AMERICAN CENTURY CAPITAL PORTFOLIOS INC, N-30D, 1997-11-19

AMERICAN CENTURY CAPITAL PORTFOLIOS INC
N-30D, 1997-11-19

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SEMIANNUAL
REPORT

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

SEPTEMBER 30, 1997

AMERICAN
CENTURY
GROUP

Value
Equity Income

TABLE OF CONTENTS

Report Highlights ......................................................... 1
Our Message to You ........................................................ 2
Value
Performance & Portfolio Information ............................ 3
Management Q & A ............................................... 4
Schedule of Investments ........................................ 7
Financial Highlights ........................................... 25

Equity Income
Performance & Portfolio Information ............................ 10
Management Q & A ............................................... 11
Schedule of Investments ........................................ 14
Financial Highlights ........................................... 28

Statements of Assets and Liabilities ...................................... 17

Statements of Operations .................................................. 18

Statements of Changes in Net Assets ....................................... 19

Notes to Financial Statements ............................................. 20

Proxy Voting Results ...................................................... 30

Share Class and Retirement
Account Information ....................................................... 33

Background Information

Investment Philosophy and Policies ............................. 36

Comparative Indices ............................................ 36

Investment Team Leaders ........................................ 36

Glossary .................................................................. 37

American Century Investments offers you nearly 70 fund choices covering
stocks, bonds, money markets, specialty investments and blended portfolios.
We've organized our funds into three distinct groups, based on investment style
and objectives, to help simplify your fund decisions. These groups appear below.

AMERICAN CENTURY INVESTMENTS--FAMILY OF FUNDS
- -------------------------------------------------------------------------------
Benham American Century Twentieth Century
Group(reg. tm) Group Group
- -------------------------------------------------------------------------------
MONEY MARKET FUNDS ASSET ALLOCATION & GROWTH FUNDS
GOVERNMENT BOND FUNDS BALANCED FUNDS INTERNATIONAL FUNDS
DIVERSIFIED BOND FUNDS CONSERVATIVE EQUITY FUNDS
MUNICIPAL BOND FUNDS SPECIALTY FUNDS
- -------------------------------------------------------------------------------
Value
Equity Income

We welcome your comments or questions about this report.

See the back cover for ways to contact us by mail, phone or e-mail.

Twentieth Century and American Century are registered marks of American Century
Services Corporation. Benham Group is a registered mark of Benham Management
Corporation.

AMERICAN CENTURY INVESTMENTS

REPORT HIGHLIGHTS

MARKET PERSPECTIVE

* Steady economic growth and low inflation helped fuel the U.S. stock market
during the six months ended September 30, 1997. The S&P 500 gained more
than 26%, and the NASDAQ Composite Index rose nearly 38%.

* The market provided strong performance despite several brief setbacks.
Driven largely by investor concern over the possibility of higher interest
rates and historically high stock valuations, market volatility increased
in late summer. The market experienced four consecutive hundred-point
drops during August, and the S&P 500 fell more than 5% for the month.

* Investors turned to smaller companies near the end of the period when
several blue chip companies announced slowing earnings prospects. The
value style performed well during the large-cap correction in the third
quarter, with the S&P 500 BARRA/Value index rising 9.16% compared with the
S&P 500's 7.44% gain.

VALUE

* The fund performed well during the period, posting a 26.21% total return.
It outperformed its benchmark, the S&P 500/BARRA Value Index, which
returned 24.96%.

* Returns were boosted by good stock selection in several sectors that
performed well, including food and beverage companies, banks and
department stores.

* The investment team reduced holdings in natural gas stocks as their prices
rose in response to better-than-expected natural gas prices. The fund's
weighting in technology stocks was also reduced after this sector
rebounded strongly following a sell-off earlier this year.

* The fund continues to maintain meaningful positions in food and beverage,
chemical and utility stocks.

EQUITY INCOME

* The fund posted a strong performance, returning 24.01%. The fund
outperformed its benchmark, the Lipper Equity Income Fund Index, which
returned 21.80% during the period.

* Returns were enhanced by holdings in bank stocks, which continued to
benefit from consolidation within the financial services industry, and
from significant weightings in the paper and forest products sector.

* The fund also benefited from company merger and acquisition activity in
several industries.

* Returns were boosted further by the fund's holdings in department store
stocks, which benefited from an unanticipated upturn in sales of women's
apparel.

* The fund maintained its yield by increasing its weighting in convertible
securities, which were purchased on attractive terms.

VALUE
INVESTOR CLASS(1)
TOTAL RETURNS: AS OF 9/30/97
6 Months 26.21%(2)
1 Year 37.80%
NET ASSETS: $2.4 billion
(AS OF 9/30/97)
INCEPTION DATE: 9/1/93
TICKER SYMBOL: TWVLX

EQUITY INCOME
INVESTOR CLASS(1)

TOTAL RETURNS: AS OF 9/30/97
6 Months 24.01%(2)
1 Year 34.35%
NET ASSETS: $279.6 million
(AS OF 9/30/97)
INCEPTION DATE: 8/1/94
TICKER SYMBOL: TWEIX

(1) See Share Classes, page 33.

(2) Not annualized.

Many of the investment terms in this report are defined in the Glossary on page
37.

SEMIANNUAL REPORT REPORT HIGHLIGHTS 1

OUR MESSAGE TO YOU

[photo James E. Stowers, Jr. and James E. Stowers III]

The six-month period ended September 30, 1997, was very rewarding for
investors in the American Century Value and Equity Income funds. Value's total
return for the period was 26.21%, and Equity Income followed closely with a
24.01% total return. These high returns were achieved in a low inflation, strong
economic growth environment that was very favorable for U.S. equities. In the
following pages, the investment team for the funds provides further details
about the market and how these funds are managed.

During the period, Equity Income completed its third year of operations,
making it eligible for a Morningstar rating. Equity Income joined Value in
receiving five stars, the top Morningstar rating, for their three-year
performance as of September 30, 1997. Only 10% of the 2,143 domestic funds in
their investment category received five stars.*

The period also provided two significant corporate highlights. In June, Bill
Lyons, American Century's chief operating officer, became president, assuming
full responsibility for the company's day-to-day operations. With this change,
we will be able to spend more time developing and refining new investment
technologies and tools that build on and leverage the proprietary system we
pioneered 25 years ago. One of our goals is to ensure that we continue to evolve
and innovate -- building the investment tools today that will lead us and our
investors to success in the next century.

In July, American Century agreed to enter into a business partnership with
J.P. Morgan & Co., one of the strongest and most respected firms in the
financial services industry. J.P. Morgan will become a significant minority
owner of American Century Companies, Inc. Through this proposed partnership, we
see many opportunities to expand the range of investment choices and services we
offer you. A global financial services firm, J.P. Morgan has been in business
for more than 150 years, serving institutions, governments and individuals with
complex financial needs.

Within the framework of this proposed relationship, American Century will
continue to operate as an independent company. No changes in portfolio managers,
investment policies, fees or expenses are anticipated as a result of this
transaction. American Century's corporate management team will remain the same,
and the Stowers family will retain voting control of the company.

In closing, we want to reassure you that American Century remains committed
to serving your investment needs first and foremost. Thank you for your trust
and confidence.

Sincerely,

/s/James E. Stowers, Jr. /s/James E. Stowers III
James E. Stowers, Jr. James E. Stowers III
Chairman of the Board and Founder Chief Executive Officer

*These Morningstar proprietary ratings reflect historical, risk-adjusted
performance for investment periods ended September 30, 1997. The ratings, which
may change monthly, are calculated from the funds' average annual total returns
in excess of 90-day Treasury bill returns with appropriate fee adjustments and a
risk factor that reflects fund performance below the Treasury bill returns. Past
performance is no guarantee of future results.

2 OUR MESSAGE TO YOU AMERICAN CENTURY INVESTMENTS

<TABLE>
VALUE

TOTAL RETURNS AS OF SEPTEMBER 30, 1997
AVERAGE ANNUAL RETURNS
6 MONTHS 1 YEAR 3 YEARS LIFE OF FUND
INVESTOR CLASS (inception 9/1/93)
<S> <C> <C> <C> <C>
Value ............................... 26.21% 37.80% 27.76% 21.86%
S&P 500 ............................. 26.17% 40.40% 29.84% 22.20%
S&P 500/BARRA Value ................. 24.96% 39.22% 28.25% 20.20%

ADVISOR CLASS (inception 10/2/96)
Value ............................... 26.07% ......................................... 36.24%
S&P 500 ............................. 26.17% ......................................... 39.04%
S&P 500/BARRA Value ................. 24.96% ......................................... 39.22%

INSTITUTIONAL CLASS (inception 7/31/97)
Value .................................................................................. 5.60%
S&P 500 ................................................................................ -0.31%
S&P 500/BARRA Value .................................................................... 1.08%
</TABLE>

Returns for periods less than one year are not annualized.

See pages 33, 36 and 37 for more information about share classes, the
comparative indices and returns.

[mountain graph - data below]

GROWTH OF $10,000 OVER LIFE OF FUND (Investor Class)
BARRA S & P 500
VALUE VALUE INDEX INDEX
9/1/93 $10,000 $10,000 $10,000
9/30/93 $10,000 $9,996 $9,978
10/31/93 $10,120 $10,050 $10,171
11/30/93 $10,000 $9,870 $10,040
12/31/93 $10,307 $10,038 $10,209
1/31/94 $10,649 $10,506 $10,540
2/28/94 $10,448 $10,125 $10,224
3/31/94 $10,083 $9,709 $9,825
4/30/94 $10,265 $9,914 $9,938
5/30/94 $10,407 $10,079 $10,061
6/30/94 $10,270 $9,799 $9,867
7/31/94 $10,657 $10,131 $10,178
8/31/94 $10,983 $10,417 $10,560
9/30/94 $10,741 $10,051 $10,349
10/31/94 $10,844 $10,270 $10,565
11/30/94 $10,542 $9,854 $10,148
12/31/94 $10,718 $9,975 $10,347
1/31/95 $11,198 $10,245 $10,598
2/28/95 $11,677 $10,643 $10,981
3/31/95 $11,955 $10,937 $11,352
4/30/95 $12,283 $11,296 $11,669
5/31/95 $12,611 $11,799 $12,093
6/30/95 $12,744 $11,889 $12,432
7/31/95 $12,987 $12,299 $12,827
8/31/95 $13,075 $12,404 $12,823
9/30/95 $13,307 $12,835 $13,417
10/31/95 $13,174 $12,635 $13,350
11/30/96 $13,795 $13,297 $13,898
12/31/96 $14,234 $13,665 $14,222
1/31/96 $14,475 $14,074 $14,685
2/29/96 $14,716 $14,206 $14,788
3/31/96 $15,295 $14,539 $14,984
4/30/96 $15,624 $14,687 $15,185
5/31/96 $15,915 $14,908 $15,533
6/30/96 $16,121 $14,837 $15,654
7/31/96 $15,171 $14,211 $14,939
8/31/96 $15,707 $14,603 $15,220
9/30/96 $16,254 $15,228 $16,135
10/31/96 $16,474 $15,745 $16,557
11/30/96 $17,525 $16,949 $17,772
12/31/96 $17,685 $16,671 $17,483
1/31/97 $17,873 $17,440 $18,550
2/28/97 $18,195 $17,567 $18,660
3/31/97 $17,747 $16,966 $17,954
4/30/97 $18,043 $17,602 $18,997
5/31/97 $19,203 $18,706 $20,111
6/30/97 $20,030 $19,421 $21,085
7/31/97 $21,221 $20,975 $22,724
8/31/97 $21,167 $20,027 $21,418
9/30/97 $22,398 $21,200 $22,653

Past performance does not guarantee future results. Investment return and
principal value will fluctuate, and redemption value may be more or less than
original cost. Data quoted is for Investor Class only; performance for other
classes will vary due to differences in fee structure (see the Total Returns
table above).

The line representing the fund's total return includes operating expenses (such
as transaction costs and management fees) that reduce returns, while the total
return lines of the indices do not.

PORTFOLIO AT A GLANCE
9/30/97 3/31/97
Number of Companies 68 72
Average Dividend
Yield of Holdings 2.3% 2.6%
Price/Earnings Ratio 17.1 14.8
Portfolio Turnover 63%(1) 111%(2)
Expense Ratio (for Investor Class) 1.00%(3) 1.00%

- ----------
(1) Six months ended 9/30/97.

(2) Year ended 3/31/97.

(3) Annualized.

SEMIANNUAL REPORT VALUE 3

VALUE

MANAGEMENT Q & A

An interview with Phil Davidson and Peter Zuger, portfolio managers on the
Value investment team.

How did the fund perform?

For the six months ended September 30, 1997, Value (Investor Class)
performed strongly, posting a 26.21% total return. It outperformed its
benchmark, the S&P 500/BARRA Value Index, which returned 24.96%, and it also
beat the S&P 500's 26.17% gain.

As you can tell from the chart on page 3, the fund's longer-term performance
has also been very good. Morningstar, the mutual fund-rating company, awarded
Value its top five-star overall rating for risk-adjusted performance out of
2,143 domestic equity funds as of September 30, 1997(1). Morningstar measures
risk by comparing a fund's returns to those of the "risk-free" 90-day Treasury
bill and to other funds in its investment category, and awards its top rating to
just 10% of the funds in a category. Value's rating indicates that the fund's
returns are attractive compared with its level of risk.

What factors helped the fund perform better than its benchmark?

The fund held heavier concentrations relative to the S&P 500/BARRA Value
index in several "winning" sectors. For example, food and beverage

(1) Morningstar proprietary ratings reflect risk-adjusted performance as of
9/30/97. Value received a five-star rating out of 2,143 funds for the three-year
period ending 9/30/97. The overall rating, which may change monthly, is
calculated from the fund's 3-, 5- and 10-year (when available) average total
returns in excess of 90-day Treasury bill returns with appropriate fee
adjustments and a risk factor that reflects fund performance below 90-day
Treasury bill returns. Ten percent of the funds in an investment category
receive five stars. Past performance is no guarantee of future results.

[bar graph - data below]

VALUE'S ONE-YEAR RETURNS SINCE INCEPTION (Periods ended September 30)
S & P BARRA S & P 500
VALUE VALUE INDEX INDEX
9/1/93 - - -
9/30/93 0.00% -0.04% -0.22%
10/31/93 1.20% 0.50% 1.71%
11/30/93 0.00% -1.30% 0.40%
12/31/93 3.07% 0.38% 2.09%
1/31/94 6.49% 5.06% 5.40%
2/28/94 4.48% 1.25% 2.24%
3/31/94 0.83% -2.91% -1.75%
4/30/94 2.65% -0.86% -0.62%
5/30/94 4.07% 0.79% 0.61%
6/30/94 2.70% -2.01% -1.33%
7/31/94 6.57% 1.31% 1.78%
8/31/94 9.83% 4.17% 5.60%
9/30/94 7.41% 0.51% 3.49%
10/31/94 8.44% 2.70% 5.65%
11/30/94 5.42% -1.46% 1.48%
12/31/94 7.18% -0.25% 3.47%
1/31/95 11.98% 2.45% 5.98%
2/28/95 16.77% 6.43% 9.81%
3/31/95 19.55% 9.37% 13.52%
4/30/95 22.83% 12.96% 16.69%
5/31/95 26.11% 17.99% 20.93%
6/30/95 27.44% 18.89% 24.32%
7/31/95 29.87% 22.99% 28.27%
8/31/95 30.75% 24.04% 28.23%
9/30/95 33.07% 28.35% 34.17%
10/31/95 31.74% 26.35% 33.50%
11/30/95 37.95% 32.97% 38.98%
12/31/95 42.34% 36.65% 42.22%
1/31/96 44.75% 40.74% 46.85%
2/29/96 47.16% 42.06% 47.88%
3/31/96 52.95% 45.39% 49.84%
4/30/96 56.24% 46.87% 51.85%
5/31/96 59.15% 49.08% 55.33%
6/30/96 61.21% 48.37% 56.54%
7/31/96 51.71% 42.11% 49.39%
8/31/96 57.07% 46.03% 52.20%
9/30/96 62.54% 52.28% 61.35%
10/31/96 64.74% 57.45% 65.57%
11/30/96 75.25% 69.49% 77.72%
12/31/96 76.85% 66.71% 74.83%
1/31/97 78.73% 74.40% 85.50%
2/28/97 81.95% 75.67% 86.60%
3/31/97 77.47% 69.66% 79.54%
4/30/97 80.43% 76.02% 89.97%
5/31/97 92.03% 87.06% 101.11%
6/30/97 100.30% 94.21% 110.85%
7/31/97 112.21% 109.75% 127.24%
8/31/97 111.67% 100.27% 114.18%
9/30/97 123.98% 112.00% 126.53%

This chart illustrates the fund's returns since its inception and compares them
with the index's returns. The fund's total returns include operating expenses,
while the index's returns do not. See page 36 for a description of the index.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate, and redemption value may be more or less than
original cost.

(1) Investor Class. (2) Return from the fund's 9/1/93 inception date to 9/30/93

4 VALUE AMERICAN CENTURY INVESTMENTS

VALUE

stocks represented 7.6% of the fund's portfolio at the end of the period,
compared to the index's 1.9% weighting. This sector was depressed early in the
period due to concerns about high grain prices. Investors feared producers, such
as Hormel, ADM and RalCorp., would see their profit margins squeezed by an
inability to pass through higher input costs. Those concerns were abated by
respectable grain harvests. Both the fund and its index benefited when sentiment
changed and strong appreciation in food stocks followed, but Value's heavier
weighting helped push its return over that of the index.

Value also achieved significant gains from its holdings in bank stocks,
which accounted for more than 5% of the portfolio at the end of the period. The
fund was actually somewhat underweighted compared to the index, but the stocks
we held performed particularly well, due to both their good fundamentals and the
continued merger and acquisition activity within the industry.

What other stocks added to returns during the period?

Hudson Foods was another top-performing stock, which we purchased at a very
attractive price in August following the discovery of bacteria in ground beef
produced at the company's Nebraska meat-packing plant. We have owned this
company in the past and continue to be impressed with its sound management
practices and strong fundamentals. We were confident that, despite the company's
trouble in its beef operations, which represent 6% of revenues, its long-term
prospects remained promising. That confidence proved to be well-founded --
Hudson was ultimately purchased by Tyson Foods and its stock rebounded sharply.

Dillard's Department Stores, Inc., which was one of Value's largest and
best-performing holdings in the previous period, continued to add to returns in
the six months ended September 30, 1997. Its good performance was driven by
stronger than expected sales and a general upturn in sales of women's apparel.
Although the fund continues to hold some Dillard's stock, we have trimmed
holdings in the general merchandise and retail sector back from 5.1% of the
total portfolio to just 2.7% as these holdings rose in price to become more
fairly valued.

Which stocks negatively affected performance?

Two of Value's worst-performing holdings, MCI Communications and
Mallinckrodt Group, Inc., were both negatively affected by mergers or attempted
takeovers. British Tele- communications PLC made a bid for MCI during the
period, then renegotiated less attractive terms in August. We held onto MCI

TOP TEN HOLDINGS % of fund investments
As of As of
9/30/97 3/31/97
Giant Food Inc. Cl A 4.6% 4.5%
Mallinckrodt Group, Inc. 2.9% --
IBP, Inc. 2.6% --
Great Lakes Chemical Corp. 2.5% 2.4%
Albertson's, Inc. 2.4% 2.2%
Florida Progress Corp. 2.4% 2.3%
Mercantile Bancorporation Inc. 2.4% 2.0%
Superior Industries
International, Inc. 2.3% 2.5%
XTRA Corp. 2.2% 1.8%
Unocal Corp. 2.1% --

TOP FIVE INDUSTRIES % of fund investments
As of As of
9/30/97 3/31/97
Energy (Production & Marketing) 8.7% 7.9%
Retail (Food & Drug) 8.7% 8.2%
Utilities 8.4% 8.7%
Food & Beverage 7.6% 5.6%
Chemicals & Resins 6.2% 8.6%

SEMIANNUAL REPORT VALUE 5

VALUE

because it continued to sell at a significant discount to the adjusted offer.
This strategy was rewarded after the period ended when two other
telecommunications giants followed British Telecommunications' offer with
stronger bids.

Mallinckrodt Group, a manufacturer of medical products and specialty
chemicals, acquired Nellcor Puritan Bennett in August. Nellcor manufactures
products that treat and monitor patients with respiratory problems. Mallinckrodt
borrowed heavily to finance the deal, and the company is now financially
leveraged. Market concerns that the merger will be dilutive to earnings during
1998 have dampened investor enthusiasm for the stock over the short term.
However, we believe that the company will benefit in the long run from the
merger, which expanded both its product line and opportunities to market to
non-hospital customers. Also, the company will produce a healthy level of free
cash flow that will reduce the current debt levels.

Another holding that hampered performance was Columbia/HCA Healthcare, the
nation's largest owner and manager of hospitals. This company is currently under
investigation by the government for Medicare fraud, and this has driven down its
stock price significantly. We think the company has attractive assets and it is
our expectation that it will be able to reach a reasonable resolution with the
government. If that's the case, these current price levels represent an
attractive value.

What changes did you make to the portfolio during the period?

We reduced our holdings in natural gas producers as stock prices in this
sector responded to better-than-expected natural gas pricing. Last spring,
production lagged forecasted needs and demand for gas continued to grow, which
resulted in higher prices.

In the technology sector, we sold the fund's shares of one of its
best-performing holdings, AMP, Inc., a manufacturer of electronic connectors.
The company's shares were favorably influenced by a successful restructuring,
stronger-than-expected earnings and a snap-back in the share prices of
technology issues generally. As a result, its valuations moved outside our
investment criteria.

We continue to maintain meaningful positions in food and beverage, chemical
and utility stocks.

What is your outlook for the fund?

Conservative equity funds often outperform the broad market during downturns
and underperform during rallies. Value's strong performance has been somewhat
unusual, given the market's extended bull run. While we are very pleased with
these results in this environment, we wish to stress that our emphasis continues
to be on finding securities of seasoned, established businesses that we believe
are temporarily undervalued. These types of securities should continue to
provide solid, long-term prospects for appreciation while helping to cushion the
fund's performance during periods of increased volatility.

6 VALUE AMERICAN CENTURY INVESTMENTS

<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS
VALUE

SEPTEMBER 30, 1997 (UNAUDITED)
Shares Value
- -----------------------------------------------------------------------------------------
COMMON STOCKS

<S> <C> <C>
AEROSPACE & DEFENSE--1.9%

835,600 Litton Industries, Inc.(1) 45,435,750
-------------------

AUTOMOBILES & AUTO PARTS--3.9%

736,100 Cooper Tire and Rubber Company 19,552,656

509,300 Echlin Inc. 17,857,331

1,998,000 Superior Industries International, Inc.(2) 55,319,625
-------------------

92,729,612
-------------------

BANKING--5.6%

943,950 First Virginia Banks, Inc. 44,837,625

752,000 Mercantile Bancorporation Inc. 57,246,000

506,000 NationsBank Corp. 31,308,750
-------------------

133,392,375
-------------------

BUILDING & HOME IMPROVEMENTS--0.1%

180,000 Juno Lighting, Inc. 3,116,250
-------------------

BUSINESS SERVICES & SUPPLIES--0.7%

875,900 Reynolds & Reynolds Co. 17,025,306
-------------------

CHEMICALS & RESINS--6.2%

177,000 Dow Chemical Co. 16,051,688

1,226,600 Great Lakes Chemical Corp. 60,486,712

1,071,800 Millennium Chemicals Inc. 23,579,600

1,189,800 Nalco Chemical Co. 47,666,362
-------------------

147,784,362
-------------------

COMMUNICATIONS SERVICES--2.0%

951,000 Frontier Corp. 21,873,000

860,200 MCI Communications Corp. 25,241,494
-------------------

47,114,494
-------------------

COMPUTER SOFTWARE & SERVICES--1.6%

1,112,900 GTECH Holdings Corp.(1) 38,047,269
-------------------

ELECTRICAL & ELECTRONIC
COMPONENTS--2.6%

977,300 General Signal Corp. 42,268,225

375,000 Tecumseh Products Cl A 20,871,094
-------------------

63,139,319
-------------------

Shares Value
- -------------------------------------------------------------------------------------------

ENERGY (PRODUCTION & MARKETING)--8.7%

246,200 Amoco Corp. $ 23,727,525

418,000 Burlington Resources Inc. 21,448,625

1,184,100 MAPCO Inc. 39,001,294

700,000 Murphy Oil Corp. 39,987,500

1,099,900 Ultramar Diamond Shamrock Corp. 35,540,519

1,150,300 Unocal Corp. 49,750,475
---------------------

209,455,938
---------------------

ENVIRONMENTAL SERVICES--2.4%

1,647,600 Waste Management
International plc ADR(1) 13,386,750

1,259,000 WMX Technologies, Inc. 43,986,312
---------------------

57,373,062
---------------------

FOOD & BEVERAGE--7.6%

1,928,257 Archer-Daniels-Midland Co. 46,157,652

764,000 Hormel Foods Corp. 24,495,750

2,629,400 IBP, Inc. 62,119,575

1,220,700 Universal Foods Corp. 49,133,175
---------------------

181,906,152
---------------------

HEALTHCARE--2.8%

796,300 Beckman Instruments, Inc. 33,892,519

841,000 Columbia/HCA Healthcare Corp. 24,178,750

420,000 Seafield Capital Corp.(2) 10,447,500
---------------------

68,518,769
---------------------

INDUSTRIAL EQUIPMENT & MACHINERY--1.7%

761,200 Cooper Industries, Inc. 41,152,375
---------------------

INSURANCE--2.8%

525,000 Argonaut Group, Inc. 18,210,937

378,000 CNA Financial Corp.(1) 47,982,375
---------------------

66,193,312
---------------------

LEISURE--2.0%

745,400 Eastman Kodak Co. 48,404,412
---------------------

METALS & MINING--1.5%

575,300 Ashland Coal, Inc. 16,432,006

264,000 Reynolds Metals Co. 18,694,500
---------------------

35,126,506
---------------------

See Notes to Financial Statements

SEMIANNUAL REPORT VALUE 7

SCHEDULE OF INVESTMENTS
VALUE

SEPTEMBER 30, 1997 (UNAUDITED)
Shares Value
- ----------------------------------------------------------------------------------------

PAPER & FOREST PRODUCTS--4.0%

678,500 Chesapeake Corp. $ 24,595,625

621,000 Rayonier, Inc. 30,040,875

190,200 Union Camp Corp. 11,732,963

799,600 Westvaco Corp. 28,835,575
---------------------

95,205,038
---------------------

PHARMACEUTICALS--4.9%

1,324,100 Allergan, Inc. 47,915,869

1,925,000 Mallinckrodt Inc. 69,300,000
---------------------

117,215,869
---------------------

PUBLISHING--2.4%

1,090,000 Banta Corp. 30,520,000

753,000 McClatchy Newspapers, Inc. 25,884,375
---------------------

56,404,375
---------------------

RAILROAD--1.7%

698,100 CSX Corp. 40,838,850
---------------------

RETAIL (FOOD & DRUG)--8.7%

1,669,700 Albertson's, Inc. 58,230,788

1,633,400 Food Lion, Inc. Cl A 13,654,203

3,416,800 Giant Food Inc. Cl A(2)(3) 111,259,550

686,600 Hannaford Brothers Co. 24,417,213
---------------------

207,561,754
---------------------

RETAIL (GENERAL MERCHANDISE)--2.7%

562,000 Dillard Department Stores, Inc. Cl A 24,622,625

455,700 May Department Stores Co. (The) 24,835,650

258,000 Mercantile Stores Co., Inc. 16,237,875
------------------------

65,696,150
-------------------------

RETAIL (SPECIALTY)--0.7%

811,000 Office Depot, Inc.(1) 16,372,063
-------------------------

RUBBER & PLASTICS--1.9%

803,600 Rubbermaid Inc. 20,542,025

877,000 Tupperware Corp. 24,665,625
--------------------------

45,207,650
---------------------------

TEXTILES & APPAREL--2.7%

1,273,300 Fruit of the Loom, Inc.(1) 35,811,562

2,349,100 Shaw Industries, Inc. 29,510,569
--------------------------

65,322,131
--------------------------

Shares/Principal Amount Value
- --------------------------------------------------------------------------------------------

TOBACCO--0.5%

400,000 UST Inc. $ 12,225,000
---------------------

TRANSPORTATION--2.2%

946,000 XTRA Corp.(2) 53,862,875
---------------------

UTILITIES--8.4%

1,762,400 Florida Progress Corp. 58,159,200

135,000 New York State Electric & Gas Corp. 3,628,125

816,000 Potomac Electric Power Co. 18,564,000

1,365,000 Texas Utilities Co. 49,140,000

768,300 Union Electric Co. 29,531,531

1,586,700 Wisconsin Energy Corp. 41,254,200
---------------------

200,277,056
---------------------

TOTAL COMMON STOCKS--94.9% 2,272,104,074
---------------------

(Cost $1,985,371,374)

TEMPORARY CASH INVESTMENTS

$2,000,000 par value FHLMC Discount Note,

5.46%, 10/1/97(4) 2,000,000

Repurchase Agreement, J. P. Morgan Securities,
Inc., (U.S. Treasury obligations), in a joint
trading account at 5.95%, dated 9/30/97,
due 10/1/97 (Delivery value $120,919,982) 120,900,000
----------------------

TOTAL TEMPORARY CASH INVESTMENTS--5.1% 122,900,000
----------------------

(Cost $122,900,000)

TOTAL INVESTMENT SECURITIES--100.0% $2,395,004,074
=======================

(Cost $2,108,271,374)

FUTURES CONTRACTS

Expiration Underlying Face Unrealized
Purchased Date Amount at Value Gain
- ---------------------------------------------------------------

125 S&P 500 December
Futures 1997 $59,656,250 $515,234
===============================
</TABLE>

See Notes to Financial Statements

8 VALUE AMERICAN CENTURY INVESTMENTS

SCHEDULE OF INVESTMENTS

VALUE

NOTES TO SCHEDULE OF INVESTMENTS

ADR = American Depositary Receipt

FHLMC = Federal Home Loan Mortgage Corporation

(1) Non-income producing.

(2) Affiliated Company: represents ownership of at least 5% of the voting
securities of the issuer and is, therefore, an affiliate as defined in the
Investment Company Act of 1940. (See Note 5 in Notes to Financial Statements for
a summary of transactions for each issuer which is or was an affiliate at or
during the six months ended September 30, 1997.)

(3) Security, or a portion thereof, has been segregated at the custodian bank
for futures contracts.

(4) The rates for U.S. Government Agency discount notes are the yield to
maturity at September 30, 1997.

See Notes to Financial Statements

SEMIANNUAL REPORT VALUE 9

<TABLE>
<CAPTION>
EQUITY INCOME

TOTAL RETURNS AS OF SEPTEMBER 30, 1997
AVERAGE ANNUAL RETURNS
6 MONTHS 1 YEAR 3 YEARS LIFE OF FUND
<S> <C> <C> <C> <C>
INVESTOR CLASS (inception 8/1/94)
Equity Income .....................24.01% 34.35% 25.08% 24.59%
S&P 500 ...........................26.17% 40.40% 29.84% 28.53%
Lipper Equity Income Fund Index ...21.80% 33.71% 22.90% 22.10%

ADVISOR CLASS (inception 3/7/97)
Equity Income .....................24.05% ................................. 20.47%
S&P 500 ...........................26.17% ................................. 19.27%
Lipper Equity Income Fund Index ...21.80% .................................17.90%(1)
</TABLE>

- ----------
(1) Return from 3/13/97, the date nearest the fund's 3/7/97 inception for which
data are available.
Returns for periods less than one year are not annualized.

(See pages 33, 36 and 37 for more information about share classes, comparative
indices and returns.

[mountain graph - data below]

GROWTH OF $10,000 OVER LIFE OF FUND (Investor Class)
LIPPER
EQUITY
EQUITY INCOME S & P 500
INCOME FUND INDEX INDEX
8/1/94 $10,000 $10,000 $10,000
8/31/94 $10,360 $10,333 $10,314
9/30/94 $10,248 $10,137 $10,108
10/31/94 $10,349 $10,192 $10,319
11/30/94 $10,038 $9,810 $9,911
12/31/94 $10,053 $9,888 $10,106
1/31/95 $10,499 $10,064 $10,351
2/28/95 $10,884 $10,388 $10,725
3/31/95 $11,069 $10,632 $11,087
4/30/95 $11,417 $10,886 $11,397
5/31/95 $11,641 $11,220 $11,811
6/30/95 $11,809 $11,369 $12,142
7/31/95 $12,056 $11,680 $12,528
8/31/95 $12,097 $11,824 $12,524
9/30/95 $12,347 $12,191 $13,104
10/31/95 $12,285 $12,018 $13,039
11/30/95 $12,763 $12,520 $13,574
12/31/95 $13,031 $12,827 $13,890
1/31/96 $13,325 $13,120 $14,343
2/29/96 $13,506 $13,218 $14,443
3/31/96 $13,913 $13,385 $14,635
4/30/96 $14,026 $13,513 $14,831
5/31/96 $14,345 $13,713 $15,171
6/30/96 $14,558 $13,734 $15,289
7/31/96 $14,029 $13,285 $14,591
8/31/96 $14,466 $13,584 $14,865
9/30/96 $14,927 $14,075 $15,759
10/31/96 $15,043 $14,408 $16,171
11/30/96 $15,830 $15,232 $17,075
1/31/97 $16,272 $15,686 $18,118
2/28/97 $16,576 $15,969 $18,225
3/31/97 $16,171 $15,452 $17,536
4/30/97 $16,683 $15,911 $18,554
5/31/97 $17,734 $16,827 $19,643
6/30/97 $18,339 $17,462 $20,593
7/31/97 $19,216 $18,514 $22,194
8/31/97 $19,293 $17,917 $20,919
9/30/97 $20,054 $18,820 $22,125

The line representing the fund's total return includes operating expenses (such
as transaction costs and management fees) that reduce returns, while the total
return lines of the indices do not.

PORTFOLIO AT A GLANCE
9/30/97 3/31/97
Number of Companies 66 65
Average Dividend
Yield of Holdings 3.8% 4.1%
Price/Earnings Ratio 16.3 14.9
Portfolio Turnover 80%(1) 159%(2)
Expense Ratio (for Investor Class) 1.00%(3) 1.00%

- ----------
(1) Six months ended 9/30/97.

(2) Year ended 3/31/97.

(3) Annualized.

10 EQUITY INCOME AMERICAN CENTURY INVESTMENTS

EQUITY INCOME

MANAGEMENT Q & A

An interview with Phil Davidson and Peter Zuger, portfolio managers on the
Equity Income investment team.

How did the fund perform?

For the six months ended September 30, 1997, Equity Income (Investor Class)
posted a strong performance, providing a total return of 24.01%. The fund
outperformed its benchmark, the Lipper Equity Income Fund Index, which returned
21.80%. The S&P 500 returned 26.17% for the period.

What factors helped the fund perform better than its benchmark?

The fund's benchmark is a basket of mutual funds, as opposed to a basket of
individual stocks, like most indices. That makes it difficult to compare the
fund's holdings relative to its benchmark. However, we took significant
positions in several sectors that benefited the fund. Bank stocks, which
accounted for 8.2% of the portfolio at the end of the period, were among the
fund's top performers for the second period in a row. These shares benefited
from continued merger and acquisition activity in the financial services
industry. The fund also earned attractive returns from investments in the paper
and forest products sector. Our valuation techniques identified some very solid
companies that became attractively priced early in the period due to uncertainty
over paper prices. The paper industry hit its low point in March as paper
inventories exceeded demand, enabling us to buy these stocks at low prices and
attractive relative yields. We trimmed back positions as the paper market began
to stabilize and stocks appreciated.

The fund also benefited from acquisition activity that occurred in several
sectors during the period. The stocks of Keystone International, a maker of

[bar graph - data below]

EQUITY INCOME'S ONE-YEAR RETURNS SINCE INCEPTION (Periods ended September 30)
EQUITY EQUITY INCOME S & P 500
INCOME FUND INDEX INDEX
8/1/94 - - -
8/31/94 3.60% 3.33% 3.14%
9/30/94 2.48% 1.37% 1.08%
10/31/94 3.49% 1.92% 3.19%
11/30/94 0.38% -1.90% -0.89%
12/31/94 0.53% -1.12% 1.06%
1/31/95 4.99% 0.64% 3.51%
2/28/95 8.84% 3.88% 7.25%
3/31/95 10.69% 6.32% 10.87%
4/30/95 14.17% 8.86% 13.97%
5/31/95 16.41% 12.20% 18.11%
6/30/95 18.09% 13.69% 21.42%
7/31/95 20.56% 16.80% 25.28%
8/31/95 20.97% 18.24% 25.24%
9/30/95 23.47% 21.91% 31.04%
10/31/95 22.85% 20.18% 30.39%
11/30/95 27.63% 25.20% 35.74%
12/31/95 30.31% 28.27% 38.90%
1/31/96 33.25% 31.20% 43.43%
2/29/96 35.06% 32.18% 44.43%
3/31/96 39.13% 33.85% 46.35%
4/30/96 40.26% 35.13% 48.31%
5/31/96 43.45% 37.13% 51.71%
6/30/96 45.58% 37.34% 52.89%
7/31/96 40.29% 32.85% 45.91%
8/31/96 44.66% 35.84% 48.65%
9/30/96 49.27% 40.75% 57.59%
10/31/96 50.43% 44.08% 61.71%
11/30/96 58.30% 52.32% 73.57%
12/31/96 60.69% 51.31% 70.75%
1/31/97 62.72% 56.86% 81.18%
2/28/97 65.76% 59.69% 82.25%
3/31/97 61.71% 54.52% 75.36%
4/30/97 66.83% 59.11% 85.54%
5/31/97 77.34% 68.27% 96.43%
6/30/97 83.39% 74.62% 105.93%
7/31/97 92.16% 85.14% 121.94%
8/31/97 92.93% 79.17% 109.19%
9/30/97 100.54% 88.20% 121.25%

This chart illustrates the fund's returns since its inception and compares them
with the index's returns. See page 36 for a description of the index. Past
performance is no guarantee of future results. Investment return and principal
value will flunctuate, and redemption value may be more or less than original
cost.

(1) Investor Class. (2) Return from the fund's 8/1/94 inception date to
9/30/94.

SEMIANNUAL REPORT EQUITY INCOME 11

EQUITY INCOME

industrial valves, and Goulds Pumps, a manufacturer of industrial pumps, are two
examples. Earnings growth in both businesses slowed earlier in the year in
response to weakness in demand within the industrial equipment industry. We were
attracted to these companies' above-average dividend yields, strong financial
positions and solid longer-term business prospects. Such attributes also made
these companies appealing candidates for acquisition by other companies. They
ultimately were purchased by Tyco International and ITT Industries,
respectively. The fund also held a substantial stake in Tambrands Inc., a
consumer products company that was acquired by Procter & Gamble in the second
quarter.

Do you seek out companies that are likely to be acquired?

No, but companies that are likely to be acquired often demonstrate many of
the investment characteristics we seek. We look for companies with above-average
dividend yields whose stocks are depressed due to a temporary setback or the
market's overreaction to news that does not alter the strength of the company's
underlying business. Our goal is to sell the stock after it has appreciated to
the point where its relative yield is no longer attractive. Occasionally, one of
the fund's holdings will be acquired by a company whose management sees the same
opportunity we see -- a sound business at a discount price.

What other stocks added significantly to the fund's returns during the period?

We were particularly pleased with Frontier Corporation, which went from
being one of the fund's worst-performing stocks in the previous period to one of
the best. Frontier is a New York-based regional phone company whose stock price
had declined because of concerns about increasing competition within the
industry. The stock recovered nicely during the period due to an internal
management restructuring and stabilization of its earnings and sales.

The fund also continued to benefit from its holdings in department store
stocks, specifically Dillard's, J.C. Penney and Mercantile Stores, whose
earnings were boosted by an upturn in sales of women's apparel. We trimmed our
positions in these stocks as they achieved what we considered a fair valuation.

TOP TEN HOLDINGS % of fund investments
As of As of
9/30/97 3/31/97
Giant Food Inc. Cl A 4.6% 4.8%
Office Depot, Inc., 4.44%,
12/11/07 (convertible bond) 4.4% --
Unocal Corp.
(convertible preferred) 4.1% 1.6%
Pep Boys, 4.49%, 9/20/11
(convertible bond) 3.9% --
WMX Technologies, 2.00%,
1/24/05 (convertible bond) 3.6% --
Ultramar Diamond Shamrock, Inc.
(convertible preferred) 2.5% 1.5%
Argonaut Group, Inc. 2.4% 2.5%
Florida Progress Corp. 2.4% 2.7%
Mercantile Bancorporation Inc. 2.3% 2.2%
First Virginia Banks, Inc. 2.3% 2.3%

TOP FIVE INDUSTRIES % of fund investments
As of As of
9/30/97 3/31/97
Utilities 12.1% 14.9%
Retail (Food & Drug) 9.5% 7.2%
Energy (Production & Marketing) 8.7% 3.2%
Banking 8.2% 7.5%
Food & Beverage 6.0% 7.6%

12 EQUITY INCOME AMERICAN CENTURY INVESTMENTS

EQUITY INCOME

Which holdings performed poorly?

One of our weaker-performing investments during the period was a Pep Boys
investment grade convertible security (an income-paying instrument whose
performance is tied to that of the issuing company's underlying stock). Pep Boys
is an auto parts supplier that has long been dominant in its industry and is, in
our estimation, well-managed and sound. Its stock price declined during the
period in response to a general slowdown in the do-it-yourself market. That
slowdown was caused at least in part by declining demand for replacement parts
as cars are made better and last longer. However, we are comfortable with the
company's strategy for continued growth, which centers around rental-car
reconditioning and fleet maintenance. In addition, this convertible security
offers an attractive yield that is consistent with the fund's objectives.

What changes did you make to the portfolio during the period?

Although we have not made any major tactical shifts, we have increased our
weighting in convertibles from approximately 18% of the portfolio on March 31,
1997, to 27% on September 30, 1997. In addition to the Pep Boys convertible,
other convertibles acquired include securities issued by Rite-Aid, a major
drugstore chain, and Office Depot. The Office Depot convertible became
relatively inexpensive when the U.S. Department of Justice blocked the company's
effort to merge with Staples, Inc., another office products
merchandiser/supplier. In each of these cases, the convertibles offered
attractive yields and participation in any upward move in the stock's price.

Morningstar, the mutual fund-rating company, recently gave its top rating to the
fund. What made Equity Income a five-star fund?

Morningstar awards this rating to the top 10% of funds in a category as
measured by its dual-edged test of risk and return. To earn its five-star
rating, Equity Income's returns were compared with those of 2,143 domestic
equity mutual funds over the three-year period ending September 30, 1997. A fund
must be in operation for three years to become eligible for a Morningstar
rating. The fact that the fund earned the top rating as soon as it became
eligible indicates that we have been accomplishing the fund's goal of strong
returns with limited volatility.

(1) Morningstar proprietary ratings reflect risk-adjusted performance as of
9/30/97. Equity Income received a five-star rating out of 2,143 funds for
the three-year period ending 9/30/97. The overall rating, which may change
monthly, is calculated from the fund's 3-, 5- and 10-year (when available)
average total returns in excess of 90-day Treasury bill returns with
appropriate fee adjustments and a risk factor that reflects fund
performance below 90-day Treasury bill returns. Ten percent of the funds in
an investment category receive five stars. Past performance is no guarantee
of future results.

SEMIANNUAL REPORT EQUITY INCOME 13

<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS
EQUITY INCOME

SEPTEMBER 30, 1997 (UNAUDITED)

Shares Value
- ----------------------------------------------------------------------------------------
COMMON STOCKS

<S> <C> <C>
AUTOMOBILES & AUTO PARTS--0.5%

52,000 Superior Industries International, Inc. $ 1,439,750
---------------------

BANKING--7.0%

135,000 First Virginia Banks, Inc. 6,412,500

85,595 Mercantile Bancorporation Inc. 6,515,919

47,000 NationsBank Corp. 2,908,125

70,200 UMB Financial Corp. 3,606,525
---------------------

19,443,069
---------------------

BUILDING & HOME IMPROVEMENTS--0.6%

93,500 Juno Lighting, Inc. 1,618,719
---------------------

CHEMICALS & RESINS--2.9%

21,000 Dow Chemical Co. 1,904,437

54,000 Great Lakes Chemical Corp. 2,662,875

90,000 Nalco Chemical Co. 3,605,625
---------------------

8,172,937
---------------------

COMMUNICATIONS SERVICES--1.2%

139,600 Frontier Corp. 3,210,800
---------------------

CONSUMER PRODUCTS--3.9%

148,000 National Presto Industries, Inc. 6,225,250

148,000 WD-40 Co. 4,504,750
---------------------

10,730,000
---------------------

DIVERSIFIED COMPANIES--1.3%

40,000 Minnesota Mining &
Manufacturing Co. 3,700,000
---------------------

ELECTRICAL & ELECTRONIC
COMPONENTS--2.7%

81,000 General Signal Corp. 3,503,250

72,000 Tecumseh Products Cl A 4,007,250
---------------------

7,510,500
---------------------

ENERGY (PRODUCTION & MARKETING)--1.3%

21,000 Amoco Corp. 2,023,875

26,500 Murphy Oil Corp. 1,513,812
---------------------

3,537,687
---------------------

FOOD & BEVERAGE--6.0%

57,000 Archer-Daniels-Midland Co. 1,364,437

93,000 General Mills, Inc. 6,411,187

Shares Value
- -----------------------------------------------------------------------------------------------------

145,000 McCormick & Co., Inc. $ 3,493,594

136,500 Universal Foods Corp. 5,494,125
---------------------

16,763,343
---------------------

HEALTHCARE--1.7%

185,000 Seafield Capital Corp. 4,601,875
---------------------

INDUSTRIAL EQUIPMENT & MACHINERY--1.2%

62,500 Cooper Industries, Inc. 3,378,906
---------------------

INSURANCE--2.4%

195,000 Argonaut Group, Inc. 6,764,062
---------------------

LEISURE--2.0%

85,100 Eastman Kodak Co. 5,526,181
---------------------

METALS & MINING--0.7%

72,000 Ashland Coal, Inc. 2,056,500
---------------------

PAPER & FOREST PRODUCTS--1.9%

52,900 Rayonier, Inc. 2,559,037

21,500 Union Camp Corp. 1,326,281

39,500 Westvaco Corp. 1,424,469
---------------------

5,309,787
---------------------

PHARMACEUTICALS--1.8%

136,000 Mallinckrodt Inc. 4,896,000
---------------------

PRINTING & PUBLISHING--0.9%

40,000 Banta Corp. 1,120,000

47,500 Reader's Digest
Association, Inc. (The) 1,425,000
---------------------

2,545,000
---------------------

RESTAURANTS--3.5%

175,000 Luby's Cafeterias, Inc. 3,642,187

208,700 Perkins Family Restaurants, L.P. 2,817,450

120,000 Sbarro, Inc. 3,360,000
---------------------

9,819,637
---------------------

RETAIL (FOOD & DRUG)--5.8%

394,300 Giant Food Inc. Cl A(1) 12,839,394

91,500 Weis Markets, Inc. 3,202,500
---------------------

16,041,894
---------------------

See Notes to Financial Statements

14 EQUITY INCOME AMERICAN CENTURY INVESTMENTS

SCHEDULE OF INVESTMENTS
EQUITY INCOME

SEPTEMBER 30, 1997 (UNAUDITED)

Shares Value
- ----------------------------------------------------------------------------------

RETAIL (GENERAL MERCHANDISE)--2.8%

22,500 May Department Stores Co. (The) $ 1,226,250

43,800 Mercantile Stores Co., Inc. 2,756,662

64,000 Penny (J.C.) Company, Inc. 3,728,000
--------------------

7,710,912
--------------------

RUBBER & PLASTICS--2.0%

109,400 Rubbermaid Inc. 2,796,537

101,000 Tupperware Corp. 2,840,625
--------------------

5,637,162
--------------------

TEXTILES & APPAREL--1.0%

216,900 Shaw Industries, Inc. 2,724,806
--------------------

TOBACCO--1.0%

87,000 UST Inc. 2,658,937
--------------------

UTILITIES--12.1%

329,000 AGL Resources Inc. 6,230,437

109,000 CIPSCO Inc. 4,155,625

25,900 CMS Energy Corp. 558,468

197,900 Florida Progress Corp. 6,530,700

17,000 New York State Electric & Gas Corp 456,875

98,000 Potomac Electric Power Co. 2,229,500

22,000 South Jersey Industries, Inc. 552,750

164,000 Texas Utilities Co. 5,904,000

39,100 Union Electric Co. 1,502,906

204,100 Wisconsin Energy Corp. 5,306,600
--------------------

33,427,861
--------------------

TOTAL COMMON STOCKS--68.2% 189,226,325
--------------------

(Cost $169,294,786)

CONVERTIBLE PREFERRED STOCKS

BANKING--1.2%

116,000 National Australia Bank Ltd. SA 3,407,500
--------------------

CONTROL & MEASUREMENT--1.2%

77,500 Elsag Bailey Process
Automation N.V. 3,201,719
--------------------

Shares/Principal Amount Value
- -----------------------------------------------------------------------------------

ENERGY (PRODUCTION & MARKETING)--6.6%

110,000 Ultramar Diamond Shamrock, Inc.
(Acquired 11/8/96 through
9/24/97, Cost $6,759,950)(2) $ 6,936,875

186,000 Unocal Corp.
(Acquired 1/22/97 through
8/21/97, Cost $10,422,663)(2) 11,346,000
--------------------

18,282,875
--------------------

TOTAL CONVERTIBLE PREFERRED
STOCKS--9.0% 24,892,094
--------------------
(Cost $22,963,092)

CONVERTIBLE BONDS

AUTOMOBILES & AUTO PARTS--3.9%

$20,000,000 Pep Boys, 4.49%, 9/20/11(3) 10,762,500
--------------------

ENERGY (PRODUCTION & MARKETING)--0.8%

2,000,000 Swift Energy Co., 6.25%, 11/15/06 2,165,000
--------------------

ENVIRONMENTAL SERVICES--3.5%

10,250,000 WMX Technologies, 2.00%,
1/24/05 9,884,844
--------------------

PRINTING & PUBLISHING--1.5%

11,000,000 Hollinger, Inc., 6.04%, 10/5/13(3) 4,241,875
--------------------

RETAIL (FOOD & DRUG)--3.7%

4,100,000 Food Lion, Inc., 5.00%, 6/1/03
(Acquired 2/20/97 through
8/13/97, Cost $4,221,730)(2) 4,607,375

5,500,000 Rite Aid Corp., 5.25%, 9/15/02 5,630,625
--------------------

10,238,000
--------------------

RETAIL (GENERAL MERCHANDISE)--0.3%

1,000,000 Jacobson Stores Inc.,
6.75%, 12/15/11 860,000
--------------------

RETAIL (SPECIALTY)--4.4%

19,000,000 Office Depot, Inc.,
4.44%, 12/11/07(3) 12,136,250
--------------------

TOTAL CONVERTIBLE BONDS--18.1% 50,288,469
--------------------

(Cost $48,278,921)

See Notes to Financial Statements

SEMIANNUAL REPORT EQUITY INCOME 15

SCHEDULE OF INVESTMENTS
EQUITY INCOME

SEPTEMBER 30, 1997 (UNAUDITED)

Principal Amount Value
- --------------------------------------------------------------------------------

TEMPORARY CASH INVESTMENTS--4.7%

Repurchase Agreement, Goldman Sachs & Co.,
Inc., (U.S. Treasury obligations), in a joint
trading account at 6.10%, dated 9/30/97, due
10/1/97 (Delivery value $13,002,203) $ 13,000,000
-----------------------

(Cost $13,000,000)

TOTAL INVESTMENT SECURITIES--100.0% $277,406,888
=======================
(Cost $253,536,799)

FUTURES CONTRACTS

Expiration Underlying Face Unrealized
Purchased Date Amount at Value Gain
- ------------------------------------------------------------------------------
5 S&P 500 December
Futures 1997 $2,386,250 $31,747
========================================
</TABLE>

NOTES TO SCHEDULE OF INVESTMENTS

(1) Security, or a portion thereof, has been segregated at the custodian bank
for futures contracts.

(2) Security was purchased under Rule 144A of the Securities Act of 1933 and,
unless registered under the Act or exempted from registration, may only be
sold to qualified institutional investors. The aggregate value of
restricted securities at September 30, 1997, was $22,890,250, which
represented 8.2% of net assets.

(3) Security is a zero-coupon bond. The effective yield to maturity at
September 30, 1997 is indicated. Zero-coupon securities are purchased at a
substantial discount from their value at maturity.

See Notes to Financial Statements

16 EQUITY INCOME AMERICAN CENTURY INVESTMENTS

<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES

EQUITY
VALUE INCOME
<S> <C> <C>
SEPTEMBER 30, 1997 (UNAUDITED)
ASSETS
Investment securities, at value (identified
cost of $2,108,271,374 and
$253,536,799, respectively) (Note 3) $2,395,004,074 $277,406,888

Cash .............................................. 4,342,860 833,802

Receivable for capital shares sold ................ 3,369,136 2,818,845

Receivable for investments sold ................... 28,419,698 261,575

Dividend and interest receivable .................. 3,019,639 607,878
-------------- --------------
2,434,155,407 281,928,988
-------------- --------------
LIABILITIES

Disbursements in excess of demand deposit cash .... 1,285,799 297,262

Payable for variation on futures contracts (Note 1) 453,125 18,125

Payable for investments purchased ................. 10,686,727 1,164,92

Payable for capital shares redeemed ............... 2,696,701 304,449

Accrued management fees (Note 2) .................. 1,931,272 224,139

Distribution fees payable (Note 2) ................ 8,365 62

Service fees payable (Note 2) .................... 8,365 62

Other liabilities ................................. 129,665 24,447
-------------- --------------
17,200,019 2,033,469
-------------- --------------
Net Assets ........................................ $2,416,955,388 $ 279,895,519
============== ==============
NET ASSETS CONSIST OF:

Capital (par value and paid-in surplus) ........... $1,810,837,087 $ 218,248,427

Undistributed net investment income ............... 434,837 275,529

Accumulated net realized gain on
investment and foreign currency transactions..... 318,433,899 37,469,727

Net unrealized appreciation on
investments and translation
of assets and liabilities in foreign
currencies (Note 3) ............................. 287,249,565 23,901,836
-------------- --------------
$2,416,955,388 $ 279,895,519
============== ==============

Investor Class

Net assets ........................................ $2,374,888,109 $ 279,588,176

Shares outstanding ................................ 288,317,833 36,340,035

Net asset value per share ......................... $ 8.24 $ 7.69

Advisor Class

Net assets ........................................ $ 41,377,734 $ 307,343

Shares outstanding ................................ 5,023,934 39,923

Net asset value per share ......................... $ 8.24 $ 7.70

Institutional Class

Net assets ........................................ $ 689,545 --

Shares outstanding ................................ 83,728 --

Net asset value per share ......................... $ 8.24 --
</TABLE>

See Notes to Financial Statements

SEMIANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES 17

<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
EQUITY
VALUE INCOME

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 (UNAUDITED)

INVESTMENT INCOME
<S> <C> <C>
Income

Dividends (net of foreign taxes
withheld of $78,725 and $3,308, respectively) .$ 27,193,807 $ 5,122,068

Interest ......................................... 1,789,784 1,074,024
------------ ------------
28,983,591 6,196,092
------------ ------------
Expenses (Note 2):

Management fees .................................. 10,457,374 1,212,34

Distribution fees - Advisor Class ................ 44,570 314

Shareholder service fees - Advisor Class ......... 44,570 314

Directors' fees and expenses ..................... 10,209 1,181
------------ ------------
10,556,723 1,214,152
------------ ------------

Net investment income ............................ 18,426,868 4,981,94
------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 3)

Net realized gain on investments ................. 227,359,818 24,959,890

Change in net unrealized
appreciation on investments .................... 241,116,270 21,418,210
------------ ------------
Net realized and unrealized gain on
investments ...................................... 468,476,088 46,378,100
------------ ------------
Net Increase in Net Assets
Resulting from Operations ........................$486,902,956 $ 51,360,040
============ ============
</TABLE>

See Notes to Financial Statements

18 STATEMENTS OF OPERATIONS AMERICAN CENTURY INVESTMENTS

<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
EQUITY
VALUE INCOME
SIX MONTHS ENDED SEPTEMBER 30, 1997 (UNAUDITED)
AND YEAR ENDED MARCH 31, 1997

September 30, March 31, September 30, March 31,
Increase in Net Assets 1997 1997 1997 1997

OPERATIONS

<S> <C> <C> <C> <C>
Net investment income .................................... $ 18,426,868 $ 24,322,905 $ 4,981,940 $ 5,472,315

Net realized gain on investments and
foreign currency transactions .......................... 227,359,818 168,588,907 24,959,890 22,013,078

Change in net unrealized appreciation on investments
and translation of assets and liabilities
in foreign currencies .................................. 241,116,270 (11,017,267) 21,418,210 (4,196,802)
--------------- --------------- --------------- ---------------
Net increase in net assets resulting from operations ..... 486,902,956 181,894,545 51,360,040 23,288,591
--------------- --------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS

From net investment income:

Investor Class ......................................... (17,374,898) (24,153,903) (4,633,394) (5,494,780)

Advisor Class .......................................... (257,854) (213,484) (4,743) (20)

Institutional Class .................................... (3,225) -- -- --

In excess of net investment income:

Investor Class ......................................... -- (120,914) -- (5,884)

Advisor Class .......................................... -- (397) -- (184)

From net realized gains from investment transactions:

Investor Class ......................................... -- (123,357,187) -- (14,539,539)

Advisor Class .......................................... -- (2,470,879) -- --
--------------- --------------- --------------- ---------------
Decrease in net assets from distributions ................ (17,635,977) (150,316,764) (4,638,137) (20,040,407)
--------------- --------------- --------------- ---------------
CAPITAL SHARE TRANSACTIONS (Note 4)

Net increase in net assets from capital share transactions 174,856,293 859,369,095 33,766,923 79,466,151
--------------- --------------- --------------- ---------------
Net increase in net assets ............................... 644,123,272 890,946,876 80,488,826 82,714,335

NET ASSETS

Beginning of period ...................................... 1,772,832,116 881,885,240 199,406,693 116,692,358
--------------- --------------- --------------- ---------------
End of period ............................................ $ 2,416,955,388 $ 1,772,832,116 $ 279,895,519 $ 199,406,693
=============== =============== =============== ===============
Undistributed (distributions in excess of)
net investment income .................................... $ 434,837 $ (356,054) $ 275,529 $ (68,274)
=============== =============== =============== ===============
</TABLE>

See Notes to Financial Statements

SEMIANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS 19

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 1997 (UNAUDITED)

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION--American Century Capital Portfolios, Inc. (the Corporation) is
registered under the Investment Company Act of 1940 as an open-end diversified
management investment company. Two series of shares, investing primarily in
equity securities, are currently issued as American Century Value Fund (Value)
and American Century Equity Income Fund (Equity Income) (the Funds). The
investment objective of Value is long-term capital growth. Income is a secondary
objective. Value seeks to achieve its investment objectives by investing in
securities that management believes to be undervalued at the time of purchase.
The investment objective of Equity Income is the production of current income.
Capital appreciation is a secondary objective. Equity Income seeks to achieve
its objectives by investing primarily in income- producing equity securities.
The Funds are authorized to issue three classes of shares: the Investor Class,
the Advisor Class, and the Institutional Class. The three classes of shares
differ principally in their respective shareholder servicing and distribution
expenses and arrangements. All shares of each Fund represent an equal pro rata
interest in the assets of the class to which such shares belong, and have
identical voting, dividend, liquidation and other rights and the same terms and
conditions, except for class specific expenses and exclusive rights to vote on
matters affecting only individual classes. Sale of the Institutional Class for
Value commenced on July 31, 1997. Sale of the Institutional Class for Equity
Income had not commenced as of September 30, 1997. The following significant
accounting policies, related to all classes of the Funds, are in accordance with
accounting policies generally accepted in the investment company industry.

SECURITY VALUATIONS--Portfolio securities traded primarily on a principal
securities exchange are valued at the last reported sales price, or the mean of
the latest bid and asked prices where no last sales price is available.
Securities traded over-the-counter are valued at the mean of the latest bid and
asked prices or, in the case of certain foreign securities, at the last reported
sales price, depending on local convention or regulation. Debt securities not
traded on a principal securities exchange are valued through valuations obtained
from a commercial pricing service or at the mean of the most recent bid and
asked prices. When valuations are not readily available, securities are valued
at fair value as determined in accordance with procedures adopted by the Board
of Directors.

SECURITY TRANSACTIONS--Security transactions are accounted for on the date
purchased or sold. Net realized gains and losses are determined on the
identified cost basis, which is also used for federal income tax purposes.

INVESTMENT INCOME--Dividend income less foreign taxes withheld (if any) is
recorded as of the ex-dividend date. Interest income is recorded on the accrual
basis and includes amortization of discounts and premiums.

FOREIGN CURRENCY TRANSACTIONS--The accounting records of the Funds are
maintained in U.S. dollars. All assets and liabilities initially expressed in
foreign currencies are converted into U.S. dollars at prevailing exchange rates.
Purchases and sales of investment securities, dividend and interest income, and
certain expenses are translated at the rates of exchange prevailing on the
respective dates of such transactions.

Net realized foreign currency exchange gains or losses arise from sales of
foreign currencies and the difference between asset and liability amounts
initially stated in foreign currencies and the U.S. dollar value of the amounts
actually received or paid. Net unrealized foreign currency exchange gains or
losses arise from changes in the value of assets and liabilities, other than
portfolio securities, resulting from changes in the exchange rates.

Net realized and unrealized foreign currency exchange gains or losses
occurring during the holding period of portfolio securities are a component of
realized gain (loss) on investments and unrealized appreciation (depreciation)
on investments, respectively.

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS--The Funds may enter into
forward foreign currency exchange contracts for the purpose of settling specific
purchases or sales of securities denominated in a foreign currency or to hedge
the Fund's exposure to foreign currency exchange rate fluctuations. When
required, the Funds will segregate assets in an amount sufficient to cover its
obligations under the hedge contracts. The net U.S. dollar value of foreign
currency underlying all contractual commitments held by the Funds and the
resulting unrealized appreciation or depreciation are determined daily using
prevailing exchange rates. Forward contracts involve elements of risk in excess
of the amount reflected in the Statement of Assets and Liabilities. The Funds
bear the risk of an unfavorable change in the foreign currency exchange rate
underlying the forward contract. Additionally, losses may arise if the
counterparties do not perform under the contract terms. There were no open
contracts at September 30, 1997.

FUTURES CONTRACTS--The Funds may enter into stock index futures contracts in
order to manage each Fund's exposure to changes in market conditions. One of the
risks of entering into futures contracts include the possibility that the change
in value of the contract may not correlate with the changes in value of the
underlying securities. Upon entering into a futures contract, each Fund is
required to deposit either cash or securities in an amount equal to a certain
percentage of the contract value (initial margin). Subsequent payments
(variation

20 NOTES TO FINANCIAL STATEMENTS AMERICAN CENTURY INVESTMENTS

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 1997 (UNAUDITED)

margin) are made or received daily, in cash, by the Funds. The variation margin
is equal to the daily change in the contract value and is recorded as unrealized
gains and losses. The Fund recognizes a realized gain or loss when the contract
is closed or expires. Net realized and unrealized gains or losses occurring
during the holding period of futures contracts are a component of realized gain
(loss) on investments and unrealized appreciation (depreciation) on investments,
respectively.

REPURCHASE AGREEMENTS--The Funds may enter into repurchase agreements with
institutions that the Fund's investment manager, American Century Investment
Management, Inc. (ACIM), has determined are creditworthy pursuant to criteria
adopted by the Board of Directors. Each repurchase agreement is recorded at
cost. Each Fund requires that the securities purchased in a repurchase
transaction be transferred to the custodian in a manner sufficient to enable
each Fund to obtain those securities in the event of a default under the
repurchase agreement. ACIM monitors, on a daily basis, the value of the
securities transferred to ensure the value, including accrued interest, of the
securities under each repurchase agreement is equal to or greater than amounts
owed to each Fund under each repurchase agreement.

JOINT TRADING ACCOUNT--Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, each Fund, along with other registered
investment companies having management agreements with ACIM, may transfer
uninvested cash balances into a joint trading account. These balances are
invested in one or more repurchase agreements that are collateralized by U.S.
Treasury or Agency obligations.

INCOME TAX STATUS--It is the policy of the Funds to distribute all taxable
income and capital gains to shareholders and to otherwise qualify as a regulated
investment company under provisions of the Internal Revenue Code. Accordingly,
no provision has been made for federal income taxes.

DISTRIBUTIONS TO SHAREHOLDERS--Distributions to shareholders are recorded on
the ex-dividend date. Distributions from net investment income are declared and
paid quarterly. Distributions from net realized gains are declared and paid
annually.

The character of distributions made during the year from net investment
income or net realized gains may differ from their ultimate characterization for
federal income tax purposes. These differences are due to differences in the
recognition of income and expense items for financial statement and tax
purposes.

SUPPLEMENTARY INFORMATION--Certain officers and directors of the Corporation
are also officers and/or directors, and, as a group, controlling stockholders of
American Century Companies, Inc., the parent of the Corporation's investment
manager, ACIM, the Corporation's distributor, American Century Investment
Services, Inc., and the Corporation's transfer agent, American Century Services
Corporation.

USE OF ESTIMATES--The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of increases and decreases in net assets
from operations during the reporting period. Actual results could differ from
those estimates.

- --------------------------------------------------------------------------------
2. TRANSACTIONS WITH RELATED PARTIES

The Corporation has entered into a Management Agreement with ACIM that
provides the Funds with investment advisory and management services in exchange
for a single, unified management fee per class. Additional fees apply to the
Advisor Class shares, as described in the respective prospectus. The Agreement
provides that all expenses of the Funds, except brokerage commissions, taxes,
interest, expenses of those directors who are not considered "interested
persons" as defined in the Investment Company Act of 1940 (including counsel
fees) and extraordinary expense, will be paid by ACIM. The fee is computed daily
and paid monthly based on each Fund's class average daily closing nets assets
during the previous month. The annual management fee for each class is 1.00%,
0.75% and 0.80% for the Investor, Advisor, and Institutional Classes,
respectively.

The Board of Directors has adopted a shareholder services and distribution
plan for the Advisor Class, pursuant to Rule 12b-1 of the Investment Company Act
of 1940. The Advisor Class Master Distribution and Shareholder Services Plan
provides that the Funds will pay ACIM an annual distribution fee equal to 0.25%
and service fee equal to 0.25%. The fees are computed daily and paid monthly
based on the Advisor Class's average daily closing net assets during the
previous month. The

SEMIANNUAL REPORT NOTES TO FINANCIAL STATEMENTS 21

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 1997 (UNAUDITED)

distribution fee provides compensation for distribution expenses incurred in
connection with distributing shares of the Advisor Class including, but not
limited to, payments to brokers, dealers, and financial institutions that have
entered into sales agreements with ACIS and/or ACIM. The service fee provides
compensation for shareholder and administrative services rendered by ACIM, its
affiliates or independent third party providers. Fees incurred under the Master
Distribution and Shareholder Services Plan during the period were $89,140 for
Value and $628 for Equity Income.

- --------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS

Purchases of investment securities, excluding short-term investments, for
the six months ended September 30, 1997, for Value and Equity Income totaled
$1,345,341,641 and $216,128,495, respectively. Sales of investment securities,
excluding short-term investments, totaled $1,273,788,106 and $186,563,282,
respectively.

As of September 30, 1997, accumulated net unrealized appreciation for Value
and Equity Income was $283,643,477 and $23,590,390, respectively, based on the
aggregate cost of investments for federal income tax purposes of $2,111,360,597
and $253,816,498, respectively. Accumulated net unrealized appreciation
consisted of unrealized appreciation of $298,070,327 and $25,456,137 for Value
and Equity Income, respectively and unrealized depreciation of $14,426,850 and
$1,865,747, respectively.

22 NOTES TO FINANCIAL STATEMENTS AMERICAN CENTURY INVESTMENTS

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 1997 (UNAUDITED)

4. CAPITAL SHARE TRANSACTIONS

There are 350,000,000 shares of the Investor Class, 145,000,000 shares of
the Advisor Class, and 60,000,000 shares of the Institutional Class authorized
for issuance in Value. There are 150,000,000 shares of the Investor Class and
62,500,000 shares of the Advisor Class authorized for issuance in Equity Income.
All shares are $0.01 par value. Transactions in shares of the Funds were as
follows:

VALUE EQUITY INCOME

Shares Amount Shares Amount
INVESTOR CLASS
Six months ended September 30, 1997:

<S> <C> <C> <C> <C>
Shares sold ........................................ 69,934,585 $ 513,392,127 10,835,800 $ 75,426,081

Shares issued in reinvestment
of distributions ................................... 2,185,279 17,176,524 595,003 4,452,838

Shares redeemed .................................... (48,924,738) (360,525,255) (6,676,205) (46,352,305)
--------------- --------------- --------------- ---------------
Net increase ....................................... 23,195,126 $ 170,043,396 4,754,598 $ 33,526,614
=============== =============== =============== ===============

Year ended March 31, 1997:

Shares sold ........................................ 196,286,153 $ 1,303,453,155 24,431,148 $ 156,236,587

Shares issued in reinvestment
of distributions ................................. 22,400,228 144,836,133 3,056,977 19,088,856

Shares redeemed .................................... (93,171,882) (618,750,013) (15,045,815) (95,878,404)
--------------- --------------- --------------- ---------------
Net increase ....................................... 125,514,499 $ 829,539,275 12,442,310 $ 79,447,039
=============== =============== =============== ===============
ADVISOR CLASS

Six months ended September 30, 1997:

Shares sold ........................................ 2,211,708 $ 15,735,471 36,714 $ 239,258

Shares issued in reinvestment
of distributions ................................. 32,684 257,341 634 4,742

Shares redeemed .................................... (1,667,494) (11,835,886) (335) (3,691)
--------------- --------------- --------------- ---------------
Net increase ....................................... 576,898 $ 4,156,926 37,013 $ 240,309
=============== =============== =============== ===============
October 2, 1996(1) through March 31, 1997:

Shares sold ........................................ 4,417,250 $ 29,766,624 2,878 $ 18,908

Shares issued in reinvestment
of distributions ................................. 416,263 2,684,756 32 204

Shares redeemed .................................... (386,477) (2,621,560) -- --
--------------- --------------- --------------- ---------------
Net increase ....................................... 4,447,036 $ 29,829,820 2,910 $ 19,112
=============== =============== =============== ===============
INSTITUTIONAL CLASS

July 31, 1997(2) through September 30, 1997:

Shares sold ........................................ 83,335 $ 652,746 -- --

Shares issued in reinvestment
of distributions ................................. 393 3,225 -- --

Shares redeemed .................................... -- -- -- --
--------------- --------------- --------------- ---------------
Net increase ....................................... 83,728 $ 655,971 -- --
=============== =============== =============== ===============
- ----------

(1) Sale of the Advisor Class commenced on October 2, 1996 for Value and March
7, 1997 for Equity Income.

(2) Sale of the Institutional Class commenced on July 31, 1997 for Value.
</TABLE>

See Notes to Financial Statements

SEMIANNUAL REPORT NOTES TO FINANCIAL STATEMENTS 23

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 1997 (UNAUDITED)

September 30, 1997

5. AFFILIATED COMPANY TRANSACTIONS

A summary of transactions for each issuer which is or was an affiliate at or
during the six months ended September 30, 1997, follows:
<TABLE>

September 30, 1997
Share Realized
Balance Purchase Sales Gain Share Market
Fund/Issuer 3/31/97 Cost Cost (Loss) Income Balance Value
VALUE
<S> <C> <C> <C> <C> <C> <C> <C>
Gerber Scientific, Inc. .............. 1,497,100 -- $21,044,977 $ 4,919,959 $ 44,448 -- --

Giant Food Inc. Cl A ................. 2,526,600 $34,071,278 5,218,205 (257,870) 1,084,844 3,416,800 $111,259,550

Hudson Foods, Inc. ................... -- 36,697,764 36,697,764 12,621,891 -- -- --

Seafield Capital Corp. ............... 320,000 2,512,500 -- -- 222,000 420,000 10,447,500

Superior Industries

International, Inc. ................ 1,954,400 1,485,035 545,100 3,882 259,900 1,998,000 55,319,625

XTRA Corp. ........................... 773,400 8,490,886 491,575 76,546 345,920 946,000 53,862,875
----------- ----------- ----------- ---------- ------------
$83,257,463 $63,997,621 $17,364,408 $1,957,112 $230,889,550
=========== =========== =========== ========== ============
</TABLE>

See Notes to Financial Statements

24 NOTES TO FINANCIAL STATEMENTS AMERICAN CENTURY INVESTMENTS

<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
VALUE

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

Investor Class
1997(1) 1997 1996 1995 1994(2)
PER-SHARE DATA

<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .................. $6.58 $6.32 $5.46 $4.98 $5.01
------ ------ ------ ------ -----
Income From Investment Operations

Net Investment Income ............................... 0.06 0.12(3) 0.13(3) 0.12(3) 0.08(3)

Net Realized and Unrealized Gain(Loss)
on Investment Transactions .......................... 1.66 0.87 1.34 0.75 (0.04)
------ ------ ------ ------ -----
Total From Investment Operations .................... 1.72 0.99 1.47 0.87 0.04
------ ------ ------ ------ -----
Distributions

From Net Investment Income .......................... (0.06) (0.12) (0.12) (0.12) (0.07)

From Net Realized Gains
on Investment Transactions .......................... -- (0.61) (0.48) (0.27) --

In Excess of Net Realized Gains ..................... -- -- (0.01) -- --
------ ------ ------ ------ -----
Total Distributions ................................. (0.06) (0.73) (0.61) (0.39) (0.07)
------ ------ ------ ------ -----
Net Asset Value, End of Period ........................ $8.24 $6.58 $6.32 $5.46 $4.98
====== ====== ====== ====== =====
Total Return(4) ..................................... 26.21% 16.03% 28.06% 18.56% 0.83%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses to
Average Net Assets .................................... 1.00%(5) 1.00% 0.97% 1.00% 1.00%(5)

Ratio of Net Investment Income
to Average Net Assets ................................. 1.76%(5) 1.86% 2.17% 2.65% 3.37%(5)

Portfolio Turnover Rate ............................... 63% 111% 145% 94% 79%

Average Commission Paid per
Investment Security Traded ............................ $0.0462 $0.0457 $0.0409 --(6) --(6)

Net Assets, End of Period (in thousands) .............. $2,374,888 $1,743,582 $881,885 $348,281 $87,798

(1) Six months ended September 30, 1997 (unaudited).

(2) September 1, 1993 (inception) through March 31, 1994.

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

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

(5) Annualized.

(6) Disclosure of average commission paid per investment security traded was not
required prior to the year ended March 31, 1996.
</TABLE>

See Notes to Financial Statements

SEMIANNUAL REPORT FINANCIAL HIGHLIGHTS 25

<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
VALUE

For a Share Outstanding Throughout the Periods as Indicated

Advisor Class
1997(1) 1997(2)
PER-SHARE DATA
<S> <C> <C>
Net Asset Value, Beginning of Period ........................ $6.58 $6.71
------- ----------
Income From Investment Operations

Net Investment Income ..................................... 0.05 0.05(3)

Net Realized and Unrealized Gain
on Investment Transactions ............................... 1.66 0.48
------- ----------
Total From Investment Operations .......................... 1.71 0.53
------- ----------
Distributions

From Net Investment Income ................................ (0.05) (0.05)

From Net Realized Gains on Investment Transactions ........ -- (0.61)
------- ----------
Total Distributions ....................................... (0.05) (0.66)
------- ----------
Net Asset Value, End of Period .............................. $8.24 $6.58
======= ==========
Total Return(4) ........................................... 26.07% 0.54%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses to Average Net Assets ........... 1.25%(5) 1.25%(5)

Ratio of Net Investment Income to Average Net Assets ........ 1.51%(5) 1.46%(5)

Portfolio Turnover Rate ..................................... 63% 111%

Average Commission Paid per Investment Security Traded ...... $0.0462 $0.0457

Net Assets, End of Period (in thousands) .................... $41,378 $29,250

- ------------

(1) Six months ended September 30, 1997 (unaudited).

(2) October 2, 1996 (commencement of sale of Advisor Class) through March 31, 1997.

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

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

(5) Annualized.
</TABLE>

See Notes to Financial Statements

26 FINANCIAL HIGHLIGHTS AMERICAN CENTURY INVESTMENTS

FINANCIAL HIGHLIGHTS
VALUE

For a Share Outstanding Throughout the Period as Indicated

Institutional
Class
1997(1)
PER-SHARE DATA

Net Asset Value, Beginning of Period ................................ $7.84
--------
Income From Investment Operations

Net Investment Income .............................................. 0.03

Net Realized and Unrealized Gain on Investment Transactions ........ 0.41
--------
Total From Investment Operations ................................... 0.44
--------
Distributions

From Net Investment Income ........................................ (0.04)
--------
Net Asset Value, End of Period ...................................... $8.24
========
Total Return(2) ................................................... 5.60%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses to Average Net Assets ................... 0.80%(3)

Ratio of Net Investment Income to Average Net Assets ................ 1.96%(3)

Portfolio Turnover Rate ............................................. 63%

Average Commission Paid per Investment Security Traded .............. $0.0462

Net Assets, End of Period (in thousands) ............................ $690

- ----------

(1) July 31, 1997 (commencement of sale of Institutional Class) through
September 30, 1997 (unaudited).

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

(3) Annualized.

See Notes to Financial Statements

SEMIANNUAL REPORT FINANCIAL HIGHLIGHTS 27

<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
EQUITY INCOME

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

Investor Class
1997(1) 1997 1996 1995(2)

PER-SHARE DATA

<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ............. $6.31 $6.10 $5.42 $5.00
------- -------- ------ -------
Income From Investment Operations

Net Investment Income .......................... 0.14 0.22(3) 0.20(3) 0.09(3)

Net Realized and Unrealized Gain
on Investment Transactions ..................... 1.37 0.75 1.13 0.44
------- -------- ------ -------
Total From Investment Operations ............... 1.51 0.97 1.33 0.53
------- -------- ------ -------
Distributions

From Net Investment Income .....................(0.13) (0.21) (0.19) (0.09)

From Net Realized
Gains on Investment Transactions ............... -- (0.55) (0.45) (0.02)

In Excess of Net Realized Gains ................ -- -- (0.01) --
------- -------- ------ -------
Total Distributions ............................(0.13) (0.76) (0.65) (0.11)
------- -------- ------ -------
Net Asset Value, End of Period ................... $7.69 $6.31 $6.10 $5.42
======= ======== ====== ======
Total Return(4) ................................24.01% 16.23% 25.67% 10.69%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses
to Average Net Assets ...........................1.00%(5) 1.00% 0.98% 1.00%(5)

Ratio of Net Investment Income
to Average Net Assets ...........................4.12%(5) 3.46% 3.51% 4.04%(5)

Portfolio Turnover Rate ......................... 80% 159% 170% 45%

Average Commission Paid per
Investment Security Traded ...................... $0.0450 $0.0437 $0.0378 --(6)

Net Assets, End of Period (in thousands) ........$279,588 $199,388 $116,692 $52,213

- ----------

(1) Six months ended September 30, 1997 (unaudited).

(2) August 1, 1994 (inception) through March 31, 1995.

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

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

(5) Annualized.

(6) Disclosure of average commission paid per investment security traded was
not required prior to the year ended March 31, 1996.
</TABLE>

See Notes to Financial Statements

28 FINANCIAL HIGHLIGHTS AMERICAN CENTURY INVESTMENTS

FINANCIAL HIGHLIGHTS
EQUITY INCOME

For a Share Outstanding Throughout the Periods Ended as Indicated

Advisor Class
1997(1) 1997(2)
PER-SHARE DATA

Net Asset Value, Beginning of Period $6.31 $6.57
------- -------
Income From Investment Operations

Net Investment Income(3) 0.14 0.02

Net Realized and Unrealized
Gain (Loss) on Investment Transactions 1.37 (0.21)
------- -------
Total From Investment Operations 1.51 (0.19)
------- -------
Distributions

From Net Investment Income (0.12) (0.07)
------- -------
Net Asset Value, End of Period $7.70 $6.31
====== =======
Total Return(4) 24.05% (0.19)%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses to Average Net Assets 1.25%(5) 1.25%(5)

Ratio of Net Investment Income to Average Net Assets 3.87%(5) 1.64%(5)

Portfolio Turnover Rate 80% 159%

Average Commission Paid per Investment Security Traded $0.0450 $0.0437

Net Assets, End of Period (in thousands) $307 $18

- ----------
(1) Six months ended September 30, 1997 (unaudited).

(2) March 7, 1997 (commencement of sale of Advisor Class) through March 31,
1997.

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

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

(5) Annualized.

See Notes to Financial Statements

SEMIANNUAL REPORT FINANCIAL HIGHLIGHTS 29

PROXY VOTING RESULTS

An annual meeting of shareholders was held on July 30, 1997, to vote on the
following proposals. All of the proposals received the required majority of
votes and were adopted.

A summary of voting results is listed below each proposal.

PROPOSAL 1:

To elect a Board of Directors of nine members to hold office for the ensuing
year or until their successors are elected and qualified.

VALUE EQUITY INCOME

James E. Stowers, Jr.

For: 186,393,183 20,793,934

Withheld: 3,516,432 416,296

James E. Stowers III

For: 186,477,397 20,797,680

Withheld: 3,432,218 412,550

Thomas A. Brown

For: 186,634,837 20,816,977

Withheld: 3,274,778 393,253

Robert W. Doering, M.D.

For: 186,414,587 20,796,800

Withheld: 3,495,028 413,430

D.D. (Del) Hock

For: 186,550,943 20,793,068

Withheld: 3,358,672 417,162

Linsley L. Lundgaard

For: 186,392,230 20,781,902

Withheld: 3,517,385 428,328

Donald H. Pratt

For: 186,592,854 20,804,436

Withheld: 3,316,761 405,794

Lloyd T. Silver, Jr.

For: 186,503,572 20,804,831

Withheld: 3,406,043 405,399

M. Jeannine Strandjord

For: 186,537,675 20,802,607

Withheld: 3,371,940 407,623

PROPOSAL 2:

To vote on approval of a Management Agreement with American Century
Investment Management, Inc.

VALUE EQUITY INCOME
INVESTOR ADVISOR INVESTOR ADVISOR

For: 180,082,427 4,659,789 20,280,807 33,912

Against: 4,517,544 -- 424,977 --

Abstain: 1,960,701 -- 186,403 --

Broker
Non-Vote: 3,348,943 -- 318,043 --

PROPOSAL 3:

To vote on the selection by the Board of Directors of Deloitte & Touche LLP
as independent auditors for the Corporation.

VALUE EQUITY INCOME

For: 184,933,494 20,833,912

Against: 3,341,839 280,280

Abstain: 1,634,282 96,038

PROPOSAL 4:

To vote on the adoption of standardized investment limitations.

* Eliminate the fundamental investment limitation concerning diversification of
investments.

VALUE EQUITY INCOME

For: 159,897,184 19,817,213

Against: 24,171,116 914,979

Abstain: 2,492,372 159,995

Broker Non-Vote: 3,348,943 318,043

30 PROXY VOTING RESULTS AMERICAN CENTURY INVESTMENTS

PROXY VOTING RESULTS

* Amend the fundamental investment limitation concerning the issuance of senior
securities.

VALUE EQUITY INCOME

For: 164,413,655 19,806,997

Against: 19,445,126 924,984

Abstain: 2,701,891 160,206

Broker Non-Vote: 3,348,943 318,043

* Amend the fundamental investment limitation concerning borrowing.

VALUE EQUITY INCOME

For: 158,692,025 19,705,368

Against: 25,117,939 1,019,555

Abstain: 2,750,708 167,264

Broker Non-Vote: 3,348,943 318,043

* Amend the fundamental investment limitation concerning lending.

VALUE EQUITY INCOME

For: 158,939,585 19,670,629

Against: 24,863,888 1,033,629

Abstain: 2,757,199 187,929

Broker Non-Vote: 3,348,943 318,043

*Amend the fundamental investment limitation concerning concentration of
investments in a particular industry.

VALUE EQUITY INCOME

For: 159,334,234 19,784,801

Against: 24,531,883 955,013

Abstain: 2,694,555 152,373

Broker Non-Vote: 3,348,943 318,043

* Eliminate the fundamental investment limitation regarding investments in
illiquid securities.

VALUE EQUITY INCOME

For: 163,815,833 19,765,698

Against: 20,037,930 944,003

Abstain: 2,706,909 182,486

Broker Non-Vote: 3,348,943 318,043

* Eliminate the fundamental limitation concerning investment in other investment
companies.

VALUE EQUITY INCOME

For: 164,469,813 19,807,788

Against: 19,461,256 914,834

Abstain: 2,629,603 169,565

Broker Non-Vote: 3,348,943 318,043

* Amend the fundamental investment limitation concerning investments in real
estate.

VALUE EQUITY INCOME

For: 164,798,100 19,837,776

Against: 19,131,408 886,225

Abstain: 2,631,164 168,186

Broker Non-Vote: 3,348,943 318,043

* Amend the fundamental investment limitation concerning underwriting.

VALUE EQUITY INCOME

For: 164,522,452 19,781,018

Against: 19,245,396 926,846

Abstain: 2,792,824 184,323

Broker Non-Vote: 3,348,943 318,043

SEMIANNUAL REPORT PROXY VOTING RESULTS 31

PROXY VOTING RESULTS

* Amend the fundamental investment limitation concerning commodities.

VALUE EQUITY INCOME

For: 163,444,414 19,684,053

Against: 20,323,495 996,256

Abstain: 2,792,763 211,878

Broker Non-Vote: 3,348,943 318,043

* Eliminate the fundamental limitation concerning investments in issuers with
less than three years of continuous operations.

VALUE EQUITY INCOME

For: 164,373,725 19,777,727

Against: 19,534,506 918,073

Abstain: 2,652,441 196,387

Broker Non-Vote: 3,348,943 318,043

* Eliminate the fundamental limitation concerning short sales.

VALUE EQUITY INCOME

For: 163,845,010 19,729,915

Against: 20,067,923 935,518

Abstain: 2,647,739 226,754

Broker Non-Vote: 3,348,943 318,043

* Eliminate the fundamental investment limitation concerning margin purchases of
securities.

VALUE EQUITY INCOME

For: 163,715,974 19,687,499

Against: 20,149,656 999,468

Abstain: 2,695,042 205,220

Broker Non-Vote: 3,348,943 318,043

32 PROXY VOTING RESULTS AMERICAN CENTURY INVESTMENTS

SHARE CLASS AND RETIREMENT ACCOUNT INFORMATION

SHARE CLASSES

Until September 3, 1996, the Value and Equity Income funds issued one class
of fund shares, reflecting the fact that most investors bought their shares
directly from American Century. All investors paid the same annual unified
management fee and did not pay any commissions or other fees to purchase shares
from American Century.

Now more share purchases are made by investors through financial
intermediaries (who ordinarily are compensated for the additional services they
provide), or by very large institutional investors who expect lower costs
because of their size. In September 1996, American Century began to offer three
classes of shares for the Value and Equity Income funds. One class is for
investors who buy directly from American Century, one is for investors who buy
through financial intermediaries, and the third is for large institutional
customers.

The original class of Value and Equity Income shares is called the INVESTOR
CLASS. All shares issued and outstanding before September 3, 1996 have been
designated as Investor Class shares. Investor Class shares may also be purchased
after September 3, 1996. Investor Class shareholders do not pay any commissions
or other fees for purchase of funds shares directly from American Century.
Investors who buy Investor Class shares through a broker-dealer may be required
to pay the broker-dealer a transaction fee. THE PRICE AND PERFORMANCE OF THE
INVESTOR CLASS SHARES ARE LISTED IN NEWSPAPERS. NO OTHER CLASS IS CURRENTLY
LISTED.

In addition, there is an ADVISOR CLASS, which is sold through banks,
broker-dealers, insurance companies and financial advisors. Advisor Class shares
are subject to a 0.50% Rule 12b-1 service and distribution fee. Half of that fee
is available to pay for recordkeeping and administrative services, and half is
available to pay for distribution services provided by the financial
intermediary through which the Advisor Class shares are purchased. The total
expense ratio of the Advisor Class is 0.25% higher than the total expense ratio
of the Investor Class.

There is also an INSTITUTIONAL CLASS, which is available to endowments,
foundations, defined-benefit pension plans or financial intermediaries serving
these investors. This class recognizes the relatively lower cost of serving
institutional customers and others who invest at least $5 million in an American
Century fund or at least $10 million in multiple funds. In recognition of the
larger investments and account balances and comparatively lower transaction
costs, the total expense ratio of the Institutional Class is 0.20% less than the
total expense ratio of the Investor Class shares.

The Institutional Class had not commenced as of September 30, 1997 for
Equity Income.

All classes of shares represent a pro rata interest in the funds and
generally have the same rights and preferences.

RETIREMENT ACCOUNT INFORMATION

As required by law, any distributions you receive from an IRA and certain
403(b) distributions [not eligible for rollover to an IRA or to another 403(b)]
are subject to federal income tax withholding at the rate of 10% of the total
amount withdrawn, unless you elect not to have withholding apply. If you don't
want us to withhold on this amount, you may send us a written notice not to have
the federal income tax withheld. Your written notice is valid for six months
from the date of receipt at American Century. Even if you plan to roll over the
amount you withdraw to another tax-deferred account, the withholding rate still
applies to the withdrawn amount unless we have received a written notice not to
withhold federal income tax within six months prior to the withdrawal.

When you plan to withdraw, you may make your election by completing our
Exchange/Redemption form or an IRS Form W-4P. Call American Century for either
form. Your written election is valid for only six months from the date of
receipt at American Century. You may revoke your election at any time by sending
a written notice to us.

Remember, even if you elect not to have income tax withheld, you are liable
for paying income tax on the taxable portion of your withdrawal. If you elect
not to have income tax withheld or you don't have enough income tax withheld,
you may be responsible for payment of estimated tax. You may incur penalties
under the estimated tax rules if your withholding and estimated tax payments are
not sufficient.

SEMIANNUAL REPORT SHARE CLASS AND RETIREMENT ACCOUNT INFORMATION 33

NOTES

34 NOTES

NOTES

NOTES 35

BACKGROUND INFORMATION

INVESTMENT PHILOSOPHY & POLICIES

The American Century Group offers eight equity funds, including Value and
Equity Income. These two funds are general equity funds managed to provide
growth over time with less volatility than more aggressive growth funds. Stock
purchases are based on a company-by-company analysis to determine whether a
stock is trading below what the fund management team considers fair value. Once
the management team understands why the stock's price is depressed and the team
believes the undervaluation is temporary, the stock may be purchased and held
until it appreciates to fair value, when it is sold. Equity Income may buy
stocks that are trading at fair value if the stock pays a generous dividend. In
both funds, broad diversification across many industries is stressed to prevent
the performance of one sector from dominating fund returns.

AMERICAN CENTURY VALUE invests in the equity securities of seasoned,
established businesses that the fund's management team believes are temporarily
undervalued. This is determined by comparing a stock's share price with key
financial measures, including earnings, book value, cash flow and dividends. If
the stock's price relative to these measures is low and the company's balance
sheet is solid, its securities are candidates for purchase. The management team
may secondarily look for income when making portfolio selections.

AMERICAN CENTURY EQUITY INCOME purchases the securities of seasoned
companies that pay steady income, with the goal of providing shareholders a
higher yield than the aggregate yield of the stocks making up the S&P 500. The
team may secondarily search out stocks whose share prices are undervalued or
fairly valued. To help increase the fund's yield and help reduce the impact of
stock market value changes, the team maintains a relatively large percentage of
assets in convertible securities. These are income-paying issues that may, at
some later date, be converted into equity securities at favorable prices. The
prices of convertibles usually do not fluctuate as much as those of common
stocks, and they generally pay higher interest and dividends than common stocks.
Under normal circumstances, the fund can be expected to have less share-price
volatility than American Century Value.

COMPARATIVE INDICES

The following indices are used in the report to serve as fund performance
comparisons. They are not investment products available for purchase.

The S&P 500 is a capitalization-weighted index of the stocks of 500 publicly
traded U.S. companies that are considered to be leading firms in leading
industries. Created by Standard & Poor's Corporation, it is considered to be a
broad measure of U.S. stock market performance.

The S&P 500/BARRA VALUE INDEX is a capitalization-weighted index consisting
of S&P 500 stocks that have lower price-to-book ratios and in general share
other characteristics associated with value-style stocks.

The LIPPER EQUITY INCOME FUND INDEX is a non-weighted index of the 30
largest equity income mutual funds. Lipper Analytical Services, Inc., is an
independent mutual fund ranking service.

INVESTMENT TEAM LEADERS
- --------------------------------------------------------------------------------
Portfolio Managers Phil Davidson
Peter Zuger
- --------------------------------------------------------------------------------

36 BACKGROUND INFORMATION AMERICAN CENTURY INVESTMENTS

GLOSSARY

RETURNS

* TOTAL RETURN figures show the overall percentage change in the value of a
hypothetical investment in the fund and assume that all of the fund's
distributions are reinvested.

* AVERAGE ANNUAL RETURNS illustrate the annually compounded returns that would
have produced the fund's cumulative total returns if the fund's performance had
been constant over the entire period. Average annual returns smooth out
variations in a fund's return; they are not the same as fiscal year-by-year
results. For fiscal year-by-year total returns, please refer to the "Financial
Highlights" on pages 25-29.

PORTFOLIO STATISTICS

* NUMBER OF COMPANIES-- the number of different companies held by a fund on a
given date.

* AVERAGE DIVIDEND YIELD OF HOLDINGS-- a percentage return calculated by
dividing a company's annual cash dividend by the current market value of the
company's stock.

* PRICE/EARNINGS (P/E) RATIO-- a stock value measurement calculated by dividing
a company's stock price by its earnings per share, with the result expressed as
a multiple instead of as a percentage. (Earnings per share is calculated by
dividing the after-tax earnings of a corporation by its outstanding shares.)

* PORTFOLIO TURNOVER-- the percentage of a fund's investment portfolio that is
replaced during a given time period, usually a year. Actively managed portfolios
tend to have higher turnover than passively managed portfolios such as index
funds.

* EXPENSE RATIO-- the operating expenses of the fund, expressed as a percentage
of average net assets. Shareholders pay an annual fee to the investment manager
for investment advisory and management services. The expenses and fees are
deducted from fund income, not from each shareholder account. (See Note 2 in the
Notes to Financial Statements.)

TYPES OF STOCKS

* BLUE-CHIP STOCKS-- stocks of the most established companies in American
industry. They are generally large, fairly stable companies that have
demonstrated consistent earnings and usually have long-term growth potential.
Examples include General Electric and Coca-Cola.

* CYCLICAL STOCKS-- generally considered to be stocks whose price and earnings
fluctuations tend to follow the ups and downs of the business cycle. Examples
include the stocks of automobile manufacturers, steel producers and textile
operators.

* GROWTH STOCKS-- stocks of companies that have experienced above-average
earnings growth and appear likely to continue such growth. These stocks often
sell at high P/E ratios. Examples can include the stocks of high-tech, computer
hardware and computer software companies.

* LARGE-CAPITALIZATION ("LARGE-CAP") STOCKS-- generally considered to be stocks
of companies with a market capitalization (the total value of a company's
outstanding stock) of more than $5 billion. These tend to be the stocks that
make up the Dow Jones Industrial Average and the S&P 500.

* MEDIUM-CAPITALIZATION ("MID-CAP") STOCKS-- generally considered to be stocks
of companies with a market capitalization (the total value of a company's
outstanding stock) of between $1 billion and $5 billion. These tend to be the
stocks that make up the S&P 400.

* SMALL-CAPITALIZATION ("SMALL-CAP") STOCKS-- generally considered to be stocks
of companies with a market capitalization (the total value of a company's
outstanding stock) of less than $1 billion. These tend to be the stocks that
make up the Russell 2000 Index.

* VALUE STOCKS-- generally considered to be stocks that are purchased because
they are relatively inexpensive. These stocks are typically characterized by low
P/E ratios.

STATISTICAL TERMINOLOGY

* PRICE/BOOK RATIO-- a stock value measurement calculated by dividing a
company's stock price by its book value per share, with the result expressed as
a multiple instead of as a percentage. (Book value per share is calculated by
subtracting a company's liabilities from its assets, then dividing that value by
the number of outstanding shares.)

SEMIANNUAL REPORT GLOSSARY 37

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

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

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

AUTOMATED INFORMATION LINE:
1-800-345-8765

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

FAX: 816-340-7962

INTERNET: www.americancentury.com

AMERICAN CENTURY CAPITAL PORTFOLIOS, INC.

INVESTMENT MANAGER

AMERICAN CENTURY INVESTMENT MANAGEMENT, INC.

KANSAS CITY, MISSOURI

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE
GENERAL INFORMATION OF OUR SHAREHOLDERS. THE REPORT IS NOT AUTHORIZED FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE PROSPECTUS.

AMERICAN CENTURY INVESTMENT SERVICES, INC.

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