FUND PROFILE
Value
INVESTOR CLASS
July _, 1998
[american century logo(reg.sm)
American
Century(reg.tm)
- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included in the
fund's prospectus. The fund's prospectus includes additional information
about the fund, including a more detailed description of the risks associated
with investing in the fund, that you may want to consider before you invest.
You may obtain the prospectus and other information about the fund at no cost by
calling us, accessing our Web site, or visiting one of our Investor Centers.
See the back cover for our phone numbers and address.
AMERICAN CENTURY GROUP
[front cover]
VALUE
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Value seeks long-term capital growth by investing primarily in common
stocks. Income is a secondary objective.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers look for stocks of medium to large companies that they
believe are undervalued at the time of purchase. The managers use a "value"
investment strategy that looks for companies that are temporarily out of
favor in the market. The fund managers attempt to purchase the stock of
these undervalued companies and hold them until the company has returned to
favor in the market and the stock price has gone up. Companies may be
undervalued due to market declines, poor economic conditions, actual or
anticipated bad news regarding the issuer or its industry, or because they
have been overlooked by the market. To identify these companies, the fund
managers look for companies whose earnings, cash flows, and/or assets may
not be accurately reflected in the companies' stock price or companies
whose dividend payments appear high when compared to the stock price.
Although Value will primarily invest in equity securities, it may also
invest up to 35% of its assets in other types of securities consistent with
the accomplishment of its objective of capital growth. When the managers
believe that it is prudent, they also may invest assets in non-leveraged
futures and options. Futures and options can help the fund's cash assets
remain liquid while performing more like stocks.
Additional information about Value's investments is available in its
annual and semiannual reports. In these reports you will find a discussion
of the market conditions and investment strategies that significantly
affected the fund's performance during the most recent six-month period.
You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* As with all funds, at any given time the value of your shares of the
fund may be worth more or less than the price you paid. If you sell
your shares when the value is less than the price you paid, you will
lose money. Additionally, an investment in the fund is not a bank
deposit, nor is it insured by the Federal Deposit Insurance
Corporation (FDIC) or any other government agency.
* The value of the fund's shares depends on the value of the stocks and
other securities it owns. The value of the individual securities Value
owns will go up and down depending on the performance of the companies
that issued them, general market and economic conditions, and investor
confidence.
* If the market does not consider the individual stocks purchased by
Value to be undervalued, the value of the fund's shares may not rise
as high as other funds and may in fact decline, even if stock prices
are generally increasing.
* Market performance tends to be cyclical, and in the various cycles,
certain investment styles may fall in and out of favor. If the market
is not favoring the fund's style, the fund's gains may not be as big,
or its losses may be bigger, than other equity funds using different
investment styles.
In summary, Value is intended for investors who seek long-term capital
growth through an equity fund utilizing the value style of investing and
who are willing to accept the risk associated with that investment
strategy.
FUND PERFORMANCE
The bar chart below shows the actual performance of Value's Investor
Class for each calendar year since its inception on September 1, 1993.(1)
It indicates the volatility of the fund's historical returns from year to
year. Neither it nor the quarterly information on the following page is
intended to indicate how the fund will perform in the future.
[bar chart - data below]
- --------------------------------------------------------------------------------
CALENDAR YEAR-BY-YEAR RETURNS
- --------------------------------------------------------------------------------
1994 1995 1996 1997
Value 3.99 32.80 24.25 26.01
S&P 500 Barra Value -0.64 37.00 21.99 29.99
(1) As of March 31, 1998, the end of the most recent calendar quarter,
Value's year-to-date return was 11.45%. Partial year performance is
not annualized.
VALUE AMERICAN CENTURY INVESTMENTS
The fund's highest and lowest returns since the fund's inception on
September 1, 1993 are provided in the chart below to indicate the fund's
potential short-term volatility. Shareholders should be aware, however,
that Value is intended for investors with a long-term investment horizon
and is not managed for short-term results.
[bar chart - data below]
HIGHEST AND LOWEST QUARTERLY RETURNS
Quarterly Ended 6/30/97 12.87%
Quarterly Ended 3/31/94 -2.17%
The table below shows the fund's average annual return for the periods
indicated. The S&P/Barra Value Index, an unmanaged index that reflects no
operating costs, is included for long-term performance comparisons.
1 YR. LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS
Value 39.94% 21.98%
Barra Value Index 42.48% 21.24%
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges to buy fund shares
directly from American Century, to reinvest dividends in additional shares,
to exchange into the Investor Class of other American Century funds, or to
redeem your shares. The following table describes the fees and expenses
that you may pay if you buy and hold shares of the fund.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 1.00%
Distribution and/or 12b-1 Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 1.00%
EXAMPLE OF HYPOTHETICAL FUND COSTS
Assuming you
* invest $10,000 in the fund
* redeem your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses shown above
your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$100 $320 $550 $1,220
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment
advisory and management services for the fund. American Century uses teams
of portfolio managers, assistant portfolio managers and analysts working
together to manage our mutual funds. The portfolio managers on the Value
team are:
PETER A. ZUGER, Vice President and Portfolio Manager, joined American
Century in June 1993 as a manager of Value and other American Century
value-oriented funds.
PHILLIP N. DAVIDSON, Vice President and Portfolio Manager, joined
American Century in September 1993 as a Portfolio Manager. Prior to joining
American Century, Mr. Davidson served as an investment manager for
Boatmen's Trust Company.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be $2,500 ($1,000 for traditional IRAs,
Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. If the value of your account
falls below the account minimum, your shares may be redeemed involuntarily.
(2) Other expenses include the fees and expenses of the fund's independent
directors, their legal counsel, interest and extraordinary expenses.
FUND PROFILE VALUE
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You may also exchange your shares in Value for
shares in nearly 70 other mutual funds offered by American Century.
Depending on the options you select when you open your account, some
restrictions may apply. For your protection, some redemption requests
require a signature guarantee.
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Value pays distributions of substantially all of its income and
realized capital gains once a year, usually in December. Distributions may
be taxable as ordinary income, capital gains, or a combination of the two.
Capital gains are taxed at different rates depending on the length of time
the fund held the securities that were sold. Distributions are reinvested
automatically in additional shares unless you choose another option.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as:
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You may find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web site,
or visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or through a financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary, call
an Institutional Services Representative at 1-800-345-3533.
- -------------------------------------------------------------------------------
[american century logo(reg.sm)
American
Century(reg.tm)
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
INSTITUTIONAL, CORPORATE, KEOGH, SEP/SARSEP,
SIMPLE AND 403(B) SERVICES
1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX
816-340-7962
Funds Distributor, Inc.
(c) 1998 American Century Services Corporation
SH-BRO-12622 9807
<PAGE>
FUND PROFILE
Equity Income
INVESTOR CLASS
July _, 1998
[american century logo(reg.sm)
American
Century(reg.tm)
- --------------------------------------------------------------------------------
This profile summarizes key information about the fund that is included in the
fund's prospectus. The fund's prospectus includes additional information
about the fund, including a more detailed description of the risks associated
with investing in the fund, that you may want to consider before you invest.
You may obtain the prospectus and other information about the fund at no cost by
calling us, accessing our Web site, or visiting one of our Investor Centers.
See the back cover for our phone numbers and address.
AMERICAN CENTURY GROUP
[front cover]
EQUITY INCOME
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Equity Income seeks to provide current income. Capital appreciation is a
secondary objective.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers look for stocks with a favorable dividend paying
history that show the prospect for continuing and/or increasing dividend
payments. The managers look secondarily for the possibility that the stock
price may increase.
Under normal circumstances, the fund will invest at least 85% of its
assets in income-paying securities and at least 65% of its assets in
stocks. A portion of the fund's assets may be invested in bonds and other
fixed income securities. When the managers believe that it is prudent, they
also may invest assets in non-leveraged futures and options. Futures and
options can help the fund's cash assets perform more like stocks. The fund
seeks to receive dividend payments that provide a yield to the fund that
exceeds the yield of the stocks comprising the S&P 500 Index.
Additional information about Equity Income's investments is available in
its annual and semiannual reports, where you will find a discussion of the
market conditions and investment strategies that significantly affected the
fund's performance during the most recent six-month period. You may get
these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* As with all funds, at any given time the value of your shares of the
fund may be worth more or less than the price you paid. If you sell
your shares when the value is less than the price you paid, you will
lose money. Additionally, an investment in the fund is not a bank
deposit, nor is it insured by the Federal Deposit Insurance
Corporation (FDIC) or any other government agency.
* The value of Equity Income's shares depends on the value of the
securities it owns and the amount of dividends and interest paid to
the fund. The value of the individual stocks the fund owns and the
dividends they pay will go up and down depending on the performance of
the companies that issued them, general market and economic
conditions, and investor confidence. In addition, the value of the
fund's assets invested in bonds and other fixed income securities will
change as prevailing interest rates change. When interest rates rise,
the value of bonds and other fixed income securities will typically
fall. Investors in the fund should be prepared to weather short-term
ups and downs of Equity Income's price.
* If the individual stocks Equity Income owns do not continue or
increase dividend payments or the value of those stocks do not
increase, the value of the fund's shares may not rise as high as other
funds and may in fact decline, even if stock prices are generally
increasing.
As a result, Equity Income is intended for investors who seek current
income through an equity fund which invest primarily in dividend paying
stocks and who are willing to accept the risk associated with that
investment strategy.
FUND PERFORMANCE
The bar chart below shows the actual performance of Equity Income's
Investor Class for each of the last 10 calendar years.(1) It indicates the
volatility of the fund's historical returns from year to year. Neither it
nor the quarterly information below the bar chart is intended to indicate
how the fund will perform in the future.
[bar chart - data below]
- --------------------------------------------------------------------------------
CALENDAR YEAR-BY-YEAR RETURNS
- --------------------------------------------------------------------------------
1995 1996 1997
Equity Income 29.63 23.31 28.26
Lipper Equity Income Fund IX 29.83 17.90 27.50
(1) As of June 30, 1998, the close of the most recent calendar quarter,
Equity Income's year-to-date return was ___%.
EQUITY INCOME AMERICAN CENTURY INVESTMENTS
The fund's highest and lowest returns for a calendar quarter since
January 1, 1988, is provided in the chart below to indicate the fund's
potential short-term volatility. Shareholder should be aware, however, that
Equity Income is intended for investors with a long-term investment horizon
and is not managed for short-term results.
[bar chart - data below]
HIGHEST AND LOWEST QUARTERLY RETURNS
Quarter Ended 6/30/97 13.41%
Quarter Ended 12/31/94 -1.91%
The table below shows the fund's average annual return for the periods
indicated. The Lipper Equity Income Fund Index, an unmanaged index that
reflects no operating costs, is included for long-term performance
comparisons.
1 YR. LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS
Equity Income 37.78% 37.52%
Lipper Equity Income Fund Index 24.45% 22.82%
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges to buy fund shares
directly from American Century, to reinvest dividends in additional shares,
to exchange into the Investor Class of other American Century funds, or to
redeem your shares. The following table describes the fees and expenses
that you may pay if you buy and hold shares of the fund.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 1.00%
Distribution and/or 12b-1 Fees None
Other Expenses 0.00%
Total Annual Fund Operating Expenses 1.00%
EXAMPLE OF HYPOTHETICAL FUND COSTS
Assuming you
* invest $10,000 in the fund
* redeem your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same fund operating expenses shown above
your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$100 $320 $550 $1220
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment
advisory and management services for the fund. American Century uses teams
of portfolio managers, assistant portfolio managers and analysts working
together to manage our mutual funds. The portfolio managers on the Equity
Income team are:
PETER A. ZUGER, Vice President and Portfolio Manager, joined American
Century in June 1993 as a manager of Equity Income and other American
Century value-oriented funds. Prior to joining American Century, Mr. Zuger
served as an investment manager in the Trust Department of NBD Bancorp.
PHILLIP N. DAVIDSON, Vice President and Portfolio Manager, joined
American Century in September 1993 as a Portfolio Manager. Prior to joining
American Century, Mr. Davidson served as an investment manager for
Boatmen's Trust Company.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be $2,500 ($1,000 for traditional IRAs,
Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. If the value of your account
falls below the account minimum, your shares may be redeemed involuntarily
FUND PROFILE EQUITY INCOME
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You may also exchange your shares in Equity Income
for shares in nearly 70 other mutual funds offered by American Century.
Depending on the options you select when you open your account, some
restrictions may apply. For your protection, some redemption requests
require a signature guarantee.
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Equity Income pays distributions of substantially all of its income and
realized capital gains once a year, usually in December. Distributions may
be taxable as ordinary income, capital gains, or a combination of the two.
Capital gains are taxed at different rates depending on the length of time
the fund held the securities that were sold. Distributions are reinvested
automatically in additional shares unless you choose another option.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as:
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You may find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web
site, or visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or through a financial intermediary.
If you own or are considering puchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan of
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call an Institutional Services Representative at 1-800-345-3533.
- -------------------------------------------------------------------------------
[american century logo(reg.sm)
American
Century(reg.tm)
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
INSTITUTIONAL, CORPORATE, KEOGH, SEP/SARSEP,
SIMPLE AND 403(B) SERVICES
1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX
816-340-7962
Funds Distributor, Inc.
(c) 1998 American Century Services Corporation
SH-BRO-12623 9807
