95% of the next $1 billion
                                                      0.85% over $2 billion

International Discovery                         1.50% of first $500 million
                                             1.15% of the next $500 million
                                                      0.95% over $1 billion
- -----------------------------------------------------------------------------

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

     The  management  fees paid by the funds to the  manager are higher than the
fees paid by the various  other funds in the  American  Century  family of funds
because of the higher costs and additional expenses associated with managing and
operating a fund owning a portfolio  consisting primarily of foreign securities.
The fee may also be  higher  than the fee paid by many  other  international  or
foreign investment companies.

     Many other  investment  companies may refer to or publicize an  "investment
management fee" or "man-

20   Additional Information You Should Know         American Century Investments


agement fee" paid by the company to its manager.  However,  most such  companies
also use fund assets to pay for certain  expenses of the fund in addition to the
stated  management  fee. In  contrast,  the  management  fee paid to the manager
includes  payment  for  almost all fund  expenses,  with the  exceptions  noted.
Therefore,  potential  investors  who attempt to compare  the  expenses of these
funds to the expenses of other funds should be careful to compare only the ratio
of total  expenses to average net assets  contained in the Financial  Highlights
table  found on pages  5-6 of this  Prospectus  to the same  ratio of the  other
funds.

     The management  agreement also provides that the funds' Board of Directors,
upon 60 days' prior written  notice to all affected  shareholders,  may impose a
servicing or administrative fee as a charge against shareholder accounts.

CODE OF ETHICS

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

TRANSFER AND ADMINISTRATIVE SERVICES

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

     From time to time,  special  services  may be offered to  shareholders  who
maintain  higher share balances in the American  Century 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.

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

DISTRIBUTION OF FUND SHARES

     The funds' shares are distributed by American Century Investment  Services,
Inc., a registered  broker-dealer and an affiliate of the manager.  As agent for
the funds and the manager,  the  distributor  enters into contracts with various
banks,  broker-dealers,  insurance companies and other financial  intermediaries
with  respect  to the sale of the  funds'  shares  and/or  the use of the funds'
shares in various  financial  services.  The manager (or an affiliate)  pays all
expenses incurred in promoting sales of, and distributing, the Advisor Class and
in securing such services out of the Rule 12b-1 fees  described in the following
section.

SERVICE AND DISTRIBUTION FEES

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

     The Plan has been adopted and will be  administered  in accordance with the
requirements of Rule

Prospectus                           Additional Information You Should Know   21


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

FURTHER INFORMATION ABOUT AMERICAN CENTURY

     American  Century World Mutual Funds,  Inc.,  the issuer of the funds,  was
organized as a Maryland corporation on December 28, 1990.

     American  Century  World  Mutual  Funds,  Inc. is a  diversified,  open-end
management  investment  company whose shares were first offered in May 1991. Its
business  and affairs are managed by its  officers  under the  direction  of its
Board of Directors.

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

     American  Century World Mutual Funds,  Inc.  issues two series of $0.01 par
value  shares.  Each series is commonly  referred to as a fund.  Each share when
issued,  is fully paid and  non-assessable.  The assets belonging to each series
of shares are held separately by the custodian.

     American  Century  offers four classes of each of the funds offered by this
Prospectus:  an Investor Class, an  Institutional  Class, a Service Class and an
Advisor Class. The shares offered by this Prospectus are Advisor Class shares.

     The Investor  Class is primarily made  available to retail  investors.  The
Institutional  Class and Service  Class are primarily  offered to  institutional
investors   or   through   institutional    distribution   channels,   such   as
employer-sponsored retirement plans or through banks, broker-dealers,  insurance
companies or other  financial  intermediaries.  The other classes have different
fees,  expenses and/or minimum  investment  requirements than the Advisor Class.
Different fees and expenses will affect performance.  For additional information
concerning   the   Investor   Class  of  shares,   call  an  Investor   Services
Representative at 1-800-345-2021.  For information  concerning the Institutional
or Service  Classes of shares not  offered by this  Prospectus,  call one of our
Institutional  Service  Representatives  at  1-800-345-3533  or  contact a sales
representative or financial intermediary who offers those classes of shares.

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

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

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

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

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

22   Additional Information You Should Know         American Century Investments


NOTES

Prospectus                                                            Notes   23


NOTES

24   Notes                                          American Century Investments


NOTES

Prospectus                                                            Notes   25


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

Person-to-person assistance:
1-800-345-3533 or 816-531-5575

Telecommunications Device for the Deaf:
1-800-345-1833 or 816-753-0700

Fax: 816-340-4655

Internet: www.americancentury.com

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