485BPOS

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933              [X]

     File No. 2-14213

     Pre-Effective Amendment No.                                     [ ]

     Post-Effective Amendment No. 120                                [X]

                             and/or

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

     File No. 811-0816

     Amendment No. 120                                               [X]

                     (Check appropriate box or boxes.)


                       AMERICAN CENTURY MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
               (Exact Name of Registrant as Specified in Charter)


                     4500 MAIN STREET, KANSAS CITY, MO 64111
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               (Address of Principal Executive Offices) (Zip Code)


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


         CHARLES A. ETHERINGTON, 4500 MAIN STREET, KANSAS CITY, MO 64111
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                     (Name and Address of Agent for Service)

           Approximate Date of Proposed Public Offering: March 1, 2007

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

     [ ] immediately upon filing pursuant to paragraph (b)
     [X] on March 1, 2007, pursuant to paragraph (b)
     [ ] 60 days after filing pursuant to paragraph (a)(1)
     [ ] on (date) pursuant to paragraph (a)(1)
     [ ] 75 days after filing pursuant to paragraph (a)(2)
     [ ] on (date) pursuant to paragraph (a)(2) of rule 485.

If appropriate, check the following box:

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






AMERICAN CENTURY INVESTMENTS

Prospectus

March 1, 2007

Ultra® Fund

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

American Century Investment Services, Inc., Distributor

[american century investments logo and text logo]





Table of Contents

AN OVERVIEW OF THE FUND . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

FUND PERFORMANCE HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

FEES AND EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

OBJECTIVES, STRATEGIES AND RISKS . . . . . . . . . . . . . . . . . . . . . . . 8

MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

INVESTING DIRECTLY WITH AMERICAN CENTURY . . . . . . . . . . . . . . . . . . .12

INVESTING THROUGH A FINANCIAL INTERMEDIARY . . . . . . . . . . . . . . . . . .14

ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT . . . . . . . . . . . . . . . . 16

SHARE PRICE AND DISTRIBUTIONS . . . . . . . . . . . . . . . . . . . . . . . . 20

TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

MULTIPLE CLASS INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . .24

FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

        [graphic of triangle]

        THIS SYMBOL IS USED THROUGHOUT THE BOOK TO HIGHLIGHT
        DEFINITIONS OF KEY INVESTMENT TERMS AND TO PROVIDE
        OTHER HELPFUL INFORMATION.


American Century Investment Services, Inc., Distributor

©2007 American Century Proprietary Holdings, Inc. All rights reserved.

The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.




AN OVERVIEW OF THE FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

The portfolio managers look for stocks of companies they believe will increase
in value over time, using investment strategies developed by American Century.
In implementing these strategies, the portfolio managers make their investment
decisions based primarily on their analysis of individual companies, rather than
on broad economic forecasts. Management of the fund is based on the belief that,
over the long term, stock price movements follow growth in earnings, revenues
and/or cash flow.

The portfolio managers use a variety of analytical research tools and techniques
to identify the stocks of larger-sized companies that meet their investment
criteria. Under normal market conditions, the fund's portfolio will primarily
consist of securities of companies whose earnings or revenues are not only
growing, but growing at an accelerating pace.

The fund's principal risks include

*  GROWTH STOCKS - Investments in growth stocks may involve special risks and
   their prices may fluctuate more dramatically than the overall stock market.

*  FOREIGN SECURITIES - A fund may invest in foreign securities, which can be
   riskier than investing in U.S. securities.

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

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

*  PRINCIPAL LOSS - At any given time your shares may be worth less than the
   price you paid for them. In other words, it is possible to lose money by
   investing in the fund.

A more detailed description of the fund's investment strategies and risks may be
found under the heading OBJECTIVES, STRATEGIES AND RISKS which begins on page 8.

        [graphic of triangle]

        AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT, AND IT IS NOT INSURED
        OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY
        OTHER GOVERNMENT AGENCY.


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2


FUND PERFORMANCE HISTORY

Annual Total Returns

The following bar chart shows the performance of the fund's Investor Class
shares for each of the last 10 calendar years. It indicates the volatility of
the fund's historical returns from year to year. Account fees and sales charges,
if applicable, are not reflected in the chart below. If they had been included,
returns would be lower than those shown. The returns of the fund's other classes
will differ from those shown in the chart, depending on the expenses of those
classes.

ULTRA FUND - INVESTOR CLASS

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

                          HIGHEST                             LOWEST
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Ultra                     32.09% (4Q 1999)                    -17.49% (1Q 2001)
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Average Annual Total Returns

The following table shows the average annual total returns of the fund's
Investor Class shares calculated three different ways. Additional tables show
the average annual total returns of the fund's other share classes calculated
before the impact of taxes. Returns assume the deduction of all sales loads,
charges and other fees associated with a particular class. Your actual returns
may vary depending on the circumstances of your investment.

Return Before Taxes shows the actual change in the value of fund shares over the
time periods shown, but does not reflect the impact of taxes on fund
distributions or the sale of fund shares. The two after-tax returns take into
account taxes that may be associated with owning fund shares. Return After Taxes
on Distributions is a fund's actual performance, adjusted by the effect of taxes
on distributions made by the fund during the periods shown. Return After Taxes
on Distributions and Sale of Fund Shares is further adjusted to reflect the tax
impact on any change in the value of fund shares as if they had been sold on the
last day of the period.

After-tax returns are calculated using the historical highest federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-tax returns shown are not relevant to investors who hold fund
shares through tax-deferred arrangements such as 401(k) plans or IRAs. After-tax
returns are shown only for the Investor Class shares. After-tax returns for the
other share classes will vary.


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3



The benchmarks are unmanaged indices that have no operating costs and are
included in each table for performance comparison.

INVESTOR CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    10 YEARS
- --------------------------------------------------------------------------------
Return Before Taxes                              -3.28%    1.12%      5.41%
Return After Taxes on Distributions              -4.28%    0.88%      4.16%
Return After Taxes on Distributions
   and Sale of Fund Shares                       -0.80%    0.94%      4.26%
Russell 1000® Growth Index                        9.07%    2.69%      5.44%
   (reflects no deduction
   for fees, expenses or taxes)
S&P 500® Index                                   15.79%    6.19%      8.42%
   (reflects no deduction
   for fees, expenses or taxes)
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INSTITUTIONAL CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    10 YEARS
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Return Before Taxes                              -3.08%    1.32%      5.62%
Russell 1000® Growth Index                        9.07%    2.69%      5.44%
   (reflects no deduction
   for fees, expenses or taxes)
S&P 500® Index                                   15.79%    6.19%      8.42%
   (reflects no deduction
   for fees, expenses or taxes)
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C CLASS
                                                                      LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    CLASS(1)
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Return Before Taxes                              -4.24%    0.11%      1.63%
Russell 1000® Growth Index                        9.07%    2.69%      3.48%(2)
   (reflects no deduction
   for fees, expenses or taxes)
S&P 500® Index                                   15.79%    6.19%      6.90%(2)
   (reflects no deduction
   for fees, expenses or taxes)
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(1)  THE INCEPTION DATE FOR THE C CLASS IS OCTOBER 29, 2001. ONLY CLASSES
     WITH PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR LIFE OF
     CLASS.

(2)  SINCE OCTOBER 25, 2001, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.

R CLASS
                                                                       LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006          1 YEAR          CLASS(1)
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Return Before Taxes                                    -3.75%           4.35%
Russell 1000® Growth Index                              9.07%           9.01%(2)
   (reflects no deduction
   for fees, expenses or taxes)
S&P 500® Index                                         15.79%          12.82%(2)
   (reflects no deduction
   for fees, expenses or taxes)
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(1)  THE INCEPTION DATE FOR THE R CLASS IS AUGUST 29, 2003. ONLY CLASSES
     WITH PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR LIFE OF
     CLASS.

(2)  SINCE AUGUST 31, 2003, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.


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ADVISOR CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    10 YEARS
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Return Before Taxes                              -3.50%    0.86%      5.16%
Russell 1000® Growth Index                        9.07%    2.69%      5.44%
   (reflects no deduction
   for fees, expenses or taxes)
S&P 500® Index                                   15.79%    6.19%      8.42%
   (reflects no deduction
   for fees, expenses or taxes)
- --------------------------------------------------------------------------------

Performance information is designed to help you see how fund returns can vary.
Keep in mind that past performance (before and after taxes) does not predict how
the fund will perform in the future.

For current performance information, please call us or visit
americancentury.com.



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5


FEES AND EXPENSES

There are no sales loads, fees or other charges

*  to buy fund shares directly from American Century

*  to reinvest dividends in additional shares

*  to exchange into the same class of shares of other American Century funds

*  to redeem your shares (other than a $10 fee to redeem by wire and the
   deferred sales charge associated with C Class shares redeemed during the
   first year after purchase)

The following tables describe the fees and expenses you may pay if you buy and
hold shares of the fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
- --------------------------------------------------------------------------------
Investor Class
  Maximum                                                                 $25(1)
  Account
  Maintenance
  Fee
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C Class
  Maximum                                                               1.00%(2)
  Deferred Sales
  Charge (load)
  (as a
  percentage
  of net asset
  value)
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(1)  APPLIES ONLY TO INVESTORS WHOSE TOTAL ELIGIBLE INVESTMENTS WITH
     AMERICAN CENTURY ARE LESS THAN $10,000. SEE Account Maintenance Fee UNDER
     Investing Directly with American Century FOR MORE DETAILS.

(2)  THE DEFERRED SALES CHARGE IS CONTINGENT ON THE LENGTH OF TIME YOU HAVE
     OWNED YOUR SHARES. THE CHARGE IS 1.00% DURING THE FIRST YEAR AFTER PURCHASE
     AND IS ELIMINATED THEREAFTER.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
                               DISTRIBUTION                  TOTAL ANNUAL
                 MANAGEMENT    AND SERVICE      OTHER        FUND OPERATING
                 FEE(1)        (12B-1) FEES(2)  EXPENSES(3)  EXPENSES
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Investor         0.99%         None             0.00%        0.99%
Class
- --------------------------------------------------------------------------------
Institutional    0.79%         None             0.00%        0.79%
Class
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C Class          0.99%         1.00%            0.00%        1.99%
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R Class          0.99%         0.50%            0.00%        1.49%
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Advisor          0.74%         0.50%            0.00%        1.24%
Class
- --------------------------------------------------------------------------------

(1)  THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR
     ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. THE FEE SHOWN IS
     BASED ON ASSETS DURING THE FUND'S MOST RECENT FISCAL YEAR. THE FUND HAS A
     STEPPED FEE SCHEDULE. AS A RESULT, THE FUND'S UNIFIED MANAGEMENT FEE RATE
     GENERALLY DECREASES AS STRATEGY ASSETS INCREASE AND INCREASES AS STRATEGY
     ASSETS DECREASE. FOR MORE INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE,
     INCLUDING AN EXPLANATION OF STRATEGY ASSETS, SEE The Investment Advisor
     UNDER Management.

(2)  THE 12B-1 FEE IS DESIGNED TO PERMIT INVESTORS TO PURCHASE SHARES
     THROUGH BROKER-DEALERS, BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL
     INTERMEDIARIES. THE FEE MAY BE USED TO COMPENSATE SUCH FINANCIAL
     INTERMEDIARIES FOR DISTRIBUTION AND OTHER SHAREHOLDER SERVICES. IN
     ADDITION, HALF OF THE ADVISOR CLASS 12B-1 FEE (0.25%) IS FOR ONGOING
     RECORDKEEPING AND ADMINISTRATIVE SERVICES PROVIDED BY FINANCIAL
     INTERMEDIARIES, WHICH WOULD OTHERWISE BE PAID BY THE ADVISOR OUT OF THE
     UNIFIED MANAGEMENT FEE. THE ADVISOR HAS REDUCED ITS UNIFIED MANAGEMENT FEE
     BY 0.25% FOR ADVISOR CLASS SHARES, BUT THE FEE FOR CORE INVESTMENT ADVISORY
     SERVICES IS THE SAME FOR ALL CLASSES. FOR MORE INFORMATION, SEE Multiple
     Class Information AND Service, Distribution and Administrative Fees, PAGE
     24.

(3)  OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
     INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, INTEREST, AND FEES AND
     EXPENSES INCURRED INDIRECTLY BY THE FUND AS A RESULT OF INVESTMENT IN
     SHARES OF ONE OR MORE MUTUAL FUNDS, HEDGE FUNDS, PRIVATE EQUITY FUNDS OR
     OTHER POOLED INVESTMENT VEHICLES, WERE LESS THAN 0.005% FOR THE MOST RECENT
     FISCAL YEAR.



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6


EXAMPLE

The examples in the table below are intended to help you compare the costs of
investing in the fund with the costs of investing in other mutual funds. Of
course, your actual costs may be higher or lower. Assuming you . . .

*  invest $10,000 in the fund

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

*  earn a 5% return each year

*  incur the same operating expenses as shown above

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

                           1 YEAR        3 YEARS        5 YEARS        10 YEARS
- --------------------------------------------------------------------------------
Investor Class             $101          $314           $545           $1,208
- --------------------------------------------------------------------------------
Institutional Class        $81           $252           $438           $975
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C Class                    $201          $620           $1,064         $2,295
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R Class                    $151          $469           $809           $1,767
- --------------------------------------------------------------------------------
Advisor Class              $126          $392           $678           $1,492
- --------------------------------------------------------------------------------



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7


OBJECTIVES, STRATEGIES AND RISKS

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

The portfolio managers look for stocks of larger-sized companies they believe
will increase in value over time, using an investment strategy developed by
American Century. In implementing this strategy, the portfolio managers use a
bottom-up approach to stock selection. This means that the portfolio managers
make their investment decisions based primarily on their analysis of individual
companies, rather than on broad economic forecasts. Management of the fund is
based on the belief that, over the long term, stock price movements follow
growth in earnings, revenues and/or cash flow.

Using American Century's extensive computer database, as well as other primary
analytical research tools, the portfolio managers track financial information
for individual companies to identify and evaluate trends in earnings, revenues
and other business fundamentals. Under normal market conditions, the fund's
portfolio will primarily consist of securities of companies whose earnings and
revenues are not only growing, but growing at an accelerating pace. This
includes companies whose growth rates, although still negative, are less
negative than prior periods, and companies whose growth rates are expected to
accelerate. Other analytical techniques help identify additional signs of
business improvement, such as increasing cash flows, or other indications of the
relative strength of a company's business. In addition to accelerating growth
and other signs of business improvement, the fund also considers companies
demonstrating price strength relative to their peers. These techniques help the
portfolio managers buy or hold the stocks of companies they believe have
favorable growth prospects and sell the stocks of companies whose
characteristics no longer meet their criteria.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies, including
companies located in emerging markets. Investments in foreign securities present
some unique risks that are more fully described in the fund's statement of
additional information.

The portfolio managers do not attempt to time the market. Instead, under normal
market conditions, they intend to keep the fund essentially fully invested in
stocks regardless of the movement of stock prices generally. When the managers
believe it is prudent, the fund may invest a portion of its assets in debt
securities, options, preferred stock and equity-equivalent securities, such as
convertible securities, stock futures contracts or stock index futures
contracts. The fund generally limits its purchase of debt securities to
investment-grade obligations. Futures contracts, a type of derivative security,
can help the fund's cash assets remain liquid while performing more like stocks.
The fund has a policy governing futures contracts and similar derivative
securities to help manage the risk of these types of investments. A complete
description of the derivatives policy is included in the statement of additional
information.

In the event of exceptional market or economic conditions, the fund may, as a
temporary defensive measure, invest all or a substantial portion of its assets
in cash, cash-equivalent securities or short-term debt securities. To the extent
the fund assumes a defensive position it will not be pursuing its objective of
long-term capital growth.

A description of the policies and procedures with respect to the disclosure of
the fund's portfolio securities is available in the statement of additional
information.


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8


WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?

Growth stocks are typically priced higher than other stocks, in relation to
earnings and other measures, because investors believe they have more growth
potential. This potential may or may not be realized and growth stock prices
tend to fluctuate more dramatically than the overall stock market.

The portfolio managers may buy a large amount of a company's stock quickly, and
often will dispose of it quickly if the company's earnings or revenues decline.
While the managers believe this strategy provides substantial appreciation
potential over the long term, in the short term it can create a significant
amount of share price volatility. This volatility can be greater than that of
the average stock fund.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies. Foreign
investment involves additional risks, including fluctuations in currency
exchange rates, less stable political and economic structures, reduced
availability of public information, and lack of uniform financial reporting and
regulatory practices similar to those that apply in the United States. These
factors make investing in foreign securities generally riskier than investing in
U.S. stocks. To the extent a fund invests in foreign securities, the overall
risk of that fund could be affected.

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 a
fund's style, the fund's gains may not be as big as, or its losses may be bigger
than, other equity funds using different investment styles.

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

At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the fund.


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9


MANAGEMENT

WHO MANAGES THE FUND?

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

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than three-fourths of the directors are independent of the fund's advisor;
that is, they have never been employed by and have no financial interest in the
advisor or any of its affiliated companies (other than as shareholders of
American Century funds).

THE INVESTMENT ADVISOR

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

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

For the services it provides to the fund, the advisor receives a unified
management fee based on a percentage of the daily net assets of each class of
shares of the fund. The amount of the fee is calculated daily and paid monthly
in arrears. Out of that fee, the advisor pays all expenses of managing and
operating the fund except brokerage expenses, taxes, interest, fees and expenses
of the independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the fund's management fee may be paid by the fund's
advisor to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of the
advisor.

The rate of the fee is determined by applying a formula that takes into account
all of the advisor's assets under management in the fund's investment strategy
(strategy assets). Strategy assets include the assets of the fund as well as
certain assets of other clients of the advisor outside the American Century fund
family (such as subadvised funds and separate accounts) that use very similar
investment teams and strategies. The use of strategy assets, rather than fund
assets, in calculating the fund's fee rate could allow the fund to realize
scheduled cost savings more quickly. However, it is possible that the fund's
strategy assets will not include assets of other client accounts or that any
such assets may not be sufficient to result in a lower fee rate.


MANAGEMENT FEES PAID
BY THE FUND TO THE
ADVISOR AS A PERCENTAGE
OF AVERAGE NET ASSETS
FOR THE FISCAL YEAR        INVESTOR   INSTITUTIONAL   C       R       ADVISOR
ENDED OCTOBER 31, 2006     CLASS      CLASS           CLASS   CLASS   CLASS
- --------------------------------------------------------------------------------
Ultra                      0.99%      0.79%           0.99%   0.99%   0.74%
- --------------------------------------------------------------------------------

A discussion regarding the basis for the Board of Directors' approval of the
fund's investment advisory contract with the advisor is available in the fund's
report to shareholders dated October 31, 2006.



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10


THE FUND MANAGEMENT TEAM

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

The portfolio managers on the investment team who are jointly and primarily
responsible for the day-to-day management of the fund are identified below.

WADE W. SLOME

Mr. Slome, Vice President and Portfolio Manager, has been a member of the team
that manages the fund since joining American Century in June 1998. He was
promoted to portfolio manager in July 2002. He holds a bachelor's degree in
economics from the University of California - Los Angeles, and an MBA in finance
from Cornell University. He is a CFA charterholder.

TOM TELFORD

Mr. Telford, Vice President and Portfolio Manager, has been a member of the team
that manages the fund since June 2006. He joined American Century in July 1996
and became a portfolio manager in February 2000. He has a bachelor's degree in
business administration from Southern Methodist University and an MBA from
Wharton School of Business, University of Pennsylvania. He is a CFA
charterholder.

The statement of additional information provides additional information about
the other accounts managed by the portfolio managers, if any, the structure of
their compensation, and their ownership of fund securities.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the statement of additional
information and the investment objectives of the fund may not be changed without
shareholder approval. The Board of Directors and/or the advisor may change any
other policies and investment strategies.


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11


INVESTING DIRECTLY WITH AMERICAN CENTURY

SERVICES AUTOMATICALLY AVAILABLE TO YOU

Most accounts automatically will have access to the services listed under WAYS
TO MANAGE YOUR ACCOUNT when the account is opened. If you do not want these
services, see CONDUCTING BUSINESS IN WRITING. If you have questions about the
services that apply to your account type, please call us.

CONDUCTING BUSINESS IN WRITING

If you prefer to conduct business in writing only, you can indicate this on the
account application. If you choose this option, you must provide written
instructions to invest, exchange and redeem. All account owners must sign
transaction instructions (with signatures guaranteed for redemptions in excess
of $100,000). By choosing this option, you are not eligible to enroll for
exclusive online account management to waive the account maintenance fee. See
ACCOUNT MAINTENANCE FEE in this section. If you want to add online and telephone
services later, you can complete an Investor Service Options form.

ACCOUNT MAINTENANCE FEE

If you hold Investor Class shares of any American Century fund, or Institutional
Class shares of the American Century Diversified Bond fund, in an American
Century account (i.e., not a financial intermediary or retirement plan account),
we may charge you a $12.50 semiannual account maintenance fee if the value of
those shares is less than $10,000. We will determine the amount of your total
eligible investments twice per year, generally the last Friday in October and
April. If the value of those investments is less than $10,000 at that time, we
will automatically redeem shares in one of your accounts to pay the $12.50 fee.
Please note that you may incur tax liability as a result of the redemption. In
determining your total eligible investment amount, we will include your
investments in all PERSONAL ACCOUNTS (including American Century Brokerage
accounts) registered under your Social Security number. We will not charge the
fee as long as you choose to manage your accounts exclusively online. You may
enroll for exclusive online account management on our Web site. To find out more
about exclusive online account management, visit americancentury.com/info/demo.

        [graphic of triangle]

        PERSONAL ACCOUNTS INCLUDE INDIVIDUAL ACCOUNTS, JOINT ACCOUNTS, UGMA/UTMA
        ACCOUNTS, PERSONAL TRUSTS, COVERDELL EDUCATION SAVINGS ACCOUNTS, IRAS
        (INCLUDING TRADITIONAL, ROTH, ROLLOVER, SEP-, SARSEP- AND SIMPLE-IRAS),
        AND CERTAIN OTHER RETIREMENT ACCOUNTS. IF YOU HAVE ONLY BUSINESS,
        BUSINESS RETIREMENT, EMPLOYER-SPONSORED OR AMERICAN CENTURY BROKERAGE
        ACCOUNTS, YOU ARE CURRENTLY NOT SUBJECT TO THIS FEE, BUT YOU MAY BE
        SUBJECT TO OTHER FEES.

WIRE PURCHASES

CURRENT INVESTORS: If you would like to make a wire purchase into an existing
account, your bank will need the following information. (To invest in a new
fund, please call us first to set up the new account.)

*  American Century's bank information: Commerce Bank N.A., Routing No.
   101000019, Account No. 2804918

*  Your American Century account number and fund name

*  Your name

*  The contribution year (for IRAs only)

NEW INVESTORS: To make a wire purchase into a new account, please complete an
application prior to wiring money.


- ------
12


WAYS TO MANAGE YOUR ACCOUNT

ONLINE
- --------------------------------------------------------------------------------
americancentury.com

OPEN AN ACCOUNT: If you are a current or new investor, you can open an account
by completing and submitting our online application. Current investors also can
open an account by exchanging shares from another American Century account.

EXCHANGE SHARES: Exchange shares from another American Century account.

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

SELL SHARES*: Redeem shares and proceeds will be electronically transferred to
your authorized bank account.

* ONLINE REDEMPTIONS UP TO $25,000 PER DAY.

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

* 4500 Main Street, Kansas City, Missouri - 8 a.m. to 5 p.m., Monday - Friday

* 4917 Town Center Drive, Leawood, Kansas - 8 a.m. to 5 p.m., Monday - Friday,
  8 a.m. to noon, Saturday

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

BY TELEPHONE
- --------------------------------------------------------------------------------
INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021

INSTITUTIONAL SERVICE REPRESENTATIVE: 1-800-345-3533

BUSINESS, NOT-FOR-PROFIT AND EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533

AUTOMATED INFORMATION LINE: 1-800-345-8765

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

EXCHANGE SHARES: Call or use our Automated Information Line if you have
authorized us to accept telephone instructions. The Automated Information Line
is available only to Investor Class shareholders.

MAKE ADDITIONAL INVESTMENTS: Call or use our Automated Information Line if you
have authorized us to invest from your bank account. The Automated Information
Line is available only to Investor Class shareholders.

SELL SHARES: Call a Service Representative.

BY MAIL OR FAX
- --------------------------------------------------------------------------------
P.O. Box 419200, Kansas City, MO 64141-6200 - Fax: 816-340-7962

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

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

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

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

AUTOMATICALLY
- --------------------------------------------------------------------------------
OPEN AN ACCOUNT: Not available.

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

MAKE ADDITIONAL INVESTMENTS: With the automatic investment service, you can
purchase shares on a regular basis. You must invest at least $50 per month per
account.

SELL SHARES: You may sell shares automatically by establishing Check-A-Month or
Automatic Redemption plans.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
13


INVESTING THROUGH A FINANCIAL INTERMEDIARY

The fund's C, R and Advisor Classes are intended for purchase by participants in
employer-sponsored retirement plans. Additionally, the fund's C and Advisor
Classes are intended for persons purchasing shares through FINANCIAL
INTERMEDIARIES that provide various administrative and distribution services.
For more information regarding employer-sponsored retirement plan types, please
see BUYING AND SELLING FUND SHARES in the statement of additional information.

        [graphic of triangle]

        FINANCIAL INTERMEDIARIES INCLUDE BANKS, BROKER-DEALERS,
        INSURANCE COMPANIES, PLAN SPONSORS AND FINANCIAL PROFESSIONALS.

Although each class of shares represents an interest in the same fund, each has
a different cost structure, as described below. Which class is right for you
depends on many factors, including how long you plan to hold the shares, how
much you plan to invest, the fee structure of each class, and how you wish to
compensate your financial professional for the services provided to you. Your
financial professional can help you choose the option that is most appropriate.

The following chart provides a summary description of these classes.

C CLASS                                             R CLASS AND ADVISOR CLASS
- --------------------------------------------------------------------------------
No initial sales charge                             No initial sales charge
- --------------------------------------------------------------------------------
Contingent deferred sales charge                    No contingent deferred
on redemptions within 12 months                     sales charge
- --------------------------------------------------------------------------------
12b-1 fee of 1.00%                                  12b-1 fee of 0.50%(1)
- --------------------------------------------------------------------------------
No conversion feature                               No conversion feature
- --------------------------------------------------------------------------------
Aggregate purchases limited to                      Generally offered through
amounts less than $1,000,000;                       employer-sponsored
generally more appropriate for                      retirement plans and other
short-term investors                                fee-based arrangements(2)
- --------------------------------------------------------------------------------

(1)  WHILE THE R CLASS AND ADVISOR CLASS HAVE THE SAME 12B-1 FEE, THEIR
     TOTAL ANNUAL FUND OPERATING EXPENSES WILL BE DIFFERENT BECAUSE OF THE
     ADVISOR CLASS'S LOWER UNIFIED MANAGEMENT FEE. SEE PAGE 6 FOR MORE DETAILS.

(2)  IRA ACCOUNTS IN R CLASS SHARES ESTABLISHED THROUGH FINANCIAL INTERMEDIARIES
     PRIOR TO AUGUST 1, 2006, MAY MAKE ADDITIONAL PURCHASES.

CALCULATION OF CONTINGENT DEFERRED SALES CHARGE (CDSC)

C Class shares are sold at their net asset value without an initial sales
charge. For sales of C Class shares, the amount paid to your financial
professional is 1.00% of the amount invested. If you redeem your shares within
12 months of purchase, you will pay a CDSC of 1.00% of the original purchase
price or the current market value at redemption, whichever is less. The purpose
of the CDSC is to permit the fund's distributor to recoup all or a portion of
the up-front payment made to your financial professional.

The CDSC will not be charged on shares acquired through reinvestment of
dividends or distributions or increases in the net asset value of shares.

To minimize the amount of the CDSC you may pay when you redeem shares, the fund
will first redeem shares acquired through reinvested dividends and capital gain
distributions, which are not subject to a CDSC. Shares that have been in your
account long enough that they are not subject to a CDSC are redeemed next. For
any remaining redemption amount, shares will be sold in the order they were
purchased (earliest to latest).

The information regarding C Class sales charges provided herein is included free
of charge and in a clear and prominent format at americancentury.com in the
INVESTORS USING ADVISORS and INVESTMENT PROFESSIONALS portions of the Web site.
From the description of C Class shares, a hyperlink will take you directly to
this disclosure.


- ------
14


CDSC WAIVERS

Any applicable CDSC may be waived in the following cases:

*  redemptions through systematic withdrawal plans not exceeding annually:

   *  12% of the lesser of the original purchase cost or current market
      value for C Class shares

*  distributions from IRAs due to attainment of age 59-1/2 for C Class shares

*  required minimum distributions from retirement accounts upon reaching age
   70-1/2

*  tax-free returns of excess contributions to IRAs

*  redemptions due to death or post-purchase disability

*  exchanges, unless the shares acquired by exchange are redeemed within the
   original CDSC period

*  if no broker was compensated for the sale

EXCHANGES BETWEEN FUNDS (C CLASS)

You may exchange C Class shares of a fund for C Class shares of any other
American Century fund. You may not exchange from the C Class to any other class.
We will not charge a CDSC on the shares you exchange, regardless of the length
of time you have owned them. When you do redeem shares that have been exchanged,
the CDSC will be based on the date you purchased the original shares.

BUYING AND SELLING SHARES

Your ability to purchase, exchange, redeem and transfer shares will be affected
by the policies of the financial intermediary through which you do business.
Some policy differences may include

*  minimum investment requirements

*  exchange policies

*  fund choices

*  cutoff time for investments

*  trading restrictions

In addition, your financial intermediary may charge a transaction fee for the
purchase or sale of fund shares. Those charges are retained by the financial
intermediary and are not shared with American Century or the fund. Please
contact your financial intermediary or plan sponsor for a complete description
of its policies. Copies of the fund's annual report, semiannual report and
statement of additional information are available from your financial
intermediary or plan sponsor.

The fund has authorized certain financial intermediaries to accept orders on the
fund's behalf. American Century has selling agreements with these financial
intermediaries requiring them to track the time investment orders are received
and to comply with procedures relating to the transmission of orders. Orders
must be received by the financial intermediary on the fund's behalf before the
time the net asset value is determined in order to receive that day's share
price. If those orders are transmitted to American Century and paid for in
accordance with the selling agreement, they will be priced at the net asset
value next determined after your request is received in the form required by the
financial intermediary.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
15


ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT

MINIMUM INITIAL INVESTMENT AMOUNTS (OTHER THAN INSTITUTIONAL CLASS)

Unless otherwise specified below, the minimum initial investment amount to open
an account is $2,500. Financial intermediaries may open an account with $250,
but may require their clients to meet different investment minimums. See
INVESTING THROUGH A FINANCIAL INTERMEDIARY for more information.

- --------------------------------------------------------------------------------
Broker-dealer sponsored wrap program accounts
and/or fee-based accounts                                             No minimum
- --------------------------------------------------------------------------------
Coverdell Education Savings Account (CESA)                            $2,000(1)
- --------------------------------------------------------------------------------
Employer-sponsored retirement plans                                   No minimum
- --------------------------------------------------------------------------------

(1)  THE MINIMUM INITIAL INVESTMENT FOR FINANCIAL INTERMEDIARIES IS $250.
     FINANCIAL INTERMEDIARIES MAY HAVE DIFFERENT MINIMUMS FOR THEIR CLIENTS.

SUBSEQUENT PURCHASES

There is a $50 minimum for subsequent purchases. See WAYS TO MANAGE YOUR ACCOUNT
for more information about making additional investments directly with American
Century. However, there is no subsequent purchase minimum for financial
intermediaries or employer-sponsored retirement plans, but financial
intermediaries may require their clients to meet different subsequent purchase
requirements.

ELIGIBILITY FOR INSTITUTIONAL CLASS SHARES

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

MINIMUM INITIAL INVESTMENT AMOUNTS (INSTITUTIONAL CLASS)

The minimum initial investment amount is $5 million ($3 million for endowments
and foundations) per fund. If you invest with us through a financial
intermediary, this requirement may be met if your financial intermediary
aggregates your investments with those of other clients into a single group, or
omnibus, account that meets the minimum. The minimum investment requirement may
be waived if you, or your financial intermediary if you invest through an
omnibus account, have an aggregate investment in our family of funds of $10
million or more ($5 million for endowments and foundations). In addition,
financial intermediaries or plan recordkeepers may require retirement plans to
meet certain other conditions, such as plan size or a minimum level of assets
per participant, in order to be eligible to purchase Institutional Class shares.

REDEMPTIONS

If you sell your C Class shares within 12 months of their purchase, you will pay
a sales charge. Your redemption proceeds will be calculated using the NET ASSET
VALUE (NAV) next determined after we receive your transaction request in good
order.

        [graphic of triangle]

        A FUND'S NET ASSET VALUE, OR NAV, IS THE PRICE OF THE FUND'S SHARES.

However, we reserve the right to delay delivery of redemption proceeds up to
seven days. For example, each time you make an investment with American Century,
there is a seven-day holding period before we will release redemption proceeds
from those


- ------
16


shares, unless you provide us with satisfactory proof that your purchase funds
have cleared. Investments by wire generally require only a one-day holding
period. If you change your address, we may require that any redemption request
made within 15 days be submitted in writing and be signed by all authorized
signers with their signatures guaranteed. If you change your bank information,
we may impose a 15-day holding period before we will transfer or wire redemption
proceeds to your bank. Please remember, if you request redemptions by wire, $10
will be deducted from the amount redeemed. Your bank also may charge a fee.

In addition, we reserve the right to honor certain redemptions with securities,
rather than cash, as described in the next section.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the value of a fund's assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. The portfolio
managers would select these securities from the fund's portfolio.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, you may have to pay
brokerage or other transaction costs to convert the securities to cash.

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

REDEMPTION OF SHARES IN ACCOUNTS BELOW MINIMUM

If your account balance falls below the minimum initial investment amount for
any reason other than as a result of market fluctuation, American Century
reserves the right to redeem the shares in the account and send the proceeds to
your address of record. Prior to doing so, we will notify you and give you 90
days to meet the minimum. C Class shares redeemed in this manner may be subject
to a sales charge if held less than the applicable period. Please note that you
may incur tax liability as a result of the redemption. For Institutional Class
shares, we reserve the right to convert your shares to Investor Class shares of
the same fund. The Investor Class shares have a unified management fee that is
0.20% higher than the Institutional Class.

SIGNATURE GUARANTEES

A signature guarantee - which is different from a notarized signature - is a
warranty that the signature presented is genuine. We may require a signature
guarantee for the following transactions.

*  You have chosen to conduct business in writing only and would like to
   redeem over $100,000.

*  Your redemption or distribution check, Check-A-Month or automatic
   redemption is made payable to someone other than the account owners.

*  Your redemption proceeds or distribution amount is sent by EFT (ACH or
   wire) to a destination other than your personal bank account.

*  You are transferring ownership of an account over $100,000.

*  You change your address and request a redemption over $100,000 within 15
   days.

*  You change your bank information and request a redemption within 15 days.

We reserve the right to require a signature guarantee for other transactions, at
our discretion.


- ------
17


MODIFYING OR CANCELING AN INVESTMENT

Investment instructions are irrevocable. That means that once you have mailed or
otherwise transmitted your investment instruction, you may not modify or cancel
it. Each fund reserves the right to suspend the offering of shares for a period
of time and to reject any specific investment (including a purchase by
exchange). Additionally, we may refuse a purchase if, in our judgment, it is of
a size that would disrupt the management of a fund.

ABUSIVE TRADING PRACTICES

Short-term trading and other so-called market timing practices are not defined
or explicitly prohibited by any federal or state law. However, short-term
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of short-term
trading activity is significant relative to a fund's net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund's performance could be negatively impacted by the increased trading costs
created by short-term trading if the additional trading costs are significant.

Because of the potentially harmful effects of abusive trading practices, the
fund's Board of Directors has approved American Century's abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
imposing redemption fees on certain funds, and using fair value pricing when
current market prices are not readily available. Although these efforts are
designed to discourage abusive trading practices, they cannot eliminate the
possibility that such activity will occur. American Century seeks to exercise
its judgment in implementing these tools to the best of its ability in a manner
that it believes is consistent with shareholder interests.

American Century uses a variety of techniques to monitor for and detect abusive
trading practices. These techniques may vary depending on the type of fund, the
class of shares or whether the shares are held directly or indirectly with
American Century. They may change from time to time as determined by American
Century in its sole discretion. To minimize harm to the funds and their
shareholders, we reserve the right to reject any purchase order (including
exchanges) from any shareholder we believe has a history of abusive trading or
whose trading, in our judgment, has been or may be disruptive to the funds. In
making this judgment, we may consider trading done in multiple accounts under
common ownership or control.

Currently, for shares held directly with American Century, we may deem the sale
of all or a substantial portion of a shareholder's purchase of fund shares to be
abusive if the sale is made

*  within seven days of the purchase, or

*  within 30 days of the purchase, if it happens more than once per year.

To the extent practicable, we try to use the same approach for defining abusive
trading for shares held through financial intermediaries. American Century
reserves the right, in its sole discretion, to identify other trading practices
as abusive and to modify its monitoring and other practices as necessary to deal
with novel or unique abusive trading practices.

In addition, American Century reserves the right to accept purchases and
exchanges in excess of the trading restrictions discussed above if it believes
that such transactions would not be inconsistent with the best interests of fund
shareholders or this policy.

American Century's policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American


- ------
18


Century handles, there can be no assurance that American Century's efforts will
identify all trades or trading practices that may be considered abusive. In
addition, American Century's ability to monitor trades that are placed by
individual shareholders within group, or omnibus, accounts maintained by
financial intermediaries is severely limited because American Century generally
does not have access to the underlying shareholder account information. However,
American Century monitors aggregate trades placed in omnibus accounts and seeks
to work with financial intermediaries to discourage shareholders from engaging
in abusive trading practices and to impose restrictions on excessive trades.
There may be limitations on the ability of financial intermediaries to impose
restrictions on the trading practices of their clients. As a result, American
Century's ability to monitor and discourage abusive trading practices in omnibus
accounts may be limited.

YOUR RESPONSIBILITY FOR UNAUTHORIZED TRANSACTIONS

American Century and its affiliated companies use procedures reasonably designed
to confirm that telephone, electronic and other instructions are genuine. These
procedures include recording telephone calls, requesting personalized security
codes or other information, and sending confirmation of transactions. If we
follow these procedures, we are not responsible for any losses that may occur
due to unauthorized instructions. For transactions conducted over the Internet,
we recommend the use of a secure Internet browser. In addition, you should
verify the accuracy of your confirmation statements immediately after you
receive them.

A NOTE ABOUT MAILINGS TO SHAREHOLDERS

To reduce the amount of mail you receive from us, we may deliver a single copy
of certain investor documents (such as shareholder reports and prospectuses) to
investors who share an address, even if accounts are registered under different
names. If you prefer to receive multiple copies of these documents individually
addressed, please call us or your financial professional. For American Century
Brokerage accounts, please call 1-888-345-2071.

RIGHT TO CHANGE POLICIES

We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups. In addition, from time to time we may
waive a policy on a case-by-case basis, as the advisor deems appropriate.


- ------
19


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century will price the fund shares you purchase, exchange or redeem at
the net asset value (NAV) next determined after your order is received and
accepted by the fund's transfer agent, or other financial intermediary with the
authority to accept orders on the fund's behalf. We determine the NAV of each
fund as of the close of regular trading (usually 4 p.m. Eastern time) on the New
York Stock Exchange (NYSE) on each day the NYSE is open. On days when the NYSE
is closed (including certain U.S. national holidays), we do not calculate the
NAV. A fund's NAV is the current value of the fund's assets, minus any
liabilities, divided by the number of shares outstanding.

The fund values portfolio securities for which market quotations are readily
available at their market price. As a general rule, equity securities listed on
a U.S. exchange are valued at the last current reported sale price as of the
time of valuation. Securities listed on the NASDAQ National Market System
(Nasdaq) are valued at the Nasdaq Official Closing Price (NOCP), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the
time of valuation. The fund may use pricing services to assist in the
determination of market value. Unlisted securities for which market quotations
are readily available are valued at the last quoted sale price or the last
quoted ask price, as applicable, except that debt obligations with 60 days or
less remaining until maturity may be valued at amortized cost. Exchange-traded
options, futures and options on futures are valued at the settlement price as
determined by the appropriate clearing corporation.

If the fund determines that the market price for a portfolio security is not
readily available or that the valuation methods mentioned above do not reflect
the security's fair value, such security is valued at its fair value as
determined in good faith by, or in accordance with procedures adopted by, the
fund's board or its designee (a process referred to as "fair valuing" the
security). Circumstances that may cause the fund to fair value a security
include, but are not limited to:

*  if, after the close of the foreign exchange on which a portfolio security
   is principally traded, but before the close of the NYSE, an event occurs that
   may materially affect the value of the security;

*  a debt security has been declared in default; or

*  trading in a security has been halted during the trading day.

If such circumstances occur, the fund will fair value the security if the fair
valuation would materially impact the fund's NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with procedures adopted by
the fund's board.

The effect of using fair value determinations is that the fund's NAV will be
based, to some degree, on security valuations that the board or its designee
believes are fair rather than being solely determined by the market.

With respect to any portion of the fund's assets that are invested in one or
more open-end management investment companies that are registered with the SEC
(known as registered investment companies, or RICs), the fund's NAV will be
calculated based upon the NAVs of such RICs. These RICs are required by law to
explain the circumstances under which they will use fair value pricing and the
effects of using fair value pricing in their prospectuses.


- ------
20


Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based on the prevailing exchange rates on that day.

Trading of securities in foreign markets may not take place every day the NYSE
is open. Also, trading in some foreign markets and on some electronic trading
networks may take place on weekends or holidays when the fund's NAV is not
calculated. So, the value of the fund's portfolio may be affected on days when
you will not be able to purchase, exchange or redeem fund shares.

DISTRIBUTIONS

Federal tax laws require each fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means the fund should not be subject to state or
federal income tax on amounts distributed. The distributions generally consist
of dividends and interest received by a fund, as well as CAPITAL GAINS realized
by a fund on the sale of its investment securities. The fund generally pays
distributions from net income and capital gains, if any, once a year in
December. The fund may make more frequent distributions, if necessary, to comply
with Internal Revenue Code provisions.

        [graphic of triangle]

        CAPITAL GAINS ARE INCREASES IN THE VALUES OF CAPITAL ASSETS,
        SUCH AS STOCK, FROM THE TIME THE ASSETS ARE PURCHASED.

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

Participants in tax-deferred retirement plans must reinvest all distributions.
For investors investing through taxable accounts, we will reinvest distributions
unless you elect to have dividends and/or capital gains sent to another American
Century account, to your bank electronically, to your home address or to another
person or address by check.


- ------
21


TAXES

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

Tax-Deferred Accounts

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

Taxable Accounts

If you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund shares.

Taxability of Distributions

Fund distributions may consist of income, such as dividends and interest earned
by a fund from its investments, or capital gains generated by a fund from the
sale of investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as QUALIFIED DIVIDEND INCOME and you meet a
minimum required holding period with respect to your shares of the fund, in
which case distributions of income are taxed as long-term capital gains.

        [graphic of triangle]

        QUALIFIED DIVIDEND INCOME IS A DIVIDEND RECEIVED BY THE FUND FROM THE
        STOCK OF A DOMESTIC OR QUALIFYING FOREIGN CORPORATION, PROVIDED THAT THE
        FUND HAS HELD THE STOCK FOR A REQUIRED HOLDING PERIOD.

For capital gains and for income distributions designated as qualified dividend
income, the following rates apply:

                                        TAX RATE FOR 10%      TAX RATE FOR
TYPE OF DISTRIBUTION                    AND 15% BRACKETS      ALL OTHER BRACKETS
- --------------------------------------------------------------------------------
Short-term capital gains                Ordinary Income       Ordinary Income
- --------------------------------------------------------------------------------
Long-term capital gains (> 1 year)
and Qualified Dividend Income           5%                    15%
- --------------------------------------------------------------------------------


- ------
22


If the fund's distributions exceed its taxable income and capital gains realized
during the tax year, all or a portion of the distributions made by the fund in
that tax year will be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.

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

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

Taxes on Transactions

Your redemptions-including exchanges to other American Century funds-are subject
to capital gains tax. The table above can provide a general guide for your
potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss. However, you should note that loss realized upon the
sale or exchange of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain to you with respect to those shares. If a loss is realized on the
redemption of fund shares, the reinvestment in additional fund shares within 30
days before or after the redemption may be subject to the wash sale rules of the
Internal Revenue Code. This may result in a postponement of the recognition of
such loss for federal income tax purposes.

If you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.

Buying a Dividend

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

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

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


- ------
23


MULTIPLE CLASS INFORMATION

American Century offers five classes of shares of the fund: Investor Class,
Institutional Class, C Class, R Class and Advisor Class.

The classes have different fees, expenses and/or minimum investment
requirements. The difference in the fee structures between the classes is the
result of their separate arrangements for shareholder and distribution services.
It is not the result of any difference in advisory or custodial fees or other
expenses related to the management of the fund's assets, which do not vary by
class. Different fees and expenses will affect performance.

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

Service, Distribution and Administrative Fees

Investment Company Act Rule 12b-1 permits mutual funds that adopt a written plan
to pay certain expenses associated with the distribution of their shares out of
fund assets. The fund's Advisor Class, C Class and R Class shares have a 12b-1
plan. The plans provide for the fund to pay annual fees of 1.00% for C Class and
0.50% for Advisor and R Classes to the distributor for certain ongoing
shareholder and administrative services and for distribution services, including
past distribution services. Under the Advisor Class Plan, the fund's Advisor
Class pays the distributor an annual fee of 0.50% of Advisor Class average net
assets, half for certain shareholder and administrative services and half for
distribution services, including past distribution services. The distributor
pays all or a portion of such fees to the financial intermediaries that make the
classes available. Because these fees are used to pay for services that are not
related to prospective sales of the fund, each class will continue to make
payments under its plan even if it is closed to new investors. Because these
fees are paid out of the fund's assets on an ongoing basis, over time these fees
will increase the cost of your investment and may cost you more than paying
other types of sales charges. For additional information about the plans and
their terms, see MULTIPLE CLASS STRUCTURE in the statement of additional
information.

Certain financial intermediaries perform recordkeeping and administrative
services for their clients that would otherwise be performed by American
Century's transfer agent. In some circumstances, the advisor will pay such
service providers a fee for performing those services. Also, the advisor and the
fund's distributor may make payments for various additional services or other
expenses out of their profits or other available sources. Such payments may be
made for one or more of the following: (1) distribution services, which include
expenses incurred by intermediaries for their sales activities with respect to
the fund, such as preparing, printing and distributing sales literature and
advertising materials and compensating registered representatives or other
employees of such financial intermediary for their sales activities; (2)
shareholder services, such as providing individual and custom investment
advisory services to clients of the financial intermediary; and (3) marketing
and promotional services, including business planning assistance, educating
personnel about the fund, and sponsorship of sales meetings, which may include
covering costs of providing speakers, meals and other entertainment. The
distributor may sponsor seminars and conferences designed to educate
intermediaries about the fund and may cover the expenses associated with
attendance at such meetings, including travel costs. These payments and
activities are intended to provide an incentive to intermediaries to sell the
fund by ensuring that they are educated about the fund, and to help such
intermediaries defray costs associated with offering the fund. The amount of any
payments described by this paragraph is determined by the advisor or the
distributor, and all such amounts are paid out of the available assets of the
advisor and distributor, and not by you or the fund. As a result, the total
expense ratio of the fund will not be affected by any such payments.


- ------
24


FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The tables on the next few pages itemize what contributed to the changes in
share price during the most recently ended fiscal year. They also show the
changes in share price for this period in comparison to changes over the last
five fiscal years (or a shorter period if the share class is not five years
old).

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

*  share price at the beginning of the period

*  investment income and capital gains or losses

*  distributions of income and capital gains paid to investors

*  share price at the end of the period

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

*  TOTAL RETURN - the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO - the operating expenses of the fund as a percentage of
   average net assets

*  NET INCOME RATIO - the net investment income of the fund as a percentage
   of average net assets

*  PORTFOLIO TURNOVER - the percentage of the fund's investment portfolio
   that is replaced during the period

The Financial Highlights that follow have been audited by Deloitte & Touche LLP.
The fund's Report of Independent Registered Public Accounting Firm and the
financial statements are included in the fund's annual report, which is
available upon request.



- ------
25


ULTRA FUND

Investor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31
- ------------------------------------------------------------------------------------------
                                          2006       2005      2004      2003      2002
- ------------------------------------------------------------------------------------------
PER-SHARE DATA
- ------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period     $29.02     $27.17    $26.01    $21.83    $25.09
- ------------------------------------------------------------------------------------------
Income From Investment Operations
- --------------------------------------
   Net Investment Income (Loss)(1)        (0.06)      0.02     (0.05)    (0.02)     0.06
- --------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                 (0.37)      1.83      1.21      4.26     (3.32)
- ------------------------------------------------------------------------------------------
   Total From Investment Operations       (0.43)      1.85      1.16      4.24     (3.26)
- ------------------------------------------------------------------------------------------
Distributions
- --------------------------------------
   From Net Investment Income             (0.04)       -         -       (0.06)      -
- ------------------------------------------------------------------------------------------
Net Asset Value, End of Period           $28.55     $29.02    $27.17    $26.01    $21.83
==========================================================================================
   TOTAL RETURN(2)                        (1.51)%     6.81%     4.46%    19.50%   (12.99)%

RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                       0.99%     0.99%     0.99%     1.00%      0.99%
- --------------------------------------
Ratio of Net Investment Income (Loss)
to Average Net Assets                     (0.15)%     0.09%   (0.20)%   (0.09)%      0.24%
- --------------------------------------
Portfolio Turnover Rate                       62%       33%       34%       82%        92%
- --------------------------------------
Net Assets, End of Period
(in millions)                             $13,482   $18,904   $20,708   $21,341    $18,616
- ------------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUE TO TWO DECIMAL PLACES. IF NET ASSET VALUES
     WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD
     MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET
     ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC
     GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE
     CLASS AND ANOTHER.


- ------
26


ULTRA FUND

Institutional Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31
- ----------------------------------------------------------------------------------------------------
                                             2006          2005         2004       2003      2002
- ----------------------------------------------------------------------------------------------------
PER-SHARE DATA
- ----------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period        $29.38        $27.44       $26.22     $22.02    $25.24
- ----------------------------------------------------------------------------------------------------
Income From Investment Operations
- ---------------------------------------
   Net Investment Income (Loss)(1)             -(2)         0.07          -(2)      0.02      0.11
- ---------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                    (0.38)         1.87         1.22       4.29     (3.33)
- ----------------------------------------------------------------------------------------------------
   Total From Investment Operations          (0.38)         1.94         1.22       4.31     (3.22)
- ----------------------------------------------------------------------------------------------------
Distributions
- ---------------------------------------
   From Net Investment Income                (0.10)          -            -        (0.11)      -
- ----------------------------------------------------------------------------------------------------
Net Asset Value, End of Period              $28.90        $29.38       $27.44     $26.22    $22.02
====================================================================================================
   TOTAL RETURN(3)                           (1.33)%        7.07%        4.65%     19.66%   (12.76)%

RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                          0.79%        0.79%        0.79%      0.80%      0.79%
- ---------------------------------------
Ratio of Net Investment Income (Loss)
to Average Net Assets                          0.05%        0.29%        0.00%      0.11%      0.44%
- ---------------------------------------
Portfolio Turnover Rate                          62%          33%          34%        82%        92%
- ---------------------------------------
Net Assets, End of Period
(in thousands)                            $1,073,767   $1,460,343   $1,055,145   $822,333   $556,316
- ----------------------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  PER-SHARE AMOUNT WAS LESS THAN $0.005.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUE TO TWO DECIMAL PLACES. IF NET ASSET VALUES
     WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD
     MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET
     ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC
     GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE
     CLASS AND ANOTHER.


- ------
27


ULTRA FUND

C Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31
- -------------------------------------------------------------------------------------------
                                           2006       2005      2004      2003      2002
- -------------------------------------------------------------------------------------------
PER-SHARE DATA
- -------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period      $27.96     $26.44    $25.57    $21.59    $25.09
- -------------------------------------------------------------------------------------------
Income From Investment Operations
- ---------------------------------------
   Net Investment Income (Loss)(1)         (0.34)     (0.26)    (0.32)    (0.26)    (0.19)
- ---------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                  (0.36)      1.78      1.19      4.24     (3.31)
- -------------------------------------------------------------------------------------------
   Total From Investment Operations        (0.70)      1.52      0.87      3.98     (3.50)
- -------------------------------------------------------------------------------------------
Net Asset Value, End of Period            $27.26     $27.96    $26.44    $25.57    $21.59
===========================================================================================
   TOTAL RETURN(2)                         (2.50)%     5.75%     3.40%    18.43%   (13.95)%

RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                        1.99%     1.99%     1.99%     2.00%      1.99%
- ---------------------------------------
Ratio of Net Investment Income (Loss)
to Average Net Assets                      (1.15)%   (0.91)%   (1.20)%   (1.09)%    (0.76)%
- ---------------------------------------
Portfolio Turnover Rate                        62%       33%       34%       82%        92%
- ---------------------------------------
Net Assets, End of Period
(in thousands)                              $3,342    $5,601    $4,836    $2,232       $502
- -------------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUE TO TWO
     DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.


- ------
28


ULTRA FUND

R Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)
- ---------------------------------------------------------------------------------------
                                           2006          2005      2004       2003(1)
- ---------------------------------------------------------------------------------------
PER-SHARE DATA
- ---------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period      $28.72        $27.01    $25.99       $24.87
- ---------------------------------------------------------------------------------------
Income From Investment Operations
- ---------------------------------------
   Net Investment Income (Loss)(2)         (0.21)        (0.12)    (0.22)       (0.04)
- ---------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                  (0.36)         1.83      1.24         1.16
- ---------------------------------------------------------------------------------------
   Total From Investment Operations        (0.57)         1.71      1.02         1.12
- ---------------------------------------------------------------------------------------
Net Asset Value, End of Period            $28.15        $28.72    $27.01       $25.99
=======================================================================================
   TOTAL RETURN(3)                         (1.98)%        6.33%     3.92%        4.50%

RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                        1.49%     1.44%(4)     1.49%     1.50%(5)
- ---------------------------------------
Ratio of Net Investment Income (Loss)
to Average Net Assets                      (0.65)%   (0.36)%(4)   (0.70)%   (0.81)%(5)
- ---------------------------------------
Portfolio Turnover Rate                        62%          33%       34%       82%(6)
- ---------------------------------------
Net Assets, End of Period
(in thousands)                              $8,922       $8,367    $4,545           $3
- ---------------------------------------------------------------------------------------

(1)  AUGUST 29, 2003 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2003.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY
     REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING
     THE NET ASSET VALUE TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE
     CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE
     CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET
     VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND
     DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  DURING THE YEAR ENDED OCTOBER 31, 2005, THE CLASS RECEIVED A PARTIAL
     REIMBURSEMENT OF ITS DISTRIBUTION AND SERVICE FEE. HAD FEES NOT BEEN
     REIMBURSED THE ANNUALIZED RATIO OF OPERATING EXPENSES TO AVERAGE NET ASSETS
     AND ANNUALIZED RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS
     WOULD HAVE BEEN 1.49% AND (0.41)%, RESPECTIVELY.

(5)  ANNUALIZED.

(6)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE INDICATED
     WAS CALCULATED FOR THE YEAR ENDED OCTOBER 31, 2003.


- ------
29


ULTRA FUND

Advisor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31
- ----------------------------------------------------------------------------------------------
                                           2006        2005       2004       2003      2002
- ----------------------------------------------------------------------------------------------
PER-SHARE DATA
- ----------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period      $28.61      $26.85     $25.77     $21.62    $24.92
- ----------------------------------------------------------------------------------------------
Income From Investment Operations
- ---------------------------------------
   Net Investment Income (Loss)(1)         (0.13)      (0.05)     (0.12)     (0.08)      -(2)
- ---------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                  (0.37)       1.81       1.20       4.24     (3.30)
- ----------------------------------------------------------------------------------------------
   Total From Investment Operations        (0.50)       1.76       1.08       4.16     (3.30)
- ----------------------------------------------------------------------------------------------
Distributions
- ---------------------------------------
   From Net Investment Income                -           -          -        (0.01)      -
- ----------------------------------------------------------------------------------------------
Net Asset Value, End of Period            $28.11      $28.61     $26.85     $25.77    $21.62
==============================================================================================
   TOTAL RETURN(3)                         (1.75)%      6.55%      4.19%     19.24%   (13.24)%

RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                        1.24%      1.24%      1.24%      1.25%      1.24%
- ---------------------------------------
Ratio of Net Investment Income (Loss)
to Average Net Assets                      (0.40)%    (0.16)%    (0.45)%    (0.34)%    (0.01)%
- ---------------------------------------
Portfolio Turnover Rate                        62%        33%        34%        82%        92%
- ---------------------------------------
Net Assets, End of Period
(in thousands)                            $405,173   $639,792   $738,032   $643,144   $391,968
- ----------------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  PER-SHARE AMOUNT WAS LESS THAN $0.005.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUE TO TWO DECIMAL PLACES. IF NET ASSET VALUES
     WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD
     MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET
     ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC
     GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE
     CLASS AND ANOTHER.


- ------
30


NOTES


- ------
31


NOTES


- ------
32


NOTES


- ------
33


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

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

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

IN PERSON           SEC Public Reference Room
                    Washington, D.C.
                    Call 202-942-8090 for location and hours.

ON THE INTERNET     * EDGAR database at sec.gov
                    * By email request at publicinfo@sec.gov

BY MAIL             SEC Public Reference Section
                    Washington, D.C. 20549-0102

This prospectus shall not constitute an offer to sell securities of the fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or qualified for sale, unless such registration or qualification
is not required, or under any circumstances in which such offer or solicitation
would be unlawful.

                                                                      NEWSPAPER
FUND REFERENCE                   FUND CODE           TICKER           LISTING
- --------------------------------------------------------------------------------
Ultra Fund
  Investor Class                  022                 TWCUX            Ultra
- --------------------------------------------------------------------------------
  Institutional Class             322                 TWUIX            Ultra
- --------------------------------------------------------------------------------
  C Class                         422                 TWCCX            Ultra
- --------------------------------------------------------------------------------
  R Class                         122                 AULRX            Ultra
- --------------------------------------------------------------------------------
  Advisor Class                   722                 TWUAX            Ultra
- --------------------------------------------------------------------------------

Investment Company Act File No. 811-0816

AMERICAN CENTURY INVESTMENTS
americancentury.com

                                        Banks and Trust Companies, Broker-Dealers,
Self-Directed Retail Investors          Financial Professionals, Insurance Companies
P.O. Box 419200                         P.O. Box 419786
Kansas City, Missouri 64141-6200        Kansas City, Missouri 64141-6786
1-800-345-2021 or 816-531-5575          1-800-345-6488

0703
SH-PRS-52532













AMERICAN CENTURY INVESTMENTS

Prospectus

March 1, 2007

Growth Fund

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

American Century Investment
Services, Inc., Distributor

[american century investments logo and text logo]




Table of Contents

AN OVERVIEW OF THE FUND . . . . . . . . . . . . . . . . . . . . .2

FUND PERFORMANCE HISTORY . . . . . . . . . . . . . . . . . . . . 3

FEES AND EXPENSES . . . . . . . . . . . . . . . . . . . . . . . .5

OBJECTIVES, STRATEGIES AND RISKS . . . . . . . . . . . . . . . . 7

MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

INVESTING DIRECTLY WITH AMERICAN CENTURY . . . . . . . . . . . .11

INVESTING THROUGH A FINANCIAL INTERMEDIARY . . . . . . . . . . .13

ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT . . . . . . . . . 15

SHARE PRICE AND DISTRIBUTIONS . . . . . . . . . . . . . . . . . 19

TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

MULTIPLE CLASS INFORMATION . . . . . . . . . . . . . . . . . . .23

FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . .24


    [GRAPHIC OF TRIANGLE]

    THIS SYMBOL IS USED THROUGHOUT THE BOOK TO HIGHLIGHT DEFINITIONS OF KEY
    INVESTMENT TERMS AND TO PROVIDE OTHER HELPFUL INFORMATION.

American Century Investment Services, Inc., Distributor

©2007 American Century Proprietary Holdings, Inc. All rights reserved.

The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.





An Overview of the Fund

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

The portfolio managers look for stocks of companies they believe will increase
in value over time, using an investment strategy developed by American Century.
In implementing this strategy, the portfolio managers make their investment
decisions based primarily on their analysis of individual companies, rather than
on broad economic forecasts. Management of the fund is based on the belief that,
over the long term, stock price movements follow growth in earnings, revenues
and/or cash flow.

The portfolio managers use a variety of analytical research tools and techniques
to identify the stocks of larger-sized companies that meet their investment
criteria. Under normal market conditions, the fund's portfolio will primarily
consist of securities of companies demonstrating business improvement.

- -The fund's principal risks include

*  GROWTH STOCKS - Investments in growth stocks may involve special risks and
   their prices may fluctuate more dramatically than the overall stock market.

*  FOREIGN SECURITIES - The fund may invest in foreign securities, which can
   be riskier than investing in U.S. securities.

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

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

*  PRINCIPAL LOSS - At any given time your shares may be worth less than the
   price you paid for them. In other words, it is possible to lose money by
   investing in the fund.

A more detailed description of the fund's investment strategies and risks may be
found under the heading OBJECTIVES, STRATEGIES AND RISKS, which begins on page
7.

    [GRAPHIC OF TRIANGLE]

    AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT, AND IT IS NOT INSURED OR
    GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER
    GOVERNMENT AGENCY.


- ------
2


FUND PERFORMANCE HISTORY

Annual Total Returns

The following bar chart shows the performance of the fund's Investor Class
shares for each of the last 10 calendar years. It indicates the volatility of
the fund's historical returns from year to year. Account fees and sales charges,
if applicable, are not reflected in the chart below. If they had been included,
returns would be lower than those shown. The returns of the fund's other classes
will differ from those shown in the chart, depending on the expenses of those
classes.

GROWTH FUND - INVESTOR CLASS

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

                          HIGHEST                             LOWEST
- --------------------------------------------------------------------------------
Growth                    23.62% (4Q 1999)                     -19.33% (1Q 2001)
- --------------------------------------------------------------------------------

Average Annual Total Returns

The following table shows the average annual total returns of the fund's
Investor Class shares calculated three different ways. Additional tables show
the average annual total returns of the fund's other share classes calculated
before the impact of taxes. Returns assume the deduction of all sales loads,
charges and other fees associated with a particular class. Your actual returns
may vary depending on the circumstances of your investment.

Return Before Taxes shows the actual change in the value of fund shares over the
time periods shown, but does not reflect the impact of taxes on fund
distributions or the sale of fund shares. The two after-tax returns take into
account taxes that may be associated with owning fund shares. Return After Taxes
on Distributions is a fund's actual performance, adjusted by the effect of taxes
on distributions made by the fund during the periods shown. Return After Taxes
on Distributions and Sale of Fund Shares is further adjusted to reflect the tax
impact on any change in the value of fund shares as if they had been sold on the
last day of the period.

After-tax returns are calculated using the historical highest federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-tax returns shown are not relevant to investors who hold fund
shares through tax-deferred arrangements such as 401(k) plans or IRAs. After-tax
returns are shown only for the Investor Class shares. After-tax returns for the
other share classes will vary.

The benchmark is an unmanaged index that has no operating costs and is included
in each table for performance comparison.



- ------
3



INVESTOR CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    10 YEARS
- --------------------------------------------------------------------------------
Return Before Taxes                              7.94%     2.71%      6.56%
Return After Taxes on Distributions              7.94%     2.69%      5.12%
Return After Taxes on Distributions
   and Sale of Fund Shares                       5.18%     2.32%      5.21%
Russell 1000® Growth Index                       9.07%     2.69%      5.44%
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

INSTITUTIONAL CLASS
                                                                      LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                              8.14%     2.92%      5.30%
Russell 1000® Growth Index                       9.07%     2.69%      3.77%(2)
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE INSTITUTIONAL CLASS IS JUNE 16, 1997. ONLY
     CLASSES WITH PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR
     LIFE OF CLASS.

(2)  SINCE JUNE 30, 1997, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.


C CLASS
                                                                      LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                              6.90%     1.71%      1.81%
Russell 1000® Growth Index                       9.07%     2.69%      2.61%(2)
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE C CLASS IS NOVEMBER 28, 2001. ONLY CLASSES
     WITH PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR LIFE OF
     CLASS.

(2)  SINCE NOVEMBER 30, 2001, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.


R CLASS

FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006      1 YEAR      LIFE OF CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                7.44%       8.80%
Russell 1000® Growth Index                         9.07%       9.01%(2)
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE R CLASS IS AUGUST 29, 2003. ONLY CLASSES
     WITH PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR LIFE OF
     CLASS.

(2)  SINCE AUGUST 31, 2003, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.


ADVISOR CLASS
                                                                      LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                              7.67%     2.45%      5.39%
Russell 1000® Growth Index                       9.07%     2.69%      4.16%(2)
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE ADVISOR CLASS IS JUNE 4, 1997. ONLY CLASSES
     WITH PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR LIFE OF
     CLASS.

(2)  SINCE MAY 31, 1997, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.

Performance information is designed to help you see how fund returns can vary.
Keep in mind that past performance (before and after taxes) does not predict how
a fund will perform in the future.

For current performance information, please call us or visit
americancentury.com.


- ------
4


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 same class of shares of other American Century funds

*  to redeem your shares (other than a $10 fee to redeem by wire and the
   deferred sales charge associated with C Class shares redeemed during the
   first year after purchase)

The following tables describe the fees and expenses you may pay if you buy and
hold shares of the fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
- --------------------------------------------------------------------------------
Investor Class
  Maximum Account Maintenance Fee                                        $25(1)
- --------------------------------------------------------------------------------
C Class
  Maximum Deferred Sales Charge (load)                                 1.00%(2)
   (as a percentage of net asset value)
- --------------------------------------------------------------------------------

(1)  APPLIES ONLY TO INVESTORS WHOSE TOTAL ELIGIBLE INVESTMENTS WITH
     AMERICAN CENTURY ARE LESS THAN $10,000. SEE Account Maintenance Fee UNDER
     Investing Directly with American Century FOR MORE DETAILS.

(2)  THE DEFERRED SALES CHARGE IS CONTINGENT ON THE LENGTH OF TIME YOU HAVE
     OWNED YOUR SHARES. THE CHARGE IS 1.00% DURING THE FIRST YEAR AFTER PURCHASE
     AND IS ELIMINATED THEREAFTER.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
                                DISTRIBUTION                    TOTAL ANNUAL
                  MANAGEMENT    AND SERVICE       OTHER         FUND OPERATING
                  FEE(1)        (12B-1) FEES(2)   EXPENSES(3)   EXPENSES
- --------------------------------------------------------------------------------
Investor          1.00%         None              0.00%         1.00%
Class
- --------------------------------------------------------------------------------
Institutional     0.80%         None              0.00%         0.80%
Class
- --------------------------------------------------------------------------------
C Class           1.00%         1.00%             0.00%         2.00%
- --------------------------------------------------------------------------------
R Class           1.00%         0.50%             0.00%         1.50%
- --------------------------------------------------------------------------------
Advisor Class     0.75%         0.50%             0.00%         1.25%
- --------------------------------------------------------------------------------

(1)  THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR
     ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. THE FEE SHOWN IS
     BASED ON ASSETS DURING THE FUND'S MOST RECENT FISCAL YEAR. THE FUND HAS A
     STEPPED FEE SCHEDULE. AS A RESULT, THE FUND'S UNIFIED MANAGEMENT FEE RATE
     GENERALLY DECREASES AS STRATEGY ASSETS INCREASE AND INCREASES AS STRATEGY
     ASSETS DECREASE. FOR MORE INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE,
     INCLUDING AN EXPLANATION OF STRATEGY ASSETS, SEE The Investment Advisor
     UNDER Management.

(2)  THE 12B-1 FEE IS DESIGNED TO PERMIT INVESTORS TO PURCHASE SHARES
     THROUGH BROKER-DEALERS, BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL
     INTERMEDIARIES. THE FEE MAY BE USED TO COMPENSATE SUCH FINANCIAL
     INTERMEDIARIES FOR DISTRIBUTION AND OTHER SHAREHOLDER SERVICES. IN
     ADDITION, HALF OF THE ADVISOR CLASS 12B-1 FEE (0.25%) IS FOR ONGOING
     RECORDKEEPING AND ADMINISTRATIVE SERVICES PROVIDED BY FINANCIAL
     INTERMEDIARIES, WHICH WOULD OTHERWISE BE PAID BY THE ADVISOR OUT OF THE
     UNIFIED MANAGEMENT FEE. THE ADVISOR HAS REDUCED ITS UNIFIED MANAGEMENT FEE
     BY 0.25% FOR ADVISOR CLASS SHARES, BUT THE FEE FOR CORE INVESTMENT ADVISORY
     SERVICES IS THE SAME FOR ALL CLASSES. FOR MORE INFORMATION, SEE Multiple
     Class Information AND Service, Distribution and Administrative Fees, PAGE
     23.

(3)  OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
     INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST, WERE
     LESS THAN 0.005% FOR THE MOST RECENT FISCAL YEAR.


- ------
5


EXAMPLE

The examples in the table below are intended to help you compare the costs of
investing in a fund with the costs of investing in other mutual funds. Of
course, your actual costs may be higher or lower. Assuming you . . .

*  invest $10,000 in the fund

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

*  earn a 5% return each year

*  incur the same operating expenses as shown above

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

                           1 YEAR        3 YEARS        5 YEARS        10 YEARS
- --------------------------------------------------------------------------------
Investor Class             $102          $318           $551           $1,219
- --------------------------------------------------------------------------------
Institutional Class        $82           $255           $443           $987
- --------------------------------------------------------------------------------
C Class                    $202          $623           $1,069         $2,305
- --------------------------------------------------------------------------------
R Class                    $152          $472           $814           $1,778
- --------------------------------------------------------------------------------
Advisor Class              $127          $395           $683           $1,503
- --------------------------------------------------------------------------------


- ------
6


OBJECTIVES, STRATEGIES AND RISKS

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

The portfolio managers look for stocks of larger-sized companies they believe
will increase in value over time, using an investment strategy developed by
American Century. In implementing this strategy, the portfolio managers use a
bottom-up approach to stock selection. This means that the portfolio managers
make their investment decisions based primarily on their analysis of individual
companies, rather than on broad economic forecasts. Management of the fund is
based on the belief that, over the long term, stock price movements follow
growth in earnings, revenues and/or cash flow.

Using American Century's extensive computer database, as well as other primary
analytical research tools, the portfolio managers track financial information
for individual companies to identify and evaluate trends in earnings, revenues
and other business fundamentals. Under normal market conditions, the fund's
portfolio will primarily consist of securities of companies demonstrating
business improvement. Analytical indicators helping to identify signs of
business improvement could include accelerating earnings or revenue growth
rates, increasing cash flows, or other indications of the relative strength of a
company's business. These techniques help the portfolio managers buy or hold the
stocks of companies they believe have favorable growth prospects and sell the
stocks of companies whose characteristics no longer meet their criteria.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies, including
companies located in emerging markets. Investments in foreign securities present
some unique risks that are more fully described in the fund's statement of
additional information.

The portfolio managers do not attempt to time the market. Instead, under normal
market conditions, they intend to keep the fund essentially fully invested in
stocks regardless of the movement of stock prices generally. When the managers
believe it is prudent, the fund may invest a portion of its assets in debt
securities, options, preferred stock and equity-equivalent securities, such as
convertible securities, stock futures contracts or stock index futures
contracts. The fund generally limits its purchase of debt securities to
investment-grade obligations. Futures contracts, a type of derivative security,
can help the fund's cash assets remain liquid while performing more like stocks.
The fund has a policy governing futures contracts and similar derivative
securities to help manage the risk of these types of investments. A complete
description of the derivatives policy is included in the statement of additional
information.

In the event of exceptional market or economic conditions, the fund may, as a
temporary defensive measure, invest all or a substantial portion of its assets
in cash, cash-equivalent securities or short-term debt securities. To the extent
the fund assumes a defensive position it will not be pursuing its objective of
long-term capital growth.

A description of the policies and procedures with respect to the disclosure of
the fund's portfolio securities is available in the statement of additional
information.


- ------
7


WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?

Growth stocks are typically priced higher than other stocks, in relation to
earnings and other measures, because investors believe they have more growth
potential. This potential may or may not be realized and growth stock prices
tend to fluctuate more dramatically than the overall stock market.

The portfolio managers may buy a large amount of a company's stock quickly, and
often will dispose of it quickly if the company's earnings or revenues decline.
While the portfolio managers believe this strategy provides substantial
appreciation potential over the long term, in the short term it can create a
significant amount of share price volatility. This volatility can be greater
than that of the average stock fund.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies. Foreign
investment involves additional risks, including fluctuations in currency
exchange rates, less stable political and economic structures, reduced
availability of public information, and lack of uniform financial reporting and
regulatory practices similar to those that apply in the United States. These
factors make investing in foreign securities generally riskier than investing in
U.S. stocks. To the extent the fund invests in foreign securities, the overall
risk of that fund could be affected.

Market performance tends to be cyclical, and, in the various cycles, certain
investment styles may fall in and out of favor. If the market is not favoring
the fund's style, the fund's gains may not be as big as, or its losses may be
bigger than, other equity funds using different investment styles.

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 the fund owns will go
up and down depending on the performance of the companies that issued them,
general market and economic conditions, and investor confidence.

At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the fund.


- ------
8


MANAGEMENT

WHO MANAGES THE FUND?

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

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than three-fourths of the directors are independent of the fund's advisor;
that is, they have never been employed by and have no financial interest in the
advisor or any of its affiliated companies (other than as shareholders of
American Century funds).

THE INVESTMENT ADVISOR

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

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

For the services it provides to the fund, the advisor receives a unified
management fee based on a percentage of the daily net assets of each class of
shares of the fund. The amount of the fee is calculated daily and paid monthly
in arrears. Out of that fee, the advisor pays all expenses of managing and
operating the fund except brokerage expenses, taxes, interest, fees and expenses
of the independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the fund's management fee may be paid by the fund's
advisor to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of the
advisor.

The rate of the fee is determined by applying a formula that takes into account
all of the advisor's assets under management in the fund's investment strategy
(strategy assets). Strategy assets include the assets of the fund and the NT
Growth fund as well as certain assets of other clients of the advisor outside
the American Century fund family (such as subadvised funds and separate
accounts) that use very similar investment teams and strategies. The use of
strategy assets, rather than fund assets, in calculating the fund's fee rate
could allow the fund to realize scheduled cost savings more quickly. However, it
is possible that the fund's strategy assets will not include assets of other
client accounts or that any such assets may not be sufficient to result in a
lower fee rate.

MANAGEMENT FEES PAID
BY THE FUND TO THE ADVISOR
AS A PERCENTAGE OF AVERAGE
NET ASSETS FOR THE FISCAL YEAR  INVESTOR   INSTITUTIONAL   C       R       ADVISOR
ENDED OCTOBER 31, 2006          CLASS      CLASS           CLASS   CLASS   CLASS
- ----------------------------------------------------------------------------------
Growth                          1.00%      0.80%           1.00%   1.00%   0.75%
- ----------------------------------------------------------------------------------

A discussion regarding the basis for the Board of Directors' approval of the
fund's investment advisory contract with the advisor is available in the fund's
report to shareholders dated October 31, 2006.



- ------
9


THE FUND MANAGEMENT TEAM

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

The portfolio managers on the investment team who are jointly and primarily
responsible for the day-to-day management of the fund are identified below.

GREGORY J. WOODHAMS

Mr. Woodhams, Vice President and Senior Portfolio Manager, has been a member of
the team that manages the fund since he joined American Century in September
1997. He has a bachelor's degree in economics from Rice University and an M.A.
in economics from the University of Wisconsin. He is a CFA charterholder.

E. A. PRESCOTT LEGARD

Mr. LeGard, Vice President and Portfolio Manager, has been a member of the team
that manages the fund since March 1999. He has a bachelor's degree in economics
from DePauw University. He is a CFA charterholder.

The statement of additional information provides additional information about
the other accounts managed by the portfolio managers, if any, the structure of
their compensation, and their ownership of fund securities.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the statement of additional
information and the investment objectives of the fund may not be changed without
shareholder approval. The Board of Directors and/or the advisor may change any
other policies and investment strategies.


- ------
10


INVESTING DIRECTLY WITH AMERICAN CENTURY

SERVICES AUTOMATICALLY AVAILABLE TO YOU

Most accounts automatically will have access to the services listed under WAYS
TO MANAGE YOUR ACCOUNT when the account is opened. If you do not want these
services, see CONDUCTING BUSINESS IN WRITING. If you have questions about the
services that apply to your account type, please call us.

CONDUCTING BUSINESS IN WRITING

If you prefer to conduct business in writing only, you can indicate this on the
account application. If you choose this option, you must provide written
instructions to invest, exchange and redeem. All account owners must sign
transaction instructions (with signatures guaranteed for redemptions in excess
of $100,000). By choosing this option, you are not eligible to enroll for
exclusive online account management to waive the account maintenance fee. See
ACCOUNT MAINTENANCE FEE in this section. If you want to add online and telephone
services later, you can complete an Investor Service Options form.

ACCOUNT MAINTENANCE FEE

If you hold Investor Class shares of any American Century fund, or Institutional
Class shares of the American Century Diversified Bond fund, in an American
Century account (i.e., not a financial intermediary or retirement plan account),
we may charge you a $12.50 semiannual account maintenance fee if the value of
those shares is less than $10,000. We will determine the amount of your total
eligible investments twice per year, generally the last Friday in October and
April. If the value of those investments is less than $10,000 at that time, we
will automatically redeem shares in one of your accounts to pay the $12.50 fee.
Please note that you may incur tax liability as a result of the redemption. In
determining your total eligible investment amount, we will include your
investments in all PERSONAL ACCOUNTS (including American Century Brokerage
accounts) registered under your Social Security number. We will not charge the
fee as long as you choose to manage your accounts exclusively online. You may
enroll for exclusive online account management on our Web site. To find out more
about exclusive online account management, visit americancentury.com/info/demo.

    [GRAPHIC OF TRIANGLE]

    PERSONAL ACCOUNTS INCLUDE INDIVIDUAL ACCOUNTS, JOINT ACCOUNTS, UGMA/UTMA
    ACCOUNTS, PERSONAL TRUSTS, COVERDELL EDUCATION SAVINGS ACCOUNTS, IRAS (INCLUDING
    TRADITIONAL, ROTH, ROLLOVER, SEP-, SARSEP- AND SIMPLE-IRAS), AND CERTAIN OTHER
    RETIREMENT ACCOUNTS. IF YOU HAVE ONLY BUSINESS, BUSINESS RETIREMENT,
    EMPLOYER-SPONSORED OR AMERICAN CENTURY BROKERAGE ACCOUNTS, YOU ARE CURRENTLY NOT
    SUBJECT TO THIS FEE, BUT YOU MAY BE SUBJECT TO OTHER FEES.

WIRE PURCHASES

CURRENT INVESTORS: If you would like to make a wire purchase into an existing
account, your bank will need the following information. (To invest in a new
fund, please call us first to set up the new account.)

*  American Century's bank information: Commerce Bank N.A., Routing No.
   101000019, Account No. 2804918

*  Your American Century account number and fund name

*  Your name

*  The contribution year (for IRAs only)

NEW INVESTORS: To make a wire purchase into a new account, please complete an
application prior to wiring money.


- ------
11


WAYS TO MANAGE YOUR ACCOUNT

ONLINE
- --------------------------------------------------------------------------------
americancentury.com

OPEN AN ACCOUNT: If you are a current or new investor, you can open an account
by completing and submitting our online application. Current investors also can
open an account by exchanging shares from another American Century account.

EXCHANGE SHARES: Exchange shares from another American Century account.

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

SELL SHARES*: Redeem shares and proceeds will be electronically transferred to
your authorized bank account.

* ONLINE REDEMPTIONS UP TO $25,000 PER DAY.

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

* 4500 Main Street, Kansas City, Missouri - 8 a.m. to 5 p.m., Monday - Friday

* 4917 Town Center Drive, Leawood, Kansas - 8 a.m. to 5 p.m., Monday - Friday,
  8 a.m. to noon, Saturday

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

BY TELEPHONE
- --------------------------------------------------------------------------------
INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021

INSTITUTIONAL SERVICE REPRESENTATIVE: 1-800-345-3533

BUSINESS, NOT-FOR-PROFIT AND EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533

AUTOMATED INFORMATION LINE: 1-800-345-8765

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

EXCHANGE SHARES: Call or use our Automated Information Line if you have
authorized us to accept telephone instructions. The Automated Information Line
is available only to Investor Class shareholders.

MAKE ADDITIONAL INVESTMENTS: Call or use our Automated Information Line if you
have authorized us to invest from your bank account. The Automated Information
Line is available only to Investor Class shareholders.

SELL SHARES: Call a Service Representative.

BY MAIL OR FAX
- --------------------------------------------------------------------------------
P.O. Box 419200, Kansas City, MO 64141-6200 - Fax: 816-340-7962

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

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

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

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

AUTOMATICALLY
- --------------------------------------------------------------------------------
OPEN AN ACCOUNT: Not available.

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

MAKE ADDITIONAL INVESTMENTS: With the automatic investment service, you can
purchase shares on a regular basis. You must invest at least $50 per month per
account.

SELL SHARES: You may sell shares automatically by establishing Check-A-Month or
Automatic Redemption plans.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
12


INVESTING THROUGH A FINANCIAL INTERMEDIARY

The fund's C, R and Advisor Classes are intended for purchase by participants in
employer-sponsored retirement plans. Additionally, the fund's C and Advisor
Classes are intended for persons purchasing shares through FINANCIAL
INTERMEDIARIES that provide various administrative and distribution services.
For more information regarding employer-sponsored retirement plan types, please
see BUYING AND SELLING FUND SHARES in the statement of additional information.


    [GRAPHIC OF TRIANGLE]

    FINANCIAL INTERMEDIARIES INCLUDE BANKS, BROKER-DEALERS, INSURANCE
    COMPANIES, PLAN SPONSORS AND FINANCIAL PROFESSIONALS.

Although each class of shares represents an interest in the same fund, each has
a different cost structure, as described below. Which class is right for you
depends on many factors, including how long you plan to hold the shares, how
much you plan to invest, the fee structure of each class, and how you wish to
compensate your financial professional for the services provided to you. Your
financial professional can help you choose the option that is most appropriate.

The following chart provides a summary description of these classes.

C CLASS                                    R CLASS AND ADVISOR CLASS
- --------------------------------------------------------------------------------
No initial sales charge                    No initial sales charge
- --------------------------------------------------------------------------------
Contingent deferred sales charge           No contingent deferred
on redemptions within 12 months            sales charge
- --------------------------------------------------------------------------------
12b-1 fee of 1.00%                         12b-1 fee of 0.50%(1)
- --------------------------------------------------------------------------------
No conversion feature                      No conversion feature
- --------------------------------------------------------------------------------
Aggregate purchases limited to amounts     Generally offered through
less than $1,000,000; generally more       employer-sponsored retirement plans
appropriate for short-term investors       and other fee-based arrangements(2)
- --------------------------------------------------------------------------------

(1)  WHILE THE R CLASS AND ADVISOR CLASS HAVE THE SAME 12B-1 FEE, THEIR
     TOTAL ANNUAL FUND OPERATING EXPENSES WILL BE DIFFERENT BECAUSE OF THE
     ADVISOR CLASS'S LOWER UNIFIED MANAGEMENT FEE. SEE PAGE 5 FOR MORE DETAILS.

(2)  IRA ACCOUNTS IN R CLASS SHARES ESTABLISHED THROUGH FINANCIAL
     INTERMEDIARIES PRIOR TO AUGUST 1, 2006, MAY MAKE ADDITIONAL PURCHASES.

CALCULATION OF CONTINGENT DEFERRED SALES CHARGE (CDSC)

C Class shares are sold at their net asset value without an initial sales
charge. For sales of C Class shares, the amount paid to your financial
professional is 1.00% of the amount invested. If you redeem your shares within
12 months of purchase, you will pay a CDSC of 1.00% of the original purchase
price or the current market value at redemption, whichever is less. The purpose
of the CDSC is to permit the fund's distributor to recoup all or a portion of
the up-front payment made to your financial professional.

The CDSC will not be charged on shares acquired through reinvestment of
dividends or distributions or increases in the net asset value of shares.

To minimize the amount of the CDSC you may pay when you redeem shares, the fund
will first redeem shares acquired through reinvested dividends and capital gain
distributions, which are not subject to a CDSC. Shares that have been in your
account long enough that they are not subject to a CDSC are redeemed next. For
any remaining redemption amount, shares will be sold in the order they were
purchased (earliest to latest).

The information regarding C Class sales charges provided herein is included free
of charge and in a clear and prominent format at americancentury.com in the
INVESTORS USING ADVISORS and INVESTMENT PROFESSIONALS portions of the Web site.
From the description of C Class shares, a hyperlink will take you directly to
this disclosure.


- ------
13


CDSC WAIVERS

Any applicable CDSC may be waived in the following cases:

*  redemptions through systematic withdrawal plans not exceeding annually:

   *  12% of the lesser of the original purchase cost or current market value
      for C Class shares

*  distributions from IRAs due to attainment of age 59-1/2 for C Class shares

*  required minimum distributions from retirement accounts upon reaching age
   70-1/2

*  tax-free returns of excess contributions to IRAs

*  redemptions due to death or post-purchase disability

*  exchanges, unless the shares acquired by exchange are redeemed within the
   original CDSC period

*  if no broker was compensated for the sale

EXCHANGES BETWEEN FUNDS (C CLASS)

You may exchange C Class shares of a fund for C Class shares of any other
American Century fund. You may not exchange from the C Class to any other class.
We will not charge a CDSC on the shares you exchange, regardless of the length
of time you have owned them. When you do redeem shares that have been exchanged,
the CDSC will be based on the date you purchased the original shares.

BUYING AND SELLING SHARES

Your ability to purchase, exchange, redeem and transfer shares will be affected
by the policies of the financial intermediary through which you do business.
Some policy differences may include

*  minimum investment requirements

*  exchange policies

*  fund choices

*  cutoff time for investments

*  trading restrictions

In addition, your financial intermediary may charge a transaction fee for the
purchase or sale of fund shares. Those charges are retained by the financial
intermediary and are not shared with American Century or the fund. Please
contact your financial intermediary or plan sponsor for a complete description
of its policies. Copies of the fund's annual report, semiannual report and
statement of additional information are available from your financial
intermediary or plan sponsor.

The fund has authorized certain financial intermediaries to accept orders on the
fund's behalf. American Century has selling agreements with these financial
intermediaries requiring them to track the time investment orders are received
and to comply with procedures relating to the transmission of orders. Orders
must be received by the financial intermediary on the fund's behalf before the
time the net asset value is determined in order to receive that day's share
price. If those orders are transmitted to American Century and paid for in
accordance with the selling agreement, they will be priced at the net asset
value next determined after your request is received in the form required by the
financial intermediary.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
14


ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT

MINIMUM INITIAL INVESTMENT AMOUNTS (OTHER THAN INSTITUTIONAL CLASS)

Unless otherwise specified below, the minimum initial investment amount to open
an account is $2,500. Financial intermediaries may open an account with $250,
but may require their clients to meet different investment minimums. See
INVESTING THROUGH A FINANCIAL INTERMEDIARY for more information.

- --------------------------------------------------------------------------------
Broker-dealer sponsored wrap program                                  No minimum
accounts and/or fee-based accounts
- --------------------------------------------------------------------------------
Coverdell Education Savings Account (CESA)                            $2,000(1)
- --------------------------------------------------------------------------------
Employer-sponsored retirement plans                                   No minimum
- --------------------------------------------------------------------------------

(1)  THE MINIMUM INITIAL INVESTMENT FOR FINANCIAL INTERMEDIARIES IS $250.
     FINANCIAL INTERMEDIARIES MAY HAVE DIFFERENT MINIMUMS FOR THEIR CLIENTS.

SUBSEQUENT PURCHASES

There is a $50 minimum for subsequent purchases. See WAYS TO MANAGE YOUR ACCOUNT
for more information about making additional investments directly with American
Century. However, there is no subsequent purchase minimum for financial
intermediaries or employer-sponsored retirement plans, but financial
intermediaries may require their clients to meet different subsequent purchase
requirements.

ELIGIBILITY FOR INSTITUTIONAL CLASS SHARES

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

MINIMUM INITIAL INVESTMENT AMOUNTS (INSTITUTIONAL CLASS)

The minimum initial investment amount is $5 million ($3 million for endowments
and foundations) per fund. If you invest with us through a financial
intermediary, this requirement may be met if your financial intermediary
aggregates your investments with those of other clients into a single group, or
omnibus, account that meets the minimum. The minimum investment requirement may
be waived if you, or your financial intermediary if you invest through an
omnibus account, have an aggregate investment in our family of funds of $10
million or more ($5 million for endowments and foundations). In addition,
financial intermediaries or plan recordkeepers may require retirement plans to
meet certain other conditions, such as plan size or a minimum level of assets
per participant, in order to be eligible to purchase Institutional Class shares.

REDEMPTIONS

If you sell your C Class shares within 12 months of their purchase, you will
pay a sales charge.

Your redemption proceeds will be calculated using the NET ASSET VALUE (NAV) next
determined after we receive your transaction request in good order.


    [GRAPHIC OF TRIANGLE]

    A FUND'S NET ASSET VALUE, OR NAV, IS THE PRICE OF THE FUND'S SHARES.


- ------
15




However, we reserve the right to delay delivery of redemption proceeds up to
seven days. For example, each time you make an investment with American Century,
there is a seven-day holding period before we will release redemption proceeds
from those shares, unless you provide us with satisfactory proof that your
purchase funds have cleared. Investments by wire generally require only a
one-day holding period. If you change your address, we may require that any
redemption request made within 15 days be submitted in writing and be signed by
all authorized signers with their signatures guaranteed. If you change your bank
information, we may impose a 15-day holding period before we will transfer or
wire redemption proceeds to your bank. Please remember, if you request
redemptions by wire, $10 will be deducted from the amount redeemed. Your bank
also may charge a fee.

In addition, we reserve the right to honor certain redemptions with securities,
rather than cash, as described in the next section.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the value of a fund's assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. The portfolio
managers would select these securities from the fund's portfolio.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, you may have to pay
brokerage or other transaction costs to convert the securities to cash.

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

REDEMPTION OF SHARES IN ACCOUNTS BELOW MINIMUM

If your account balance falls below the minimum initial investment amount for
any reason other than as a result of market fluctuation, American Century
reserves the right to redeem the shares in the account and send the proceeds to
your address of record. Prior to doing so, we will notify you and give you 90
days to meet the minimum. C Class shares redeemed in this manner may be subject
to a sales charge if held less than the applicable period. Please note that you
may incur tax liability as a result of the redemption. For Institutional Class
shares, we reserve the right to convert your shares to Investor Class shares of
the same fund. The Investor Class shares have a unified management fee that is
0.20% higher than the Institutional Class.

SIGNATURE GUARANTEES

A signature guarantee - which is different from a notarized signature - is a
warranty that the signature presented is genuine. We may require a signature
guarantee for the following transactions.

*  You have chosen to conduct business in writing only and would like to
   redeem over $100,000.

*  Your redemption or distribution check, Check-A-Month or automatic
   redemption is made payable to someone other than the account owners.

*  Your redemption proceeds or distribution amount is sent by EFT (ACH or
   wire) to a destination other than your personal bank account.


- ------
16


*  You are transferring ownership of an account over $100,000.

*  You change your address and request a redemption over $100,000 within 15
   days.

*  You change your bank information and request a redemption within 15 days.

We reserve the right to require a signature guarantee for other transactions, at
our discretion.

MODIFYING OR CANCELING AN INVESTMENT

Investment instructions are irrevocable. That means that once you have mailed or
otherwise transmitted your investment instruction, you may not modify or cancel
it. Each fund reserves the right to suspend the offering of shares for a period
of time and to reject any specific investment (including a purchase by
exchange). Additionally, we may refuse a purchase if, in our judgment, it is of
a size that would disrupt the management of a fund.

ABUSIVE TRADING PRACTICES

Short-term trading and other so-called market timing practices are not defined
or explicitly prohibited by any federal or state law. However, short-term
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of short-term
trading activity is significant relative to a fund's net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund's performance could be negatively impacted by the increased trading costs
created by short-term trading if the additional trading costs are significant.

Because of the potentially harmful effects of abusive trading practices, the
fund's Board of Directors has approved American Century's abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
imposing redemption fees on certain funds, and using fair value pricing when
current market prices are not readily available. Although these efforts are
designed to discourage abusive trading practices, they cannot eliminate the
possibility that such activity will occur. American Century seeks to exercise
its judgment in implementing these tools to the best of its ability in a manner
that it believes is consistent with shareholder interests.

American Century uses a variety of techniques to monitor for and detect abusive
trading practices. These techniques may vary depending on the type of fund, the
class of shares or whether the shares are held directly or indirectly with
American Century. They may change from time to time as determined by American
Century in its sole discretion. To minimize harm to the funds and their
shareholders, we reserve the right to reject any purchase order (including
exchanges) from any shareholder we believe has a history of abusive trading or
whose trading, in our judgment, has been or may be disruptive to the funds. In
making this judgment, we may consider trading done in multiple accounts under
common ownership or control.

Currently, for shares held directly with American Century, we may deem the sale
of all or a substantial portion of a shareholder's purchase of fund shares to be
abusive if the sale is made

*  within seven days of the purchase, or

*  within 30 days of the purchase, if it happens more than once per year.


- ------
17


To the extent practicable, we try to use the same approach for defining abusive
trading for shares held through financial intermediaries. American Century
reserves the right, in its sole discretion, to identify other trading practices
as abusive and to modify its monitoring and other practices as necessary to deal
with novel or unique abusive trading practices.

In addition, American Century reserves the right to accept purchases and
exchanges in excess of the trading restrictions discussed above if it believes
that such transactions would not be inconsistent with the best interests of fund
shareholders or this policy.

American Century's policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American Century handles, there can be no assurance that American
Century's efforts will identify all trades or trading practices that may be
considered abusive. In addition, American Century's ability to monitor trades
that are placed by individual shareholders within group, or omnibus, accounts
maintained by financial intermediaries is severely limited because American
Century generally does not have access to the underlying shareholder account
information. However, American Century monitors aggregate trades placed in
omnibus accounts and seeks to work with financial intermediaries to discourage
shareholders from engaging in abusive trading practices and to impose
restrictions on excessive trades. There may be limitations on the ability of
financial intermediaries to impose restrictions on the trading practices of
their clients. As a result, American Century's ability to monitor and discourage
abusive trading practices in omnibus accounts may be limited.

YOUR RESPONSIBILITY FOR UNAUTHORIZED TRANSACTIONS

American Century and its affiliated companies use procedures reasonably designed
to confirm that telephone, electronic and other instructions are genuine. These
procedures include recording telephone calls, requesting personalized security
codes or other information, and sending confirmation of transactions. If we
follow these procedures, we are not responsible for any losses that may occur
due to unauthorized instructions. For transactions conducted over the Internet,
we recommend the use of a secure Internet browser. In addition, you should
verify the accuracy of your confirmation statements immediately after you
receive them.

A NOTE ABOUT MAILINGS TO SHAREHOLDERS

To reduce the amount of mail you receive from us, we may deliver a single copy
of certain investor documents (such as shareholder reports and prospectuses) to
investors who share an address, even if accounts are registered under different
names. If you prefer to receive multiple copies of these documents individually
addressed, please call us or your financial professional. For American Century
Brokerage accounts, please call 1-888-345-2071.

RIGHT TO CHANGE POLICIES

We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups. In addition, from time to time we may
waive a policy on a case-by-case basis, as the advisor deems appropriate.


- ------
18


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century will price the fund shares you purchase, exchange or redeem at
the net asset value (NAV) next determined after your order is received and
accepted by the fund's transfer agent, or other financial intermediary with the
authority to accept orders on the fund's behalf. We determine the NAV of the
fund as of the close of regular trading (usually 4 p.m. Eastern time) on the New
York Stock Exchange (NYSE) on each day the NYSE is open. On days when the NYSE
is closed (including certain U.S. national holidays), we do not calculate the
NAV. The fund's NAV is the current value of the fund's assets, minus any
liabilities, divided by the number of shares outstanding.

The fund values portfolio securities for which market quotations are readily
available at their market price. As a general rule, equity securities listed on
a U.S. exchange are valued at the last current reported sale price as of the
time of valuation. Securities listed on the NASDAQ National Market System
(Nasdaq) are valued at the Nasdaq Official Closing Price (NOCP), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the
time of valuation. The fund may use pricing services to assist in the
determination of market value. Unlisted securities for which market quotations
are readily available are valued at the last quoted sale price or the last
quoted ask price, as applicable, except that debt obligations with 60 days or
less remaining until maturity may be valued at amortized cost. Exchange-traded
options, futures and options on futures are valued at the settlement price as
determined by the appropriate clearing corporation.

If the fund determines that the market price for a portfolio security is not
readily available or that the valuation methods mentioned above do not reflect
the security's fair value, such security is valued at its fair value as
determined in good faith by, or in accordance with procedures adopted by, the
fund's board or its designee (a process referred to as "fair valuing" the
security). Circumstances that may cause the fund to fair value a security
include, but are not limited to:

*  if, after the close of the foreign exchange on which a portfolio security
   is principally traded, but before the close of the NYSE, an event occurs that
   may materially affect the value of the security;

*  a debt security has been declared in default; or

*  trading in a security has been halted during the trading day.

If such circumstances occur, the fund will fair value the security if the fair
valuation would materially impact the fund's NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with procedures adopted by
the fund's board.

The effect of using fair value determinations is that the fund's NAV will be
based, to some degree, on security valuations that the board or its designee
believes are fair rather than being solely determined by the market.

With respect to any portion of the fund's assets that are invested in one or
more open-end management investment companies that are registered with the SEC
(known as registered investment companies, or RICs), the fund's NAV will be
calculated based upon the NAVs of such RICs. These RICs are required by law to
explain the circumstances under which they will use fair value pricing and the
effects of using fair value pricing in their prospectuses.


- ------
19


Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based on the prevailing exchange rates on that day.

Trading of securities in foreign markets may not take place every day the NYSE
is open. Also, trading in some foreign markets and on some electronic trading
networks may take place on weekends or holidays when the fund's NAV is not
calculated. So, the value of the fund's portfolio may be affected on days when
you will not be able to purchase, exchange or redeem fund shares.

DISTRIBUTIONS

Federal tax laws require each fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means the fund should not be subject to state or
federal income tax on amounts distributed. The distributions generally consist
of dividends and interest received by a fund, as well as CAPITAL GAINS realized
by a fund on the sale of its investment securities. The fund generally pays
distributions from net income and capital gains, if any, once a year in
December. The fund may make more frequent distributions, if necessary, to comply
with Internal Revenue Code provisions.


    [GRAPHIC OF TRIANGLE]

    CAPITAL GAINS ARE INCREASES IN THE VALUES OF CAPITAL ASSETS, SUCH AS STOCK,
    FROM THE TIME THE ASSETS ARE PURCHASED.

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

Participants in tax-deferred retirement plans must reinvest all distributions.
For investors investing through taxable accounts, we will reinvest distributions
unless you elect to have dividends and/or capital gains sent to another American
Century account, to your bank electronically, or to your home address or to
another person or address by check.


- ------
20


TAXES

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

Tax-Deferred Accounts

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

Taxable Accounts

If you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund shares.

Taxability of Distributions

Fund distributions may consist of income, such as dividends and interest earned
by a fund from its investments, or capital gains generated by a fund from the
sale of investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as QUALIFIED DIVIDEND INCOME and you meet a
minimum required holding period with respect to your shares of the fund, in
which case distributions of income are taxed as long-term capital gains.


    [GRAPHIC OF TRIANGLE]

    QUALIFIED DIVIDEND INCOME IS A DIVIDEND RECEIVED BY THE FUND FROM THE STOCK
    OF A DOMESTIC OR QUALIFYING FOREIGN CORPORATION, PROVIDED THAT THE FUND HAS HELD
    THE STOCK FOR A REQUIRED HOLDING PERIOD.

For capital gains and for income distributions designated as qualified dividend
income, the following rates apply:

                                        TAX RATE FOR 10%      TAX RATE FOR
TYPE OF DISTRIBUTION                    AND 15% BRACKETS      ALL OTHER BRACKETS
- --------------------------------------------------------------------------------
Short-term capital gains                Ordinary Income       Ordinary Income
- --------------------------------------------------------------------------------
Long-term capital gains (> 1 year)
and Qualified Dividend Income           5%                    15%
- --------------------------------------------------------------------------------

If the fund's distributions exceed its taxable income and capital gains realized
during the tax year, all or a portion of the distributions made by the fund in
that tax year will be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.


- ------
21


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

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

Taxes on Transactions

Your redemptions - including exchanges to other American Century funds - are
subject to capital gains tax. The table above can provide a general guide for
your potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss. However, you should note that loss realized upon the
sale or exchange of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain to you with respect to those shares. If a loss is realized on the
redemption of fund shares, the reinvestment in additional fund shares within 30
days before or after the redemption may be subject to the wash sale rules of the
Internal Revenue Code. This may result in a postponement of the recognition of
such loss for federal income tax purposes.

If you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.

Buying a Dividend

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

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

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


- ------
22


MULTIPLE CLASS INFORMATION

American Century offers five classes of shares of the fund: Investor Class,
Institutional Class, C Class, R Class and Advisor Class.

The classes have different fees, expenses and/or minimum investment
requirements. The difference in the fee structures between the classes is the
result of their separate arrangements for shareholder and distribution services.
It is not the result of any difference in advisory or custodial fees or other
expenses related to the management of the fund's assets, which do not vary by
class. Different fees and expenses will affect performance.

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

Service, Distribution and Administrative Fees

Investment Company Act Rule 12b-1 permits mutual funds that adopt a written plan
to pay certain expenses associated with the distribution of their shares out of
fund assets. The fund's Advisor Class, C Class and R Class shares have a 12b-1
plan. The plans provide for the fund to pay annual fees of 1.00% for C Class and
0.50% for Advisor and R Classes to the distributor for certain ongoing
shareholder and administrative services and for distribution services, including
past distribution services. Under the Advisor Class Plan, the fund's Advisor
Class pays the distributor an annual fee of 0.50% of Advisor Class average net
assets, half for certain shareholder and administrative services and half for
distribution services, including past distribution services. The distributor
pays all or a portion of such fees to the financial intermediaries that make the
classes available. Because these fees are used to pay for services that are not
related to prospective sales of the fund, each class will continue to make
payments under its plan even if it is closed to new investors. Because these
fees are paid out of the fund's assets on an ongoing basis, over time these fees
will increase the cost of your investment and may cost you more than paying
other types of sales charges. For additional information about the plans and
their terms, see MULTIPLE CLASS STRUCTURE in the statement of additional
information.

Certain financial intermediaries perform recordkeeping and administrative
services for their clients that would otherwise be performed by American
Century's transfer agent. In some circumstances, the advisor will pay such
service providers a fee for performing those services. Also, the advisor and the
fund's distributor may make payments for various additional services or other
expenses out of their profits or other available sources. Such payments may be
made for one or more of the following: (1) distribution services, which include
expenses incurred by intermediaries for their sales activities with respect to
the fund, such as preparing, printing and distributing sales literature and
advertising materials and compensating registered representatives or other
employees of such financial intermediary for their sales activities; (2)
shareholder services, such as providing individual and custom investment
advisory services to clients of the financial intermediary; and (3) marketing
and promotional services, including business planning assistance, educating
personnel about the fund, and sponsorship of sales meetings, which may include
covering costs of providing speakers, meals and other entertainment. The
distributor may sponsor seminars and conferences designed to educate
intermediaries about the fund and may cover the expenses associated with
attendance at such meetings, including travel costs. These payments and
activities are intended to provide an incentive to intermediaries to sell the
fund by ensuring that they are educated about the fund, and to help such
intermediaries defray costs associated with offering the fund. The amount of any
payments described by this paragraph is determined by the advisor or the
distributor, and all such amounts are paid out of the available assets of the
advisor and distributor, and not by you or the fund. As a result, the total
expense ratio of the fund will not be affected by any such payments.


- ------
23


FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The tables on the next few pages itemize what contributed to the changes in
share price during the most recently ended fiscal year. They also show the
changes in share price for this period in comparison to changes over the last
five fiscal years (or a shorter period if the share class is not five years
old).

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

*  share price at the beginning of the period

*  investment income and capital gains or losses

*  distributions of income and capital gains paid to investors

*  share price at the end of the period

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

*  TOTAL RETURN - the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO - the operating expenses of the fund as a percentage of
   average net assets

*  NET INCOME RATIO - the net investment income of the fund as a percentage
   of average net assets

*  PORTFOLIO TURNOVER - the percentage of the fund's investment portfolio
   that is replaced during the period

The Financial Highlights that follow have been audited by Deloitte & Touche LLP.
The fund's Report of Independent Registered Public Accounting Firm and the
financial statements are included in the fund's annual report, which is
available upon request.



- ------
24


GROWTH FUND
Investor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31
- -----------------------------------------------------------------------------------------
                                             2006    2005      2004      2003    2002
- -----------------------------------------------------------------------------------------
PER-SHARE DATA
- -----------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period         $19.80  $18.43    $17.26    $14.80  $17.85
- -----------------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(1)           0.02    0.08      (0.01)    0.01    (0.01)
- ----------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                    2.26    1.30      1.18      2.45    (3.04)
- -----------------------------------------------------------------------------------------
   Total From Investment Operations          2.28    1.38      1.17      2.46    (3.05)
- -----------------------------------------------------------------------------------------
Distributions
- ----------------------------------------
   From Net Investment Income                (0.09)  (0.01)     -         -       -
- -----------------------------------------------------------------------------------------
Net Asset Value, End of Period               $21.99  $19.80    $18.43    $17.26  $14.80
=========================================================================================
   TOTAL RETURN(2)                           11.51%  7.47%     6.78%     16.62%  (17.09)%

RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                        1.00%   1.00%     1.00%     1.00%   1.00%
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                 0.09%   0.38%     (0.07)%   0.05%   (0.04)%
- ----------------------------------------
Portfolio Turnover Rate                      127%    77%       131%      159%    135%
- ----------------------------------------
Net Assets, End of Period
(in millions)                                $3,946  $4,008    $4,176    $4,350  $3,951
- -----------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES
     WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD
     MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET
     ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC
     GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE
     CLASS AND ANOTHER.


- ------
25


GROWTH FUND
Institutional Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31
- --------------------------------------------------------------------------------------------
                                           2006       2005      2004      2003      2002
- --------------------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period       $19.98     $18.59    $17.38    $14.87    $17.90
- --------------------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(1)         0.06       0.11      0.02      0.04      0.02
- ----------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                  2.27       1.33      1.19      2.47      (3.05)
- --------------------------------------------------------------------------------------------
   Total From Investment Operations        2.33       1.44      1.21      2.51      (3.03)
- --------------------------------------------------------------------------------------------
Distributions
- ----------------------------------------
   From Net Investment Income              (0.12)     (0.05)     -        -         -
- --------------------------------------------------------------------------------------------
Net Asset Value, End of Period             $22.19     $19.98    $18.59    $17.38    $14.87
============================================================================================
   TOTAL RETURN(2)                         11.70%     7.72%     6.96%     16.88%    (16.93)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                      0.80%      0.80%     0.80%     0.80%     0.80%
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets               0.29%      0.58%     0.13%     0.25%     0.16%
- ----------------------------------------
Portfolio Turnover Rate                    127%       77%       131%      159%      135%
- ----------------------------------------
Net Assets, End of Period
(in thousands)                             $759,816   $689,983  $685,090  $618,569  $455,807
- --------------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES
     WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD
     MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET
     ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC
     GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE
     CLASS AND ANOTHER.


- ------
26


GROWTH FUND
C Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)
- ---------------------------------------------------------------------------------------------
                                            2006      2005     2004      2003      2002(1)
- ---------------------------------------------------------------------------------------------
PER-SHARE DATA
- ---------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period        $19.06    $17.91   $16.95    $14.66    $19.38
- ---------------------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(2)          (0.18)    (0.12)   (0.19)    (0.15)    (0.16)
- ----------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                   2.16      1.27     1.15      2.44      (4.56)
- ---------------------------------------------------------------------------------------------
   Total From Investment Operations         1.98      1.15     0.96      2.29      (4.72)
- ---------------------------------------------------------------------------------------------
Net Asset Value, End of Period              $21.04    $19.06   $17.91    $16.95    $14.66
=============================================================================================
   TOTAL RETURN(3)                          10.39%    6.42%    5.66%     15.62%    (24.36)%

RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                       2.00%     2.00%    2.00%     2.00%     2.00%(4)
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                (0.91)%   (0.62)%  (1.07)%   (0.95)%   (0.99)%(4)
- ----------------------------------------
Portfolio Turnover Rate                     127%      77%      131%      159%      135%(5)
- ----------------------------------------
Net Assets, End of Period
(in thousands)                              $947      $779     $632      $623      $482
- ---------------------------------------------------------------------------------------------

(1)  NOVEMBER 28, 2001 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2002.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL
     RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE
     INDICATED WAS CALCULATED FOR THE YEAR ENDED OCTOBER 31, 2002.


- ------
27


GROWTH FUND
R Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)
- --------------------------------------------------------------------------------
                                       2006      2005      2004      2003(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period   $19.59    $18.32    $17.25    $16.56
- --------------------------------------------------------------------------------
Income From Investment Operations
- -------------------------------------
   Net Investment Income (Loss)(2)     (0.11)    (0.07)    (0.13)    (0.02)
- -------------------------------------
   Net Realized and
   Unrealized Gain (Loss)              2.26      1.34      1.20      0.71
- --------------------------------------------------------------------------------
   Total From Investment Operations    2.15      1.27      1.07      0.69
- --------------------------------------------------------------------------------
Net Asset Value, End of Period         $21.74    $19.59    $18.32    $17.25
===============================================================================
   TOTAL RETURN(3)                     10.97%    6.93%     6.20%     4.17%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                  1.50%     1.50%     1.50%     1.50%(4)
- -------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets           (0.41)%   (0.12)%   (0.57)%   (0.58)%(4)
- -------------------------------------
Portfolio Turnover Rate                127%      77%       131%      159%(5)
- -------------------------------------
Net Assets, End of Period
(in thousands)                         $298      $49       $12       $3
- --------------------------------------------------------------------------------

(1)  AUGUST 29, 2003 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2003.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY
     REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING
     THE NET ASSET VALUE TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE
     CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE
     CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET
     VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND
     DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE
     INDICATED WAS CALCULATED FOR THE YEAR ENDED OCTOBER 31, 2003.


- ------
28


GROWTH FUND
Advisor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31
- -------------------------------------------------------------------------------------------
                                            2006     2005      2004      2003      2002
- -------------------------------------------------------------------------------------------
PER-SHARE DATA
- -------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period        $19.53   $18.22    $17.11    $14.70    $17.78
- -------------------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(1)          (0.03)   0.02      (0.06)    (0.03)    (0.05)
- ----------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                   2.22     1.29      1.17      2.44      (3.03)
- -------------------------------------------------------------------------------------------
   Total From Investment Operations         2.19     1.31      1.11      2.41      (3.08)
- -------------------------------------------------------------------------------------------
Distributions
- ----------------------------------------
   From Net Investment Income               (0.04)   -         -         -         -
- -------------------------------------------------------------------------------------------
Net Asset Value, End of Period              $21.68   $19.53    $18.22    $17.11    $14.70
===========================================================================================
   TOTAL RETURN(2)                          11.23%   7.19%     6.49%     16.39%    (17.32)%

RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                       1.25%    1.25%     1.25%     1.25%     1.25%
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                (0.16)%  0.13%     (0.32)%   (0.20)%   (0.29)%
- ----------------------------------------
Portfolio Turnover Rate                     127%     77%       131%      159%      135%
- ----------------------------------------
Net Assets, End of Period
(in thousands)                              $85,953  $86,303   $76,962   $55,010   $32,530
- -------------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES
     WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD
     MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET
     ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC
     GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE
     CLASS AND ANOTHER.


- ------
29


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

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

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

IN PERSON             SEC Public Reference Room, Washington, D.C.
                      Call 202-942-8090 for location and hours.

ON THE INTERNET       * EDGAR database at sec.gov
                      * By email request at publicinfo@sec.gov

BY MAIL               SEC Public Reference Section
                      Washington, D.C. 20549-0102

This prospectus shall not constitute an offer to sell securities of the fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or qualified for sale, unless such registration or qualification
is not required, or under any circumstances in which such offer or solicitation
would be unlawful.

                                 FUND                                NEWSPAPER
FUND REFERENCE                   CODE              TICKER            LISTING
- --------------------------------------------------------------------------------
Growth Fund
  Investor Class                 020               TWCGX             Grwth
- --------------------------------------------------------------------------------
  Institutional Class            320               TWGIX             Grwth
- --------------------------------------------------------------------------------
  C Class                        420               TWGCX             Grwth
- --------------------------------------------------------------------------------
  R Class                        120               AGWRX             Grwth
- --------------------------------------------------------------------------------
  Advisor Class                  720               TCRAX             Grwth
- --------------------------------------------------------------------------------

Investment Company Act File No. 811-0816

AMERICAN CENTURY INVESTMENTS
americancentury.com

                                   Banks and Trust Companies, Broker-Dealers,
Self-Directed Retail Investors     Financial Professionals, Insurance Companies
P.O. Box 419200                    P.O. Box 419786
Kansas City, Missouri 64141-6200   Kansas City, Missouri 64141-6786
1-800-345-2021 or 816-531-5575     1-800-345-6488

0703
SH-PRS-52524













AMERICAN CENTURY INVESTMENTS

Prospectus

March 1, 2007

Focused Growth Fund


THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

American Century Investment Services, Inc., Distributor

[american century investments logo and text logo]




Table of Contents

AN OVERVIEW OF THE FUND . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

FUND PERFORMANCE HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

FEES AND EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

OBJECTIVES, STRATEGIES AND RISKS . . . . . . . . . . . . . . . . . . . . . . . 6

MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

INVESTING DIRECTLY WITH AMERICAN CENTURY . . . . . . . . . . . . . . . . . . .10
INVESTING THROUGH A FINANCIAL INTERMEDIARY . . . . . . . . . . . . . . . . . .12

ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT . . . . . . . . . . . . . . . . 14

SHARE PRICE AND DISTRIBUTIONS . . . . . . . . . . . . . . . . . . . . . . . . 18

TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22


        [graphic of triangle]

        THIS SYMBOL IS USED THROUGHOUT THE BOOK TO HIGHLIGHT DEFINITIONS OF KEY
        INVESTMENT TERMS AND TO PROVIDE OTHER HELPFUL INFORMATION.


American Century Investment Services, Inc., Distributor
©2007 American Century Proprietary Holdings, Inc. All rights reserved.
The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.





AN OVERVIEW OF THE FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

The portfolio managers look for stocks of companies they believe will increase
in value over time, using an investment strategy developed by American Century.
In implementing this strategy, the portfolio managers make their investment
decisions based primarily on their analysis of individual companies, rather than
on broad economic forecasts. Management of the fund is based on the belief that,
over the long term, stock price movements follow growth in earnings, revenues
and/or cash flow.

The portfolio managers use a variety of analytical research tools and techniques
to identify the stocks of larger-sized companies that meet their investment
criteria. Under normal market conditions, the fund's portfolio will primarily
consist of securities of companies whose earnings or revenues are not only
growing, but growing at an accelerating pace. Focused Growth normally limits its
investments to a core group of approximately 25-45 common stocks.

The fund's principal risks include

*  GROWTH STOCKS - Investments in growth stocks may involve special risks and
   their prices may fluctuate more dramatically than the overall stock market.

*  NONDIVERSIFICATION - The fund is classified as NONDIVERSIFIED. This gives
   the portfolio managers the flexibility to hold large positions in a small
   number of securities. If so, a price change in any one of those securities
   may have a greater impact on the fund's share price than would be the case in
   a diversified fund.

        [graphic of triangle]

        A NONDIVERSIFIED FUND MAY INVEST A GREATER PERCENTAGE OF ITS ASSETS IN A
        SMALLER NUMBER OF SECURITIES THAN A DIVERSIFIED FUND.

*  HIGH TURNOVER - The fund's PORTFOLIO TURNOVER may be unusually high. This
   could result in relatively high commission costs, which could hurt the fund's
   performance, and capital gains tax liabilities for the fund's shareholders.

        [graphic of triangle]

        PORTFOLIO TURNOVER IS A MEASURE OF HOW FREQUENTLY A FUND BUYS AND SELLS
        PORTFOLIO SECURITIES.

*  FOREIGN SECURITIES - The fund may invest in foreign securities, which can
   be riskier than investing in U.S. securities.

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

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

*  PRINCIPAL LOSS - At any given time your shares may be worth less than the
   price you paid for them. In other words, it is possible to lose money by
   investing in the fund.

A more detailed description of the fund's investment strategies and risks may be
found under the heading OBJECTIVES, STRATEGIES AND RISKS, which begins on page
6.

        [graphic of triangle]

        AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT, AND IT IS NOT INSURED
        OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY
        OTHER GOVERNMENT AGENCY.


- ------
2



FUND PERFORMANCE HISTORY

ANNUAL TOTAL RETURNS

The following bar chart shows the performance of the fund's Investor Class
shares for each full calendar year in the life of the class. It indicates the
volatility of the fund's historical returns from year to year. Account fees are
not reflected in the chart below. If they had been included, returns would be
lower than those shown.

FOCUSED GROWTH - INVESTOR CLASS

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

                               HIGHEST                         LOWEST
- --------------------------------------------------------------------------------
Focused Growth                 3.88% (3Q 2006)                 -3.05% (2Q 2006)
- --------------------------------------------------------------------------------

Average Annual Total Returns

The following table shows the average annual total returns of the fund's
Investor Class shares calculated three different ways.

Return Before Taxes shows the actual change in the value of fund shares over the
time periods shown, but does not reflect the impact of taxes on fund
distributions or the sale of fund shares. The two after-tax returns take into
account taxes that may be associated with owning fund shares. Return After Taxes
on Distributions is a fund's actual performance, adjusted by the effect of taxes
on distributions made by the fund during the periods shown. Return After Taxes
on Distributions and Sale of Fund Shares is further adjusted to reflect the tax
impact on any change in the value of fund shares as if they had been sold on the
last day of the period.

After-tax returns are calculated using the historical highest federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-tax returns shown are not relevant to investors who hold fund
shares through tax-deferred arrangements such as 401(k) plans or IRAs.



- ------
3



The benchmark is an unmanaged index that has no operating costs and is included
in the table for performance comparison.

INVESTOR CLASS
                                                                      LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006              1 YEAR     CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                        7.17%      8.65%
Return After Taxes on Distributions                        6.57%      8.22%
Return After Taxes on Distributions                        4.93%      7.21%
and Sale of Fund Shares
Blended Index(2)                                          12.40%     10.33%
   (reflects no deduction for fees,
   expenses or taxes)
Russell 1000® Growth Index                                 9.07%      9.21%
   (reflects no deduction for fees,
   expenses or taxes)
S&P 500® Index                                            15.79%     11.43%
   (reflects no deduction for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE INVESTOR CLASS IS FEBRUARY 28, 2005.

(2)  THE BLENDED INDEX IS A COMBINATION OF TWO WIDELY KNOWN INDICES, THE S&P
     500®  INDEX AND THE  RUSSELL  1000®  GROWTH  INDEX,  WHICH ARE EACH
     WEIGHTED AT 50%.

Performance information is designed to help you see how fund returns can vary.
Keep in mind that past performance (before and after taxes) does not predict how
a fund will perform in the future.

For current performance information, please call us or visit
americancentury.com.


- ------
4


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 same class of shares of other American Century funds

*  to redeem your shares (other than a $10 fee to redeem by wire)

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

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
- --------------------------------------------------------------------------------
Investor Class
  Maximum Account Maintenance Fee                                       $25(1)
- --------------------------------------------------------------------------------

(1)  APPLIES ONLY TO INVESTORS WHOSE TOTAL ELIGIBLE INVESTMENTS WITH
     AMERICAN CENTURY ARE LESS THAN $10,000. SEE Account Maintenance Fee UNDER
     Investing Directly with American Century FOR MORE DETAILS.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
                                 DISTRIBUTION                   TOTAL ANNUAL
                   MANAGEMENT    AND SERVICE      OTHER         FUND OPERATING
                   FEE(1)        (12B-1) FEES     EXPENSES(2)   EXPENSES
- --------------------------------------------------------------------------------
Investor Class     1.00%         None             0.00%         1.00%
- --------------------------------------------------------------------------------

(1)  THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR
     ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. FOR MORE
     INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE, SEE The Investment Advisor
     UNDER Management.

(2)  OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
     INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST, WERE
     LESS THAN 0.005% FOR THE MOST RECENT FISCAL YEAR.

EXAMPLE

The examples in the table below are intended to help you compare the costs of
investing in the fund with the costs of investing in other mutual funds. Of
course, your actual costs may be higher or lower. Assuming you . . .

*  invest $10,000 in the fund

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

*  earn a 5% return each year

*  incur the same operating expenses as shown above

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

                       1 YEAR         3 YEARS         5 YEARS         10 YEARS
- --------------------------------------------------------------------------------
Investor Class         $102           $318            $551            $1,219
- --------------------------------------------------------------------------------


- ------
5


OBJECTIVES, STRATEGIES AND RISKS

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?


The portfolio managers look for stocks of larger-sized companies they believe
will increase in value over time, using an investment strategy developed by
American Century. In implementing this strategy, the portfolio managers use a
bottom-up approach to stock selection. This means that the portfolio managers
make their investment decisions based primarily on their analysis of individual
companies, rather than on broad economic forecasts. Management of the fund is
based on the belief that, over the long term, stock price movements follow
growth in earnings, revenues and/or cash flow.

Using American Century's extensive computer database, as well as other primary
analytical research tools, the portfolio managers track financial information
for individual companies to identify and evaluate trends in earnings, revenues
and other business fundamentals. Under normal market conditions, the fund's
portfolio will primarily consist of securities of companies whose earnings and
revenues are not only growing, but growing at an accelerating pace. This
includes companies whose growth rates, although still negative, are less
negative than prior periods, and companies whose growth rates are expected to
accelerate. Other analytical techniques help identify additional signs of
business improvement, such as increasing cash flows, or other indications of the
relative strength of a company's business. These techniques help the portfolio
managers buy or hold the stocks of companies they believe have favorable growth
prospects and sell the stocks of companies whose characteristics no longer meet
their criteria.

The fund is nondiversified and normally limits its investments to a core group
of approximately 25-45 common stocks.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies, including
companies located in emerging markets. Investments in foreign securities present
some unique risks that are more fully described in the fund's statement of
additional information.

The portfolio managers do not attempt to time the market. Instead, under normal
market conditions, they intend to keep the fund essentially fully invested in
stocks regardless of the movement of stock prices generally. When the portfolio
managers believe it is prudent, the fund may invest a portion of its assets in
debt securities, options, preferred stock and equity-equivalent securities, such
as convertible securities, stock futures contracts or stock index futures
contracts. The fund generally limits its purchase of debt securities to
investment-grade obligations. Futures contracts, a type of derivative security,
can help the fund's cash assets remain liquid while performing more like stocks.
The fund has a policy governing futures contracts and similar derivative
securities to help manage the risk of these types of investments. A complete
description of the derivatives policy is included in the statement of additional
information.

In the event of exceptional market or economic conditions, the fund may, as a
temporary defensive measure, invest all or a substantial portion of its assets
in cash, cash-equivalent securities or short-term debt securities. To the extent
the fund assumes a defensive position it will not be pursuing its objective of
long-term capital growth.

A description of the policies and procedures with respect to the disclosure of
the fund's portfolio securities is available in the statement of additional
information.


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6


WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?

Growth stocks are typically priced higher than other stocks, in relation to
earnings and other measures, because investors believe they have more growth
potential. This potential may or may not be realized and growth stock prices
tend to fluctuate more dramatically than the overall stock market.

The fund is classified as nondiversified. This means that the portfolio managers
may invest a greater portion of the fund's assets in a smaller number of
securities than a diversified fund. Accordingly, a price change in any one of
these securities may have a greater impact on Focused Growth's share price than
would be the case if the fund were diversified.

As a nondiversified fund, the fund's turnover rate also may be higher than that
of other funds. This heavy turnover could result in relatively high commission
costs, which could hurt the fund's performance, and capital gains tax
liabilities for the fund's shareholders.

The portfolio managers may buy a large amount of a company's stock quickly, and
often will dispose of it quickly if the company's earnings or revenues decline.
While the portfolio managers believe this strategy provides substantial
appreciation potential over the long term, in the short term it can create a
significant amount of share price volatility. This volatility can be greater
than that of the average stock fund.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies. Foreign
investment involves additional risks, including fluctuations in currency
exchange rates, less stable political and economic structures, reduced
availability of public information, and lack of uniform financial reporting and
regulatory practices similar to those that apply in the United States. These
factors make investing in foreign securities generally riskier than investing in
U.S. stocks. To the extent the fund invests in foreign securities, the overall
risk of the fund could be affected.

Market performance tends to be cyclical, and, in the various cycles, certain
investment styles may fall in and out of favor. If the market is not favoring
the fund's style, the fund's gains may not be as big as, or its losses may be
bigger than, other equity funds using different investment styles.

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 the fund owns will go
up and down depending on the performance of the companies that issued them,
general market and economic conditions, and investor confidence.

At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the fund.


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7


MANAGEMENT

WHO MANAGES THE FUND?

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

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than three-fourths of the directors are independent of the fund's advisor;
that is, they have never been employed by and have no financial interest in the
advisor or any of its affiliated companies (other than as shareholders of
American Century funds).

THE INVESTMENT ADVISOR

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

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

For the services it provides to the fund, the advisor receives a unified
management fee based on a percentage of the daily net assets of each class of
shares of the fund. The amount of the fee is calculated daily and paid monthly
in arrears. Out of that fee, the advisor pays all expenses of managing and
operating the fund except brokerage expenses, taxes, interest, fees and expenses
of the independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the fund's management fee may be paid by the fund's
advisor to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of the
advisor.

MANAGEMENT FEES PAID BY THE FUND
TO THE ADVISOR AS A PERCENTAGE OF
AVERAGE NET ASSETS FOR THE
FISCAL YEAR ENDED OCTOBER 31, 2006                                INVESTOR CLASS
- --------------------------------------------------------------------------------
Focused Growth                                                    1.00%
- --------------------------------------------------------------------------------

A discussion regarding the basis for the Board of Directors' approval of the
fund's investment advisory contract with the advisor is available in the fund's
report to shareholders dated October 31, 2006.



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8


THE FUND MANAGEMENT TEAM

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

The portfolio managers on the investment team who are jointly and primarily
responsible for the day-to-day management of the fund are identified below.

GREGORY J. WOODHAMS

Mr. Woodhams, Vice President and Senior Portfolio Manager, has been a member of
the team that manages the fund since the fund's inception in February 2005. He
joined American Century in September 1997. He has a bachelor's degree in
economics from Rice University and an M.A. in economics from the University of
Wisconsin. He is a CFA charterholder.

JOE REILAND

Joe Reiland, Portfolio Manager, has been a member of the team that manages the
fund since its inception. He joined American Century in September 2000 as an
investment analyst and became a senior investment analyst in February 2004 and a
portfolio manager in February 2005. He has a bachelor's degree in business
administration from Washington University. He is a CFA charterholder.

The statement of additional information provides additional information about
the other accounts managed by the portfolio managers, if any, the structure of
their compensation, and their ownership of fund securities.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the statement of additional
information and the investment objectives of the fund may not be changed without
shareholder approval. The Board of Directors and/or the advisor may change any
other policies and investment strategies.


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9


INVESTING DIRECTLY WITH AMERICAN CENTURY

SERVICES AUTOMATICALLY AVAILABLE TO YOU

Most accounts automatically will have access to the services listed under WAYS
TO MANAGE YOUR ACCOUNT when the account is opened. If you do not want these
services, see CONDUCTING BUSINESS IN WRITING. If you have questions about the
services that apply to your account type, please call us.

CONDUCTING BUSINESS IN WRITING

If you prefer to conduct business in writing only, you can indicate this on the
account application. If you choose this option, you must provide written
instructions to invest, exchange and redeem. All account owners must sign
transaction instructions (with signatures guaranteed for redemptions in excess
of $100,000). By choosing this option, you are not eligible to enroll for
exclusive online account management to waive the account maintenance fee. See
ACCOUNT MAINTENANCE FEE in this section. If you want to add online and telephone
services later, you can complete an Investor Service Options form.

ACCOUNT MAINTENANCE FEE

If you hold Investor Class shares of any American Century fund, or Institutional
Class shares of the American Century Diversified Bond fund, in an American
Century account (i.e., not a financial intermediary or retirement plan account),
we may charge you a $12.50 semiannual account maintenance fee if the value of
those shares is less than $10,000. We will determine the amount of your total
eligible investments twice per year, generally the last Friday in October and
April. If the value of those investments is less than $10,000 at that time, we
will automatically redeem shares in one of your accounts to pay the $12.50 fee.
Please note that you may incur tax liability as a result of the redemption. In
determining your total eligible investment amount, we will include your
investments in all PERSONAL ACCOUNTS (including American Century Brokerage
accounts) registered under your Social Security number. We will not charge the
fee as long as you choose to manage your accounts exclusively online. You may
enroll for exclusive online account management on our Web site. To find out more
about exclusive online account management, visit americancentury.com/info/demo.

        [graphic of triangle]

        PERSONAL ACCOUNTS INCLUDE INDIVIDUAL ACCOUNTS, JOINT ACCOUNTS, UGMA/UTMA
        ACCOUNTS, PERSONAL TRUSTS, COVERDELL EDUCATION SAVINGS ACCOUNTS, IRAS
        (INCLUDING TRADITIONAL, ROTH, ROLLOVER, SEP-, SARSEP- AND SIMPLE-IRAS),
        AND CERTAIN OTHER RETIREMENT ACCOUNTS. IF YOU HAVE ONLY BUSINESS,
        BUSINESS RETIREMENT, EMPLOYER-SPONSORED OR AMERICAN CENTURY BROKERAGE
        ACCOUNTS, YOU ARE CURRENTLY NOT SUBJECT TO THIS FEE, BUT YOU MAY BE
        SUBJECT TO OTHER FEES.

WIRE PURCHASES

CURRENT INVESTORS: If you would like to make a wire purchase into an existing
account, your bank will need the following information. (To invest in a new
fund, please call us first to set up the new account.)

*  American Century's bank information: Commerce Bank N.A., Routing No.
   101000019, Account No. 2804918

*  Your American Century account number and fund name

*  Your name

*  The contribution year (for IRAs only)

NEW INVESTORS: To make a wire purchase into a new account, please complete an
application prior to wiring money.


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10


WAYS TO MANAGE YOUR ACCOUNT

ONLINE

americancentury.com

OPEN AN ACCOUNT: If you are a current or new investor, you can open an account
by completing and submitting our online application. Current investors also can
open an account by exchanging shares from another American Century account.

EXCHANGE SHARES: Exchange shares from another American Century account.

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

SELL SHARES*: Redeem shares and proceeds will be electronically transferred to
your authorized bank account.

* ONLINE REDEMPTIONS UP TO $25,000 PER DAY.

IN PERSON

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

* 4500 Main Street, Kansas City, Missouri - 8 a.m. to 5 p.m., Monday - Friday

* 4917 Town Center Drive, Leawood, Kansas - 8 a.m. to 5 p.m., Monday - Friday, 8
a.m. to noon, Saturday

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

BY TELEPHONE

INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021

BUSINESS, NOT-FOR-PROFIT AND EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533

AUTOMATED INFORMATION LINE: 1-800-345-8765

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

EXCHANGE SHARES: Call or use our Automated Information Line if you have
authorized us to accept telephone instructions. The Automated Information Line
is available only to Investor Class shareholders.

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

SELL SHARES: Call a Service Representative.

BY MAIL OR FAX

P.O. Box 419200, Kansas City, MO 64141-6200 - Fax: 816-340-7962

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

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

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

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

AUTOMATICALLY

OPEN AN ACCOUNT: Not available.

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

MAKE ADDITIONAL INVESTMENTS: With the automatic investment service, you can
purchase shares on a regular basis. You must invest at least $50 per month per
account.

SELL SHARES: You may sell shares automatically by establishing Check-A-Month or
Automatic Redemption plans.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


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11


INVESTING THROUGH A FINANCIAL INTERMEDIARY

If you do business with us through a FINANCIAL INTERMEDIARY or an
employer-sponsored retirement plan, your ability to purchase, exchange, redeem
and transfer shares will be affected by the policies of that entity. For more
information regarding employer-sponsored retirement plan types, please see
BUYING AND SELLING FUND SHARES in the statement of additional information.

Some policy differences may include

*  minimum investment requirements

*  exchange policies

*  fund choices

*  cutoff time for investments

*  trading restrictions

        [graphic of triangle]

        FINANCIAL INTERMEDIARIES INCLUDE BANKS, BROKER-DEALERS, INSURANCE
        COMPANIES, PLAN SPONSORS AND FINANCIAL PROFESSIONALS.

Please contact your financial intermediary or plan sponsor for a complete
description of its policies. Copies of the fund's annual report, semiannual
report and statement of additional information are available from your financial
intermediary or plan sponsor.

Certain financial intermediaries perform recordkeeping and administrative
services for their clients that would otherwise be performed by American
Century's transfer agent. In some circumstances, the advisor will pay such
service providers a fee for performing those services. Also, the advisor and the
fund's distributor may make payments for various additional services or other
expenses out of their profits or other available sources. Such payments may be
made for one or more of the following: (1) distribution services, which include
expenses incurred by financial intermediaries for their sales activities with
respect to the fund, such as preparing, printing and distributing sales
literature and advertising materials and compensating registered representatives
or other employees of such financial intermediary for their sales activities;
(2) shareholder services, such as providing individual and custom investment
advisory services to clients of the financial intermediary; and (3) marketing
and promotional services, including business planning assistance, educating
personnel about the fund, and sponsorship of sales meetings, which may include
covering costs of providing speakers, meals and other entertainment. The
distributor may sponsor seminars and conferences designed to educate financial
intermediaries about the fund and may cover the expenses associated with
attendance at such meetings, including travel costs. These payments and
activities are intended to provide an incentive to financial intermediaries to
sell the fund by ensuring that they are educated about the fund, and to help
such financial intermediaries defray costs associated with offering the fund.
The amount of any payments described by this paragraph is determined by the
advisor or the distributor, and all such amounts are paid out of the available
assets of the advisor and distributor, and not by you or the fund. As a result,
the total expense ratio of the fund will not be affected by any such payments.


- ------
12


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

The fund has authorized certain financial intermediaries to accept orders on the
fund's behalf. American Century has selling agreements with these financial
intermediaries requiring them to track the time investment orders are received
and to comply with procedures relating to the transmission of orders. Orders
must be received by the financial intermediary on the fund's behalf before the
time the net asset value is determined in order to receive that day's share
price. If those orders are transmitted to American Century and paid for in
accordance with the selling agreement, they will be priced at the net asset
value next determined after your request is received in the form required by the
financial intermediary.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


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13


ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT

MINIMUM INITIAL INVESTMENT AMOUNTS

Unless otherwise specified below, the minimum initial investment amount to open
an account is $2,500. Financial intermediaries may open an account with $250,
but may require their clients to meet different investment minimums. See
INVESTING THROUGH A FINANCIAL INTERMEDIARY for more information.

- --------------------------------------------------------------------------------
Broker-dealer sponsored wrap program                                  No minimum
accounts and/or fee-based accounts
- --------------------------------------------------------------------------------
Coverdell Education Savings Account (CESA)                            $2,000(1)
- --------------------------------------------------------------------------------
Employer-sponsored retirement plans                                   No minimum
- --------------------------------------------------------------------------------

(1)  THE MINIMUM INITIAL INVESTMENT FOR FINANCIAL INTERMEDIARIES IS $250.
     FINANCIAL INTERMEDIARIES MAY HAVE DIFFERENT MINIMUMS FOR THEIR CLIENTS.

SUBSEQUENT PURCHASES

There is a $50 minimum for subsequent purchases. See WAYS TO MANAGE YOUR ACCOUNT
for more information about making additional investments directly with American
Century. However, there is no subsequent purchase minimum for financial
intermediaries or employer-sponsored retirement plans, but financial
intermediaries may require their clients to meet different subsequent purchase
requirements.

REDEMPTIONS

Your redemption proceeds will be calculated using the NET ASSET VALUE (NAV) next
determined after we receive your transaction request in good order.

        [graphic of triangle]

        A FUND'S NET ASSET VALUE, OR NAV, IS THE PRICE OF THE FUND'S SHARES.

However, we reserve the right to delay delivery of redemption proceeds up to
seven days. For example, each time you make an investment with American Century,
there is a seven-day holding period before we will release redemption proceeds
from those shares, unless you provide us with satisfactory proof that your
purchase funds have cleared. Investments by wire generally require only a
one-day holding period. If you change your address, we may require that any
redemption request made within 15 days be submitted in writing and be signed by
all authorized signers with their signatures guaranteed. If you change your bank
information, we may impose a 15-day holding period before we will transfer or
wire redemption proceeds to your bank. Please remember, if you request
redemptions by wire, $10 will be deducted from the amount redeemed. Your bank
also may charge a fee.

In addition, we reserve the right to honor certain redemptions with securities,
rather than cash, as described in the next section.


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14


SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the value of a fund's assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. The portfolio
managers would select these securities from the fund's portfolio.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, you may have to pay
brokerage or other transaction costs to convert the securities to cash.

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

REDEMPTION OF SHARES IN ACCOUNTS BELOW MINIMUM

If your account balance falls below the minimum initial investment amount for
any reason other than as a result of market fluctuation, American Century
reserves the right to redeem the shares in the account and send the proceeds to
your address of record. Prior to doing so, we will notify you and give you 90
days to meet the minimum. Please note that you may incur tax liability as a
result of the redemption.

SIGNATURE GUARANTEES

A signature guarantee - which is different from a notarized signature - is a
warranty that the signature presented is genuine. We may require a signature
guarantee for the following transactions.

*  You have chosen to conduct business in writing only and would like to
   redeem over $100,000.

*  Your redemption or distribution check, Check-A-Month or automatic
   redemption is made payable to someone other than the account owners.

*  Your redemption proceeds or distribution amount is sent by EFT (ACH or
   wire) to a destination other than your personal bank account.

*  You are transferring ownership of an account over $100,000.

*  You change your address and request a redemption over $100,000 within 15
   days.

*  You change your bank information and request a redemption within 15 days.

We reserve the right to require a signature guarantee for other transactions, at
our discretion.

MODIFYING OR CANCELING AN INVESTMENT

Investment instructions are irrevocable. That means that once you have mailed or
otherwise transmitted your investment instruction, you may not modify or cancel
it. Each fund reserves the right to suspend the offering of shares for a period
of time and to reject any specific investment (including a purchase by
exchange). Additionally, we may refuse a purchase if, in our judgment, it is of
a size that would disrupt the management of a fund.


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15


ABUSIVE TRADING PRACTICES

Short-term trading and other so-called market timing practices are not defined
or explicitly prohibited by any federal or state law. However, short-term
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of short-term
trading activity is significant relative to a fund's net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund's performance could be negatively impacted by the increased trading costs
created by short-term trading if the additional trading costs are significant.

Because of the potentially harmful effects of abusive trading practices, the
fund's Board of Directors has approved American Century's abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
imposing redemption fees on certain funds, and using fair value pricing when
current market prices are not readily available. Although these efforts are
designed to discourage abusive trading practices, they cannot eliminate the
possibility that such activity will occur. American Century seeks to exercise
its judgment in implementing these tools to the best of its ability in a manner
that it believes is consistent with shareholder interests.

American Century uses a variety of techniques to monitor for and detect abusive
trading practices. These techniques may vary depending on the type of fund, the
class of shares or whether the shares are held directly or indirectly with
American Century. They may change from time to time as determined by American
Century in its sole discretion. To minimize harm to the funds and their
shareholders, we reserve the right to reject any purchase order (including
exchanges) from any shareholder we believe has a history of abusive trading or
whose trading, in our judgment, has been or may be disruptive to the funds. In
making this judgment, we may consider trading done in multiple accounts under
common ownership or control.

Currently, for shares held directly with American Century, we may deem the sale
of all or a substantial portion of a shareholder's purchase of fund shares to be
abusive if the sale is made

* within seven days of the purchase, or

* within 30 days of the purchase, if it happens more than once per year.

To the extent practicable, we try to use the same approach for defining abusive
trading for shares held through financial intermediaries. American Century
reserves the right, in its sole discretion, to identify other trading practices
as abusive and to modify its monitoring and other practices as necessary to deal
with novel or unique abusive trading practices.

In addition, American Century reserves the right to accept purchases and
exchanges in excess of the trading restrictions discussed above if it believes
that such transactions would not be inconsistent with the best interests of fund
shareholders or this policy.


- ------
16


American Century's policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American Century handles, there can be no assurance that American
Century's efforts will identify all trades or trading practices that may be
considered abusive. In addition, American Century's ability to monitor trades
that are placed by individual shareholders within group, or omnibus, accounts
maintained by financial intermediaries is severely limited because American
Century generally does not have access to the underlying shareholder account
information. However, American Century monitors aggregate trades placed in
omnibus accounts and seeks to work with financial intermediaries to discourage
shareholders from engaging in abusive trading practices and to impose
restrictions on excessive trades. There may be limitations on the ability of
financial intermediaries to impose restrictions on the trading practices of
their clients. As a result, American Century's ability to monitor and discourage
abusive trading practices in omnibus accounts may be limited.

YOUR RESPONSIBILITY FOR UNAUTHORIZED TRANSACTIONS

American Century and its affiliated companies use procedures reasonably designed
to confirm that telephone, electronic and other instructions are genuine. These
procedures include recording telephone calls, requesting personalized security
codes or other information, and sending confirmation of transactions. If we
follow these procedures, we are not responsible for any losses that may occur
due to unauthorized instructions. For transactions conducted over the Internet,
we recommend the use of a secure Internet browser. In addition, you should
verify the accuracy of your confirmation statements immediately after you
receive them.

A NOTE ABOUT MAILINGS TO SHAREHOLDERS

To reduce the amount of mail you receive from us, we may deliver a single copy
of certain investor documents (such as shareholder reports and prospectuses) to
investors who share an address, even if accounts are registered under different
names. If you prefer to receive multiple copies of these documents individually
addressed, please call us or your financial professional. For American Century
Brokerage accounts, please call 1-888-345-2071.

RIGHT TO CHANGE POLICIES

We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups. In addition, from time to time we may
waive a policy on a case-by-case basis, as the advisor deems appropriate.


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17


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century will price the fund shares you purchase, exchange or redeem at
the net asset value (NAV) next determined after your order is received and
accepted by the fund's transfer agent, or other financial intermediary with the
authority to accept orders on the fund's behalf. We determine the NAV of each
fund as of the close of regular trading (usually 4 p.m. Eastern time) on the New
York Stock Exchange (NYSE) on each day the NYSE is open. On days when the NYSE
is closed (including certain U.S. national holidays), we do not calculate the
NAV. A fund's NAV is the current value of the fund's assets, minus any
liabilities, divided by the number of shares outstanding.

The fund values portfolio securities for which market quotations are readily
available at their market price. As a general rule, equity securities listed on
a U.S. exchange are valued at the last current reported sale price as of the
time of valuation. Securities listed on the NASDAQ National Market System
(Nasdaq) are valued at the Nasdaq Official Closing Price (NOCP), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the
time of valuation. The fund may use pricing services to assist in the
determination of market value. Unlisted securities for which market quotations
are readily available are valued at the last quoted sale price or the last
quoted ask price, as applicable, except that debt obligations with 60 days or
less remaining until maturity may be valued at amortized cost. Exchange-traded
options, futures and options on futures are valued at the settlement price as
determined by the appropriate clearing corporation.

If the fund determines that the market price for a portfolio security is not
readily available or that the valuation methods mentioned above do not reflect
the security's fair value, such security is valued at its fair value as
determined in good faith by, or in accordance with procedures adopted by, the
fund's board or its designee (a process referred to as "fair valuing" the
security). Circumstances that may cause the fund to fair value a security
include, but are not limited to:

*  if, after the close of the foreign exchange on which a portfolio security
   is principally traded, but before the close of the NYSE, an event occurs that
   may materially affect the value of the security;

*  a debt security has been declared in default; or

*  trading in a security has been halted during the trading day.

If such circumstances occur, the fund will fair value the security if the fair
valuation would materially impact the fund's NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with procedures adopted by
the fund's board.

The effect of using fair value determinations is that the fund's NAV will be
based, to some degree, on security valuations that the board or its designee
believes are fair rather than being solely determined by the market.

With respect to any portion of the fund's assets that are invested in one or
more open-end management investment companies that are registered with the SEC
(known as registered investment companies, or RICs), the fund's NAV will be
calculated based upon the NAVs of such RICs. These RICs are required by law to
explain the circumstances under which they will use fair value pricing and the
effects of using fair value pricing in their prospectuses.


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18


Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based on the prevailing exchange rates on that day.

Trading of securities in foreign markets may not take place every day the NYSE
is open. Also, trading in some foreign markets and on some electronic trading
networks may take place on weekends or holidays when the fund's NAV is not
calculated. So, the value of the fund's portfolio may be affected on days when
you will not be able to purchase, exchange or redeem fund shares.

DISTRIBUTIONS

Federal tax laws require each fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means the fund should not be subject to state or
federal income tax on amounts distributed. The distributions generally consist
of dividends and interest received by a fund, as well as CAPITAL GAINS realized
by a fund on the sale of its investment securities. The fund generally pays
distributions from net income and capital gains, if any, once a year in
December. The fund may make more frequent distributions, if necessary, to comply
with Internal Revenue Code provisions.

        [graphic of triangle]

        CAPITAL GAINS ARE INCREASES IN THE VALUES OF CAPITAL ASSETS, SUCH AS
        STOCK, FROM THE TIME THE ASSETS ARE PURCHASED.

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

Participants in tax-deferred retirement plans must reinvest all distributions.
For investors investing through taxable accounts, we will reinvest distributions
unless you elect to have dividends and/or capital gains sent to another American
Century account, to your bank electronically, or to your home address or to
another person or address by check.


- ------
19


TAXES

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

Tax-Deferred Accounts

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

Taxable Accounts

If you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund shares.

Taxability of Distributions

Fund distributions may consist of income, such as dividends and interest earned
by a fund from its investments, or capital gains generated by a fund from the
sale of investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as QUALIFIED DIVIDEND INCOME and you meet a
minimum required holding period with respect to your shares of the fund, in
which case distributions of income are taxed as long-term capital gains.

        [graphic of triangle]

        QUALIFIED DIVIDEND INCOME IS A DIVIDEND RECEIVED BY THE FUND FROM THE
        STOCK OF A DOMESTIC OR QUALIFYING FOREIGN CORPORATION, PROVIDED THAT THE
        FUND HAS HELD THE STOCK FOR A REQUIRED HOLDING PERIOD.

For capital gains and for income distributions designated as qualified dividend
income, the following rates apply:

                                        TAX RATE FOR 10%      TAX RATE FOR
TYPE OF DISTRIBUTION                    AND 15% BRACKETS      All Other Brackets
- --------------------------------------------------------------------------------
Short-term capital gains                Ordinary Income       Ordinary Income
- --------------------------------------------------------------------------------
Long-term capital gains (> 1 year)
and Qualified Dividend Income           5%                    15%
- --------------------------------------------------------------------------------

If the fund's distributions exceed its taxable income and capital gains realized
during the tax year, all or a portion of the distributions made by the fund in
that tax year will be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.


- ------
20


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

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

Taxes on Transactions

Your redemptions - including exchanges to other American Century funds - are
subject to capital gains tax. The table above can provide a general guide for
your potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss. However, you should note that loss realized upon the
sale or exchange of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain to you with respect to those shares. If a loss is realized on the
redemption of fund shares, the reinvestment in additional fund shares within 30
days before or after the redemption may be subject to the wash sale rules of the
Internal Revenue Code. This may result in a postponement of the recognition of
such loss for federal income tax purposes.


If you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.

Buying a Dividend

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

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

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


- ------
21


FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The table on the next page itemizes what contributed to the changes in share
price during the most recently ended fiscal year. It also shows the changes in
share price for this period in comparison to changes over the last five fiscal
years (or a shorter period if the share class is not five years old).

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

*  share price at the beginning of the period

*  investment income and capital gains or losses

*  distributions of income and capital gains paid to investors

*  share price at the end of the period

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

*  TOTAL RETURN - the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO - the operating expenses of the fund as a percentage of
   average net assets

*  NET INCOME RATIO - the net investment income of the fund as a percentage
   of average net assets

*  PORTFOLIO TURNOVER - the percentage of the fund's investment portfolio
   that is replaced during the period

The Financial Highlights that follow have been audited by Deloitte & Touche LLP.
The fund's Report of Independent Registered Public Accounting Firm and the
financial statements are included in the fund's annual report, which is
available upon request.



- ------
22


FOCUSED GROWTH FUND

Investor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)

- --------------------------------------------------------------------------------
                                                    2006               2005(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                $10.53             $10.00
- --------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(2)                  0.01               -(3)
- ----------------------------------------
   Net Realized and Unrealized Gain (Loss)          0.95               0.53
- --------------------------------------------------------------------------------
   Total From Investment Operations                 0.96               0.53
- --------------------------------------------------------------------------------
Distributions
- ----------------------------------------
   From Net Investment Income                       -(3)               -
- ----------------------------------------
   From Net Realized Gains                          (0.07)             -
- --------------------------------------------------------------------------------
   Total Distributions                              (0.07)             -
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                      $11.42             $10.53
================================================================================
   TOTAL RETURN(4)                                  9.13%              5.30%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                               1.00%              1.00%(5)
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                        0.07%              0.00%(5)
- ----------------------------------------
Portfolio Turnover Rate                             313%               95%
- ----------------------------------------
Net Assets, End of Period (in thousands)            $15,837            $12,175
- --------------------------------------------------------------------------------

(1)  FEBRUARY 28, 2005 (FUND INCEPTION) THROUGH OCTOBER 31, 2005.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  PER-SHARE AMOUNT WAS LESS THAN $0.005.

(4)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED.

(5)  ANNUALIZED.


- ------
23


NOTES


- ------
24


NOTES


- ------
25


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

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

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

IN PERSON           SEC Public Reference Room
                    Washington, D.C. Call 202-942-8090 for location and hours.

ON THE INTERNET     * EDGAR database at sec.gov
                    * By email request at publicinfo@sec.gov

BY MAIL             SEC Public Reference Section
                    Washington, D.C. 20549-0102

This prospectus shall not constitute an offer to sell securities of the fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or qualified for sale, unless such registration or qualification
is not required, or under any circumstances in which such offer or solicitation
would be unlawful.

FUND REFERENCE               FUND CODE             TICKER             NEWSPAPER
                                                                       LISTING
- --------------------------------------------------------------------------------
Focused Growth Fund
  Investor Class             097                   AFSIX              FocGrowth
- --------------------------------------------------------------------------------

Investment Company Act File No. 811-0816

AMERICAN CENTURY INVESTMENTS
americancentury.com

                                    Banks and Trust Companies, Broker-Dealers,
Self-Directed Retail Investors      Financial Professionals, Insurance Companies
P.O. Box 419200                     P.O. Box 419786
Kansas City, Missouri 64141-6200    Kansas City, Missouri 64141-6786
1-800-345-2021 or 816-531-5575      1-800-345-6488

0703
SH-PRS-52521













AMERICAN CENTURY INVESTMENTS

Prospectus

March 1, 2007

Heritage Fund

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

American Century Investment
Services, Inc., Distributor

[american century investments logo and text logo]




Table of Contents

AN OVERVIEW OF THE FUND . . . . . . . . . . . . . . . . . . 2

FUND PERFORMANCE HISTORY . . . . . . . . . . . . . . . . . .3

FEES AND EXPENSES . . . . . . . . . . . . . . . . . . . . . 5

OBJECTIVES, STRATEGIES AND RISKS. . . . . . . . . . . . . . 7

MANAGEMENT. . . . . . . . . . . . . .  . . . . . . . . . . .9

INVESTING DIRECTLY WITH AMERICAN CENTURY . . . . . . . . . 11

INVESTING THROUGH A FINANCIAL INTERMEDIARY . . . . . . . . 13

ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT . . . . . . .15

SHARE PRICE AND DISTRIBUTIONS. . . . .  . . . . . . . . . .19

TAXES. . . . . . . . . . . . . .  . . . . . . . . . . . . .21

MULTIPLE CLASS INFORMATION . . .  . . . . . . . . . . . . .23

FINANCIAL HIGHLIGHTS . . .  . . . . . . . . . . . . . . . .24


    [GRAPHIC OF TRIANGLE]

    THIS SYMBOL IS USED THROUGHOUT THE BOOK TO HIGHLIGHT DEFINITIONS OF KEY
    INVESTMENT TERMS AND TO PROVIDE OTHER HELPFUL INFORMATION.

American Century Investment Services, Inc., Distributor

©2007 American Century Proprietary Holdings, Inc. All rights reserved.

The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.




AN OVERVIEW OF THE FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

The portfolio managers look for stocks of medium-sized and smaller companies
they believe will increase in value over time, using an investment strategy
developed by American Century. In implementing this strategy, the portfolio
managers make their investment decisions based primarily on their analysis of
individual companies, rather than on broad economic forecasts. Management of the
fund is based on the belief that, over the long term, stock price movements
follow growth in earnings and revenues. The portfolio managers' principal
analytical technique involves the identification of companies with earnings and
revenues that are not only growing, but growing at an accelerating pace.

The fund's principal risks include

*  GROWTH STOCKS - Investments in growth stocks may involve special risks and
   their prices may fluctuate more dramatically than the overall stock market.

*  MID CAP STOCKS - The fund invests in mid-sized and smaller companies which
   may present greater opportunities for capital growth than larger companies,
   but may be more volatile and subject to greater risk.

*  FOREIGN SECURITIES - The fund may invest in foreign securities, which can
   be riskier than investing in U.S. securities.

*  IPO RISK - The fund's performance may be affected by investments in
   initial public offerings.

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

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

*  HIGH TURNOVER - The fund's PORTFOLIO TURNOVER may be unusually high. This
   could result in relatively high commission costs, which could hurt the fund's
   performance, and capital gains tax liabilities for the fund's shareholders.


      [GRAPHIC OF TRIANGLE]

      PORTFOLIO TURNOVER IS A MEASURE OF HOW FREQUENTLY A FUND BUYS AND SELLS
      PORTFOLIO SECURITIES.

*  PRINCIPAL LOSS - At any given time your shares may be worth less than the
   price you paid for them. In other words, it is possible to lose money by
   investing in the fund.

A more detailed description of the fund's investment strategies and risks may be
found under the heading OBJECTIVES, STRATEGIES AND RISKS, which begins on page
7.

    [GRAPHIC OF TRIANGLE]

    AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT, AND IT IS NOT INSURED OR
    GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER
    GOVERNMENT AGENCY.


- ------
2


FUND PERFORMANCE HISTORY

Annual Total Returns

The following bar chart shows the performance of the fund's Investor Class
shares for each of the last 10 calendar years. It indicates the volatility of
the fund's historical returns from year to year. Account fees and sales charges,
if applicable, are not reflected in the chart below. If they had been included,
returns would be lower than those shown. The returns of the fund's other classes
will differ from those shown in the chart, depending on the expenses of those
classes.


HERITAGE FUND - INVESTOR CLASS

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

                           HIGHEST                            LOWEST
- --------------------------------------------------------------------------------
Heritage                   40.37% (4Q 1999)                   -21.16% (3Q 1998)
- --------------------------------------------------------------------------------

Average Annual Total Returns

The following table shows the average annual total returns of the fund's
Investor Class shares calculated three different ways. Additional tables show
the average annual total returns of the fund's other share classes calculated
before the impact of taxes. Returns assume the deduction of all sales loads,
charges and other fees associated with a particular class. Your actual returns
may vary depending on the circumstances of your investment.

Return Before Taxes shows the actual change in the value of fund shares over the
time periods shown, but does not reflect the impact of taxes on fund
distributions or the sale of fund shares. The two after-tax returns take into
account taxes that may be associated with owning fund shares. Return After Taxes
on Distributions is a fund's actual performance, adjusted by the effect of taxes
on distributions made by the fund during the periods shown. Return After Taxes
on Distributions and Sale of Fund Shares is further adjusted to reflect the tax
impact on any change in the value of fund shares as if they had been sold on the
last day of the period.

After-tax returns are calculated using the historical highest federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-tax returns shown are not relevant to investors who hold fund
shares through tax-deferred arrangements such as 401(k) plans or IRAs. After-tax
returns are shown only for the Investor Class shares. After-tax returns for the
other share classes will vary.


- ------
3



The benchmarks are unmanaged indices that have no operating costs and are
included in each table for performance comparison.

INVESTOR CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    10 YEARS
- --------------------------------------------------------------------------------
Return Before Taxes                              17.05%    9.37%      9.44%
Return After Taxes on Distributions              15.94%    9.14%      7.69%
Return After Taxes on Distributions
   and Sale of Fund Shares                       12.56%    8.16%      7.35%
Russell Midcap® Growth Index                     10.66%    8.22%      8.62%
   (reflects no deduction for
   fees, expenses or taxes)
Russell Midcap® Index                            15.26%    12.88%     12.14%
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

INSTITUTIONAL CLASS
                                                                      LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                              17.33%    9.60%      8.78%
Russell Midcap® Growth Index                     10.66%    8.22%      7.75%(2)
   (reflects no deduction for
   fees, expenses or taxes)
Russell Midcap® Index                            15.26%    12.88%     11.22%(2)
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE INSTITUTIONAL CLASS IS JUNE 16, 1997. ONLY
     CLASSES WITH PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR
     LIFE OF CLASS.

(2)  SINCE JUNE 19, 1997, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.


C CLASS
                                                                      LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                              15.86%    8.28%      4.74%
Russell Midcap(® Growth Index                    10.66%    8.22%      6.24%(2)
   (reflects no deduction for
   fees, expenses or taxes)
Russell Midcap® Index                            15.26%    12.88%     11.10%(2)
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE C CLASS IS JUNE 26, 2001. ONLY CLASSES WITH
     PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR LIFE OF CLASS.

(2)  SINCE JUNE 28, 2001, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.


ADVISOR CLASS
                                                                      LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006   1 YEAR     5 YEARS    CLASS(1)
- -------------------------------------------------------------------------------
Return Before Taxes                             16.81%     9.11%      7.83%
Russell Midcap® Growth Index                    10.66%     8.22%      7.55%(2)
   (reflects no deduction
   for fees, expenses or taxes)
Russell Midcap® Index                           15.26%     12.88%     11.06%(2)
   (reflects no deduction
   for fees, expenses or taxes)
- -------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE ADVISOR CLASS IS JULY 11, 1997. ONLY
     CLASSES WITH PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR
     LIFE OF CLASS.

(2)  SINCE JULY 10, 1997, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.


- ------
4


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 same class of shares of other American Century funds

*  to redeem your shares (other than a $10 fee to redeem by wire and the
   deferred sales charge associated with C Class shares redeemed during the
   first year after purchase)

The following tables describe the fees and expenses you may pay if you buy and
hold shares of the fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
- --------------------------------------------------------------------------------
Investor Class
  Maximum Account Maintenance Fee                                         $25(1)
- --------------------------------------------------------------------------------
C Class
  Maximum Deferred Sales Charge (load)                                  1.00%(2)
  (as a percentage of net asset value)
- --------------------------------------------------------------------------------

(1)  APPLIES ONLY TO INVESTORS WHOSE TOTAL ELIGIBLE INVESTMENTS WITH
     AMERICAN CENTURY ARE LESS THAN $10,000. SEE Account Maintenance Fee UNDER
     Investing Directly with American Century FOR MORE DETAILS.

(2)  THE DEFERRED SALES CHARGE IS CONTINGENT ON THE LENGTH OF TIME YOU HAVE
     OWNED YOUR SHARES. THE CHARGE IS 1.00% DURING THE FIRST YEAR AFTER PURCHASE
     AND IS ELIMINATED THEREAFTER.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
                                  DISTRIBUTION                    TOTAL ANNUAL
                    MANAGEMENT    AND SERVICE       OTHER         FUND OPERATING
                    FEE(1)        (12B-1) FEES(2)   EXPENSES(3)   EXPENSES
- --------------------------------------------------------------------------------
Investor            1.00%         None              0.00%         1.00%
Class
- --------------------------------------------------------------------------------
Institutional       0.80%         None              0.00%         0.80%
Class
- --------------------------------------------------------------------------------
C Class             1.00%         1.00%             0.00%         2.00%
- --------------------------------------------------------------------------------
Advisor Class       0.75%         0.50%             0.00%         1.25%
- --------------------------------------------------------------------------------

(1)  THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR
     ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. FOR MORE
     INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE, SEE The Investment Advisor
     UNDER Management.

(2)  THE 12B-1 FEE IS DESIGNED TO PERMIT INVESTORS TO PURCHASE SHARES
     THROUGH BROKER-DEALERS, BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL
     INTERMEDIARIES. THE FEE MAY BE USED TO COMPENSATE SUCH FINANCIAL
     INTERMEDIARIES FOR DISTRIBUTION AND OTHER SHAREHOLDER SERVICES. IN
     ADDITION, HALF OF THE ADVISOR CLASS 12B-1 FEE (0.25%) IS FOR ONGOING
     RECORDKEEPING AND ADMINISTRATIVE SERVICES PROVIDED BY FINANCIAL
     INTERMEDIARIES, WHICH WOULD OTHERWISE BE PAID BY THE ADVISOR OUT OF THE
     UNIFIED MANAGEMENT FEE. THE ADVISOR HAS REDUCED ITS UNIFIED MANAGEMENT FEE
     BY 0.25% FOR ADVISOR CLASS SHARES, BUT THE FEE FOR CORE INVESTMENT ADVISORY
     SERVICES IS THE SAME FOR ALL CLASSES. FOR MORE INFORMATION, SEE Multiple
     Class Information AND Service, Distribution and Administrative Fees, PAGE
     23.

(3)  OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
     INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST, WERE
     LESS THAN 0.005% FOR THE MOST RECENT FISCAL YEAR.


- ------
5


EXAMPLE

The examples in the table below are intended to help you compare the costs of
investing in a fund with the costs of investing in other mutual funds. Of
course, your actual costs may be higher or lower. Assuming you . . .

*  invest $10,000 in the fund

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

*  earn a 5% return each year

*  incur the same operating expenses as shown above

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

                        1 YEAR         3 YEARS         5 YEARS         10 YEARS
- --------------------------------------------------------------------------------
Investor                $102           $318            $551            $1,219
Class
- --------------------------------------------------------------------------------
Institutional           $82            $255            $443            $987
Class
- --------------------------------------------------------------------------------
C Class                 $202           $623            $1,069          $2,305
- --------------------------------------------------------------------------------
Advisor Class           $127           $395            $683            $1,503
- --------------------------------------------------------------------------------


- ------
6


OBJECTIVES, STRATEGIES AND RISKS

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

The portfolio managers look for stocks of medium-sized and smaller companies
they believe will increase in value over time, using an investment strategy
developed by American Century. In implementing this strategy, the portfolio
managers use a bottom-up approach to stock selection. This means that the
managers make their investment decisions based primarily on their analysis of
individual companies, rather than on broad economic forecasts. Management of the
fund is based on the belief that, over the long term, stock price movements
follow growth in earnings and revenues.

Using American Century's extensive computer database, as well as other primary
analytical research tools, the portfolio managers track financial information
for thousands of individual companies to identify and evaluate trends in
earnings, revenues and other business fundamentals. The portfolio managers'
principal analytical technique involves the identification of companies with
earnings and revenues that are not only growing, but growing at an accelerating
pace. This includes companies whose growth rates, although still negative, are
less negative than prior periods, and companies whose growth rates are expected
to accelerate. These techniques help the portfolio managers buy or hold the
stocks of companies they believe have favorable growth prospects and sell the
stocks of companies whose characteristics no longer meet their criteria.

The fund will usually purchase common stocks of companies that are medium-sized
and smaller at the time of purchase, but it can purchase other types of
securities as well. When determining the size of a company, the portfolio
managers will consider, among other factors, the capitalization of the company
and the amount of revenues as well as other information they obtain about the
company.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies, including
companies located in emerging markets. Investments in foreign securities present
some unique risks that are more fully described in the fund's statement of
additional information.

The portfolio managers do not attempt to time the market. Instead, under normal
market conditions, they intend to keep the fund essentially fully invested in
stocks regardless of the movement of stock prices generally. When the portfolio
managers believe it is prudent, the fund may invest a portion of its assets in
debt securities, options, preferred stock and equity-equivalent securities, such
as convertible securities, stock futures contracts or stock index futures
contracts. The fund generally limits its purchase of debt securities to
investment-grade obligations. Futures contracts, a type of derivative security,
can help the fund's cash assets remain liquid while performing more like stocks.
The fund has a policy governing futures contracts and similar derivative
securities to help manage the risk of these types of investments. A complete
description of the derivatives policy is included in the statement of additional
information.

In the event of exceptional market or economic conditions, the fund may, as a
temporary defensive measure, invest all or a substantial portion of it's assets
in cash, cash-equivalent securities or short-term debt securities. To the extent
the fund assumes a defensive position it will not be pursuing its objective of
long-term capital growth.

A description of the policies and procedures with respect to the disclosure of
the fund's portfolio securities is available in the statement of additional
information.


- ------
7


WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?

Growth stocks are typically priced higher than other stocks, in relation to
earnings and other measures, because investors believe they have more growth
potential. This potential may or may not be realized and growth stock prices
tend to fluctuate more dramatically than the overall stock market.

The fund generally invests in medium-sized and smaller companies, which may be
more volatile and subject to greater short-term risk. Smaller companies may have
limited financial resources, product lines and markets, and their securities may
trade less frequently and in more limited volumes than securities of larger
companies. In addition, smaller companies may have less publicly available
information.

The portfolio managers may buy a large amount of a company's stock quickly, and
often will dispose of it quickly if the company's earnings or revenues decline.
While the portfolio managers believe this strategy provides substantial
appreciation potential over the long term, in the short term it can create a
significant amount of share price volatility. This volatility can be greater
than that of the average stock fund.

The fund's portfolio turnover may be unusually high. This could result in
relatively high commission costs, which could hurt the fund's performance, and
capital gains tax liabilities for the fund's shareholders.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies. Foreign
investment involves additional risks, including fluctuations in currency
exchange rates, less stable political and economic structures, reduced
availability of public information, and lack of uniform financial reporting and
regulatory practices similar to those that apply in the United States. These
factors make investing in foreign securities generally riskier than investing in
U.S. stocks. To the extent the fund invests in foreign securities, the overall
risk of that fund could be affected.

Investing in securities of companies located in emerging market countries
generally is also riskier than investing in securities of companies located in
foreign developed countries. Emerging market countries may have unstable
governments and/or economies that are subject to sudden change. These changes
may be magnified by the countries' emergent financial markets, resulting in
significant volatility to investments in these countries. These countries also
may lack the legal, business and social framework to support securities markets.

The fund's performance also may be affected by investments in initial public
offerings (IPOs). The impact of IPOs on the fund's performance depends on the
strength of the IPO market and the size of the fund. IPOs may have less impact
on the fund's performance as its assets grow.

Market performance tends to be cyclical, and, in the various cycles, certain
investment styles may fall in and out of favor. If the market is not favoring
the fund's style, the fund's gains may not be as big as, or its losses may be
bigger than, other equity funds using different investment styles.

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 the fund owns will go
up and down depending on the performance of the companies that issued them,
general market and economic conditions, and investor confidence.

At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the fund.


- ------
8


MANAGEMENT

WHO MANAGES THE FUND?

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

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than three-fourths of the directors are independent of the fund's advisor;
that is, they have never been employed by and have no financial interest in the
advisor or any of its affiliated companies (other than as shareholders of
American Century funds).

THE INVESTMENT ADVISOR

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

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

For the services it provides to the fund, the advisor receives a unified
management fee based on a percentage of the daily net assets of each class of
shares of the fund. The amount of the fee is calculated daily and paid monthly
in arrears. Out of that fee, the advisor pays all expenses of managing and
operating the fund except brokerage expenses, taxes, interest, fees and expenses
of the independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the fund's management fee may be paid by the fund's
advisor to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of the
advisor.

MANAGEMENT FEES PAID BY THE
FUND TO THE ADVISOR AS A
PERCENTAGE OF AVERAGE NET
ASSETS FOR THE FISCAL YEAR      INVESTOR     INSTITUTIONAL     C       ADVISOR
ENDED OCTOBER 31, 2006          CLASS        CLASS             CLASS   CLASS
- --------------------------------------------------------------------------------
Heritage                        1.00%        0.80%             1.00%   0.75%
- --------------------------------------------------------------------------------

A discussion regarding the basis for the Board of Directors' approval of the
fund's investment advisory contract with the advisor is available in the fund's
report to shareholders dated October 31, 2006.



- ------
9


THE FUND MANAGEMENT TEAM

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

The portfolio managers on the investment team who are jointly and primarily
responsible for the day-to-day management of the fund are identified below.

GLENN A. FOGLE

Mr. Fogle, Senior Vice President and Senior Portfolio Manager, rejoined the team
that manages the fund in February 2007. He joined American Century in September
1990 and became a portfolio manager in June 1993. He has a bachelor's degree in
business administration (management) and an MBA in finance from Texas Christian
University. He is a CFA charterholder.

DAVID M. HOLLOND

Mr. Hollond, Vice President and Portfolio Manager, has been a member of the team
that manages the fund since February 2007. He joined American Century in 1998
and became a portfolio manager in March 2004. He has a bachelor's degree in
Russian and economics from Grinnell College, a master's degree in economics from
the University of Wisconsin, a master's degree in international studies from the
University of Pennsylvania and an MBA in finance from The Wharton School at the
University of Pennsylvania.

KURT R. STALZER

Mr. Stalzer, Vice President and Portfolio Manager, has been a member of the team
that manages the fund since joining American Century in January 2000. He has a
BBA with a concentration in finance and accounting from the University of
Michigan - Dearborn.

The statement of additional information provides additional information about
the other accounts managed by the portfolio managers, if any, the structure of
their compensation, and their ownership of fund securities.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the statement of additional
information and the investment objectives of the fund may not be changed without
shareholder approval. The Board of Directors and/or the advisor may change any
other policies and investment strategies.


- ------
10


INVESTING DIRECTLY WITH AMERICAN CENTURY

SERVICES AUTOMATICALLY AVAILABLE TO YOU

Most accounts automatically will have access to the services listed under WAYS
TO MANAGE YOUR ACCOUNT when the account is opened. If you do not want these
services, see CONDUCTING BUSINESS IN WRITING. If you have questions about the
services that apply to your account type, please call us.

CONDUCTING BUSINESS IN WRITING

If you prefer to conduct business in writing only, you can indicate this on the
account application. If you choose this option, you must provide written
instructions to invest, exchange and redeem. All account owners must sign
transaction instructions (with signatures guaranteed for redemptions in excess
of $100,000). By choosing this option, you are not eligible to enroll for
exclusive online account management to waive the account maintenance fee. See
ACCOUNT MAINTENANCE FEE in this section. If you want to add online and telephone
services later, you can complete an Investor Service Options form.

ACCOUNT MAINTENANCE FEE

If you hold Investor Class shares of any American Century fund, or Institutional
Class shares of the American Century Diversified Bond fund, in an American
Century account (i.e., not a financial intermediary or retirement plan account),
we may charge you a $12.50 semiannual account maintenance fee if the value of
those shares is less than $10,000. We will determine the amount of your total
eligible investments twice per year, generally the last Friday in October and
April. If the value of those investments is less than $10,000 at that time, we
will automatically redeem shares in one of your accounts to pay the $12.50 fee.
Please note that you may incur tax liability as a result of the redemption. In
determining your total eligible investment amount, we will include your
investments in all PERSONAL ACCOUNTS (including American Century Brokerage
accounts) registered under your Social Security number. We will not charge the
fee as long as you choose to manage your accounts exclusively online. You may
enroll for exclusive online account management on our Web site. To find out more
about exclusive online account management, visit americancentury.com/info/demo.

    [GRAPHIC OF TRIANGLE]

    PERSONAL ACCOUNTS INCLUDE INDIVIDUAL ACCOUNTS, JOINT ACCOUNTS, UGMA/UTMA
    ACCOUNTS, PERSONAL TRUSTS, COVERDELL EDUCATION SAVINGS ACCOUNTS, IRAS
    (INCLUDING TRADITIONAL, ROTH, ROLLOVER, SEP-, SARSEP- AND SIMPLE-IRAS),
    AND CERTAIN OTHER RETIREMENT ACCOUNTS. IF YOU HAVE ONLY BUSINESS, BUSINESS
    RETIREMENT, EMPLOYER-SPONSORED OR AMERICAN CENTURY BROKERAGE ACCOUNTS, YOU
    ARE CURRENTLY NOT SUBJECT TO THIS FEE, BUT YOU MAY BE SUBJECT TO OTHER FEES.

WIRE PURCHASES

CURRENT INVESTORS: If you would like to make a wire purchase into an existing
account, your bank will need the following information. (To invest in a new
fund, please call us first to set up the new account.)

*  American Century's bank information: Commerce Bank N.A., Routing No.
   101000019, Account No. 2804918

*  Your American Century account number and fund name

*  Your name

*  The contribution year (for IRAs only)

NEW INVESTORS: To make a wire purchase into a new account, please complete an
application prior to wiring money.


- ------
11


WAYS TO MANAGE YOUR ACCOUNT

ONLINE
- --------------------------------------------------------------------------------
americancentury.com

OPEN AN ACCOUNT: If you are a current or new investor, you can open an account
by completing and submitting our online application. Current investors also can
open an account by exchanging shares from another American Century account.

EXCHANGE SHARES: Exchange shares from another American Century account.

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

SELL SHARES*: Redeem shares and proceeds will be electronically transferred to
your authorized bank account.

* Online redemptions up to $25,000 per day.

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

* 4500 Main Street, Kansas City, Missouri - 8 a.m. to 5 p.m., Monday - Friday

* 4917 Town Center Drive, Leawood, Kansas - 8 a.m. to 5 p.m., Monday - Friday,
  8 a.m. to noon, Saturday

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

BY TELEPHONE
- --------------------------------------------------------------------------------
INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021

INSTITUTIONAL SERVICE REPRESENTATIVE: 1-800-345-3533

BUSINESS, NOT-FOR-PROFIT AND EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533

AUTOMATED INFORMATION LINE: 1-800-345-8765

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

EXCHANGE SHARES: Call or use our Automated Information Line if you have
authorized us to accept telephone instructions. The Automated Information Line
is available only to Investor Class shareholders.

MAKE ADDITIONAL INVESTMENTS: Call or use our Automated Information Line if you
have authorized us to invest from your bank account. The Automated Information
Line is available only to Investor Class shareholders.

SELL SHARES: Call a Service Representative.

BY MAIL OR FAX
- --------------------------------------------------------------------------------
P.O. Box 419200, Kansas City, MO 64141-6200 - Fax: 816-340-7962

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

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

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

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

AUTOMATICALLY
- --------------------------------------------------------------------------------
OPEN AN ACCOUNT: Not available.

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

MAKE ADDITIONAL INVESTMENTS: With the automatic investment service, you can
purchase shares on a regular basis. You must invest at least $50 per month per
account.

SELL SHARES: You may sell shares automatically by establishing Check-A-Month or
Automatic Redemption plans.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
12


INVESTING THROUGH A FINANCIAL INTERMEDIARY

The fund's C and Advisor Classes are intended for purchase by participants in
employer-sponsored retirement plans. Additionally, the fund's C and Advisor
Classes are intended for persons purchasing shares through FINANCIAL
INTERMEDIARIES that provide various administrative and distribution services.
For more information regarding plan types, please see BUYING AND SELLING FUND
SHARES in the statement of additional information.

    [GRAPHIC OF TRIANGLE]

    FINANCIAL INTERMEDIARIES INCLUDE BANKS, BROKER-DEALERS, INSURANCE COMPANIES,
    PLAN SPONSORS AND FINANCIAL PROFESSIONALS.

Although each class of shares represents an interest in the same fund, each has
a different cost structure, as described below. Which class is right for you
depends on many factors, including how long you plan to hold the shares, how
much you plan to invest, the fee structure of each class, and how you wish to
compensate your financial professional for the services provided to you. Your
financial professional can help you choose the option that is most appropriate.

The following chart provides a summary description of these classes.

C CLASS
- --------------------------------------------------------------------------------
No initial sales charge
- --------------------------------------------------------------------------------
Contingent deferred sales charge on
redemptions within 12 months
- --------------------------------------------------------------------------------
12b-1 fee of 1.00%
- --------------------------------------------------------------------------------
No conversion feature
- --------------------------------------------------------------------------------
Aggregate purchases limited to amounts less than $1,000,000;
generally more appropriate for short-term investors
- --------------------------------------------------------------------------------

ADVISOR CLASS
- --------------------------------------------------------------------------------
No initial sales charge
- --------------------------------------------------------------------------------
No contingent deferred sales charge
- --------------------------------------------------------------------------------
12b-1 fee of 0.50%
- --------------------------------------------------------------------------------
No conversion feature
- --------------------------------------------------------------------------------
Generally offered through employer-sponsored
retirement plans and other fee-based arrangements
- --------------------------------------------------------------------------------

CALCULATION OF CONTINGENT DEFERRED SALES CHARGE (CDSC)

C Class shares are sold at their net asset value without an initial sales
charge. For sales of C Class shares, the amount paid to your financial
professional is 1.00% of the amount invested. If you redeem your shares within
12 months of purchase, you will pay a CDSC of 1.00% of the original purchase
price or the current market value at redemption, whichever is less. The purpose
of the CDSC is to permit the fund's distributor to recoup all or a portion of
the up-front payment made to your financial professional.

The CDSC will not be charged on shares acquired through reinvestment of
dividends or distributions or increases in the net asset value of shares.

To minimize the amount of the CDSC you may pay when you redeem shares, the fund
will first redeem shares acquired through reinvested dividends and capital gain
distributions, which are not subject to a CDSC. Shares that have been in your
account long enough that they are not subject to a CDSC are redeemed next. For
any remaining redemption amount, shares will be sold in the order they were
purchased (earliest to latest).


- ------
13


The information regarding C Class sales charges provided herein is included free
of charge and in a clear and prominent format at americancentury.com in the
INVESTORS USING ADVISORS and INVESTMENT PROFESSIONALS portions of the Web site.
From the description of C Class shares, a hyperlink will take you directly to
this disclosure.

CDSC WAIVERS

Any applicable CDSC may be waived in the following cases:

*  redemptions through systematic withdrawal plans not exceeding annually:

   *  12% of the lesser of the original purchase cost or current market value
      for C Class shares

*  distributions from IRAs due to attainment of age 59-1/2 for C Class shares

*  required minimum distributions from retirement accounts upon reaching age
   70-1/2

*  tax-free returns of excess contributions to IRAs

*  redemptions due to death or post-purchase disability

*  exchanges, unless the shares acquired by exchange are redeemed within the
   original CDSC period

*  if no broker was compensated for the sale

EXCHANGES BETWEEN FUNDS (C CLASS)

You may exchange C Class shares of a fund for C Class shares of any other
American Century fund. You may not exchange from the C Class to any other class.
We will not charge a CDSC on the shares you exchange, regardless of the length
of time you have owned them. When you do redeem shares that have been exchanged,
the CDSC will be based on the date you purchased the original shares.

BUYING AND SELLING SHARES

Your ability to purchase, exchange, redeem and transfer shares will be affected
by the policies of the financial intermediary through which you do business.
Some policy differences may include

*  minimum investment requirements

*  exchange policies

*  fund choices

*  cutoff time for investments

*  trading restrictions

In addition, your financial intermediary may charge a transaction fee for the
purchase or sale of fund shares. Those charges are retained by the financial
intermediary and are not shared with American Century or the fund. Please
contact your financial intermediary or plan sponsor for a complete description
of its policies. Copies of the fund's annual report, semiannual report and
statement of additional information are available from your financial
intermediary or plan sponsor.

The fund has authorized certain financial intermediaries to accept orders on the
fund's behalf. American Century has selling agreements with these financial
intermediaries requiring them to track the time investment orders are received
and to comply with procedures relating to the transmission of orders. Orders
must be received by the financial intermediary on the fund's behalf before the
time the net asset value is determined in order to receive that day's share
price. If those orders are transmitted to American Century and paid for in
accordance with the selling agreement, they will be priced at the net asset
value next determined after your request is received in the form required by the
financial intermediary.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
14


ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT

MINIMUM INITIAL INVESTMENT AMOUNTS (OTHER THAN INSTITUTIONAL CLASS)

Unless otherwise specified below, the minimum initial investment amount to open
an account is $2,500. Financial intermediaries may open an account with $250,
but may require their clients to meet different investment minimums. See
INVESTING THROUGH A FINANCIAL INTERMEDIARY for more information.

- --------------------------------------------------------------------------------
Broker-dealer sponsored wrap program accounts                         No minimum
and/or fee-based accounts
- --------------------------------------------------------------------------------
Coverdell Education Savings Account (CESA)                            $2,000(1)
- --------------------------------------------------------------------------------
Employer-sponsored retirement plans                                   No minimum
- --------------------------------------------------------------------------------

(1)  THE MINIMUM INITIAL INVESTMENT FOR FINANCIAL INTERMEDIARIES IS $250.
     FINANCIAL INTERMEDIARIES MAY HAVE DIFFERENT MINIMUMS FOR THEIR CLIENTS.

SUBSEQUENT PURCHASES

There is a $50 minimum for subsequent purchases. See WAYS TO MANAGE YOUR ACCOUNT
for more information about making additional investments directly with American
Century. However, there is no subsequent purchase minimum for financial
intermediaries or employer-sponsored retirement plans, but financial
intermediaries may require their clients to meet different subsequent purchase
requirements.

ELIGIBILITY FOR INSTITUTIONAL CLASS SHARES

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

MINIMUM INITIAL INVESTMENT AMOUNTS (INSTITUTIONAL CLASS)

The minimum initial investment amount is $5 million ($3 million for endowments
and foundations) per fund. If you invest with us through a financial
intermediary, this requirement may be met if your financial intermediary
aggregates your investments with those of other clients into a single group, or
omnibus, account that meets the minimum. The minimum investment requirement may
be waived if you, or your financial intermediary if you invest through an
omnibus account, have an aggregate investment in our family of funds of $10
million or more ($5 million for endowments and foundations). In addition,
financial intermediaries or plan recordkeepers may require retirement plans to
meet certain other conditions, such as plan size or a minimum level of assets
per participant, in order to be eligible to purchase Institutional Class shares.

REDEMPTIONS

If you sell your C Class shares within 12 months of their purchase, you will pay
a sales charge.

Your redemption proceeds will be calculated using the NET ASSET VALUE (NAV) next
determined after we receive your transaction request in good order.

    [GRAPHIC OF TRIANGLE]

    A FUND'S NET ASSET VALUE, OR NAV, IS THE PRICE OF THE FUND'S SHARES.

However, we reserve the right to delay delivery of redemption proceeds up to
seven days. For example, each time you make an investment with American Century,
there


- ------
15


is a seven-day holding period before we will release redemption proceeds from
those shares, unless you provide us with satisfactory proof that your purchase
funds have cleared. Investments by wire generally require only a one-day holding
period. If you change your address, we may require that any redemption request
made within 15 days be submitted in writing and be signed by all authorized
signers with their signatures guaranteed. If you change your bank information,
we may impose a 15-day holding period before we will transfer or wire redemption
proceeds to your bank. Please remember, if you request redemptions by wire, $10
will be deducted from the amount redeemed. Your bank also may charge a fee.

In addition, we reserve the right to honor certain redemptions with securities,
rather than cash, as described in the next section.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the value of a fund's assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. The portfolio
managers would select these securities from the fund's portfolio.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, you may have to pay
brokerage or other transaction costs to convert the securities to cash.

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

REDEMPTION OF SHARES IN ACCOUNTS BELOW MINIMUM

If your account balance falls below the minimum initial investment amount for
any reason other than as a result of market fluctuation, American Century
reserves the right to redeem the shares in the account and send the proceeds to
your address of record. Prior to doing so, we will notify you and give you 90
days to meet the minimum. C Class shares redeemed in this manner may be subject
to a sales charge if held less than the applicable period. Please note that you
may incur tax liability as a result of the redemption. For Institutional Class
shares, we reserve the right to convert your shares to Investor Class shares of
the same fund. The Investor Class shares have a unified management fee that is
0.20% higher than the Institutional Class.

SIGNATURE GUARANTEES

A signature guarantee - which is different from a notarized signature - is a
warranty that the signature presented is genuine. We may require a signature
guarantee for the following transactions.

*  You have chosen to conduct business in writing only and would like to
   redeem over $100,000.

*  Your redemption or distribution check, Check-A-Month or automatic
   redemption is made payable to someone other than the account owners.

*  Your redemption proceeds or distribution amount is sent by EFT (ACH or
   wire) to a destination other than your personal bank account.

*  You are transferring ownership of an account over $100,000.

*  You change your address and request a redemption over $100,000 within 15
   days.

*  You change your bank information and request a redemption within 15 days.


- ------
16


We reserve the right to require a signature guarantee for other transactions, at
our discretion.

MODIFYING OR CANCELING AN INVESTMENT

Investment instructions are irrevocable. That means that once you have mailed or
otherwise transmitted your investment instruction, you may not modify or cancel
it. Each fund reserves the right to suspend the offering of shares for a period
of time and to reject any specific investment (including a purchase by
exchange). Additionally, we may refuse a purchase if, in our judgment, it is of
a size that would disrupt the management of a fund.

ABUSIVE TRADING PRACTICES

Short-term trading and other so-called market timing practices are not defined
or explicitly prohibited by any federal or state law. However, short-term
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of short-term
trading activity is significant relative to a fund's net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund's performance could be negatively impacted by the increased trading costs
created by short-term trading if the additional trading costs are significant.

Because of the potentially harmful effects of abusive trading practices, the
fund's Board of Directors has approved American Century's abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
imposing redemption fees on certain funds, and using fair value pricing when
current market prices are not readily available. Although these efforts are
designed to discourage abusive trading practices, they cannot eliminate the
possibility that such activity will occur. American Century seeks to exercise
its judgment in implementing these tools to the best of its ability in a manner
that it believes is consistent with shareholder interests.

American Century uses a variety of techniques to monitor for and detect abusive
trading practices. These techniques may vary depending on the type of fund, the
class of shares or whether the shares are held directly or indirectly with
American Century. They may change from time to time as determined by American
Century in its sole discretion. To minimize harm to the funds and their
shareholders, we reserve the right to reject any purchase order (including
exchanges) from any shareholder we believe has a history of abusive trading or
whose trading, in our judgment, has been or may be disruptive to the funds. In
making this judgment, we may consider trading done in multiple accounts under
common ownership or control.

Currently, for shares held directly with American Century, we may deem the sale
of all or a substantial portion of a shareholder's purchase of fund shares to be
abusive if the sale is made

*  within seven days of the purchase, or

*  within 30 days of the purchase, if it happens more than once per year.

To the extent practicable, we try to use the same approach for defining abusive
trading for shares held through financial intermediaries. American Century
reserves the right, in its sole discretion, to identify other trading practices
as abusive and to modify its monitoring and other practices as necessary to deal
with novel or unique abusive trading practices.

In addition, American Century reserves the right to accept purchases and
exchanges in excess of the trading restrictions discussed above if it believes
that such transactions would not be inconsistent with the best interests of fund
shareholders or this policy.


- ------
17


American Century's policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American Century handles, there can be no assurance that American
Century's efforts will identify all trades or trading practices that may be
considered abusive. In addition, American Century's ability to monitor trades
that are placed by individual shareholders within group, or omnibus, accounts
maintained by financial intermediaries is severely limited because American
Century generally does not have access to the underlying shareholder account
information. However, American Century monitors aggregate trades placed in
omnibus accounts and seeks to work with financial intermediaries to discourage
shareholders from engaging in abusive trading practices and to impose
restrictions on excessive trades. There may be limitations on the ability of
financial intermediaries to impose restrictions on the trading practices of
their clients. As a result, American Century's ability to monitor and discourage
abusive trading practices in omnibus accounts may be limited.

YOUR RESPONSIBILITY FOR UNAUTHORIZED TRANSACTIONS

American Century and its affiliated companies use procedures reasonably designed
to confirm that telephone, electronic and other instructions are genuine. These
procedures include recording telephone calls, requesting personalized security
codes or other information, and sending confirmation of transactions. If we
follow these procedures, we are not responsible for any losses that may occur
due to unauthorized instructions. For transactions conducted over the Internet,
we recommend the use of a secure Internet browser. In addition, you should
verify the accuracy of your confirmation statements immediately after you
receive them.

A NOTE ABOUT MAILINGS TO SHAREHOLDERS

To reduce the amount of mail you receive from us, we may deliver a single copy
of certain investor documents (such as shareholder reports and prospectuses) to
investors who share an address, even if accounts are registered under different
names. If you prefer to receive multiple copies of these documents individually
addressed, please call us or your financial professional. For American Century
Brokerage accounts, please call 1-888-345-2071.

RIGHT TO CHANGE POLICIES

We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups. In addition, from time to time we may
waive a policy on a case-by-case basis, as the advisor deems appropriate.


- ------
18


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century will price the fund shares you purchase, exchange or redeem at
the net asset value (NAV) next determined after your order is received and
accepted by the fund's transfer agent, or other financial intermediary with the
authority to accept orders on the fund's behalf. We determine the NAV of each
fund as of the close of regular trading (usually 4 p.m. Eastern time) on the New
York Stock Exchange (NYSE) on each day the NYSE is open. On days when the NYSE
is closed (including certain U.S. national holidays), we do not calculate the
NAV. A fund's NAV is the current value of the fund's assets, minus any
liabilities, divided by the number of shares outstanding.

The fund values portfolio securities for which market quotations are readily
available at their market price. As a general rule, equity securities listed on
a U.S. exchange are valued at the last current reported sale price as of the
time of valuation. Securities listed on the NASDAQ National Market System
(Nasdaq) are valued at the Nasdaq Official Closing Price (NOCP), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the
time of valuation. The fund may use pricing services to assist in the
determination of market value. Unlisted securities for which market quotations
are readily available are valued at the last quoted sale price or the last
quoted ask price, as applicable, except that debt obligations with 60 days or
less remaining until maturity may be valued at amortized cost. Exchange-traded
options, futures and options on futures are valued at the settlement price as
determined by the appropriate clearing corporation.

If the fund determines that the market price for a portfolio security is not
readily available or that the valuation methods mentioned above do not reflect
the security's fair value, such security is valued at its fair value as
determined in good faith by, or in accordance with procedures adopted by, the
fund's board or its designee (a process referred to as "fair valuing the
security). Circumstances that may cause the fund to fair value a security
include, but are not limited to:

*  if, after the close of the foreign exchange on which a portfolio security
   is principally traded, but before the close of the NYSE, an event occurs that
   may materially affect the value of the security;

*  a debt security has been declared in default; or

*  trading in a security has been halted during the trading day.

If such circumstances occur, the fund will fair value the security if the fair
valuation would materially impact the fund's NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with procedures adopted by
the fund's board.

The effect of using fair value determinations is that the fund's NAV will be
based, to some degree, on security valuations that the board or its designee
believes are fair rather than being solely determined by the market.

With respect to any portion of the fund's assets that are invested in one or
more open-end management investment companies that are registered with the SEC
(known as registered investment companies, or RICs), the fund's NAV will be
calculated based upon the NAVs of such RICs. These RICs are required by law to
explain the circumstances under which they will use fair value pricing and the
effects of using fair value pricing in their prospectuses.

Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based on the prevailing exchange rates on that day.

Trading of securities in foreign markets may not take place every day the NYSE
is open. Also, trading in some foreign markets and on some electronic trading
networks


- ------
19


may take place on weekends or holidays when the fund's NAV is not calculated.
So, the value of the fund's portfolio may be affected on days when you will not
be able to purchase, exchange or redeem fund shares.

DISTRIBUTIONS

Federal tax laws require each fund to make distributions to its shareholders in
order to qualify as a "regulated investment company. Qualification as a
regulated investment company means the fund should not be subject to state or
federal income tax on amounts distributed. The distributions generally consist
of dividends and interest received by a fund, as well as CAPITAL GAINS realized
by a fund on the sale of its investment securities. The fund generally pays
distributions from net income and capital gains, if any, once a year in
December. The fund may make more frequent distributions, if necessary, to comply
with Internal Revenue Code provisions.

    [GRAPHIC OF TRIANGLE]

    CAPITAL GAINS ARE INCREASES IN THE VALUES OF CAPITAL ASSETS, SUCH AS STOCK,
    FROM THE TIME THE ASSETS ARE PURCHASED.

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

Participants in tax-deferred retirement plans must reinvest all distributions.
For investors investing through taxable accounts, we will reinvest distributions
unless you elect to have dividends and/or capital gains sent to another American
Century account, to your bank electronically, or to your home address or to
another person or address by check.


- ------
20


TAXES

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

Tax-Deferred Accounts

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

Taxable Accounts

If you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund shares.

Taxability of Distributions

Fund distributions may consist of income, such as dividends and interest earned
by a fund from its investments, or capital gains generated by a fund from the
sale of investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as QUALIFIED DIVIDEND INCOME and you meet a
minimum required holding period with respect to your shares of the fund, in
which case distributions of income are taxed as long-term capital gains.

    [GRAPHIC OF TRIANGLE]

    QUALIFIED DIVIDEND INCOME IS A DIVIDEND RECEIVED BY THE FUND FROM THE STOCK
    OF A DOMESTIC OR QUALIFYING FOREIGN CORPORATION, PROVIDED THAT THE FUND HAS
    HELD THE STOCK FOR A REQUIRED HOLDING PERIOD.

For capital gains and for income distributions designated as qualified dividend
income, the following rates apply:

                                        TAX RATE FOR 10%      TAX RATE FOR
TYPE OF DISTRIBUTION                    AND 15% BRACKETS      ALL OTHER BRACKETS
- --------------------------------------------------------------------------------
Short-term capital gains                Ordinary Income       Ordinary Income
- --------------------------------------------------------------------------------
Long-term capital gains (> 1 year)
and Qualified Dividend Income           5%                    15%
- --------------------------------------------------------------------------------

If the fund's distributions exceed its taxable income and capital gains realized
during the tax year, all or a portion of the distributions made by the fund in
that tax year will be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.


- ------
21


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

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

Taxes on Transactions

Your redemptions - including exchanges to other American Century funds - are
subject to capital gains tax. The table above can provide a general guide for
your potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss. However, you should note that loss realized upon the
sale or exchange of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain to you with respect to those shares. If a loss is realized on the
redemption of fund shares, the reinvestment in additional fund shares within 30
days before or after the redemption may be subject to the wash sale rules of the
Internal Revenue Code. This may result in a postponement of the recognition of
such loss for federal income tax purposes.

If you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.

Buying a Dividend

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

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

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


- ------
22


MULTIPLE CLASS INFORMATION

American Century offers four classes of shares of the fund: Investor Class,
Institutional Class, Advisor Class and C Class.

The classes have different fees, expenses and/or minimum investment
requirements. The difference in the fee structures between the classes is the
result of their separate arrangements for shareholder and distribution services.
It is not the result of any difference in advisory or custodial fees or other
expenses related to the management of the fund's assets, which do not vary by
class. Different fees and expenses will affect performance.

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

Service, Distribution and Administrative Fees

Investment Company Act Rule 12b-1 permits mutual funds that adopt a written plan
to pay certain expenses associated with the distribution of their shares out of
fund assets. The fund's Advisor Class and C Class shares have a 12b-1 plan. The
plans provide for the fund to pay annual fees of 1.00% for C Class and 0.50% for
Advisor Class to the distributor for certain ongoing shareholder and
administrative services and for distribution services, including past
distribution services. Under the Advisor Class Plan, the fund's Advisor Class
pays the distributor an annual fee of 0.50% of Advisor Class average net assets,
half for certain shareholder and administrative services and half for
distribution services, including past distribution services. The distributor
pays all or a portion of such fees to the financial intermediaries that make the
classes available. Because these fees are used to pay for services that are not
related to prospective sales of the fund, each class will continue to make
payments under its plan even if it is closed to new investors. Because these
fees are paid out of the fund's assets on an ongoing basis, over time these fees
will increase the cost of your investment and may cost you more than paying
other types of sales charges. For additional information about the plans and
their terms, see MULTIPLE CLASS STRUCTURE in the statement of additional
information.

Certain financial intermediaries perform recordkeeping and administrative
services for their clients that would otherwise be performed by American
Century's transfer agent. In some circumstances, the advisor will pay such
service providers a fee for performing those services. Also, the advisor and the
fund's distributor may make payments for various additional services or other
expenses out of their profits or other available sources. Such payments may be
made for one or more of the following: (1) distribution services, which include
expenses incurred by intermediaries for their sales activities with respect to
the fund, such as preparing, printing and distributing sales literature and
advertising materials and compensating registered representatives or other
employees of such financial intermediary for their sales activities; (2)
shareholder services, such as providing individual and custom investment
advisory services to clients of the financial intermediary; and (3) marketing
and promotional services, including business planning assistance, educating
personnel about the fund, and sponsorship of sales meetings, which may include
covering costs of providing speakers, meals and other entertainment. The
distributor may sponsor seminars and conferences designed to educate
intermediaries about the fund and may cover the expenses associated with
attendance at such meetings, including travel costs. These payments and
activities are intended to provide an incentive to intermediaries to sell the
fund by ensuring that they are educated about the fund, and to help such
intermediaries defray costs associated with offering the fund. The amount of any
payments described by this paragraph is determined by the advisor or the
distributor, and all such amounts are paid out of the available assets of the
advisor and distributor, and not by you or the fund. As a result, the total
expense ratio of the fund will not be affected by any such payments.


- ------
23


FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The tables on the next few pages itemize what contributed to the changes in
share price during the most recently ended fiscal year. They also show the
changes in share price for this period in comparison to changes over the last
five fiscal years.

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

*  share price at the beginning of the period

*  investment income and capital gains or losses

*  distributions of income and capital gains paid to investors

*  share price at the end of the period

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

*  TOTAL RETURN - the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO - the operating expenses of the fund as a percentage of
   average net assets

*  NET INCOME RATIO - the net investment income of the fund as a percentage
   of average net assets

*  PORTFOLIO TURNOVER - the percentage of the fund's investment portfolio
   that is replaced during the period

The Financial Highlights that follow have been audited by Deloitte & Touche LLP.
The fund's Report of Independent Registered Public Accounting Firm and the
financial statements are included in the fund's annual report, which is
available upon request.



- ------
24


HERITAGE FUND
Investor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31
- ---------------------------------------------------------------------------------------------
                                             2006      2005      2004     2003       2002
- ---------------------------------------------------------------------------------------------
PER-SHARE DATA
- ---------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period         $13.48    $10.76    $10.78   $9.11      $10.13
- ---------------------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(1)           (0.03)    (0.06)    (0.05)   (0.04)     (0.04)
- ----------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                    2.22      2.78      0.03     1.71       (0.98)
- ---------------------------------------------------------------------------------------------
   Total From Investment Operations          2.19      2.72      (0.02)   1.67       (1.02)
- ---------------------------------------------------------------------------------------------
Distributions
- ----------------------------------------
   From Net Realized Gains                   (0.09)    -         -        -          -
- ---------------------------------------------------------------------------------------------
Net Asset Value, End of Period               $15.58    $13.48    $10.76   $10.78     $9.11
=============================================================================================
   TOTAL RETURN(2)                           16.26%    25.16%    (0.09)%  18.33%     (10.07)%

RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                        1.00%     1.00%     1.00%    1.00%      1.00%
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                 (0.22)%   (0.46)%   (0.44)%  (0.39)%    (0.37)%
- ----------------------------------------
Portfolio Turnover Rate                      230%      236%      264%     129%       128%
- ----------------------------------------
Net Assets, End of Period
(in millions)                                $1,037    $801      $1,148   $1,227     $1,010
- ---------------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES
     WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD
     MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET
     ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC
     GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE
     CLASS AND ANOTHER.


- ------
25


HERITAGE FUND
Institutional Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31
- --------------------------------------------------------------------------------------------
                                            2006     2005       2004      2003      2002
- --------------------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period        $13.63   $10.87     $10.86    $9.17     $10.17
- --------------------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(1)          - (2)    (0.03)     (0.03)    (0.01)    (0.02)
- ----------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                   2.26     2.79       0.04      1.70      (0.98)
- --------------------------------------------------------------------------------------------
   Total From Investment Operations         2.26     2.76       0.01      1.69      (1.00)
- --------------------------------------------------------------------------------------------
Distributions
- ----------------------------------------
   From Net Realized Gains                  (0.09)   -          -         -         -
- --------------------------------------------------------------------------------------------
Net Asset Value, End of Period              $15.80   $13.63     $10.87    $10.86    $9.17
============================================================================================
   TOTAL RETURN(3)                          16.59%   25.39%     0.09%     18.43%    (9.83)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                       0.80%    0.80%      0.80%     0.80%     0.80%
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                (0.02)%  (0.26)%   (0.24)%   (0.19)%   (0.17)%
- ----------------------------------------
Portfolio Turnover Rate                     230%     236%       264%      129%      128%
- ----------------------------------------
Net Assets, End of Period
(in thousands)                              $57,039  $43,192    $58,259   $73,735   $152,256
- --------------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  PER-SHARE AMOUNT WAS LESS THAN $0.005.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES
     WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD
     MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET
     ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC
     GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE
     CLASS AND ANOTHER.


- ------
26


HERITAGE FUND
C Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31
- ------------------------------------------------------------------------------------------
                                             2006     2005     2004     2003      2002
- ------------------------------------------------------------------------------------------
PER-SHARE DATA
- ------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period         $12.91   $10.41   $10.54   $8.99     $10.10
- ------------------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(1)           (0.18)   (0.17)   (0.15)   (0.13)    (0.13)
- ----------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                    2.13     2.67     0.02     1.68      (0.98)
- ------------------------------------------------------------------------------------------
   Total From Investment Operations          1.95     2.50     (0.13)   1.55      (1.11)
- ------------------------------------------------------------------------------------------
Distributions
- ----------------------------------------
   From Net Realized Gains                   (0.09)    -        -        -        -
- ------------------------------------------------------------------------------------------
Net Asset Value, End of Period               $14.77   $12.91   $10.41   $10.54    $8.99
==========================================================================================
   TOTAL RETURN(2)                           15.11%   24.02%   (1.23)%  17.24%    (10.99)%

RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                        2.00%    2.00%    2.00%    2.00%     2.00%
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                 (1.22)%  (1.46)%  (1.44)%  (1.39)%   (1.37)%
- ----------------------------------------
Portfolio Turnover Rate                      230%     236%     264%     129%      128%
- ----------------------------------------
Net Assets, End of Period
(in thousands)                               $2,334   $898     $889     $872      $146
- ------------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.


- ------
27


HERITAGE FUND

Advisor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31

- --------------------------------------------------------------------------------------------
                                            2006     2005      2004       2003      2002
- --------------------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period        $13.29   $10.64    $10.68     $9.05     $10.09
- --------------------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(1)          (0.08)   (0.09)    (0.07)     (0.06)    (0.06)
- ----------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                   2.20     2.74      0.03       1.69      (0.98)
- --------------------------------------------------------------------------------------------
   Total From Investment Operations         2.12     2.65      (0.04)     1.63      (1.04)
- --------------------------------------------------------------------------------------------
Distributions
- ----------------------------------------
   From Net Realized Gains                  (0.09)   -         -          -         -
- --------------------------------------------------------------------------------------------
Net Asset Value, End of Period              $15.32   $13.29    $10.64     $10.68    $9.05
============================================================================================
   TOTAL RETURN(2)                          15.96%   24.91%    (0.37)%    18.01%    (10.31)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                       1.25%    1.25%     1.25%      1.25%     1.25%
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                (0.47)%  (0.71)%  (0.69)%    (0.64)%   (0.62)%
- ----------------------------------------
Portfolio Turnover Rate                     230%     236%      264%       129%      128%
- ----------------------------------------
Net Assets, End of Period
(in thousands)                              $57,995  $19,953   $15,623    $13,668   $3,737
- --------------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES
     WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD
     MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET
     ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC
     GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE
     CLASS AND ANOTHER.


- ------
28


NOTES


- ------
29


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

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

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

IN PERSON             SEC Public Reference Room, Washington, D.C.
                      Call 202-942-8090 for location and hours.

ON THE INTERNET       * EDGAR database at sec.gov
                      * By email request at publicinfo@sec.gov

BY MAIL               SEC Public Reference Section
                      Washington, D.C. 20549-0102

This prospectus shall not constitute an offer to sell securities of the fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or qualified for sale, unless such registration or qualification
is not required, or under any circumstances in which such offer or solicitation
would be unlawful.

FUND REFERENCE                FUND CODE         TICKER         NEWSPAPER LISTING
- --------------------------------------------------------------------------------
Heritage Fund
  Investor Class                030               TWHIX          Heritage
- --------------------------------------------------------------------------------
  Institutional Class           330               ATHIX          Heritage
- --------------------------------------------------------------------------------
  C Class                       430               AHGCX          Heritage
- --------------------------------------------------------------------------------
  Advisor Class                 730               ATHAX          Heritage
- --------------------------------------------------------------------------------

Investment Company Act File No. 811-0816

AMERICAN CENTURY INVESTMENTS
americancentury.com

                                   Banks and Trust Companies, Broker-Dealers,
Self-Directed Retail Investors     Financial Professionals, Insurance Companies
P.O. Box 419200                    P.O. Box 419786
Kansas City, Missouri 64141-6200   Kansas City, Missouri 64141-6786
1-800-345-2021 or 816-531-5575     1-800-345-6488

0703
SH-PRS-52526













AMERICAN CENTURY INVESTMENTS

Prospectus

March 1, 2007

Vista(reg.sm) Fund

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

American Century Investment
Services, Inc., Distributor

[american century investments logo and text logo]





Table of Contents

AN OVERVIEW OF THE FUND . . . . . . . . . . . . . . . . . . . . . . . . . . .  2

FUND PERFORMANCE HISTORY. . . . . . . . . . . . . . . . . . . . . . . . . . .  3

FEES AND EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  5

OBJECTIVES, STRATEGIES AND RISKS. . . . . . . . . . . . . . . . . . . . . . .  7

MANAGEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  9

INVESTING DIRECTLY WITH AMERICAN CENTURY . . . . . . . . . . . . . . . . . . .11

INVESTING THROUGH A FINANCIAL INTERMEDIARY . . . . . . . . . . . . . . . . . .13

ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT. . . . . . . . . . . . . . . . .15

SHARE PRICE AND DISTRIBUTIONS. . . . . . . . . . . . . . . . . . . . . . . . .19

TAXES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

MULTIPLE CLASS INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . .23

FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24



          [GRAPHIC OF TRIANGLE]

          THIS SYMBOL IS USED THROUGHOUT THE BOOK TO HIGHLIGHT DEFINITIONS OF
          KEY INVESTMENT TERMS AND TO PROVIDE OTHER HELPFUL INFORMATION.


American Century Investment Services, Inc., Distributor

©2007 American Century Proprietary Holdings, Inc. All rights reserved.

The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.





AN OVERVIEW OF THE FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

The portfolio managers primarily look for stocks of medium-sized and smaller
companies they believe will increase in value over time, using an investment
strategy developed by American Century. In implementing this strategy, the
portfolio managers make their investment decisions based primarily on their
analysis of individual companies, rather than on broad economic forecasts.
Management of the fund is based on the belief that, over the long term, stock
price movements follow growth in earnings and revenues. The portfolio managers'
principal analytical technique involves the identification of companies with
earnings and revenues that are not only growing, but growing at an accelerating
pace.

The fund's principal risks include

*  GROWTH STOCKS - Investments in growth stocks may involve special risks and
   their prices may fluctuate more dramatically than the overall stock market.

*  MID CAP STOCKS - The fund invests in mid-sized and smaller companies which
   may present greater opportunities for capital growth than larger companies,
   but may be more volatile and subject to greater risk.

*  FOREIGN SECURITIES - The fund may invest in foreign securities, which can
   be riskier than investing in U.S. securities.

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

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

*  HIGH TURNOVER - The fund's PORTFOLIO TURNOVER may be unusually high. This
   could result in relatively high commission costs, which could hurt the fund's
   performance, and capital gains tax liabilities for the fund's shareholders.



          [GRAPHIC OF TRIANGLE]

          PORTFOLIO TURNOVER IS A MEASURE OF HOW FREQUENTLY A FUND BUYS AND
          SELLS PORTFOLIO SECURITIES.

*  PRINCIPAL LOSS - At any given time your shares may be worth less than the
   price you paid for them. In other words, it is possible to lose money by
   investing in the fund.

A more detailed description of the fund's investment strategies and risks may be
found under the heading OBJECTIVES, STRATEGIES AND RISKS, which begins on page
7.


          [GRAPHIC OF TRIANGLE]

          AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT, AND IT IS NOT
          INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE
          CORPORATION (FDIC) OR ANY OTHER GOVERNMENT AGENCY.


- ------
2


FUND PERFORMANCE HISTORY

Annual Total Returns

The following bar chart shows the performance of the fund's Investor Class
shares for each of the last 10 calendar years. It indicates the volatility of
the fund's historical returns from year to year. Account fees and sales charges,
if applicable, are not reflected in the chart below. If they had been included,
returns would be lower than those shown. The returns of the fund's other classes
will differ from those shown in the chart, depending on the expenses of those
classes.

VISTA - INVESTOR CLASS

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

                          HIGHEST                              LOWEST
- --------------------------------------------------------------------------------
Vista                     72.22% (4Q 1999)                     -27.52% (3Q 1998)
- --------------------------------------------------------------------------------

Average Annual Total Returns

The following table shows the average annual total returns of the fund's
Investor Class shares calculated three different ways. Additional tables show
the average annual total returns of the fund's other share classes calculated
before the impact of taxes. Returns assume the deduction of all sales loads,
charges and other fees associated with a particular class. Your actual returns
may vary depending on the circumstances of your investment.

Return Before Taxes shows the actual change in the value of fund shares over the
time periods shown, but does not reflect the impact of taxes on fund
distributions or the sale of fund shares. The two after-tax returns take into
account taxes that may be associated with owning fund shares. Return After Taxes
on Distributions is a fund's actual performance, adjusted by the effect of taxes
on distributions made by the fund during the periods shown. Return After Taxes
on Distributions and Sale of Fund Shares is further adjusted to reflect the tax
impact on any change in the value of fund shares as if they had been sold on the
last day of the period.

After-tax returns are calculated using the historical highest federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-tax returns shown are not relevant to investors who hold fund
shares through tax-deferred arrangements such as 401(k) plans or IRAs. After-tax
returns are shown only for the Investor Class shares. After-tax returns for the
other share classes will vary.



- ------
3



The benchmarks are unmanaged indices that have no operating costs and are
included in each table for performance comparison.


INVESTOR CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    10 YEARS
- --------------------------------------------------------------------------------
Return Before Taxes                               9.05%    9.20%      6.69%
Return After Taxes on Distributions               8.93%    9.18%      5.54%
Return After Taxes on Distributions
and Sale of Fund Shares                           6.05%    8.01%      5.30%
Russell Midcap®Growth Index                      10.66%    8.22%      8.62%
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

INSTITUTIONAL CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    10 YEARS
- --------------------------------------------------------------------------------
Return Before Taxes                               9.29%    9.41%      6.89%
Russell Midcap® Growth Index                     10.66%    8.22%      8.62%
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

ADVISOR CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    10 YEARS
- --------------------------------------------------------------------------------
Return Before Taxes                               8.84%    8.93%      6.44%
Russell Midcap® Growth Index                     10.66%    8.22%      8.62%
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

C CLASS
                                                                   LIFE
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006   1 YEAR   5 YEARS   OF CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                              8.01%   8.13%     5.71%
Russell Midcap® Growth Index                    10.66%   8.22%     7.24%(2)
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE C CLASS IS JULY 18, 2001. ONLY CLASSES WITH
     PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR LIFE OF CLASS.

(2)  SINCE JULY 31, 2001, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.

R CLASS
                                                                       LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006          1 YEAR          CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                     8.50%           8.11%
Russell Midcap® Growth Index                           10.66%          10.53%(2)
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE R CLASS IS JULY 29, 2005. ONLY CLASSES WITH
     PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR LIFE OF CLASS.

(2)  SINCE JULY 31, 2005, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.

Performance information is designed to help you see how fund returns can vary.
Keep in mind that past performance (before and after taxes) does not predict how
the fund will perform in the future.

For current performance information, please call us or visit
americancentury.com.


- ------
4


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 same class of shares of other American Century funds
*  to redeem your shares (other than a $10 fee to redeem by wire and the
   deferred sales charge associated with C Class shares redeemed during the
   first year after purchase)

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

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
- --------------------------------------------------------------------------------
Investor Class
  Maximum Account Maintenance Fee                                         $25(1)
- --------------------------------------------------------------------------------
C Class
  Maximum Deferred Sales Charge (load)                                  1.00%(2)
  (as a percentage of net asset value)
- --------------------------------------------------------------------------------

(1)  APPLIES ONLY TO INVESTORS WHOSE TOTAL ELIGIBLE INVESTMENTS WITH
     AMERICAN CENTURY ARE LESS THAN $10,000. SEE Account Maintenance Fee UNDER
     Investing Directly with American Century FOR MORE DETAILS.

(2)  THE DEFERRED SALES CHARGE IS CONTINGENT ON THE LENGTH OF TIME YOU HAVE
     OWNED YOUR SHARES. THE CHARGE IS 1.00% DURING THE FIRST YEAR AFTER PURCHASE
     AND IS ELIMINATED THEREAFTER.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
                                  DISTRIBUTION                  TOTAL ANNUAL
                     MANAGEMENT   AND SERVICE      OTHER        FUND OPERATING
                     FEE(1)       (12B-1) FEES(2)  EXPENSES(3)  EXPENSES
- --------------------------------------------------------------------------------
Investor Class       1.00%        None             0.00%        1.00%
- --------------------------------------------------------------------------------
Institutional Class  0.80%        None             0.00%        0.80%
- --------------------------------------------------------------------------------
C Class              1.00%        1.00%            0.00%        2.00%
- --------------------------------------------------------------------------------
R Class              1.00%        0.50%            0.00%        1.50%
- --------------------------------------------------------------------------------
Advisor Class        0.75%        0.50%            0.00%        1.25%
- --------------------------------------------------------------------------------

(1)  THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR
     ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. FOR MORE
     INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE, SEE The Investment Advisor
     UNDER Management.

(2)  THE 12B-1 FEE IS DESIGNED TO PERMIT INVESTORS TO PURCHASE SHARES
     THROUGH BROKER-DEALERS, BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL
     INTERMEDIARIES. THE FEE MAY BE USED TO COMPENSATE SUCH FINANCIAL
     INTERMEDIARIES FOR DISTRIBUTION AND OTHER SHAREHOLDER SERVICES. IN
     ADDITION, HALF OF THE ADVISOR CLASS 12B-1 FEE (0.25%) IS FOR ONGOING
     RECORDKEEPING AND ADMINISTRATIVE SERVICES PROVIDED BY FINANCIAL
     INTERMEDIARIES, WHICH WOULD OTHERWISE BE PAID BY THE ADVISOR OUT OF THE
     UNIFIED MANAGEMENT FEE. THE ADVISOR HAS REDUCED ITS UNIFIED MANAGEMENT FEE
     BY 0.25% FOR ADVISOR CLASS SHARES, BUT THE FEE FOR CORE INVESTMENT ADVISORY
     SERVICES IS THE SAME FOR ALL CLASSES. FOR MORE INFORMATION, SEE Multiple
     Class Information AND Service, Distribution and Administrative Fees, PAGE
     23.

(3)  OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
     INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST, WERE
     LESS THAN 0.005% FOR THE MOST RECENT FISCAL YEAR.


- ------
5


EXAMPLE

The examples in the table below are intended to help you compare the costs of
investing in a fund with the costs of investing in other mutual funds. Of
course, your actual costs may be higher or lower. Assuming you . . .

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

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

                           1 YEAR        3 YEARS        5 YEARS        10 YEARS
- --------------------------------------------------------------------------------
Investor Class             $102          $318           $551           $1,219
- --------------------------------------------------------------------------------
Institutional Class        $82           $255           $443           $987
- --------------------------------------------------------------------------------
C Class                    $202          $623           $1,069         $2,305
- --------------------------------------------------------------------------------
R Class                    $152          $472           $814           $1,778
- --------------------------------------------------------------------------------
Advisor Class              $127          $395           $683           $1,503
- --------------------------------------------------------------------------------


- ------
6


OBJECTIVES, STRATEGIES AND RISKS

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

The portfolio managers primarily look for stocks of medium-sized and smaller
companies they believe will increase in value over time, using an investment
strategy developed by American Century. In implementing this strategy, the
portfolio managers use a bottom-up approach to stock selection. This means that
the managers make their investment decisions based primarily on their analysis
of individual companies, rather than on broad economic forecasts. Management of
the fund is based on the belief that, over the long term, stock price movements
follow growth in earnings and revenues.

Using American Century's extensive computer database, as well as other primary
analytical research tools, the portfolio managers track financial information
for thousands of individual companies to identify and evaluate trends in
earnings, revenues and other business fundamentals. The portfolio managers'
principal analytical technique involves the identification of companies with
earnings and revenues that are not only growing, but growing at an accelerating
pace. This includes companies whose growth rates, although still negative, are
less negative than prior periods, and companies whose growth rates are expected
to accelerate. In addition to accelerating growth, the fund also considers
companies demonstrating price strength relative to their peers. These techniques
help the portfolio managers buy or hold the stocks of companies they believe
have favorable growth prospects and sell the stocks of companies whose
characteristics no longer meet their criteria.

The fund will usually purchase common stocks of companies that are medium-sized
and smaller at the time of purchase, but it can purchase other types of
securities as well. When determining the size of a company, the portfolio
managers will consider, among other factors, the capitalization of the company
and the amount of revenues as well as other information they obtain about the
company.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies, including
companies located in emerging markets. Investments in foreign securities present
some unique risks that are more fully described in the fund's statement of
additional information.

The portfolio managers do not attempt to time the market. Instead, under normal
market conditions, they intend to keep the fund essentially fully invested in
stocks regardless of the movement of stock prices generally. When the portfolio
managers believe it is prudent, the fund may invest a portion of its assets in
debt securities, options, preferred stock and equity-equivalent securities, such
as convertible securities, stock futures contracts or stock index futures
contracts. The fund generally limits its purchase of debt securities to
investment-grade obligations. Futures contracts, a type of derivative security,
can help the fund's cash assets remain liquid while performing more like stocks.
The fund has a policy governing futures contracts and similar derivative
securities to help manage the risk of these types of investments. A complete
description of the derivatives policy is included in the statement of additional
information.



- ------
7



In the event of exceptional market or economic conditions, the fund may, as a
temporary defensive measure, invest all or a substantial portion of its assets
in cash, cash-equivalent securities or short-term debt securities. To the extent
the fund assumes a defensive position it will not be pursuing its objective of
long-term capital growth.

A description of the policies and procedures with respect to the disclosure of
the fund's portfolio securities is available in the statement of additional
information.

WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?

Growth stocks are typically priced higher than other stocks, in relation to
earnings and other measures, because investors believe they have more growth
potential. This potential may or may not be realized and growth stock prices
tend to fluctuate more dramatically than the overall stock market.

The fund generally invests in mid-size and smaller companies, which may be more
volatile and subject to greater short-term risk. Smaller companies may have
limited financial resources, product lines and markets, and their securities may
trade less frequently and in more limited volumes than securities of larger
companies. In addition, smaller companies may have less publicly available
information.

The portfolio managers may buy a large amount of a company's stock quickly, and
often will dispose of it quickly if the company's earnings or revenues decline.
While the portfolio managers believe this strategy provides substantial
appreciation potential over the long term, in the short term it can create a
significant amount of share price volatility. This volatility can be greater
than that of the average stock fund.

The fund's portfolio turnover may be unusually high. This could result in
relatively high commission costs, which could hurt the fund's performance, and
capital gains tax liabilities for the fund's shareholders.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies. Foreign
investment involves additional risks, including fluctuations in currency
exchange rates, less stable political and economic structures, reduced
availability of public information, and lack of uniform financial reporting and
regulatory practices similar to those that apply in the United States. These
factors make investing in foreign securities generally riskier than investing in
U.S. stocks. To the extent the fund invests in foreign securities, the overall
risk of that fund could be affected.

Market performance tends to be cyclical, and, in the various cycles, certain
investment styles may fall in and out of favor. If the market is not favoring
the fund's style, the fund's gains may not be as big as, or its losses may be
bigger than, other equity funds using different investment styles.

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 the fund owns will go
up and down depending on the performance of the companies that issued them,
general market and economic conditions, and investor confidence.

At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the fund.


- ------
8


MANAGEMENT

WHO MANAGES THE FUND?

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

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than three-fourths of the directors are independent of the fund's advisor;
that is, they have never been employed by and have no financial interest in the
advisor or any of its affiliated companies (other than as shareholders of
American Century funds).

THE INVESTMENT ADVISOR

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

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

For the services it provides to the fund, the advisor receives a unified
management fee based on a percentage of the daily net assets of each class of
shares of the fund. The amount of the fee is calculated daily and paid monthly
in arrears. Out of that fee, the advisor pays all expenses of managing and
operating the fund except brokerage expenses, taxes, interest, fees and expenses
of the independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the fund's management fee may be paid by the fund's
advisor to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of the
advisor.

MANAGEMENT FEES
PAID BY THE FUND
TO THE ADVISOR AS A
PERCENTAGE OF
AVERAGE NET ASSETS
FOR THE FISCAL YEAR     INVESTOR    INSTITUTIONAL                     ADVISOR
ENDED OCTOBER 31, 2006  CLASS       CLASS           C CLASS  R CLASS  CLASS
- --------------------------------------------------------------------------------
Vista                   1.00%       0.80%           1.00%    1.00%    0.75%
- --------------------------------------------------------------------------------

A discussion regarding the basis for the Board of Directors' approval of the
fund's investment advisory contract with the advisor is available in the fund's
report to shareholders dated October 31, 2006.



- ------
9


THE FUND MANAGEMENT TEAM

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

The portfolio managers on the investment team who are jointly and primarily
responsible for the day-to-day management of the fund are identified below.

GLENN A. FOGLE

Mr. Fogle, Senior Vice President and Senior Portfolio Manager, has been a member
of the team that manages the fund since joining American Century in September
1990. He has a bachelor's degree in business administration (management) and an
MBA in finance from Texas Christian University. He is a CFA charterholder.

DAVID M. HOLLOND

Mr. Hollond, Vice President and Portfolio Manager, has been a member of the team
that manages the fund since August 1998. He joined American Century in 1998 and
became a Portfolio Manager in March 2004. He has a bachelor's degree in Russian
and economics from Grinnell College, a master's degree in economics from the
University of Wisconsin, a master's degree in international studies from the
University of Pennsylvania and an MBA in finance from The Wharton School at the
University of Pennsylvania.

BRADLEY J. EIXMANN

Mr. Eixmann, Portfolio Manager, has been a member of the team that manages the
fund since joining American Century in July 2002 as an investment analyst. He
became a Portfolio Manager in February 2007. He has a bachelor's degree in
managerial studies and economics from Rice University and an MBA in finance from
the University of Texas. He is a CFA charterholder.

The statement of additional information provides additional information about
the other accounts managed by the portfolio managers, if any, the structure of
their compensation, and their ownership of fund securities.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the statement of additional
information and the investment objectives of the fund may not be changed without
shareholder approval. The Board of Directors and/or the advisor may change any
other policies and investment strategies.


- ------
10


INVESTING DIRECTLY WITH AMERICAN CENTURY

SERVICES AUTOMATICALLY AVAILABLE TO YOU

Most accounts automatically will have access to the services listed under WAYS
TO MANAGE YOUR ACCOUNT when the account is opened. If you do not want these
services, see CONDUCTING BUSINESS IN WRITING. If you have questions about the
services that apply to your account type, please call us.

CONDUCTING BUSINESS IN WRITING

If you prefer to conduct business in writing only, you can indicate this on the
account application. If you choose this option, you must provide written
instructions to invest, exchange and redeem. All account owners must sign
transaction instructions (with signatures guaranteed for redemptions in excess
of $100,000). By choosing this option, you are not eligible to enroll for
exclusive online account management to waive the account maintenance fee. See
ACCOUNT MAINTENANCE FEE in this section. If you want to add online and telephone
services later, you can complete an Investor Service Options form.

ACCOUNT MAINTENANCE FEE

If you hold Investor Class shares of any American Century fund, or Institutional
Class shares of the American Century Diversified Bond fund, in an American
Century account (i.e., not a financial intermediary or retirement plan account),
we may charge you a $12.50 semiannual account maintenance fee if the value of
those shares is less than $10,000. We will determine the amount of your total
eligible investments twice per year, generally the last Friday in October and
April. If the value of those investments is less than $10,000 at that time, we
will automatically redeem shares in one of your accounts to pay the $12.50 fee.
Please note that you may incur tax liability as a result of the redemption. In
determining your total eligible investment amount, we will include your
investments in all PERSONAL ACCOUNTS (including American Century Brokerage
accounts) registered under your Social Security number. We will not charge the
fee as long as you choose to manage your accounts exclusively online. You may
enroll for exclusive online account management on our Web site. To find out more
about exclusive online account management, visit americancentury.com/info/demo.


          [GRAPHIC OF TRIANGLE]


          PERSONAL ACCOUNTS INCLUDE INDIVIDUAL ACCOUNTS, JOINT ACCOUNTS,
          UGMA/UTMA ACCOUNTS, PERSONAL TRUSTS, COVERDELL EDUCATION SAVINGS
          ACCOUNTS, IRAS (INCLUDING TRADITIONAL, ROTH, ROLLOVER, SEP-, SARSEP-
          AND SIMPLE-IRAS), AND CERTAIN OTHER RETIREMENT ACCOUNTS. IF YOU HAVE
          ONLY BUSINESS, BUSINESS RETIREMENT, EMPLOYER-SPONSORED OR AMERICAN
          CENTURY BROKERAGE ACCOUNTS, YOU ARE CURRENTLY NOT SUBJECT TO THIS FEE,
          BUT YOU MAY BE SUBJECT TO OTHER FEES.

WIRE PURCHASES

CURRENT INVESTORS: If you would like to make a wire purchase into an existing
account, your bank will need the following information. (To invest in a new
fund, please call us first to set up the new account.)

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

NEW INVESTORS: To make a wire purchase into a new account, please complete an
application prior to wiring money.


- ------
11


WAYS TO MANAGE YOUR ACCOUNT

ONLINE

americancentury.com

OPEN AN ACCOUNT: If you are a current or new investor, you can open an account
by completing and submitting our online application. Current investors also can
open an account by exchanging shares from another American Century account.

EXCHANGE SHARES: Exchange shares from another American Century account.

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

SELL SHARES*: Redeem shares and proceeds will be electronically transferred to
your authorized bank account.

* ONLINE REDEMPTIONS UP TO $25,000 PER DAY.

IN PERSON

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

* 4500 Main Street, Kansas City, Missouri - 8 a.m. to 5 p.m., Monday - Friday

* 4917 Town Center Drive, Leawood, Kansas - 8 a.m. to 5 p.m., Monday - Friday,
  8 a.m. to noon, Saturday

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

BY TELEPHONE

INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021

INSTITUTIONAL SERVICE REPRESENTATIVE: 1-800-345-3533

BUSINESS, NOT-FOR-PROFIT AND EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533

AUTOMATED INFORMATION LINE: 1-800-345-8765

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

EXCHANGE SHARES: Call or use our Automated Information Line if you have
authorized us to accept telephone instructions. The Automated Information Line
is available only to Investor Class shareholders.

MAKE ADDITIONAL INVESTMENTS: Call or use our Automated Information Line if you
have authorized us to invest from your bank account. The Automated Information
Line is available only to Investor Class shareholders.

SELL SHARES: Call a Service Representative.

BY MAIL OR FAX

P.O. Box 419200, Kansas City, MO 64141-6200 - Fax: 816-340-7962

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

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

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

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

AUTOMATICALLY

OPEN AN ACCOUNT: Not available.

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

MAKE ADDITIONAL INVESTMENTS: With the automatic investment service, you can
purchase shares on a regular basis. You must invest at least $50 per month per
account.

SELL SHARES: You may sell shares automatically by establishing Check-A-Month or
Automatic Redemption plans.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


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12


INVESTING THROUGH A FINANCIAL INTERMEDIARY

The fund's C, R and Advisor Classes are intended for purchase by participants in
employer-sponsored retirement plans. Additionally, the fund's C and Advisor
Classes are intended for persons purchasing shares through FINANCIAL
INTERMEDIARIES that provide various administrative and distribution services.
For more information regarding plan types, please see BUYING AND SELLING FUND
SHARES in the statement of additional information.


          [GRAPHIC OF TRIANGLE]

          FINANCIAL INTERMEDIARIES INCLUDE BANKS, BROKER-DEALERS, INSURANCE
          COMPANIES, PLAN SPONSORS AND FINANCIAL PROFESSIONALS.

Although each class of shares represents an interest in the same fund, each has
a different cost structure, as described below. Which class is right for you
depends on many factors, including how long you plan to hold the shares, how
much you plan to invest, the fee structure of each class, and how you wish to
compensate your financial professional for the services provided to you. Your
financial professional can help you choose the option that is most appropriate.

The following chart provides a summary description of these classes.

C CLASS                                    R CLASS AND ADVISOR CLASS
- --------------------------------------------------------------------------------
No initial sales charge                    No initial sales charge
- --------------------------------------------------------------------------------
Contingent deferred sales charge           No contingent deferred
on redemptions within 12 months            sales charge
- --------------------------------------------------------------------------------
12b-1 fee of 1.00%                         12b-1 fee of 0.50% (1)
- --------------------------------------------------------------------------------
No conversion feature                      No conversion feature
- --------------------------------------------------------------------------------
Aggregate purchases limited to amounts     Generally offered through
less than $1,000,000; generally more       employer-sponsored retirement plans
appropriate for short-term investors       and other fee-based arrangements(2)
- --------------------------------------------------------------------------------

(1)  WHILE THE R CLASS AND ADVISOR CLASS HAVE THE SAME 12B-1 FEE, THEIR
     TOTAL ANNUAL FUND OPERATING EXPENSES WILL BE DIFFERENT BECAUSE OF THE
     ADVISOR CLASS'S LOWER UNIFIED MANAGEMENT FEE. SEE PAGE 5 FOR MORE DETAILS.

(2)  IRA ACCOUNTS IN R CLASS SHARES ESTABLISHED THROUGH FINANCIAL
     INTERMEDIARIES PRIOR TO AUGUST 1, 2006, MAY MAKE ADDITIONAL PURCHASES.

CALCULATION OF CONTINGENT DEFERRED SALES CHARGE (CDSC)

C Class shares are sold at their net asset value without an initial sales
charge. For sales of C Class shares, the amount paid to your financial
professional is 1.00% of the amount invested. If you redeem your shares within
12 months of purchase, you will pay a CDSC of 1.00% of the original purchase
price or the current market value at redemption, whichever is less. The purpose
of the CDSC is to permit the fund's distributor to recoup all or a portion of
the up-front payment made to your financial professional.

The CDSC will not be charged on shares acquired through reinvestment of
dividends or distributions or increases in the net asset value of shares.

To minimize the amount of the CDSC you may pay when you redeem shares, the fund
will first redeem shares acquired through reinvested dividends and capital gain
distributions, which are not subject to a CDSC. Shares that have been in your
account long enough that they are not subject to a CDSC are redeemed next. For
any remaining redemption amount, shares will be sold in the order they were
purchased (earliest to latest).

The information regarding C Class sales charges provided herein is included free
of charge and in a clear and prominent format at americancentury.com in the
INVESTORS USING ADVISORS and INVESTMENT PROFESSIONALS portions of the Web site.
From the description of C Class shares, a hyperlink will take you directly to
this disclosure.


- ------
13


CDSC WAIVERS

Any applicable CDSC may be waived in the following cases:

*  redemptions through systematic withdrawal plans not exceeding annually:

   *  12% of the lesser of the original purchase cost or current market value
      for C Class shares

*  distributions from IRAs due to attainment of age 59-1/2 for C Class shares

*  required minimum distributions from retirement accounts upon reaching age
   70-1/2

*  tax-free returns of excess contributions to IRAs

*  redemptions due to death or post-purchase disability

*  exchanges, unless the shares acquired by exchange are redeemed within the
   original CDSC period

*  if no broker was compensated for the sale

EXCHANGES BETWEEN FUNDS (C CLASS)

You may exchange C Class shares of a fund for C Class shares of any other
American Century fund. You may not exchange from the C Class to any other class.
We will not charge a CDSC on the shares you exchange, regardless of the length
of time you have owned them. When you do redeem shares that have been exchanged,
the CDSC will be based on the date you purchased the original shares.

BUYING AND SELLING SHARES

Your ability to purchase, exchange, redeem and transfer shares will be affected
by the policies of the financial intermediary through which you do business.
Some policy differences may include

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

In addition, your financial intermediary may charge a transaction fee for the
purchase or sale of fund shares. Those charges are retained by the financial
intermediary and are not shared with American Century or the fund. Please
contact your financial intermediary or plan sponsor for a complete description
of its policies. Copies of the fund's annual report, semiannual report and
statement of additional information are available from your financial
intermediary or plan sponsor.

The fund has authorized certain financial intermediaries to accept orders on the
fund's behalf. American Century has selling agreements with these financial
intermediaries requiring them to track the time investment orders are received
and to comply with procedures relating to the transmission of orders. Orders
must be received by the financial intermediary on the fund's behalf before the
time the net asset value is determined in order to receive that day's share
price. If those orders are transmitted to American Century and paid for in
accordance with the selling agreement, they will be priced at the net asset
value next determined after your request is received in the form required by the
financial intermediary.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
14


ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT

MINIMUM INITIAL INVESTMENT AMOUNTS (OTHER THAN INSTITUTIONAL CLASS)

Unless otherwise specified below, the minimum initial investment amount to open
an account is $2,500. Financial intermediaries may open an account with $250,
but may require their clients to meet different investment minimums. See
INVESTING THROUGH A FINANCIAL INTERMEDIARY for more information.

- --------------------------------------------------------------------------------
Broker-dealer sponsored wrap program accounts                         No minimum
and/or fee-based accounts
- --------------------------------------------------------------------------------
Coverdell Education Savings Account (CESA)                            $2,000(1)
- --------------------------------------------------------------------------------
Employer-sponsored retirement plans                                   No minimum
- --------------------------------------------------------------------------------

(1)  THE MINIMUM INITIAL INVESTMENT FOR FINANCIAL INTERMEDIARIES IS $250.
     FINANCIAL INTERMEDIARIES MAY HAVE DIFFERENT MINIMUMS FOR THEIR CLIENTS.

SUBSEQUENT PURCHASES

There is a $50 minimum for subsequent purchases. See WAYS TO MANAGE YOUR ACCOUNT
for more information about making additional investments directly with American
Century. However, there is no subsequent purchase minimum for financial
intermediaries or employer-sponsored retirement plans, but financial
intermediaries may require their clients to meet different subsequent purchase
requirements.

ELIGIBILITY FOR INSTITUTIONAL CLASS SHARES

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

MINIMUM INITIAL INVESTMENT AMOUNTS (INSTITUTIONAL CLASS)

The minimum initial investment amount is $5 million ($3 million for endowments
and foundations) per fund. If you invest with us through a financial
intermediary, this requirement may be met if your financial intermediary
aggregates your investments with those of other clients into a single group, or
omnibus, account that meets the minimum. The minimum investment requirement may
be waived if you, or your financial intermediary if you invest through an
omnibus account, have an aggregate investment in our family of funds of $10
million or more ($5 million for endowments and foundations). In addition,
financial intermediaries or plan recordkeepers may require retirement plans to
meet certain other conditions, such as plan size or a minimum level of assets
per participant, in order to be eligible to purchase Institutional Class shares.

REDEMPTIONS

If you sell your C Class shares within 12 months of their purchase, you will pay
a sales charge.

Your redemption proceeds will be calculated using the NET ASSET VALUE (NAV) next
determined after we receive your transaction request in good order.


          [GRAPHIC OF TRIANGLE]

          A FUND'S NET ASSET VALUE, OR NAV, IS THE PRICE OF THE FUND'S SHARES.


- ------
15



However, we reserve the right to delay delivery of redemption proceeds up to
seven days. For example, each time you make an investment with American Century,
there is a seven-day holding period before we will release redemption proceeds
from those shares, unless you provide us with satisfactory proof that your
purchase funds have cleared. Investments by wire generally require only a
one-day holding period. If you change your address, we may require that any
redemption request made within 15 days be submitted in writing and be signed by
all authorized signers with their signatures guaranteed. If you change your bank
information, we may impose a 15-day holding period before we will transfer or
wire redemption proceeds to your bank. Please remember, if you request
redemptions by wire, $10 will be deducted from the amount redeemed. Your bank
also may charge a fee.

In addition, we reserve the right to honor certain redemptions with securities,
rather than cash, as described in the next section.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the value of a fund's assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. The portfolio
managers would select these securities from the fund's portfolio.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, you may have to pay
brokerage or other transaction costs to convert the securities to cash.

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

REDEMPTION OF SHARES IN ACCOUNTS BELOW MINIMUM

If your account balance falls below the minimum initial investment amount for
any reason other than as a result of market fluctuation, American Century
reserves the right to redeem the shares in the account and send the proceeds to
your address of record. Prior to doing so, we will notify you and give you 90
days to meet the minimum. C Class shares redeemed in this manner may be subject
to a sales charge if held less than the applicable period. Please note that you
may incur tax liability as a result of the redemption. For Institutional Class
shares, we reserve the right to convert your shares to Investor Class shares of
the same fund. The Investor Class shares have a unified management fee that is
0.20% higher than the Institutional Class.

SIGNATURE GUARANTEES

A signature guarantee - which is different from a notarized signature - is a
warranty that the signature presented is genuine. We may require a signature
guarantee for the following transactions.

*  You have chosen to conduct business in writing only and would like to
   redeem over $100,000.

*  Your redemption or distribution check, Check-A-Month or automatic
   redemption is made payable to someone other than the account owners.

*  Your redemption proceeds or distribution amount is sent by EFT (ACH or
   wire) to a destination other than your personal bank account.


- ------
16


*  You are transferring ownership of an account over $100,000.

*  You change your address and request a redemption over $100,000 within 15
   days.

*  You change your bank information and request a redemption within 15 days.

We reserve the right to require a signature guarantee for other transactions, at
our discretion.

MODIFYING OR CANCELING AN INVESTMENT

Investment instructions are irrevocable. That means that once you have mailed or
otherwise transmitted your investment instruction, you may not modify or cancel
it. Each fund reserves the right to suspend the offering of shares for a period
of time and to reject any specific investment (including a purchase by
exchange). Additionally, we may refuse a purchase if, in our judgment, it is of
a size that would disrupt the management of a fund.

ABUSIVE TRADING PRACTICES

Short-term trading and other so-called market timing practices are not defined
or explicitly prohibited by any federal or state law. However, short-term
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of short-term
trading activity is significant relative to a fund's net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund's performance could be negatively impacted by the increased trading costs
created by short-term trading if the additional trading costs are significant.

Because of the potentially harmful effects of abusive trading practices, the
fund's Board of Directors has approved American Century's abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
imposing redemption fees on certain funds, and using fair value pricing when
current market prices are not readily available. Although these efforts are
designed to discourage abusive trading practices, they cannot eliminate the
possibility that such activity will occur. American Century seeks to exercise
its judgment in implementing these tools to the best of its ability in a manner
that it believes is consistent with shareholder interests.

American Century uses a variety of techniques to monitor for and detect abusive
trading practices. These techniques may vary depending on the type of fund, the
class of shares or whether the shares are held directly or indirectly with
American Century. They may change from time to time as determined by American
Century in its sole discretion. To minimize harm to the funds and their
shareholders, we reserve the right to reject any purchase order (including
exchanges) from any shareholder we believe has a history of abusive trading or
whose trading, in our judgment, has been or may be disruptive to the funds. In
making this judgment, we may consider trading done in multiple accounts under
common ownership or control.

Currently, for shares held directly with American Century, we may deem the sale
of all or a substantial portion of a shareholder's purchase of fund shares to be
abusive if the sale is made

* within seven days of the purchase, or

* within 30 days of the purchase, if it happens more than once per year.

To the extent practicable, we try to use the same approach for defining abusive
trading for shares held through financial intermediaries. American Century
reserves the right, in its sole discretion, to identify other trading practices
as abusive and to modify its monitoring and other practices as necessary to deal
with novel or unique abusive trading practices.


- ------
17


In addition, American Century reserves the right to accept purchases and
exchanges in excess of the trading restrictions discussed above if it believes
that such transactions would not be inconsistent with the best interests of fund
shareholders or this policy.

American Century's policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American Century handles, there can be no assurance that American
Century's efforts will identify all trades or trading practices that may be
considered abusive. In addition, American Century's ability to monitor trades
that are placed by individual shareholders within group, or omnibus, accounts
maintained by financial intermediaries is severely limited because American
Century generally does not have access to the underlying shareholder account
information. However, American Century monitors aggregate trades placed in
omnibus accounts and seeks to work with financial intermediaries to discourage
shareholders from engaging in abusive trading practices and to impose
restrictions on excessive trades. There may be limitations on the ability of
financial intermediaries to impose restrictions on the trading practices of
their clients. As a result, American Century's ability to monitor and discourage
abusive trading practices in omnibus accounts may be limited.

YOUR RESPONSIBILITY FOR UNAUTHORIZED TRANSACTIONS

American Century and its affiliated companies use procedures reasonably designed
to confirm that telephone, electronic and other instructions are genuine. These
procedures include recording telephone calls, requesting personalized security
codes or other information, and sending confirmation of transactions. If we
follow these procedures, we are not responsible for any losses that may occur
due to unauthorized instructions. For transactions conducted over the Internet,
we recommend the use of a secure Internet browser. In addition, you should
verify the accuracy of your confirmation statements immediately after you
receive them.

A NOTE ABOUT MAILINGS TO SHAREHOLDERS

To reduce the amount of mail you receive from us, we may deliver a single copy
of certain investor documents (such as shareholder reports and prospectuses) to
investors who share an address, even if accounts are registered under different
names. If you prefer to receive multiple copies of these documents individually
addressed, please call us or your financial professional. For American Century
Brokerage accounts, please call 1-888-345-2071.

RIGHT TO CHANGE POLICIES

We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups. In addition, from time to time we may
waive a policy on a case-by-case basis, as the advisor deems appropriate.


- ------
18


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century will price the fund shares you purchase, exchange or redeem at
the net asset value (NAV) next determined after your order is received and
accepted by the fund's transfer agent, or other financial intermediary with the
authority to accept orders on the fund's behalf. We determine the NAV of each
fund as of the close of regular trading (usually 4 p.m. Eastern time) on the New
York Stock Exchange (NYSE) on each day the NYSE is open. On days when the NYSE
is closed (including certain U.S. national holidays), we do not calculate the
NAV. A fund's NAV is the current value of the fund's assets, minus any
liabilities, divided by the number of shares outstanding.

The fund values portfolio securities for which market quotations are readily
available at their market price. As a general rule, equity securities listed on
a U.S. exchange are valued at the last current reported sale price as of the
time of valuation. Securities listed on the NASDAQ National Market System
(Nasdaq) are valued at the Nasdaq Official Closing Price (NOCP), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the
time of valuation. The fund may use pricing services to assist in the
determination of market value. Unlisted securities for which market quotations
are readily available are valued at the last quoted sale price or the last
quoted ask price, as applicable, except that debt obligations with 60 days or
less remaining until maturity may be valued at amortized cost. Exchange-traded
options, futures and options on futures are valued at the settlement price as
determined by the appropriate clearing corporation.

If the fund determines that the market price for a portfolio security is not
readily available or that the valuation methods mentioned above do not reflect
the security's fair value, such security is valued at its fair value as
determined in good faith by, or in accordance with procedures adopted by, the
fund's board or its designee (a process referred to as "fair valuing" the
security). Circumstances that may cause the fund to fair value a security
include, but are not limited to:

*  if, after the close of the foreign exchange on which a portfolio security
   is principally traded, but before the close of the NYSE, an event occurs that
   may materially affect the value of the security;

*  a debt security has been declared in default; or

*  trading in a security has been halted during the trading day.

If such circumstances occur, the fund will fair value the security if the fair
valuation would materially impact the fund's NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with procedures adopted by
the fund's board.

The effect of using fair value determinations is that the fund's NAV will be
based, to some degree, on security valuations that the board or its designee
believes are fair rather than being solely determined by the market.

With respect to any portion of the fund's assets that are invested in one or
more open-end management investment companies that are registered with the SEC
(known as registered investment companies, or RICs), the fund's NAV will be
calculated based upon the NAVs of such RICs. These RICs are required by law to
explain the circumstances under which they will use fair value pricing and the
effects of using fair value pricing in their prospectuses.


- ------
19


Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based on the prevailing exchange rates on that day.

Trading of securities in foreign markets may not take place every day the NYSE
is open. Also, trading in some foreign markets and on some electronic trading
networks may take place on weekends or holidays when the fund's NAV is not
calculated. So, the value of the fund's portfolio may be affected on days when
you will not be able to purchase, exchange or redeem fund shares.

DISTRIBUTIONS

Federal tax laws require each fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means the fund should not be subject to state or
federal income tax on amounts distributed. The distributions generally consist
of dividends and interest received by a fund, as well as CAPITAL GAINS realized
by a fund on the sale of its investment securities. The fund generally pays
distributions from net income and capital gains, if any, once a year in
December. The fund may make more frequent distributions, if necessary, to comply
with Internal Revenue Code provisions.


          [GRAPHIC OF TRIANGLE]

          CAPITAL GAINS ARE INCREASES IN THE VALUES OF CAPITAL ASSETS, SUCH AS
          STOCK, FROM THE TIME THE ASSETS ARE PURCHASED.

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

Participants in tax-deferred retirement plans must reinvest all distributions.
For investors investing through taxable accounts, we will reinvest distributions
unless you elect to have dividends and/or capital gains sent to another American
Century account, to your bank electronically, or to your home address or to
another person or address by check.


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20


TAXES

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

Tax-Deferred Accounts

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

Taxable Accounts

If you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund shares.

Taxability of Distributions

Fund distributions may consist of income, such as dividends and interest earned
by a fund from its investments, or capital gains generated by a fund from the
sale of investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as QUALIFIED DIVIDEND INCOME and you meet a
minimum required holding period with respect to your shares of the fund, in
which case distributions of income are taxed as long-term capital gains.


          [GRAPHIC OF TRIANGLE]

          QUALIFIED DIVIDEND INCOME IS A DIVIDEND RECEIVED BY THE FUND FROM THE
          STOCK OF A DOMESTIC OR QUALIFYING FOREIGN CORPORATION, PROVIDED THAT
          THE FUND HAS HELD THE STOCK FOR A REQUIRED HOLDING PERIOD.

For capital gains and for income distributions designated as qualified dividend
income, the following rates apply:

                                        TAX RATE FOR 10%      TAX RATE FOR
TYPE OF DISTRIBUTION                    AND 15% BRACKETS      ALL OTHER BRACKETS
- --------------------------------------------------------------------------------
Short-term capital gains                Ordinary Income       Ordinary Income
- --------------------------------------------------------------------------------
Long-term capital gains (> 1 year)
and Qualified Dividend Income           5%                    15%
- --------------------------------------------------------------------------------

If the fund's distributions exceed its taxable income and capital gains realized
during the tax year, all or a portion of the distributions made by the fund in
that tax year will be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.


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21


The tax status of any distributions of capital gains is determined by how long a
fund held the underlying security that was sold, not by how long you have been
invested in the fund, or whether you reinvest your distributions in additional
shares or take them in cash. For taxable accounts, American Century or your
financial intermediary will inform you of the tax status of fund distributions
for each calendar year in an annual tax mailing.

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

Taxes on Transactions

Your redemptions - including exchanges to other American Century funds - are
subject to capital gains tax. The table above can provide a general guide for
your potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss. However, you should note that loss realized upon the
sale or exchange of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain to you with respect to those shares. If a loss is realized on the
redemption of fund shares, the reinvestment in additional fund shares within 30
days before or after the redemption may be subject to the wash sale rules of the
Internal Revenue Code. This may result in a postponement of the recognition of
such loss for federal income tax purposes.

If you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.

Buying a Dividend

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

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

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


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22


MULTIPLE CLASS INFORMATION

American Century offers five classes of shares of the fund: Investor Class,
Institutional Class, C Class, R Class and Advisor Class.

The classes have different fees, expenses and/or minimum investment
requirements. The difference in the fee structures between the classes is the
result of their separate arrangements for shareholder and distribution services.
It is not the result of any difference in advisory or custodial fees or other
expenses related to the management of the fund's assets, which do not vary by
class. Different fees and expenses will affect performance.

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

Service, Distribution and Administrative Fees

Investment Company Act Rule 12b-1 permits mutual funds that adopt a written plan
to pay certain expenses associated with the distribution of their shares out of
fund assets. The fund's Advisor Class, C Class and R Class shares have a 12b-1
plan. The plans provide for the fund to pay annual fees of 1.00% for C Class and
0.50% for Advisor and R Classes to the distributor for certain ongoing
shareholder and administrative services and for distribution services, including
past distribution services. Under the Advisor Class Plan, the fund's Advisor
Class pays the distributor an annual fee of 0.50% of Advisor Class average net
assets, half for certain shareholder and administrative services and half for
distribution services, including past distribution services. The distributor
pays all or a portion of such fees to the financial intermediaries that make the
classes available. Because these fees are used to pay for services that are not
related to prospective sales of the fund, each class will continue to make
payments under its plan even if it is closed to new investors. Because these
fees are paid out of the fund's assets on an ongoing basis, over time these fees
will increase the cost of your investment and may cost you more than paying
other types of sales charges. For additional information about the plans and
their terms, see MULTIPLE CLASS STRUCTURE in the statement of additional
information.

Certain financial intermediaries perform recordkeeping and administrative
services for their clients that would otherwise be performed by American
Century's transfer agent. In some circumstances, the advisor will pay such
service providers a fee for performing those services. Also, the advisor and the
fund's distributor may make payments for various additional services or other
expenses out of their profits or other available sources. Such payments may be
made for one or more of the following: (1) distribution services, which include
expenses incurred by intermediaries for their sales activities with respect to
the fund, such as preparing, printing and distributing sales literature and
advertising materials and compensating registered representatives or other
employees of such financial intermediary for their sales activities; (2)
shareholder services, such as providing individual and custom investment
advisory services to clients of the financial intermediary; and (3) marketing
and promotional services, including business planning assistance, educating
personnel about the fund, and sponsorship of sales meetings, which may include
covering costs of providing speakers, meals and other entertainment. The
distributor may sponsor seminars and conferences designed to educate
intermediaries about the fund and may cover the expenses associated with
attendance at such meetings, including travel costs. These payments and
activities are intended to provide an incentive to intermediaries to sell the
fund by ensuring that they are educated about the fund, and to help such
intermediaries defray costs associated with offering the fund. The amount of any
payments described by this paragraph is determined by the advisor or the
distributor, and all such amounts are paid out of the available assets of the
advisor and distributor, and not by you or the fund. As a result, the total
expense ratio of the fund will not be affected by any such payments.


- ------
23


FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The tables on the next few pages itemize what contributed to the changes in
share price during the most recently ended fiscal year. They also show the
changes in share price for this period in comparison to changes over the last
five fiscal years (or a shorter period if the share class is not five years
old).

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

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

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

*  TOTAL RETURN - the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO - the operating expenses of the fund as a percentage of
   average net assets

*  NET INCOME RATIO - the net investment income of the fund as a percentage
   of average net assets

*  PORTFOLIO TURNOVER - the percentage of the fund's investment portfolio
   that is replaced during the period

The Financial Highlights that follow have been audited by Deloitte & Touche LLP.
The fund's Report of Independent Registered Public Accounting Firm and the
financial statements are included in the fund's annual report, which is
available upon request.



- ------
24


VISTA FUND

Investor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31

- -------------------------------------------------------------------------------------
                                         2006     2005     2004     2003     2002
- -------------------------------------------------------------------------------------
PER-SHARE DATA
- -------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period     $14.99   $13.14   $11.97   $9.25    $10.62
- -------------------------------------------------------------------------------------
Income From Investment Operations
- --------------------------------------
   Net Investment                        (0.04)   (0.04)   (0.06)   (0.06)   (0.04)
   Income (Loss)(1)
- --------------------------------------
   Net Realized and                      1.40     1.89     1.23     2.78     (1.33)
    Unrealized Gain (Loss)
- -------------------------------------------------------------------------------------
   Total From Investment Operations      1.36     1.85     1.17     2.72     (1.37)
- -------------------------------------------------------------------------------------
Net Asset Value, End of Period           $16.35   $14.99   $13.14   $11.97   $9.25
=====================================================================================
   TOTAL RETURN(2)                       9.07%    14.08%   9.77%    29.41%   (12.90)%

RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                    1.00%    1.00%    1.00%    1.00%    1.00%
- --------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets             (0.23)%  (0.26)%  (0.48)%  (0.57)%  (0.34)%
- --------------------------------------
Portfolio Turnover Rate                  234%     284%     255%     280%     293%
- --------------------------------------
Net Assets, End of Period
(in millions)                            $1,965   $1,902   $1,418   $1,240   $966
- -------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES
     WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD
     MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET
     ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC
     GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE
     CLASS AND ANOTHER.


- ------
25


VISTA FUND

Institutional Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31

- -------------------------------------------------------------------------------------
                                         2006      2005     2004     2003     2002
- -------------------------------------------------------------------------------------
PER-SHARE DATA
- -------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period     $15.22    $13.32   $12.11   $9.34    $10.70
- -------------------------------------------------------------------------------------
Income From Investment Operations
- --------------------------------------
   Net Investment Income (Loss)(1)       (0.01)    (0.01)   (0.04)   (0.03)   (0.02)
- --------------------------------------
   Net Realized and                      1.43      1.91     1.25     2.80     (1.34)
   Unrealized Gain (Loss)
- -------------------------------------------------------------------------------------
   Total From Investment Operations      1.42      1.90     1.21     2.77     (1.36)
- -------------------------------------------------------------------------------------
Net Asset Value, End of Period           $16.64    $15.22   $13.32   $12.11   $9.34
=====================================================================================
   TOTAL RETURN(2)                       9.33%     14.26%   9.99%    29.66%   (12.71)

RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                    0.80%     0.80%    0.80%    0.80%    0.80%
- --------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets             (0.03)%   (0.06)%  (0.28)%  (0.37)%  (0.14)%
- --------------------------------------
Portfolio Turnover Rate                  234%      284%     255%     280%     293%
- --------------------------------------
Net Assets, End of Period
(in thousands)                           $132,325  $98,439  $42,747  $34,177  $37,743
- -------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES
     WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD
     MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET
     ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC
     GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE
     CLASS AND ANOTHER.


- ------
26


VISTA FUND

C Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31

- --------------------------------------------------------------------------------
                                       2006     2005    2004    2003    2002
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period   $14.37   $12.73  $11.71  $9.12   $10.59
- --------------------------------------------------------------------------------
Income From Investment Operations
- ------------------------------------
   Net Investment Income (Loss)(1)     (0.19)   (0.18)  (0.19)  (0.16)  (0.15)
- ------------------------------------
   Net Realized and                    1.34     1.82    1.21    2.75    (1.32)
   Unrealized Gain (Loss)
- --------------------------------------------------------------------------------
   Total From Investment Operations    1.15     1.64    1.02    2.59    (1.47)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period         $15.52   $14.37  $12.73  $11.71  $9.12
================================================================================
   TOTAL RETURN(2)                     8.00%    12.88%  8.71%   28.40%  (13.88)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                  2.00%    2.00%   2.00%   2.00%   2.00%
- ------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets           (1.23)%  (1.26)% (1.48)% (1.57)% (1.34)%
- ------------------------------------
Portfolio Turnover Rate                234%     284%    255%    280%    293%
- ------------------------------------
Net Assets, End of Period
(in thousands)                         $2,998   $2,515  $1,439  $333    $110
- --------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.


- ------
27


VISTA FUND

R Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)

- --------------------------------------------------------------------------------
                                                    2006             2005(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                $14.97           $15.32
- --------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(2)                  (0.16)           (0.04)
- ----------------------------------------
   Net Realized and Unrealized Gain (Loss)          1.44             (0.31)
- --------------------------------------------------------------------------------
   Total From Investment Operations                 1.28             (0.35)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                      $16.25           $14.97
================================================================================
   TOTAL RETURN(3)                                  8.55%            (2.28)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                               1.50%            1.50%(4)
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                        (0.73)%          (0.92%)(4)
- ----------------------------------------
Portfolio Turnover Rate                             234%             284%(5)
- ----------------------------------------
Net Assets, End of Period (in thousands)            $337             $24
- --------------------------------------------------------------------------------

(1)  JULY 29, 2005 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2005.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY
     REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING
     THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE
     CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE
     CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET
     VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND
     DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE
     INDICATED WAS CALCULATED FOR THE YEAR ENDED OCTOBER 31, 2005.




- ------
28


VISTA FUND

Advisor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31

- -------------------------------------------------------------------------------------
                                       2006      2005      2004      2003     2002
- -------------------------------------------------------------------------------------
PER-SHARE DATA
- -------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period   $14.73    $12.95    $11.82    $9.15    $10.53
- -------------------------------------------------------------------------------------
Income From Investment Operations
- -------------------------------------
   Net Investment Income (Loss)(1)     (0.08)    (0.08)    (0.11)    (0.08)   (0.06)
- -------------------------------------
   Net Realized and                    1.38      1.86      1.24      2.75     (1.32)
   Unrealized Gain (Loss)
- -------------------------------------------------------------------------------------
   Total From Investment Operations    1.30      1.78      1.13      2.67     (1.38)
- -------------------------------------------------------------------------------------
Net Asset Value, End of Period         $16.03    $14.73    $12.95    $11.82   $9.15
=====================================================================================
   TOTAL RETURN(2)                     8.83%     13.75%    9.56%     29.18%   (13.11)

RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                  1.25%     1.25%     1.25%     1.25%    1.25%
- -------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets           (0.48)%   (0.51)%   (0.73)%   (0.82)%  (0.59)%
- -------------------------------------
Portfolio Turnover Rate                234%      284%      255%      280%     293%
- -------------------------------------
Net Assets, End of Period
(in thousands)                         $210,576  $190,635  $106,750  $17,060  $11,333
- -------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES
     WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD
     MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET
     ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC
     GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE
     CLASS AND ANOTHER.


- ------
29


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

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

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

IN PERSON           SEC Public Reference Room, Washington, D.C.
                    Call 202-942-8090 for location and hours.

ON THE INTERNET     * EDGAR database at sec.gov
                    * By email request at publicinfo@sec.gov

BY MAIL             SEC Public Reference Section,
                    Washington, D.C. 20549-0102

This prospectus shall not constitute an offer to sell securities of the fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or qualified for sale, unless such registration or qualification
is not required, or under any circumstances in which such offer or solicitation
would be unlawful.

                                                                    NEWSPAPER
FUND REFERENCE                  FUND CODE           TICKER          LISTING
- --------------------------------------------------------------------------------
Vista Fund
  Investor Class                024                 TWCVX           Vista
- --------------------------------------------------------------------------------
  Institutional Class           324                 TWVIX           Vista
- --------------------------------------------------------------------------------
  C Class                       424                 TWVCX           Vista
- --------------------------------------------------------------------------------
  R Class                       124                 AVTRX           Vista
- --------------------------------------------------------------------------------
  Advisor Class                 724                 TWVAX           Vista
- --------------------------------------------------------------------------------

Investment Company Act File No. 811-0816

AMERICAN CENTURY INVESTMENTS
americancentury.com

                                  Banks and Trust Companies, Broker-Dealers,
Self-Directed Retail Investors    Financial Professionals, Insurance Companies
P.O. Box 419200                   P.O. Box 419786
Kansas City, Missouri 64141-6200  Kansas City, Missouri 64141-6786
1-800-345-2021 or 816-531-5575    1-800-345-6488

0703
SH-PRS-52534













AMERICAN CENTURY INVESTMENTS

Prospectus

March 1, 2007

Giftrust® Fund

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

American Century Investment Services, Inc., Distributor

[american century investments logo and text logo]





Table of Contents

AN OVERVIEW OF THE FUND . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

FUND PERFORMANCE HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

FEES AND EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

OBJECTIVES, STRATEGIES AND RISKS . . . . . . . . . . . . . . . . . . . . . . . 6

MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

HOW TO INVEST IN THE GIFTRUST FUND . . . . . . . . . . . . . . . . . . . . . .11

HOW TO MANAGE A MATURED GIFTRUST . . . . . . . . . . . . . . . . . . . . . . .13

SHARE PRICE AND DISTRIBUTIONS . . . . . . . . . . . . . . . . . . . . . . . . 19

TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23


        [graphic of triangle]

        THIS SYMBOL IS USED THROUGHOUT THE BOOK TO HIGHLIGHT
        DEFINITIONS OF KEY INVESTMENT TERMS AND TO PROVIDE
        OTHER HELPFUL INFORMATION.

American Century Investment Services, Inc., Distributor

©2007 American Century Proprietary Holdings, Inc. All rights reserved.

The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.




AN OVERVIEW OF THE FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGY AND PRINCIPAL RISKS?

The portfolio managers look for stocks of medium-sized and smaller companies
they believe will increase in value over time, using an investment strategy
developed by American Century. In implementing this strategy, the portfolio
managers make their investment decisions based primarily on their analysis of
individual companies, rather than on broad economic forecasts. Management of the
fund is based on the belief that, over the long term, stock price movements
follow growth in earnings and revenues. The portfolio managers' principal
analytical technique involves the identification of companies with earnings and
revenues that are not only growing, but growing at an accelerating pace.

The fund's principal risks include:

*  GROWTH STOCKS - Investments in growth stocks may involve special risks and
   their prices may fluctuate more dramatically than the overall stock market.

*  MID CAP STOCKS - The fund invests in mid-sized and smaller companies which
   may present greater opportunities for capital growth than larger companies,
   but may be more volatile and subject to greater risk.

*  FOREIGN SECURITIES - The fund may invest in foreign securities, which can
   be riskier than investing in U.S. securities.

*  IPO RISK - The fund's performance may be affected by investments in
   initial public offerings.

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

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

*  HIGH TURNOVER - The fund's PORTFOLIO TURNOVER may be unusually high. This
   could result in relatively high commission costs, which could hurt the fund's
   performance, and capital gains tax liabilities for the fund's shareholders.

        [graphic of triangle]

        PORTFOLIO TURNOVER IS A MEASURE OF HOW FREQUENTLY
        A FUND BUYS AND SELLS PORTFOLIO SECURITIES.

*  PRINCIPAL LOSS - At any given time your shares may be worth less than the
   price you paid for them. In other words, it is possible to lose money by
   investing in the fund.

A more detailed description of the fund's investment strategies and risks may be
found under the heading OBJECTIVES, STRATEGIES AND RISKS, which begins on page
6.

        [graphic of triangle]

        AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT, AND IT IS NOT INSURED
        OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR
        ANY OTHER GOVERNMENT AGENCY.


- ------
2


FUND PERFORMANCE HISTORY

Annual Total Returns

The following bar chart shows the performance of the fund's shares for each of
the last 10 calendar years. It indicates the volatility of the fund's historical
returns from year to year. Account fees are not reflected in the chart below. If
they had been included, returns would be lower than those shown.

GIFTRUST FUND

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

                              HIGHEST                          LOWEST
- --------------------------------------------------------------------------------
Giftrust Fund                 56.31% (4Q 1999)                 -35.13% (4Q 2000)
- --------------------------------------------------------------------------------

Average Annual Total Returns

The following table shows the average annual total returns of the fund's
Investor Class shares calculated three different ways.

Return Before Taxes shows the actual change in the value of fund shares over the
periods shown, but does not reflect the impact of taxes on fund distributions or
the sale of fund shares. The two after-tax returns take into account taxes that
may be associated with owning fund shares. Return After Taxes on Distributions
is a fund's actual performance, adjusted by the effect of taxes on distributions
made by the fund during the period shown. Return After Taxes on Distributions
and Sale of Fund Shares is further adjusted to reflect the tax impact on any
change in the value of fund shares as if they had been sold on the last day of
the period.

After-tax returns are calculated using the historical highest federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-tax returns shown are not relevant to investors who hold fund
shares through tax-deferred arrangements such as 401(k) plans or IRAs.


- ------
3


The benchmark is an unmanaged index that has no operating costs and is included
in the table for performance comparison.

FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS     10 YEARS
- --------------------------------------------------------------------------------
Return Before Taxes                              17.21%    7.66%(1)    2.30%(1)
Return After Taxes on Distributions              17.21%    7.66%       1.67%
Return After Taxes on Distributions
   and Sale of Fund Shares                       11.19%    6.65%       1.84%
Russell Midcap® Growth Index                     10.66%    8.22%       8.62%
   (reflects no deduction
   for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  RETURNS WOULD HAVE BEEN LOWER IF MANAGEMENT FEE HAD NOT BEEN WAIVED
     FROM FEBRUARY 1, 2004 TO JULY 31, 2004.

Performance information is designed to help you see how fund returns can vary.
Keep in mind that past performance (before and after taxes) does not predict how
a fund will perform in the future.

For current performance information, please call us or visit
americancentury.com.


- ------
4


FEES AND EXPENSES

There are no sales loads, fees or other charges

*  to establish a Giftrust

*  to reinvest dividends in additional shares

*  for the beneficiary to redeem or exchange into Investor Class shares of
   other American Century funds after the Giftrust has matured (other than a $10
   fee to redeem by wire)

The following tables describe the fees and expenses a Giftrust may pay during
the life of the trust.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
- --------------------------------------------------------------------------------
Investor Class (Matured Giftrusts only)
  Maximum Account Maintenance Fee                                         $25(1)
- --------------------------------------------------------------------------------

(1)  APPLIES ONLY TO INVESTORS WHOSE TOTAL ELIGIBLE INVESTMENTS WITH
     AMERICAN CENTURY ARE LESS THAN $10,000. SEE Account Maintenance Fee UNDER
     How to Manage a Matured Giftrust FOR MORE DETAILS.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
                     DISTRIBUTION                               TOTAL ANNUAL
MANAGEMENT           AND SERVICE            OTHER               FUND OPERATING
FEE(1)               (12B-1) FEES           EXPENSES(2)         EXPENSES
- --------------------------------------------------------------------------------
1.00%                None                   0.00%               1.00%
- --------------------------------------------------------------------------------

(1)  THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR
     ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. FOR MORE
     INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE, SEE The Investment Advisor
     UNDER Management.

(2)  OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
     INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST, WERE
     LESS THAN 0.005% FOR THE MOST RECENT FISCAL YEAR.

EXAMPLE

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

*  you establish a $10,000 Giftrust

*  the Giftrust earns a 5% return each year

*  the same operating expenses shown above apply each year

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

1 YEAR                3 YEARS                5 YEARS                10 YEARS
- --------------------------------------------------------------------------------
$102                  $318                   $551                   $1,219
- --------------------------------------------------------------------------------

TRUST EXPENSES

Each Giftrust for which the trustee files a tax return will be charged a $10 fee
to help offset a portion of the cost of preparing the return. See TAXES on page
21.


- ------
5


OBJECTIVES, STRATEGIES AND RISKS

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

The portfolio managers look for stocks of medium-sized and smaller companies
they believe will increase in value over time, using an investment strategy
developed by American Century. In implementing this strategy, the portfolio
managers use a bottom-up approach to stock selection. This means that the
managers make their investment decisions based primarily on their analysis of
individual companies, rather than on broad economic forecasts. Management of the
fund is based on the belief that, over the long term, stock price movements
follow growth in earnings and revenues.

Using American Century's extensive computer database, as well as other primary
analytical research tools, the portfolio managers track financial information
for thousands of individual companies to identify and evaluate trends in
earnings, revenues and other business fundamentals. The portfolio managers'
principal analytical technique involves the identification of companies with
earnings and revenues that are not only growing, but growing at an accelerating
pace. This includes companies whose growth rates, although still negative, are
less negative than prior periods, and companies whose growth rates are expected
to accelerate. These techniques help the portfolio managers buy or hold the
stocks of companies they believe have favorable growth prospects and sell the
stocks of companies whose characteristics no longer meet their criteria.

The fund will usually purchase common stocks of U.S. and foreign companies that
are medium-sized and smaller at the time of purchase, but it can purchase other
types of securities as well. When determining the size of a company, the
portfolio managers will consider, among other factors, the capitalization of the
company and the amount of revenues as well as other information they obtain
about the company.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies, including
companies located in emerging markets. Investments in foreign securities present
some unique risks that are more fully described in the fund's statement of
additional information.

The portfolio managers do not attempt to time the market. Instead, under normal
market conditions, they intend to keep the fund essentially fully invested in
stocks regardless of the movement of stock prices generally. When the portfolio
managers believe it is prudent, the fund may invest a portion of its assets in
debt securities, options, preferred stock and equity-equivalent securities, such
as convertible securities, stock futures contracts or stock index futures
contracts. The fund generally limits its purchase of debt securities to
investment-grade obligations, except convertible debt securities, which may be
rated below investment grade. Futures contracts, a type of derivative security,
can help the fund's cash assets remain liquid while performing more like stocks.
The fund has a policy governing futures contracts and similar derivative
securities to help manage the risk of these types of investments. A complete
description of the derivatives policy is included in the statement of additional
information.

If the companies in which the fund invests are successful, these companies may
grow into large-sized companies. In addition, if the portfolio managers
determine that the availability of medium-sized and smaller companies in which
to invest is not adequate to meet the fund's investment needs, the portfolio
managers may invest in large-sized companies.


- ------
6


The Giftrust Fund is intended for investors who want to give a one-time gift to
another individual, but want that gift to have the potential to grow over time
(at least 18 years) in an aggressive equity fund that seeks long-term capital
growth. Investors wanting to make such a gift must be willing to give up control
over the gift and accept the risks associated with the fund's investment
strategy.

In the event of exceptional market or economic conditions, the fund may, as a
temporary defensive measure, invest all or a substantial portion of its assets
in cash, cash-equivalent securities or short-term debt securities. To the extent
the fund assumes a defensive position it will not be pursuing its objective of
long-term capital growth.

A description of the policies and procedures with respect to the disclosure of
the fund's portfolio securities is available in the statement of additional
information.

WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?

The minimum term of a Giftrust established on or after August 1, 2002, is 18
years and the maximum term is 65 years. By the terms of the trust, a gift is
irrevocable and will be held in the trust until its term expires.

        [graphic of triangle]

        EFFECTIVE JANUARY 1, 2005, A CHANGE IN MISSOURI LAW MAKES IT
        POSSIBLE TO TERMINATE A GIFTRUST EARLY UNDER CERTAIN CIRCUMSTANCES
        WITH THE CONSENT OF THE GRANTOR AND ALL BENEFICIARIES. MORE INFORMATION
        ABOUT HOW THIS CHANGE MAY AFFECT THE RIGHTS OF GIFTRUST BENEFICIARIES IS
        AVAILABLE AT AMERICANCENTURY.COM.

Growth stocks are typically priced higher than other stocks, in relation to
earnings and other measures, because investors believe they have more growth
potential. This potential may or may not be realized and growth stock prices
tend to fluctuate more dramatically than the overall stock markets.

The fund generally invests in medium-sized and smaller companies, which may be
more volatile and subject to greater short-term risk. Smaller companies may have
limited financial resources, product lines and markets, and their securities may
trade less frequently and in more limited volumes than the securities of larger
companies. In addition, smaller companies may have less publicly available
information.

The portfolio managers may buy a large amount of a company's stock quickly, and
often will dispose of it quickly if the company's earnings or revenues decline.
While the managers believe this strategy provides substantial appreciation
potential over the long term, in the short term it can create a significant
amount of share price volatility. This volatility can be greater than that of
the average stock fund.

The fund's portfolio turnover may be unusually high. This could result in
relatively high commission costs, which could hurt the fund's performance, and
capital gains tax liabilities for the fund's shareholders.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies. To the
extent the fund invests in foreign securities, the overall risk of the fund
could be affected. Foreign investment involves additional risks, including
fluctuations in currency exchange rates, less stable political and economic
structures, reduced availability of public information, and lack of uniform
financial reporting and regulatory practices similar to those that apply in the
United States. These factors make investing in foreign securities generally
riskier than investing in U.S. stocks.

Investing in securities of companies located in emerging market countries
generally is also riskier than investing in securities of companies located in
foreign developed countries. Emerging market countries may have unstable
governments and/or economies that are subject to sudden change. These changes
may be magnified by the countries'



- ------
7



emergent financial markets, resulting in significant volatility to investments
in these countries. These countries also may lack the legal, business and social
framework to support securities markets.

The fund's performance also may be affected by investments in initial public
offerings (IPOs). The impact of IPOs on the fund's performance depends on the
strength of the IPO market and the size of the fund. IPOs may have less impact
on the fund's performance as its assets grow.

Market performance tends to be cyclical, and, in the various cycles, certain
investment styles may fall in and out of favor. If the market is not favoring
the fund's style, the fund's gains may not be as big as, or its losses may be
bigger than, other equity funds using different investment styles.

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 the fund owns will go
up and down depending on the performance of the companies that issued them,
general market and economic conditions, and investor confidence.

At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the fund.


- ------
8


MANAGEMENT

WHO MANAGES THE FUND?

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

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than three-fourths of the directors are independent of the fund's advisor;
that is, they have never been employed by and have no financial interest in the
advisor or any of its affiliated companies (other than as shareholders of
American Century funds).

THE INVESTMENT ADVISOR

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

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

For the services it provides to the fund, the advisor receives a unified
management fee based on a percentage of the daily net assets of each class of
shares of the fund. The amount of the fee is calculated daily and paid monthly
in arrears. Out of that fee, the advisor pays all expenses of managing and
operating the fund except brokerage expenses, taxes, interest, fees and expenses
of the independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the fund's management fee may be paid by the fund's
advisor to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of the
advisor.

MANAGEMENT FEES PAID
BY THE FUND TO THE
ADVISOR AS A PERCENTAGE
OF AVERAGE NET ASSETS
FOR THE FISCAL YEAR
ENDED OCTOBER 31, 2006
- --------------------------------------------------------------------------------
Giftrust                                                                   1.00%
- --------------------------------------------------------------------------------

A discussion regarding the basis for the Board of Directors' approval of the
fund's investment advisory contract with the advisor is available in the fund's
report to shareholders dated October 31, 2006.



- ------
9


THE FUND MANAGEMENT TEAM

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

The portfolio managers on the investment team who are jointly and primarily
responsible for the day-to-day management of the fund are identified below.

GLENN A. FOGLE

Mr. Fogle, Senior Vice President and Senior Portfolio Manager, rejoined the team
that manages the fund in February 2007. He joined American Century in September
1990 and became a portfolio manager in June 1993. He has a bachelor's degree in
business administration (management) and an MBA in finance from Texas Christian
University. He is a CFA charterholder.

DAVID M. HOLLOND

Mr. Hollond, Vice President and Portfolio Manager, has been a member of the team
that manages the fund since February 2007. He joined American Century in 1998
and became a portfolio manager in March 2004. He has a bachelor's degree in
Russian and economics from Grinnell College, a master's degree in economics from
the University of Wisconsin, a master's degree in international studies from the
University of Pennsylvania and an MBA in finance from The Wharton School at the
University of Pennsylvania.

KURT R. STALZER

Mr. Stalzer, Vice President and Portfolio Manager, has been a member of the team
that manages the fund since August 2001. He joined American Century in January
2000 as a portfolio manager. He has a BBA with a concentration in finance and
accounting from the University of Michigan-Dearborn.

The statement of additional information provides additional information about
the other accounts managed by the portfolio managers, if any, the structure of
their compensation, and their ownership of fund securities.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the statement of additional
information and the investment objective of the fund may not be changed without
shareholder approval. The Board of Directors and/or the advisor may change any
other policies and investment strategies.


- ------
10


HOW TO INVEST IN THE GIFTRUST FUND

You must conduct business in writing on a Giftrust unless you establish
telephone services. Please remember that the person establishing a Giftrust
gives up the right to redeem or exchange shares. If you choose to do business in
writing only, you must provide written instructions to make additional gifts
into the Giftrust. Additional gifts cannot be made into Giftrusts opened on or
after August 1, 2002. If you want to add services later, you can complete an
Investor Service Options form.

BY TELEPHONE
- --------------------------------------------------------------------------------
INVESTOR SERVICES REPRESENTATIVE
1-800-345-2021

AUTOMATED INFORMATION LINE
1-800-345-8765
24 hours a day, seven days a week

OPEN A GIFTRUST

A Giftrust account must be established in writing with a one-time gift of at
least $2,500. Call us for a Giftrust kit.

MAKE ADDITIONAL GIFTS*

Call if you have authorized us to invest from your bank account. Additional
gifts must be at least $50.

BY WIRE
- --------------------------------------------------------------------------------
OPEN A GIFTRUST

Give your bank the following information:

* Our bank information:

      Commerce Bank N.A.

      Routing No. 101000019

      ACMF Account No. 2804918

* Giftrust Fund

* The American Century Giftrust account number

* Giftrust beneficiary's name

MAKE ADDITIONAL GIFTS*

Follow the OPEN A GIFTRUST wire instructions

*NO ADDITIONAL GIFTS CAN BE MADE INTO GIFTRUSTS OPENED ON OR AFTER AUGUST 1,
 2002.


- ------
11


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

Fax 816-340-7962

OPEN A GIFTRUST

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

TRANSFER SHARES

Send written instructions to exchange your shares from another American Century
account into the Giftrust.

MAKE ADDITIONAL GIFTS*

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

AUTOMATICALLY
- --------------------------------------------------------------------------------
OPEN A GIFTRUST

Not available.

MAKE ADDITIONAL GIFTS*

Select "Establish Automatic Investments" on your application to make automatic
gifts on a regular basis. You must invest at least $600 per year per Giftrust.

IN PERSON
- --------------------------------------------------------------------------------
If you prefer to handle your transactions in person, visit one of our Investor
Centers and a representative can help you open a Giftrust and make additional
investments.

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

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

*NO ADDITIONAL GIFTS CAN BE MADE INTO GIFTRUSTS OPENED ON OR AFTER AUGUST 1,
 2002.


- ------
12


HOW TO MANAGE A MATURED GIFTRUST

The beneficiary will be notified before the Giftrust matures. On the maturity
date, the Giftrust shares will be transferred to a Giftrust account established
in the sole name and Social Security number of the beneficiary. The beneficiary
can choose to do business either in writing only or by telephone.

In-Writing-Only service is established at the time the Giftrust matures. The
beneficiary will need to provide written instructions in order to invest,
exchange and redeem. The beneficiary must sign transaction instructions (with
signature guaranteed for redemptions in excess of $100,000). If the beneficiary
wants to add services later, he or she can complete an Investor Service Options
form. Shareholders who maintain In-Writing-Only service are not eligible to
enroll for exclusive online account management to waive the account maintenance
fee. See ACCOUNT MAINTENANCE FEE in this section.

ONLINE
- --------------------------------------------------------------------------------
americancentury.com

EXCHANGE MATURED SHARES

Exchange shares into another American Century account.

MAKE ADDITIONAL INVESTMENTS

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

SELL MATURED SHARES

Not available.

BY TELEPHONE
- --------------------------------------------------------------------------------
INVESTOR SERVICES REPRESENTATIVE
1-800-345-2021

AUTOMATED INFORMATION LINE
1-800-345-8765

EXCHANGE MATURED SHARES

Call or use our Automated Information Line if we have been authorized to accept
telephone instructions.

MAKE ADDITIONAL INVESTMENTS

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

SELL MATURED SHARES

Call a Service Representative.

BY WIRE
- --------------------------------------------------------------------------------
If the beneficiary requests redemptions by wire, $10 will be deducted from the
amount wired. The beneficiary's bank also may charge a fee.

EXCHANGE MATURED SHARES

Not available.

MAKE ADDITIONAL INVESTMENTS

Follow the wire instructions provided in the HOW TO INVEST IN THE GIFTRUST
FUND-BY WIRE-OPEN A GIFTRUST section.

SELL MATURED SHARES

A beneficiary can receive redemption proceeds by wire or electronic transfer.
(This service is not available if the beneficiary has chosen to do business in
writing only.)


- ------
13


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

Fax
816-340-7962

EXCHANGE MATURED SHARES

Send written instructions to exchange shares from the Giftrust to another
American Century fund.

MAKE ADDITIONAL INVESTMENTS

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

SELL MATURED SHARES

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

AUTOMATICALLY
- --------------------------------------------------------------------------------
EXCHANGE MATURED SHARES

Send written instructions to set up an automatic exchange of your shares from
the Giftrust to another American Century account.

MAKE ADDITIONAL INVESTMENTS

With the automatic investment service, you can purchase shares on a regular
basis. You must invest at least $50 per month per account.

SELL MATURED SHARES

The beneficiary may sell shares automatically by establishing a Check-A-Month or
Automatic Redemption plan.

IN PERSON
- --------------------------------------------------------------------------------
If the beneficiary prefers to handle transactions in person, he or she can visit
one of our Investor Centers and a representative can help.

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

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


- ------
14


ACCOUNT MAINTENANCE FEE

If you hold Investor Class shares of any American Century fund, or Institutional
Class shares of the American Century Diversified Bond Fund, in an American
Century account (i.e., not a financial intermediary or retirement plan account),
we may charge you a $12.50 semiannual account maintenance fee if the value of
those shares is less than $10,000. We will determine the amount of your total
eligible investments twice per year, generally the last Friday in October and
April. If the value of those investments is less than $10,000 at that time, we
will redeem shares automatically in one of your accounts to pay the $12.50 fee.
Please note that you may incur tax liability as a result of the redemption. In
determining your total eligible investment amount, we will include your
investments in all PERSONAL ACCOUNTS (including American Century Brokerage
accounts) registered under your Social Security number. We will not charge the
fee as long as you choose to manage your accounts exclusively online. You may
enroll for exclusive online account management on our Web site. To find out more
about exclusive online account management, visit
www.americancentury.com/info/demo.

        [graphic of triangle]

        PERSONAL ACCOUNTS INCLUDE INDIVIDUAL ACCOUNTS, JOINT ACCOUNTS,
        UGMA/UTMA ACCOUNTS, PERSONAL TRUSTS, COVERDELL EDUCATION SAVINGS
        ACCOUNTS, IRAS (INCLUDING TRADITIONAL, ROTH, ROLLOVER, SEP-, SARSEP-
        AND SIMPLE-IRAS), AND CERTAIN OTHER RETIREMENT ACCOUNTS. IF YOU HAVE
        ONLY BUSINESS, BUSINESS RETIREMENT, EMPLOYER-SPONSORED OR AMERICAN
        CENTURY BROKERAGE ACCOUNTS, YOU ARE CURRENTLY NOT SUBJECT TO THIS FEE,
        BUT YOU MAY BE SUBJECT TO OTHER FEES.

REDEMPTIONS

Giftrust shares ordinarily may not be redeemed until the Giftrust matures.
However, effective January 1, 2005, a change in Missouri law makes it possible
to terminate a Giftrust early under certain circumstances with the consent of
the grantor and all beneficiaries. This requires a completed Giftrust Options
Form, which is available online at americancentury.com or by calling a Service
Representative at 1-800-345-2021. Your redemption proceeds will be calculated
using the NET ASSET VALUE (NAV) next determined after we receive your
transaction request in good order.

        [graphic of triangle]

        A FUND'S NET ASSET VALUE, OR NAV, IS THE PRICE OF THE FUND'S SHARES.

However, we reserve the right to delay delivery of redemption proceeds up to
seven days. For example, each time you make an investment in a matured Giftrust,
there is a seven-day holding period before we will release redemption proceeds
from those shares, unless you provide us with satisfactory proof that your
purchase funds have cleared. Investments by wire generally require only a
one-day holding period. If you change your address, we may require that any
redemption request made within 15 days be submitted in writing and be signed by
all authorized signers with their signatures guaranteed. If you change your bank
information, we may impose a 15-day holding period before we will transfer or
wire redemption proceeds to your bank. In addition, we reserve the right to
honor certain redemptions with securities, rather than cash, as described in the
next section.


- ------
15


SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, the beneficiary redeems matured Giftrust shares
worth more than $250,000 (or 1% of the value of the fund's assets if that amount
is less than $250,000), we reserve the right to pay part or all of the
redemption proceeds in excess of this amount in readily marketable securities
instead of in cash. The portfolio managers would select these securities from
the fund's portfolio.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, the beneficiary may have
to pay brokerage or other transaction costs to convert the securities to cash.

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

REDEMPTION OF SHARES IN ACCOUNTS BELOW MINIMUM

If the matured Giftrust balance falls below the minimum initial investment
amount for any reason other than as a result of market fluctuation, American
Century reserves the right to redeem the shares in the account and send the
proceeds to the beneficiary's address of record. Prior to doing so, we will
notify the beneficiary and allow 90 days to meet the minimum. Please note that
the beneficiary may incur tax liability as a result of the redemption.

SIGNATURE GUARANTEES

A signature guarantee-which is different from a notarized signature-is a
warranty that the signature presented is genuine. We may require a signature
guarantee for the following transactions:

*  Your redemption or distribution check, Check-A-Month or automatic
   redemption is made payable to someone other than the account owners

*  Your redemption proceeds or distribution amount is sent by EFT (ACH or
   wire) to a destination other than your personal bank account

*  You are transferring ownership of an account over $100,000

*  You change your address and request a redemption over $100,000 within 15
   days

*  You change your bank information and request a redemption within 15 days

We reserve the right to require a signature guarantee for other transactions at
our discretion.

MODIFYING OR CANCELING AN INVESTMENT

Investment instructions are irrevocable. That means that once you have mailed or
otherwise transmitted your investment instruction, you may not modify or cancel
it. The fund reserves the right to suspend the offering of shares for a period
of time and to reject any specific investment (including a purchase by
exchange). Additionally, we may refuse a purchase if, in our judgment, it is of
a size that would disrupt the management of the fund.

YOUR RESPONSIBILITY FOR UNAUTHORIZED TRANSACTIONS

American Century and its affiliated companies use procedures reasonably designed
to confirm that telephone, electronic and other instructions are genuine. These
procedures include recording telephone calls, requesting personalized security
codes or other information, and sending confirmation of transactions. If we
follow these procedures, we are not responsible for any losses that may occur
due to unauthorized instructions. For


- ------
16


transactions conducted over the Internet, we recommend the use of a secure
Internet browser. In addition, you should verify the accuracy of your
confirmation statements immediately after you receive them.

ABUSIVE TRADING PRACTICES

Short-term trading and other so-called market timing practices are not defined
or explicitly prohibited by any federal or state law. However, short-term
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of short-term
trading activity is significant relative to a fund's net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund's performance could be negatively impacted by the increased trading costs
created by short-term trading if the additional trading costs are significant.

Because of the potentially harmful effects of abusive trading practices, the
funds' Board of Directors has approved American Century's abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
imposing redemption fees on certain funds, and using fair value pricing when
current market prices are not readily available. Although these efforts are
designed to discourage abusive trading practices, they cannot eliminate the
possibility that such activity will occur. American Century seeks to exercise
its judgment in implementing these tools to the best of its ability in a manner
that it believes is consistent with shareholder interests.

American Century uses a variety of techniques to monitor for and detect abusive
trading practices. These techniques may vary depending on the type of fund, the
class of shares or whether the shares are held directly or indirectly with
American Century. They may change from time to time as determined by American
Century in its sole discretion. To minimize harm to the funds and their
shareholders, we reserve the right to reject any purchase order (including
exchanges) from any shareholder we believe has a history of abusive trading or
whose trading, in our judgment, has been or may be disruptive to the funds. In
making this judgment, we may consider trading done in multiple accounts under
common ownership or control.

Currently, for shares held directly with American Century, we may deem the sale
of all or a substantial portion of a shareholder's purchase of fund shares to be
abusive if the sale is made

*  within seven days of the purchase, or

*  within 30 days of the purchase, if it happens more than once per year.

To the extent practicable, we try to use the same approach for defining abusive
trading for shares held through financial intermediaries. American Century
reserves the right, in its sole discretion, to identify other trading practices
as abusive and to modify its monitoring and other practices as necessary to deal
with novel or unique abusive trading practices.

In addition, American Century reserves the right to accept purchases and
exchanges in excess of the trading restrictions discussed above if it believes
that such transactions would not be inconsistent with the best interests of fund
shareholders or this policy.

American Century's policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American Century handles, there can be no assurance that American
Century's efforts will identify all trades or trading practices that may be
considered abusive. In addition, American Century's ability to monitor trades
that are placed by the individual shareholders within group, or omnibus,
accounts maintained by financial intermediaries


- ------
17


is severely limited because American Century generally does not have access to
the underlying shareholder account information. However, American Century
monitors aggregate trades placed in omnibus accounts and seeks to work with
financial intermediaries to discourage shareholders from engaging in abusive
trading practices and to impose restrictions on excessive trades. There may be
limitations on the ability of financial intermediaries to impose restrictions on
the trading practices of their clients. As a result, American Century's ability
to monitor and discourage abusive trading practices in omnibus accounts may be
limited.

A NOTE ABOUT MAILINGS TO SHAREHOLDERS

To reduce the amount of mail you receive from us, we may deliver a single copy
of certain investor documents (such as shareholder reports and prospectuses) to
investors who share an address, even if accounts are registered under different
names. If you prefer to receive multiple copies of these documents individually
addressed, please call us or your financial professional. For American Century
Brokerage accounts, please call 1-800-345-2071.

RIGHT TO CHANGE POLICIES

We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups. In addition, from time to time we may
waive a policy on a case-by-case basis, as the advisor deems appropriate.


- ------
18


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century will price the fund shares you purchase, exchange or redeem at
the net asset value (NAV) next determined after your order is received and
accepted by the fund's transfer agent, or other financial intermediary with the
authority to accept orders on the fund's behalf. We determine the NAV of each
fund as of the close of regular trading (usually 4 p.m. Eastern time) on the New
York Stock Exchange (NYSE) on each day the NYSE is open. On days when the NYSE
is closed (including certain U.S. national holidays), we do not calculate the
NAV. A fund's NAV is the current value of the fund's assets, minus any
liabilities, divided by the number of shares outstanding.

The fund values portfolio securities for which market quotations are readily
available at their market price. As a general rule, equity securities listed on
a U.S. exchange are valued at the last current reported sale price as of the
time of valuation. Securities listed on the NASDAQ National Market System
(Nasdaq) are valued at the Nasdaq Official Closing Price (NOCP), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the
time of valuation. The fund may use pricing services to assist in the
determination of market value. Unlisted securities for which market quotations
are readily available are valued at the last quoted sale price or the last
quoted ask price, as applicable, except that debt obligations with 60 days or
less remaining until maturity may be valued at amortized cost. Exchange-traded
options, futures and options on futures are valued at the settlement price as
determined by the appropriate clearing corporation.

If the fund determines that the market price for a portfolio security is not
readily available or that the valuation methods mentioned above do not reflect
the security's fair value, such security is valued at its fair value as
determined in good faith by, or in accordance with procedures adopted by, the
fund's board or its designee (a process referred to as "fair valuing" the
security). Circumstances that may cause the fund to fair value a security
include, but are not limited to:

* if, after the close of the foreign exchange on which a portfolio security
  is principally traded, but before the close of the NYSE, an event occurs that
  may materially affect the value of the security;

* a debt security has been declared in default; or

* trading in a security has been halted during the trading day.

If such circumstances occur, the fund will fair value the security if the fair
valuation would materially impact the fund's NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with procedures adopted by
the fund's board.

The effect of using fair value determinations is that the fund's NAV will be
based, to some degree, on security valuations that the board or its designee
believes are fair rather than being solely determined by the market.

With respect to any portion of the fund's assets that are invested in one or
more open-end management investment companies that are registered with the SEC
(known as registered investment companies, or RICs), the fund's NAV will be
calculated based upon the NAVs of such RICs. These RICs are required by law to
explain the circumstances under which they will use fair value pricing and the
effects of using fair value pricing in their prospectuses.

Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based on the prevailing exchange rates on that day.


- ------
19


Trading of securities in foreign markets may not take place every day the NYSE
is open. Also, trading in some foreign markets and on some electronic trading
networks may take place on weekends or holidays when the fund's NAV is not
calculated. So, the value of the fund's portfolio may be affected on days when
you will not be able to purchase, exchange or redeem fund shares.

DISTRIBUTIONS

Federal tax laws require the fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means the fund should not be subject to state or
federal income tax on amounts distributed. The distributions generally consist
of dividends and interest received by a fund, as well as CAPITAL GAINS realized
by a fund on the sale of its investment securities. The fund generally pays
distributions from net income and capital gains, if any, once a year in
December. The fund may make more frequent distributions, if necessary, to comply
with Internal Revenue Code provisions.

        [graphic of triangle]

        CAPITAL GAINS ARE INCREASES IN THE VALUES OF CAPITAL ASSETS,
        SUCH AS STOCK, FROM THE TIME THE ASSETS ARE PURCHASED.

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


- ------
20


TAXES

The following is only a summary of the tax law effects of establishing a
Giftrust. The tax laws applicable to trusts in general are quite complex. You
should consider consulting your tax advisor or attorney before opening a
Giftrust. Distributions by the fund will impact the amount of taxes paid by a
Giftrust. Distributions may consist of dividend and interest income the fund
receives on its investments or capital gains it generates as a result of the
sale of its securities.

Taxability of Distributions

Fund distributions may consist of income, such as dividends and interest earned
by a fund from its investments, or capital gains generated by a fund from the
sale of investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as QUALIFIED DIVIDEND INCOME and you meet a
minimum required holding period with respect to your shares of a fund, in which
case distributions of income are taxed as long-term capital gains.

        [graphic of triangle]

        QUALIFIED DIVIDEND INCOME IS A DIVIDEND RECEIVED BY A FUND FROM
        THE STOCK OF A DOMESTIC OR QUALIFYING FOREIGN CORPORATION, PROVIDED
        THAT THE FUND HAS HELD THE STOCK FOR A REQUIRED HOLDING PERIOD.

For capital gains and for income distributions designated as qualified dividend
income, the following rates apply:

                                      TAX RATE FOR 10% AND    TAX RATE FOR
TYPE OF DISTRIBUTION                  15% BRACKETS            ALL OTHER BRACKETS
- --------------------------------------------------------------------------------
Short-term capital gains              Ordinary Income         Ordinary Income
- --------------------------------------------------------------------------------
Long-term capital gains (> 1 year)
and Qualified Dividend Income         5%                      15%
- --------------------------------------------------------------------------------

If the fund's distributions exceed its taxable income and capital gains realized
during the tax year, all or a portion of the distributions made by the fund in
that tax year will be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.

The tax status of any distribution of capital gains is determined by how long
the fund held the underlying security that was sold, not by how long a Giftrust
has been in existence. No federal income tax is due from a Giftrust unless its
income exceeds approximately $100 in a year. Distributions also may be subject
to state and local taxes. The trustee files all state and federal tax returns
and pays the taxes by redeeming the appropriate number of shares from the trust.
A $10 fee is charged to a Giftrust for each year a tax return is filed. This fee
also is paid by redeeming shares from the Giftrust.


- ------
21


Taxes on Transactions

Redemptions by beneficiaries once a Giftrust has matured or been terminated
early- including exchanges to other American Century funds - are subject to
capital gains tax. Based on current tax law, which is subject to change, gains
or losses would be treated as either short-term or long-term capital gains or
losses.

Gift Taxes

Establishing a Giftrust (and making future contributions) is considered a gift
of a future interest under the federal tax code. That means the gift does not
qualify for the annual gift tax exclusion of $12,000 (indexed for inflation). If
you establish a Giftrust, you must file a United States Gift Tax Return (Form
709). For Giftrusts established before August 1, 2002, if the grantor makes
additional gifts in subsequent years, a Gift Tax Return must be filed for each
year's gift(s). No gift tax is payable until your cumulative lifetime gifts
exceed the exemption equivalent of $1 million. Each gift reduces the exemption
equivalent that would otherwise be available in the future.



- ------
22


FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The table on the next page itemizes what contributed to the changes in share
price during the most recently ended fiscal year. It also shows the changes in
share price for this period in comparison to changes over the last five fiscal
years.

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

*  share price at the beginning of the period

*  investment income and capital gains or losses

*  distributions of income and capital gains paid to investors

*  share price at the end of the period

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

*  TOTAL RETURN - the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO - the operating expenses of the fund as a percentage of
   average net assets

*  NET INCOME RATIO - the net investment income of the fund as a percentage
   of average net assets

*  PORTFOLIO TURNOVER - the percentage of the fund's investment portfolio
   that is replaced during the period

The Financial Highlights that follow have been audited by Deloitte & Touche LLP.
The fund's Report of Independent Registered Public Accounting Firm and the
financial statements are included in the fund's annual report, which is
available upon request.



- ------
23


GIFTRUST FUND

Investor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31
- ----------------------------------------------------------------------------------------------------
                                           2006      2005        2004         2003         2002
- ----------------------------------------------------------------------------------------------------
PER-SHARE DATA
- ----------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period      $17.28    $13.81      $14.04       $11.88       $14.04
- ----------------------------------------------------------------------------------------------------
Income From Investment Operations
- ---------------------------------------
   Net Investment Income (Loss)            (0.05)    (0.08)      (0.01)(1)    (0.07)(1)    (0.06)(1)
- ---------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                   2.90      3.55       (0.22)        2.23        (2.10)
- ----------------------------------------------------------------------------------------------------
   Total From Investment Operations         2.85      3.47       (0.23)        2.16        (2.16)
- ----------------------------------------------------------------------------------------------------
Net Asset Value, End of Period            $20.13    $17.28      $13.81       $14.04       $11.88
====================================================================================================
   TOTAL RETURN(2)                         16.49%    25.13%      (1.64)%      18.18%      (15.38)%

RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                       1.00%     1.00%     0.49%(3)       1.00%         1.00%
- ---------------------------------------
Ratio of Net Investment Income (Loss)
to Average Net Assets                     (0.22)%   (0.46)%   (0.09)%(3)     (0.55)%       (0.42)%
- ---------------------------------------
Portfolio Turnover Rate                      229%      223%         260%        140%          140%
- ---------------------------------------
Net Assets, End of Period
(in millions)                                $985      $927         $865        $896          $756
- ----------------------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY.

(3)  DURING A PORTION OF THE YEAR ENDED OCTOBER 31, 2004, THE INVESTMENT
     ADVISOR VOLUNTARILY AGREED TO WAIVE ITS MANAGEMENT FEE. THE WAIVER WAS IN
     EFFECT FROM FEBRUARY 1, 2004 THROUGH JULY 31, 2004. HAD FEES NOT BEEN
     WAIVED THE ANNUALIZED RATIO OF OPERATING EXPENSES TO AVERAGE NET ASSETS AND
     ANNUALIZED RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS
     WOULD HAVE BEEN 1.00% AND (0.60)%, RESPECTIVELY.


- ------
24


NOTES


- ------
25


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

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

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

IN PERSON           SEC Public Reference Room
                    Washington, D.C.
                    Call 202-942-8090 for location and hours.

ON THE INTERNET     * EDGAR database at sec.gov
                    * By email request at publicinfo@sec.gov

BY MAIL             SEC Public Reference Section
                    Washington, D.C. 20549-0102

This prospectus shall not constitute an offer to sell securities of the fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or qualified for sale, unless such registration or qualification
is not required, or under any circumstances in which such offer or solicitation
would be unlawful.

                                                                    NEWSPAPER
FUND REFERENCE             FUND CODE             TICKER             LISTING
- --------------------------------------------------------------------------------
Giftrust                   025                   TWGTX              Gift
- --------------------------------------------------------------------------------

Investment Company Act File No. 811-0816

AMERICAN CENTURY INVESTMENTS
americancentury.com

                                        Banks and Trust Companies, Broker-Dealers,
Self-Directed Retail Investors          Financial Professionals, Insurance Companies
P.O. Box 419200                         P.O. Box 419786
Kansas City, Missouri 64141-6200        Kansas City, Missouri 64141-6786
1-800-345-2021 or 816-531-5575          1-800-345-6488

0703
SH-PRS-52523













AMERICAN CENTURY INVESTMENTS

Prospectus

March 1, 2007

Select Fund

THE FUND IS AVAILABLE FOR PURCHASE ONLY THROUGH FINANCIAL INTERMEDIARIES BY
INVESTORS WHO SEEK ADVICE FROM THEM. THE FUND IS CLOSED TO OTHER INVESTORS, BUT
THOSE WITH OPEN ACCOUNTS MAY MAKE ADDITIONAL INVESTMENTS AND REINVEST DIVIDENDS
AND CAPITAL GAINS DISTRIBUTIONS AS LONG AS SUCH ACCOUNTS REMAIN OPEN.

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

American Century Investment Services, Inc., Distributor

[american century investments logo and text logo]





Table of Contents

AN OVERVIEW OF THE FUND . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

FUND PERFORMANCE HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

FEES AND EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

OBJECTIVES, STRATEGIES AND RISKS . . . . . . . . . . . . . . . . . . . . . . . 8

MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

INVESTING DIRECTLY WITH AMERICAN CENTURY . . . . . . . . . . . . . . . . . . .12

INVESTING THROUGH A FINANCIAL INTERMEDIARY . . . . . . . . . . . . . . . . . .14

ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT . . . . . . . . . . . . . . . . 19

SHARE PRICE AND DISTRIBUTIONS . . . . . . . . . . . . . . . . . . . . . . . . 23

TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

MULTIPLE CLASS INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . .27

FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29


        [graphic of triangle]

        THIS SYMBOL IS USED THROUGHOUT THE BOOK TO HIGHLIGHT DEFINITIONS OF KEY
        INVESTMENT TERMS AND TO PROVIDE OTHER HELPFUL INFORMATION.



American Century Investment Services, Inc., Distributor

©2007 American Century Proprietary Holdings, Inc. All rights reserved.

The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.





AN OVERVIEW OF THE FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

The portfolio managers look for stocks of companies they believe will increase
in value over time, using an investment strategy developed by American Century.
In implementing this strategy, the portfolio managers make their investment
decisions based primarily on their analysis of individual companies, rather than
on broad economic forecasts. Management of the fund is based on the belief that,
over the long term, stock price movements follow growth in earnings, revenues
and/or cash flow.

The portfolio managers for the fund use a variety of analytical research tools
and techniques to identify the stocks of larger-sized companies that meet their
investment criteria. Under normal market conditions, the fund's portfolio will
primarily consist of securities of companies whose earnings or revenues are not
only growing, but growing at an accelerating pace.

The fund's principal risks include

*  GROWTH STOCKS - Investments in growth stocks may involve special risks and
   their prices may fluctuate more dramatically than the overall stock market.

*  FOREIGN SECURITIES - The fund may invest in foreign securities, which can
   be riskier than investing in U.S. securities.

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

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

*  PRINCIPAL LOSS - At any given time your shares may be worth less than the
   price you paid for them. In other words, it is possible to lose money by
   investing in the fund.

A more detailed description of the fund's investment strategies and risks may be
found under the heading OBJECTIVES, STRATEGIES AND RISKS, which begins on page
8.

        [graphic of triangle]

        AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT, AND IT IS NOT INSURED
        OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY
        OTHER GOVERNMENT AGENCY.


- ------
2


FUND PERFORMANCE HISTORY

Annual Total Returns

The following bar chart shows the performance of the fund's Investor Class
shares for each of the last 10 calendar years. It indicates the volatility of
the fund's historical returns from year to year. Account fees and sales charges,
if applicable, are not reflected in the chart below. If they had been included,
returns would be lower than those shown. The returns of the fund's other classes
of shares will differ from those shown in the chart, depending on the expenses
of those classes.


SELECT FUND-INVESTOR CLASS

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

                          HIGHEST                             LOWEST
- --------------------------------------------------------------------------------
Select                    22.30% (4Q 1998)                    -15.44% (3Q 2002)
- --------------------------------------------------------------------------------

Average Annual Total Returns

The following table shows the average annual total returns of the fund's
Investor Class shares calculated three different ways. Additional tables show
the average annual total returns of the fund's other share classes calculated
before the impact of taxes. Returns assume the deduction of all sales loads,
charges and other fees associated with a particular class. Your actual returns
may vary depending on the circumstances of your investment.

Return Before Taxes shows the actual change in the value of fund shares over the
periods shown, but does not reflect the impact of taxes on fund distributions or
the sale of fund shares. The two after-tax returns take into account taxes that
may be associated with owning fund shares. Return After Taxes on Distributions
is a fund's actual performance, adjusted by the effect of taxes on distributions
made by the fund during the periods shown. Return After Taxes on Distributions
and Sale of Fund Shares is further adjusted to reflect the tax impact on any
change in the value of fund shares as if they had been sold on the last day of
the period.

After-tax returns are calculated using the historical highest federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-tax returns shown are not relevant to investors who hold fund
shares through tax-deferred arrangements such as 401(k) plans or IRAs. After-tax
returns are shown only for Investor Class shares. After-tax returns for other
share classes will vary.


- ------
3


The benchmark is an unmanaged index that has no operating costs and is included
in each table for performance comparison.


INVESTOR CLASS
FOR THE CALENDAR YEAR ENDED
DECEMBER 31, 2006                           1 YEAR       5 YEARS       10 YEARS
- --------------------------------------------------------------------------------
Return Before Taxes                         -1.79%       0.48%         5.30%
Return After Taxes on Distributions         -2.08%       0.37%         3.86%
Return After Taxes on Distributions         -0.78%       0.40%         4.03%
  and Sale of Fund Shares
S&P 500® Index                              15.79%       6.19%         8.42%
   (reflects no deduction for fees,
   expenses or taxes)
- --------------------------------------------------------------------------------

INSTITUTIONAL CLASS
FOR THE CALENDAR YEAR ENDED
DECEMBER 31, 2006                        1 YEAR    5 YEARS    LIFE OF CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                      -1.61%    0.68%      5.07%
S&P 500® Index                           15.79%    6.19%      7.85%
   (reflects no deduction for fees,
   expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE INSTITUTIONAL CLASS IS MARCH 13, 1997. ONLY
     CLASSES WITH PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR
     LIFE OF CLASS.


A CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006          1 YEAR  LIFE OF CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                    -7.70%  6.32%
S&P 500®  Index                                        15.79% 15.86%
  (reflects no deduction for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE A CLASS IS JANUARY 31, 2003. ONLY CLASSES
     WITH PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR LIFE OF
     CLASS.


B CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006          1 YEAR  LIFE OF CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                    -6.79%  6.51%
S&P 500® Index                                         15.79% 15.86%
  (reflects no deduction for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE B CLASS IS JANUARY 31, 2003. ONLY CLASSES
     WITH PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR LIFE OF
     CLASS.


C CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006          1 YEAR  LIFE OF CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                    -2.76%  7.16%(2)
S&P 500® Index                                         15.79% 15.86%
  (reflects no deduction for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE C CLASS IS JANUARY 31, 2003. ONLY CLASSES
     WITH PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR LIFE OF
     CLASS.

(2)  RETURN WOULD HAVE BEEN LOWER IF SERVICE AND DISTRIBUTION FEES HAD NOT
     BEEN WAIVED FROM FEBRUARY 1, 2003 TO MARCH 11, 2003.


- ------
4



R CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006           1 YEAR  LIFE OF CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                     -2.29%  -1.62%
S&P 500® Index                                          15.79%  12.45%(2)
   (reflects no deduction for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE R CLASS IS JULY 29, 2005. ONLY CLASSES WITH
     PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR LIFE OF CLASS.

(2)  SINCE JULY 31, 2005, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.

ADVISOR CLASS
FOR THE CALENDAR YEAR ENDED
DECEMBER 31, 2006                    1 YEAR      5 YEARS      LIFE OF CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                  -2.05%      0.22%        2.64%
S&P 500® Index                       15.79%      6.19%        6.00%(2)
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE ADVISOR CLASS IS AUGUST 8, 1997. ONLY
     CLASSES WITH PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR
     LIFE OF CLASS.

(2)  SINCE AUGUST 7, 1997, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.

Performance information is designed to help you see how fund returns can vary.
Keep in mind that past performance (before and after taxes) does not predict how
the fund will perform in the future.

For current performance information, please call us or visit
americancentury.com.


- ------
5


FEES AND EXPENSES

The following tables describe the fees and expenses you may pay if you buy and
hold shares of the fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
                           INVESTOR  INSTITUTIONAL  A        B         C         R      ADVISOR
                           CLASS     CLASS          CLASS    CLASS     CLASS     CLASS  CLASS
- -----------------------------------------------------------------------------------------------
Maximum Sales              None      None           5.75%    None      None      None   None
Charge (Load)
   Imposed on Purchases
   (as a percentage of
   offering price)
- -----------------------------------------------------------------------------------------------
Maximum Deferred Sales     None      None           None(1)  5.00%(2)  1.00%(3)  None   None
Charge (Load)
   (as a percentage of
   the original offering
   price for B Class
   shares and the lower
   of the original
   offering price or
   redemption proceeds
   for A and C Class
   shares)
- -----------------------------------------------------------------------------------------------
Maximum Account            $25(4)    None           None     None      None      None   None
Maintenance Fee
- -----------------------------------------------------------------------------------------------

(1)  INVESTMENTS OF $1 MILLION OR MORE IN A CLASS SHARES MAY BE SUBJECT TO
     A CONTINGENT DEFERRED SALES CHARGE OF 1.00% IF THE SHARES ARE REDEEMED
     WITHIN ONE YEAR OF THE DATE OF PURCHASE.

(2)  THE CHARGE IS 5.00% DURING THE FIRST YEAR AFTER PURCHASE, DECLINES
     OVER THE NEXT FIVE YEARS AS SHOWN ON PAGE 16, AND IS ELIMINATED AFTER SIX
     YEARS.

(3)  THE CHARGE IS 1.00% DURING THE FIRST YEAR AFTER PURCHASE, AND IS
     ELIMINATED THEREAFTER.

(4)  APPLIES ONLY TO INVESTORS WHOSE TOTAL ELIGIBLE INVESTMENTS WITH
     AMERICAN CENTURY ARE LESS THAN $10,000. SEE Account Maintenance Fee UNDER
     Investing Directly with American Century FOR MORE DETAILS.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
                                   DISTRIBUTION                  TOTAL ANNUAL
                     MANAGEMENT    AND SERVICE      OTHER        FUND OPERATING
                     FEE(1)        (12B-1) FEES(2)  EXPENSES(3)  EXPENSES
- --------------------------------------------------------------------------------
Investor Class       1.00%         None             0.00%        1.00%
- --------------------------------------------------------------------------------
Institutional Class  0.80%         None             0.00%        0.80%
- --------------------------------------------------------------------------------
A Class              1.00%         0.25%            0.00%        1.25%
- --------------------------------------------------------------------------------
B Class              1.00%         1.00%            0.00%        2.00%
- --------------------------------------------------------------------------------
C Class              1.00%         1.00%            0.00%        2.00%
- --------------------------------------------------------------------------------
R Class              1.00%         0.50%            0.00%        1.50%
- --------------------------------------------------------------------------------
Advisor Class        0.75%         0.50%            0.00%        1.25%
- --------------------------------------------------------------------------------

(1)  THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR
     ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. THE FEE SHOWN IS
     BASED ON ASSETS DURING THE FUND'S MOST RECENT FISCAL YEAR. THE FUND HAS A
     STEPPED FEE SCHEDULE. AS A RESULT, THE FUND'S UNIFIED MANAGEMENT FEE RATE
     GENERALLY DECREASES AS STRATEGY ASSETS INCREASE AND INCREASES AS STRATEGY
     ASSETS DECREASE. FOR MORE INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE,
     INCLUDING AN EXPLANATION OF STRATEGY ASSETS, SEE The Investment Advisor
     UNDER Management.

(2)  THE 12B-1 FEE IS DESIGNED TO PERMIT INVESTORS TO PURCHASE SHARES
     THROUGH BROKER-DEALERS, BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL
     INTERMEDIARIES. THE FEE MAY BE USED TO COMPENSATE SUCH FINANCIAL
     INTERMEDIARIES FOR DISTRIBUTION AND OTHER SHAREHOLDER SERVICES. IN
     ADDITION, HALF OF THE ADVISOR CLASS 12B-1 FEE (0.25%) IS FOR ONGOING
     RECORDKEEPING AND ADMINISTRATIVE SERVICES PROVIDED BY FINANCIAL
     INTERMEDIARIES, WHICH WOULD OTHERWISE BE PAID BY THE ADVISOR OUT OF THE
     UNIFIED MANAGEMENT FEE. THE ADVISOR HAS REDUCED ITS UNIFIED MANAGEMENT FEE
     BY 0.25% FOR ADVISOR CLASS SHARES, BUT THE FEE FOR CORE INVESTMENT ADVISORY
     SERVICES IS THE SAME FOR ALL CLASSES. FOR MORE INFORMATION, SEE Multiple
     Class Information and Service, Distribution and Administrative Fees, PAGE
     27.

(3)  OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
     INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST, WERE
     LESS THAN 0.005% FOR THE MOST RECENT FISCAL YEAR.


- ------
6


EXAMPLE

The examples in the tables below are intended to help you compare the costs of
investing in the fund with the costs of investing in other mutual funds. Of
course, your actual costs may be higher or lower. Assuming you . . .

*  invest $10,000 in the fund

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

*  earn a 5% return each year

*  incur the same operating expenses as shown above

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

                         1 YEAR        3 YEARS        5 YEARS        10 YEARS
- --------------------------------------------------------------------------------
Investor Class           $102          $318           $551           $1,219
- --------------------------------------------------------------------------------
Institutional Class      $82           $255           $443           $987
- --------------------------------------------------------------------------------
A Class                  $695          $947           $1,219         $1,991
- --------------------------------------------------------------------------------
B Class                  $602          $923           $1,169         $2,115
- --------------------------------------------------------------------------------
C Class                  $202          $623           $1,069         $2,305
- --------------------------------------------------------------------------------
R Class                  $152          $472           $814           $1,778
- --------------------------------------------------------------------------------
Advisor Class            $127          $395           $683           $1,503
- --------------------------------------------------------------------------------

The table above reflects a deduction for charges payable upon redemption. You
would pay the following expenses if you did not redeem your shares and thus did
not incur such charges:

                           1 YEAR        3 YEARS        5 YEARS        10 YEARS
- --------------------------------------------------------------------------------
Investor Class             $102          $318           $551           $1,219
- --------------------------------------------------------------------------------
Institutional Class        $82           $255           $443           $987
- --------------------------------------------------------------------------------
A Class                    $695          $947           $1,219         $1,991
- --------------------------------------------------------------------------------
B Class                    $202          $623           $1,069         $2,115
- --------------------------------------------------------------------------------
C Class                    $202          $623           $1,069         $2,305
- --------------------------------------------------------------------------------
R Class                    $152          $472           $814           $1,778
- --------------------------------------------------------------------------------
Advisor Class              $127          $395           $683           $1,503
- --------------------------------------------------------------------------------


- ------
7


OBJECTIVES, STRATEGIES AND RISKS

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

The portfolio managers look for stocks of larger-sized companies they believe
will increase in value over time, using an investment strategy developed by
American Century. In implementing this strategy, the portfolio managers use a
bottom-up approach to stock selection. This means that the managers make their
investment decisions based primarily on their analysis of individual companies,
rather than on broad economic forecasts. Management of the fund is based on the
belief that, over the long term, stock price movements follow growth in
earnings, revenues and/or cash flow.

Using American Century's extensive computer database, as well as other primary
analytical research tools, the portfolio managers track financial information
for individual companies to identify and evaluate trends in earnings, revenues
and other business fundamentals. Under normal market conditions, the fund's
portfolio will primarily consist of securities of companies whose earnings or
revenues are not only growing, but growing at an accelerating pace. This
includes companies whose growth rates, although still negative, are less
negative than prior periods, and companies whose growth rates are expected to
accelerate. Other analytical techniques help identify additional signs of
business improvement, such as increasing cash flows, or other indications of the
relative strength of a company's business. These techniques help the portfolio
managers buy or hold the stocks of companies they believe have favorable growth
prospects and sell the stocks of companies whose characteristics no longer meet
their criteria.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies, including
companies located in emerging markets. Investments in foreign securities present
some unique risks that are more fully described in the fund's statement of
additional information.

The portfolio managers do not attempt to time the market. Instead, under normal
market conditions, they intend to keep the fund essentially fully invested in
stocks regardless of the movement of stock prices generally. When the managers
believe it is prudent, the fund may invest a portion of its assets in debt
securities, preferred stock and equity-equivalent securities, such as
convertible securities, stock futures contracts or stock index futures
contracts. The fund generally limits its purchase of debt securities to
investment-grade obligations. Futures contracts, a type of derivative security,
can help the fund's cash assets remain liquid while performing more like stocks.
The fund has a policy governing futures contracts and similar derivative
securities to help manage the risk of these types of investments. A complete
description of the derivatives policy is included in the statement of additional
information.

In the event of exceptional market or economic conditions, the fund may, as a
temporary defensive measure, invest all or a substantial portion of its assets
in cash, cash-equivalent securities or short-term debt securities. To the extent
a fund assumes a defensive position it will not be pursuing its objective of
long-term capital growth.

A description of the policies and procedures with respect to the disclosure of
the fund's portfolio securities is available in the statement of additional
information.


- ------
8


WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?

Growth stocks are typically priced higher than other stocks, in relation to
earnings and other measures, because investors believe they have more growth
potential. This potential may or may not be realized and growth stock prices
tend to fluctuate more dramatically than the overall stock market.

The portfolio managers may buy a large amount of a company's stock quickly, and
often will dispose of it quickly if the company's earnings or revenues decline.
While the managers believe this strategy provides substantial appreciation
potential over the long term, in the short term it can create a significant
amount of share price volatility. This volatility can be greater than that of
the average stock fund.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies. Foreign
investment involves additional risks, including fluctuations in currency
exchange rates, less stable political and economic structures, reduced
availability of public information, and lack of uniform financial reporting and
regulatory practices similar to those that apply in the United States. These
factors make investing in foreign securities generally riskier than investing in
U.S. stocks. To the extent a fund invests in foreign securities, the overall
risk of that fund could be affected.

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 a
fund's style, the fund's gains may not be as big as, or its losses may be bigger
than, other equity funds using different investment styles.

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

At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the fund.


- ------
9


MANAGEMENT

WHO MANAGES THE FUND?

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

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than three-fourths of the directors are independent of the fund's advisor;
that is, they have never been employed by and have no financial interest in the
advisor or any of its affiliated companies (other than as shareholders of
American Century funds).

THE INVESTMENT ADVISOR

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

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

For the services it provides to the fund, the advisor receives a unified
management fee based on a percentage of the daily net assets of each class of
shares of the fund. The amount of the fee is calculated daily and paid monthly
in arrears. Out of that fee, the advisor pays all expenses of managing and
operating the fund except brokerage expenses, taxes, interest, fees and expenses
of the independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the fund's management fee may be paid by the fund's
advisor to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of the
advisor.

The rate of the fee is determined by applying a formula that takes into account
all of the advisor's assets under management in the fund's investment strategy
(strategy assets). Strategy assets include the assets of the fund as well as
certain assets of other clients of the advisor outside the American Century fund
family (such as subadvised funds and separate accounts) that use very similar
investment teams and strategies. The use of strategy assets, rather than fund
assets, in calculating the fund's fee rate could allow the fund to realize
scheduled cost savings more quickly. However, it is possible that the fund's
strategy assets will not include assets of other client accounts or that any
such assets may not be sufficient to result in a lower fee rate.

MANAGEMENT FEES
PAID BY THE FUND TO
THE ADVISOR AS A
PERCENTAGE OF
AVERAGE NET ASSETS
FOR THE  FISCAL YEAR     INVESTOR  INSTITUTIONAL  A      B      C      R      ADVISOR
ENDED OCTOBER 31, 2006   CLASS     CLASS          CLASS  CLASS  CLASS  CLASS  CLASS
- -------------------------------------------------------------------------------------
Select                   1.00%     0.80%          1.00%  1.00%  1.00%  1.00%  0.75%
- -------------------------------------------------------------------------------------

A discussion regarding the basis for the Board of Directors' approval of the
fund's investment advisory contract with the advisor is available in the fund's
report to shareholders dated October 31, 2006.



- ------
10


THE FUND MANAGEMENT TEAM

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

The portfolio managers on the investment team who are jointly and primarily
responsible for the day-to-day management of the fund are identified below.

KEITH LEE

Mr. Lee, Portfolio Manager, has been a member of the team that manages the fund
since October 2001. He initially joined American Century in August 1998 and
rejoined October 2001 as a senior investment analyst. He became a portfolio
manager in June 2003. He has a bachelor's degree in industrial engineering from
Columbia University. He is a CFA charterholder.

MICHAEL LI

Dr. Li, Portfolio Manager, has been a member of the team that manages the fund
since July 2003. He joined American Century in February 2002 as an investment
analyst and became a portfolio manager in February 2006. Before joining American
Century, he attended the Wharton School of Business, University of Pennsylvania,
where he obtained his MBA. He also has a bachelor of science from the University
of Science and Technology of China and a Ph.D. from the University of Michigan.

The statement of additional information provides additional information about
the other accounts managed by the portfolio managers, if any, the structure of
their compensation, and their ownership of fund securities.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the statement of additional
information and the investment objectives of the fund may not be changed without
shareholder approval. The Board of Directors and/or the advisor may change any
other policies and investment strategies.


- ------
11


INVESTING DIRECTLY WITH AMERICAN CENTURY

SERVICES AUTOMATICALLY AVAILABLE TO YOU

Most accounts automatically will have access to the services listed under WAYS
TO MANAGE YOUR ACCOUNT when the account is opened. If you do not want these
services, see CONDUCTING BUSINESS IN WRITING. If you have questions about the
services that apply to your account type, please call us.

CONDUCTING BUSINESS IN WRITING

If you prefer to conduct business in writing only, you can indicate this on the
account application. If you choose this option, you must provide written
instructions to invest, exchange and redeem. All account owners must sign
transaction instructions (with signatures guaranteed for redemptions in excess
of $100,000). By choosing this option, you are not eligible to enroll for
exclusive online account management to waive the account maintenance fee. See
ACCOUNT MAINTENANCE FEE in this section. If you want to add online and telephone
services later, you can complete an Investor Service Options form.

ACCOUNT MAINTENANCE FEE

If you hold Investor Class shares of any American Century fund, or Institutional
Class shares of the American Century Diversified Bond fund, in an American
Century account (i.e., not a financial intermediary or retirement plan account),
we may charge you a $12.50 semiannual account maintenance fee if the value of
those shares is less than $10,000. We will determine the amount of your total
eligible investments twice per year, generally the last Friday in October and
April. If the value of those investments is less than $10,000 at that time, we
will automatically redeem shares in one of your accounts to pay the $12.50 fee.
Please note that you may incur tax liability as a result of the redemption. In
determining your total eligible investment amount, we will include your
investments in all PERSONAL ACCOUNTS (including American Century Brokerage
accounts) registered under your Social Security number. We will not charge the
fee as long as you choose to manage your accounts exclusively online. You may
enroll for exclusive online account management on our Web site. To find out more
about exclusive online account management, visit americancentury.com/info/demo.

        [graphic of triangle]

        PERSONAL ACCOUNTS INCLUDE INDIVIDUAL ACCOUNTS, JOINT ACCOUNTS, UGMA/UTMA
        ACCOUNTS, PERSONAL TRUSTS, COVERDELL EDUCATION SAVINGS ACCOUNTS, IRAS
        (INCLUDING TRADITIONAL, ROTH, ROLLOVER, SEP-, SARSEP- AND SIMPLE-IRAS),
        AND CERTAIN OTHER RETIREMENT ACCOUNTS. IF YOU HAVE ONLY BUSINESS,
        BUSINESS RETIREMENT, EMPLOYER-SPONSORED OR AMERICAN CENTURY BROKERAGE
        ACCOUNTS, YOU ARE CURRENTLY NOT SUBJECT TO THIS FEE, BUT YOU MAY BE
        SUBJECT TO OTHER FEES.

WIRE PURCHASES

CURRENT INVESTORS: If you would like to make a wire purchase into an existing
account, your bank will need the following information. (To invest in a new
fund, please call us first to set up the new account.)

*  American Century's bank information: Commerce Bank N.A., Routing No.
   101000019, Account No. 2804918

*  Your American Century account number and fund name

*  Your name

*  The contribution year (for IRAs only)

NEW INVESTORS: To make a wire purchase into a new account, please complete an
application prior to wiring money.



- ------
12


WAYS TO MANAGE YOUR ACCOUNT

ONLINE

americancentury.com

OPEN AN ACCOUNT: If you are a current or new investor, you can open an account
by completing and submitting our online application. Current investors also can
open an account by exchanging shares from another American Century account.

EXCHANGE SHARES: Exchange shares from another American Century account.

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

SELL SHARES*: Redeem shares and proceeds will be electronically transferred to
your authorized bank account.

* ONLINE REDEMPTIONS UP TO $25,000 PER DAY.

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

* 4500 Main Street, Kansas City, Missouri - 8 a.m. to 5 p.m., Monday - Friday

* 4917 Town Center Drive, Leawood, Kansas - 8 a.m. to 5 p.m., Monday - Friday, 8
a.m. to noon, Saturday

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

BY TELEPHONE
- --------------------------------------------------------------------------------
INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021

INSTITUTIONAL SERVICE REPRESENTATIVE: 1-800-345-3533

BUSINESS, NOT-FOR-PROFIT AND EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533

AUTOMATED INFORMATION LINE: 1-800-345-8765

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

EXCHANGE SHARES: Call or use our Automated Information Line if you have
authorized us to accept telephone instructions. The Automated Information Line
is available only to Investor Class shareholders.

MAKE ADDITIONAL INVESTMENTS: Call or use our Automated Information Line if you
have authorized us to invest from your bank account. The Automated Information
Line is available only to Investor Class shareholders.

SELL SHARES: Call a Service Representative.

BY MAIL OR FAX
- --------------------------------------------------------------------------------
P.O. Box 419200, Kansas City, MO 64141-6200 - Fax: 816-340-7962

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

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

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

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

AUTOMATICALLY
- --------------------------------------------------------------------------------
OPEN AN ACCOUNT: Not available.

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

MAKE ADDITIONAL INVESTMENTS: With the automatic investment service, you can
purchase shares on a regular basis. You must invest at least $50 per month per
account.

SELL SHARES: You may sell shares automatically by establishing Check-A-Month or
Automatic Redemption plans.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
13


INVESTING THROUGH A FINANCIAL INTERMEDIARY

The fund's A, C, R and Advisor Classes are intended for purchase by participants
in employer-sponsored retirement plans. Additionally, the fund's A, B, C and
Advisor Classes are intended for persons purchasing shares through FINANCIAL
INTERMEDIARIES that provide various administrative and distribution services.
For more information regarding employer-sponsored retirement plan types, please
see BUYING AND SELLING FUND SHARES in the statement of additional information.

        [graphic of triangle]

        FINANCIAL INTERMEDIARIES INCLUDE BANKS, BROKER-DEALERS, INSURANCE
        COMPANIES, PLAN SPONSORS AND FINANCIAL PROFESSIONALS.

Although each class of shares represents an interest in the same fund, each has
a different cost structure, as described below. Which class is right for you
depends on many factors, including how long you plan to hold the shares, how
much you plan to invest, the fee structure of each class, and how you wish to
compensate your financial professional for the services provided to you. Your
financial professional can help you choose the option that is most appropriate.

The following chart provides a summary description of these classes.

A CLASS                                   B CLASS
- --------------------------------------------------------------------------------
Initial sales charge(1)                   No initial sales charge
- --------------------------------------------------------------------------------
Generally no contingent                   Contingent deferred sales charge
deferred sales charge(2)                  on redemptions within six years
- --------------------------------------------------------------------------------
12b-1 fee of 0.25%                        12b-1 fee of 1.00%
- --------------------------------------------------------------------------------
No conversion feature                     Convert to A Class shares eight years
                                          after purchase
- --------------------------------------------------------------------------------
Generally more appropriate                Aggregate purchases limited to amounts
for long-term investors                   less than $100,000; generally offered
                                          through financial intermediaries(3)
- --------------------------------------------------------------------------------

C CLASS                                   R CLASS AND ADVISOR CLASS
- --------------------------------------------------------------------------------
No initial sales charge                   No initial sales charge
- --------------------------------------------------------------------------------
Contingent deferred sales charge          No contingent deferred sales charge
on redemptions within 12 months
- --------------------------------------------------------------------------------
12b-1 fee of 1.00%                        12b-1 fee of 0.50%(4)
- --------------------------------------------------------------------------------
No conversion feature                     No conversion feature
- --------------------------------------------------------------------------------
Aggregate purchases limited to amounts    Generally offered through
less than $1,000,000; generally more      employer-sponsored retirement plans
appropriate for short-term investors      and other fee-based arrangements(5)
- --------------------------------------------------------------------------------

(1)  THE SALES CHARGE FOR A CLASS SHARES DECREASES DEPENDING ON THE SIZE OF
     YOUR INVESTMENT, AND MAY BE WAIVED FOR SOME PURCHASES. THERE IS NO SALES
     CHARGE FOR PURCHASES OF $1,000,000 OR MORE.

(2)  A CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 1.00% WILL BE CHARGED ON
     CERTAIN PURCHASES OF $1,000,000 OR MORE THAT ARE REDEEMED WITHIN ONE YEAR
     OF PURCHASE.

(3)  INVESTORS IN SIMPLE IRA PLANS, SEP IRA PLANS AND SARSEP PLANS
     ESTABLISHED PRIOR TO AUGUST 1, 2006, MAY MAKE ADDITIONAL PURCHASES. THIS
     CLASS IS NOT AVAILABLE FOR NEW EMPLOYER-SPONSORED RETIREMENT PLAN ACCOUNTS.

(4)  WHILE THE R CLASS AND ADVISOR CLASS HAVE THE SAME 12B-1 FEE, THEIR
     TOTAL ANNUAL FUND OPERATING EXPENSES WILL BE DIFFERENT BECAUSE OF THE
     ADVISOR CLASS'S LOWER UNIFIED MANAGEMENT FEE. SEE PAGE 6 FOR MORE DETAILS.

(5)  IRA ACCOUNTS IN R CLASS SHARES ESTABLISHED THROUGH FINANCIAL
     INTERMEDIARIES PRIOR TO AUGUST 1, 2006, MAY MAKE ADDITIONAL PURCHASES.



- ------
14


CALCULATION OF SALES CHARGES

The information regarding sales charges provided herein is included free of
charge and in a clear and prominent format at americancentury.com in the
INVESTORS USING ADVISORS and INVESTMENT PROFESSIONALS portions of the Web site.
From the description of A, B or C Class shares, a hyperlink will take you
directly to this disclosure.

A Class

A Class shares are sold at their offering price, which is net asset value plus
an initial sales charge. This sales charge varies depending on the amount of
your investment, and is deducted from your purchase before it is invested. The
sales charges and the amounts paid to your financial professional are:

                                                                AMOUNT PAID
                                                                TO FINANCIAL
                           SALES CHARGE      SALES CHARGE       ADVISOR AS
                           AS A % OF         AS A % OF NET      A % OF
PURCHASE AMOUNT            OFFERING PRICE    AMOUNT INVESTED    OFFERING PRICE
- --------------------------------------------------------------------------------
Less than $50,000          5.75%             6.10%              5.00%
- --------------------------------------------------------------------------------
$50,000 - $99,999          4.75%             4.99%              4.00%
- --------------------------------------------------------------------------------
$100,000 - $249,999        3.75%             3.90%              3.25%
- --------------------------------------------------------------------------------
$250,000 - $499,999        2.50%             2.56%              2.00%
- --------------------------------------------------------------------------------
$500,000 - $999,999        2.00%             2.04%              1.75%
- --------------------------------------------------------------------------------
$1,000,000 - $3,999,999    0.00%             0.00%              1.00%(1)
- --------------------------------------------------------------------------------
$4,000,000 - $9,999,999    0.00%             0.00%              0.50%(1)
- --------------------------------------------------------------------------------
$10,000,000 or more        0.00%             0.00%              0.25%(1)
- --------------------------------------------------------------------------------

(1)  FOR PURCHASES OVER $1,000,000 BY EMPLOYER-SPONSORED RETIREMENT PLANS,
     NO UPFRONT AMOUNT WILL BE PAID TO FINANCIAL PROFESSIONALS.

There is no front-end sales charge for purchases of $1,000,000 or more, but if
you redeem your shares within one year of purchase you will pay a 1.00% deferred
sales charge, subject to the exceptions listed below. No sales charge applies to
reinvested dividends.

Reductions and Waivers of Sales Charges for A Class

You may qualify for a reduction or waiver of certain sales charges, but you or
your financial professional must provide certain information, including the
account numbers of any accounts to be aggregated, to American Century at the
time of purchase in order to take advantage of such reduction or waiver.

You and your immediate family (your spouse and your children under the age of
21) may combine investments to reduce your A Class sales charge in the following
ways:

ACCOUNT AGGREGATION. Investments made by you and your immediate family may be
aggregated at each account's current market value if made for your own
account(s) and/or certain other accounts, such as:

*  Certain trust accounts

*  Solely controlled business accounts

*  Single-participant retirement plans

*  Endowments or foundations established and controlled by you or an
   immediate family member

For purposes of aggregation, only investments made through individual-level
accounts, rather than accounts aggregated at the intermediary level, may be
included.

CONCURRENT PURCHASES. You may combine simultaneous purchases in A, B or C Class
shares of any two or more American Century Advisor Funds (funds that offer A, B
and C Class shares) to qualify for a reduced A Class sales charge.


- ------
15


RIGHTS OF ACCUMULATION. You may take into account the current value of your
existing holdings in A, B or C Class shares of any American Century Advisor Fund
to determine your A Class sales charge.

LETTER OF INTENT. A Letter of Intent allows you to combine all non-money market
fund purchases of all A, B and C Class shares you intend to make over a 13-month
period to determine the applicable sales charge. At your request, existing
holdings may be combined with new purchases and sales charge amounts may be
adjusted for purchases made within 90 days prior to our receipt of the Letter of
Intent. Capital appreciation, capital gains and reinvested dividends earned
during the Letter of Intent period do not apply toward its completion. A portion
of your account will be held in escrow to cover additional A Class sales charges
that will be due if your total investments over the 13-month period do not
qualify for the applicable sales charge reduction.

WAIVERS FOR CERTAIN INVESTORS. The sales charge on A Class shares may be waived
for:

*  Purchases by registered representatives and other employees of certain
   financial intermediaries (and their immediate family members) having selling
   agreements with the advisor or distributor

*  Broker-dealer sponsored wrap program accounts and/or fee-based accounts
   maintained for clients of certain financial intermediaries who have entered
   into selling agreements with American Century

*  Present or former officers, directors and employees (and their families)
   of American Century

*  Employer-sponsored retirement plan purchases. For plans under $1 million
   in assets, purchases with sales charges are allowed, but may be subject to
   the retirement plan recordkeeper's policies. Refer to BUYING AND SELLING FUND
   SHARES in the statement of additional information.

*  IRA Rollovers from any American Century Advisor Fund held in an
   employer-sponsored retirement plan

*  Certain other investors as deemed appropriate by American Century

B Class

B Class shares are sold at their net asset value without an initial sales
charge. For sales of B Class shares, the amount paid to your financial
professional is 4.00% of the amount invested. If you redeem your shares within
six years of purchase date, you will pay a contingent deferred sales charge
(CDSC) as set forth below. The purpose of the CDSC is to permit the fund's
distributor to recoup all or a portion of the up-front payment made to your
financial professional. There is no CDSC on shares acquired through reinvestment
of dividends or capital gains.

REDEMPTION DURING                         CDSC AS A % OF ORIGINAL PURCHASE PRICE
- --------------------------------------------------------------------------------
1st year                                  5.00%
- --------------------------------------------------------------------------------
2nd year                                  4.00%
- --------------------------------------------------------------------------------
3rd year                                  3.00%
- --------------------------------------------------------------------------------
4th year                                  3.00%
- --------------------------------------------------------------------------------
5th year                                  2.00%
- --------------------------------------------------------------------------------
6th year                                  1.00%
- --------------------------------------------------------------------------------
After 6th year                            None
- --------------------------------------------------------------------------------

B Class shares (which carry a 1.00% 12b-1 fee) will automatically convert to A
Class shares (which carry a 0.25% 12b-1 fee) within 31 days after the eight-year
anniversary of the purchase date.



- ------
16


C Class

C Class shares are sold at their net asset value without an initial sales
charge. For sales of C Class shares, the amount paid to your financial
professional is 1.00% of the amount invested. If you redeem your shares within
12 months of purchase, you will pay a CDSC of 1.00% of the original purchase
price or the current market value at redemption, whichever is less. The purpose
of the CDSC is to permit the fund's distributor to recoup all or a portion of
the up-front payment made to your financial professional.

The CDSC will not be charged on shares acquired through reinvestment of
dividends or distributions or increases in the net asset value of shares.

CALCULATION OF CONTINGENT DEFERRED SALES CHARGE (CDSC)

To minimize the amount of the CDSC you may pay when you redeem shares, the fund
will first redeem shares acquired through reinvested dividends and capital gain
distributions, which are not subject to a CDSC. Shares that have been in your
account long enough that they are not subject to a CDSC are redeemed next. For
any remaining redemption amount, shares will be sold in the order they were
purchased (earliest to latest).

CDSC WAIVERS

Any applicable CDSC may be waived in the following cases:

*  redemptions through systematic withdrawal plans not exceeding annually:

   *  12% of the lesser of the original purchase cost or current market
      value for A Class shares

   *  12% of the original purchase cost for B Class shares

   *  12% of the lesser of the original purchase cost or current market
      value for C Class shares

*  distributions from IRAs due to attainment of age 59 1/2 for A Class
   shares and for C Class shares

*  required minimum distributions from retirement accounts upon reaching age
   70 1/2

*  tax-free returns of excess contributions to IRAs

*  redemptions due to death or post-purchase disability

*  exchanges, unless the shares acquired by exchange are redeemed within the
   original CDSC period

*  IRA Rollovers from any American Century Advisor Fund held in an
   employer-sponsored retirement plan, for A Class shares only

*  if no broker was compensated for the sale

REINSTATEMENT PRIVILEGE

Within 90 days of a redemption of any A or B Class shares, you may reinvest all
of the redemption proceeds in A Class shares of any American Century Advisor
Fund at the then-current net asset value without paying an initial sales charge.
At your request, any CDSC you paid on an A Class redemption that you are
reinvesting will be credited to your account. You or your financial professional
must notify the fund's transfer agent in writing at the time of the reinvestment
to take advantage of this privilege, and you may use it only once per account.
This privilege applies only if the new account is owned by the original account
owner.



- ------
17


EXCHANGING SHARES

You may exchange shares of the fund for shares of the same class of another
American Century Advisor Fund without a sales charge if you meet the following
criteria:

*  The exchange is for a minimum of $100

*  For an exchange that opens a new account, the amount of the exchange must
   meet or exceed the minimum account size requirement for the fund receiving
   the exchange

For purposes of computing any applicable CDSC on shares that have been
exchanged, the holding period will begin as of the date of purchase of the
original fund owned. Exchanges from a money market fund are subject to a sales
charge on the fund being purchased, unless the money market fund shares were
acquired by exchange from a fund with a sales charge or by reinvestment of
dividends or capital gains distributions.

EXCHANGES BETWEEN FUNDS (C CLASS)

You may exchange C Class shares of a fund for C Class shares of any other
American Century fund. You may not exchange from the C Class to any other class.
We will not charge a CDSC on the shares you exchange, regardless of the length
of time you have owned them. When you do redeem shares that have been exchanged,
the CDSC will be based on the date you purchased the original shares.

BUYING AND SELLING SHARES

Your ability to purchase, exchange, redeem and transfer shares will be affected
by the policies of the financial intermediary through which you do business.
Some policy differences may include

*  minimum investment requirements

*  exchange policies

*  fund choices

*  cutoff time for investments

*  trading restrictions

In addition, your financial intermediary may charge a transaction fee for the
purchase or sale of fund shares. Those charges are retained by the financial
intermediary and are not shared with American Century or the fund. Please
contact your financial intermediary or plan sponsor for a complete description
of its policies. Copies of the fund's annual report, semiannual report and
statement of additional information are available from your financial
intermediary or plan sponsor.

The fund has authorized certain financial intermediaries to accept orders on the
fund's behalf. American Century has selling agreements with these financial
intermediaries requiring them to track the time investment orders are received
and to comply with procedures relating to the transmission of orders. Orders
must be received by the financial intermediary on the fund's behalf before the
time the net asset value is determined in order to receive that day's share
price. If those orders are transmitted to American Century and paid for in
accordance with the selling agreement, they will be priced at the net asset
value next determined after your request is received in the form required by the
financial intermediary.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


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18


ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT

MINIMUM INITIAL INVESTMENT AMOUNTS (OTHER THAN INSTITUTIONAL CLASS)

Unless otherwise specified below, the minimum initial investment amount to open
an account is $2,500. Financial intermediaries may open an account with $250,
but may require their clients to meet different investment minimums. See
INVESTING THROUGH A FINANCIAL INTERMEDIARY for more information.

- --------------------------------------------------------------------------------
Broker-dealer sponsored wrap program
accounts and/or fee-based accounts                                 No minimum
- --------------------------------------------------------------------------------
Coverdell Education Savings Account (CESA)                         $2,000(1)
- --------------------------------------------------------------------------------
Employer-sponsored retirement plans                                No minimum
- --------------------------------------------------------------------------------

(1)  THE MINIMUM INITIAL INVESTMENT FOR FINANCIAL INTERMEDIARIES IS $250.
     FINANCIAL INTERMEDIARIES MAY HAVE DIFFERENT MINIMUMS FOR THEIR CLIENTS.

SUBSEQUENT PURCHASES

There is a $50 minimum for subsequent purchases. See WAYS TO MANAGE YOUR ACCOUNT
for more information about making additional investments directly with American
Century. However, there is no subsequent purchase minimum for financial
intermediaries or employer-sponsored retirement plans, but financial
intermediaries may require their clients to meet different subsequent purchase
requirements.

ELIGIBILITY FOR INSTITUTIONAL CLASS SHARES

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

MINIMUM INITIAL INVESTMENT AMOUNTS (INSTITUTIONAL CLASS)

The minimum initial investment amount is $5 million ($3 million for endowments
and foundations) per fund. If you invest with us through a financial
intermediary, this requirement may be met if your financial intermediary
aggregates your investments with those of other clients into a single group, or
omnibus, account that meets the minimum. The minimum investment requirement may
be waived if you, or your financial intermediary if you invest through an
omnibus account, have an aggregate investment in our family of funds of $10
million or more ($5 million for endowments and foundations). In addition,
financial intermediaries or plan recordkeepers may require retirement plans to
meet certain other conditions, such as plan size or a minimum level of assets
per participant, in order to be eligible to purchase Institutional Class shares.


- ------
19


REDEMPTIONS

If you sell your B and C Class or, in certain cases, A Class shares within a
certain time after their purchase, you will pay a sales charge the amount of
which is contingent upon the amount of time you have held your shares, as
described above. Your redemption proceeds will be calculated using the NET ASSET
VALUE (NAV) next determined after we receive your transaction request in good
order.

        [graphic of triangle]

        A FUND'S NET ASSET VALUE, OR NAV, IS THE PRICE OF THE FUND'S SHARES.

However, we reserve the right to delay delivery of redemption proceeds up to
seven days. For example, each time you make an investment with American Century,
there is a seven-day holding period before we will release redemption proceeds
from those shares, unless you provide us with satisfactory proof that your
purchase funds have cleared. Investments by wire generally require only a
one-day holding period. If you change your address, we may require that any
redemption request made within 15 days be submitted in writing and be signed by
all authorized signers with their signatures guaranteed. If you change your bank
information, we may impose a 15-day holding period before we will transfer or
wire redemption proceeds to your bank. Please remember, if you request
redemptions by wire, $10 will be deducted from the amount redeemed. Your bank
also may charge a fee.

In addition, we reserve the right to honor certain redemptions with securities,
rather than cash, as described in the next section.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the value of a fund's assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. The portfolio
managers would select these securities from the fund's portfolio.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, you may have to pay
brokerage or other transaction costs to convert the securities to cash.

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

REDEMPTION OF SHARES IN ACCOUNTS BELOW MINIMUM

If your account balance falls below the minimum initial investment amount for
any reason other than as a result of market fluctuation, American Century
reserves the right to redeem the shares in the account and send the proceeds to
your address of record. Prior to doing so, we will notify you and give you 90
days to meet the minimum. Please note that shares redeemed in this manner may be
subject to a sales charge if held less than the applicable time period. You also
may incur tax liability as a result of the redemption. For Institutional Class
shares, we reserve the right to convert your shares to Investor Class shares of
the same fund. The Investor Class shares have a unified management fee that is
0.20% higher than the Institutional Class.



- ------
20


SIGNATURE GUARANTEES

A signature guarantee - which is different from a notarized signature - is a
warranty that the signature presented is genuine. We may require a signature
guarantee for the following transactions.

*  You have chosen to conduct business in writing only and would like to
   redeem over $100,000.

*  Your redemption or distribution check, Check-A-Month or automatic
   redemption is made payable to someone other than the account owners.

*  Your redemption proceeds or distribution amount is sent by EFT (ACH or
   wire) to a destination other than your personal bank account.

*  You are transferring ownership of an account over $100,000.

*  You change your address and request a redemption over $100,000 within 15
   days.

*  You change your bank information and request a redemption within 15 days.

We reserve the right to require a signature guarantee for other transactions, at
our discretion.

MODIFYING OR CANCELING AN INVESTMENT

Investment instructions are irrevocable. That means that once you have mailed or
otherwise transmitted your investment instruction, you may not modify or cancel
it. Each fund reserves the right to suspend the offering of shares for a period
of time and to reject any specific investment (including a purchase by
exchange). Additionally, we may refuse a purchase if, in our judgment, it is of
a size that would disrupt the management of a fund.

ABUSIVE TRADING PRACTICES

Short-term trading and other so-called market timing practices are not defined
or explicitly prohibited by any federal or state law. However, short-term
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of short-term
trading activity is significant relative to a fund's net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund's performance could be negatively impacted by the increased trading costs
created by short-term trading if the additional trading costs are significant.

Because of the potentially harmful effects of abusive trading practices, the
fund's Board of Directors has approved American Century's abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
imposing redemption fees on certain funds, and using fair value pricing when
current market prices are not readily available. Although these efforts are
designed to discourage abusive trading practices, they cannot eliminate the
possibility that such activity will occur. American Century seeks to exercise
its judgment in implementing these tools to the best of its ability in a manner
that it believes is consistent with shareholder interests.

American Century uses a variety of techniques to monitor for and detect abusive
trading practices. These techniques may vary depending on the type of fund, the
class of shares or whether the shares are held directly or indirectly with
American Century. They may change from time to time as determined by American
Century in its sole discretion. To minimize harm to the funds and their
shareholders, we reserve the right to reject any purchase order (including
exchanges) from any shareholder we believe has a history of abusive trading or
whose trading, in our judgment, has been or may be disruptive to the funds. In
making this judgment, we may consider trading done in multiple accounts under
common ownership or control.



- ------
21


Currently, for shares held directly with American Century, we may deem the sale
of all or a substantial portion of a shareholder's purchase of fund shares to be
abusive if the sale is made

* within seven days of the purchase, or

* within 30 days of the purchase, if it happens more than once per year.

To the extent practicable, we try to use the same approach for defining abusive
trading for shares held through financial intermediaries. American Century
reserves the right, in its sole discretion, to identify other trading practices
as abusive and to modify its monitoring and other practices as necessary to deal
with novel or unique abusive trading practices.

In addition, American Century reserves the right to accept purchases and
exchanges in excess of the trading restrictions discussed above if it believes
that such transactions would not be inconsistent with the best interests of fund
shareholders or this policy.

American Century's policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American Century handles, there can be no assurance that American
Century's efforts will identify all trades or trading practices that may be
considered abusive. In addition, American Century's ability to monitor trades
that are placed by individual shareholders within group, or omnibus, accounts
maintained by financial intermediaries is severely limited because American
Century generally does not have access to the underlying shareholder account
information. However, American Century monitors aggregate trades placed in
omnibus accounts and seeks to work with financial intermediaries to discourage
shareholders from engaging in abusive trading practices and to impose
restrictions on excessive trades. There may be limitations on the ability of
financial intermediaries to impose restrictions on the trading practices of
their clients. As a result, American Century's ability to monitor and discourage
abusive trading practices in omnibus accounts may be limited.

YOUR RESPONSIBILITY FOR UNAUTHORIZED TRANSACTIONS

American Century and its affiliated companies use procedures reasonably designed
to confirm that telephone, electronic and other instructions are genuine. These
procedures include recording telephone calls, requesting personalized security
codes or other information, and sending confirmation of transactions. If we
follow these procedures, we are not responsible for any losses that may occur
due to unauthorized instructions. For transactions conducted over the Internet,
we recommend the use of a secure Internet browser. In addition, you should
verify the accuracy of your confirmation statements immediately after you
receive them.

A NOTE ABOUT MAILINGS TO SHAREHOLDERS

To reduce the amount of mail you receive from us, we may deliver a single copy
of certain investor documents (such as shareholder reports and prospectuses) to
investors who share an address, even if accounts are registered under different
names. If you prefer to receive multiple copies of these documents individually
addressed, please call us or your financial professional. For American Century
Brokerage accounts, please call 1-888-345-2071.

RIGHT TO CHANGE POLICIES

We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups. In addition, from time to time we may
waive a policy on a case-by-case basis, as the advisor deems appropriate.


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22


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century will price the fund shares you purchase, exchange or redeem at
the net asset value (NAV) next determined after your order is received and
accepted by the fund's transfer agent, or other financial intermediary with the
authority to accept orders on the fund's behalf. We determine the NAV of the
fund as of the close of regular trading (usually 4 p.m. Eastern time) on the New
York Stock Exchange (NYSE) on each day the NYSE is open. On days when the NYSE
is closed (including certain U.S. national holidays), we do not calculate the
NAV. The fund's NAV is the current value of the fund's assets, minus any
liabilities, divided by the number of shares outstanding.

The fund values portfolio securities for which market quotations are readily
available at their market price. As a general rule, equity securities listed on
a U.S. exchange are valued at the last current reported sale price as of the
time of valuation. Securities listed on the NASDAQ National Market System
(Nasdaq) are valued at the Nasdaq Official Closing Price (NOCP), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the
time of valuation. The fund may use pricing services to assist in the
determination of market value. Unlisted securities for which market quotations
are readily available are valued at the last quoted sale price or the last
quoted ask price, as applicable, except that debt obligations with 60 days or
less remaining until maturity may be valued at amortized cost. Exchange-traded
options, futures and options on futures are valued at the settlement price as
determined by the appropriate clearing corporation.

If the fund determines that the market price for a portfolio security is not
readily available or that the valuation methods mentioned above do not reflect
the security's fair value, such security is valued at its fair value as
determined in good faith by, or in accordance with procedures adopted by, the
fund's board or its designee (a process referred to as "fair valuing" the
security). Circumstances that may cause the fund to fair value a security
include, but are not limited to:

*  if, after the close of the foreign exchange on which a portfolio security
   is principally traded, but before the close of the NYSE, an event occurs that
   may materially affect the value of the security;

*  a debt security has been declared in default; or

*  trading in a security has been halted during the trading day.

If such circumstances occur, the fund will fair value the security if the fair
valuation would materially impact the fund's NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with procedures adopted by
the fund's board.

The effect of using fair value determinations is that the fund's NAV will be
based, to some degree, on security valuations that the board or its designee
believes are fair rather than being solely determined by the market.

With respect to any portion of the fund's assets that are invested in one or
more open-end management investment companies that are registered with the SEC
(known as registered investment companies, or RICs), the fund's NAV will be
calculated based upon the NAVs of such RICs. These RICs are required by law to
explain the circumstances under which they will use fair value pricing and the
effects of using fair value pricing in their prospectuses.


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23


Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based on the prevailing exchange rates on that day.

Trading of securities in foreign markets may not take place every day the NYSE
is open. Also, trading in some foreign markets and on some electronic trading
networks may take place on weekends or holidays when the fund's NAV is not
calculated. So, the value of the fund's portfolio may be affected on days when
you will not be able to purchase, exchange or redeem fund shares.

DISTRIBUTIONS

Federal tax laws require the fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means the fund should not be subject to state or
federal income tax on amounts distributed. The distributions generally consist
of dividends and interest received by the fund, as well as CAPITAL GAINS
realized by the fund on the sale of its investment securities. The fund
generally pays distributions from net income and capital gains, if any, once a
year in December. The fund may make more frequent distributions, if necessary,
to comply with Internal Revenue Code provisions.

        [graphic of triangle]

        CAPITAL GAINS ARE INCREASES IN THE VALUES OF CAPITAL ASSETS, SUCH AS
        STOCK, FROM THE TIME THE ASSETS ARE PURCHASED.

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

Participants in tax-deferred retirement plans must reinvest all distributions.
For investors investing through taxable accounts, we will reinvest distributions
unless you elect to have dividends and/or capital gains sent to another American
Century account, to your bank electronically, or to your home address or to
another person or address by check.


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24


TAXES

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

Tax-Deferred Accounts

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

Taxable Accounts

If you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund shares.

Taxability of Distributions

Fund distributions may consist of income, such as dividends and interest earned
by the fund from its investments, or capital gains generated by the fund from
the sale of its investment securities. Distributions of income are taxed as
ordinary income, unless they are designated as QUALIFIED DIVIDEND INCOME and you
meet a minimum required holding period with respect to your shares of the fund,
in which case distributions of income are taxed as long-term capital gains.

        [graphic of triangle]

        QUALIFIED DIVIDEND INCOME IS A DIVIDEND RECEIVED BY A FUND FROM THE
        STOCK OF A DOMESTIC OR QUALIFYING FOREIGN CORPORATION, PROVIDED THAT THE
        FUND HAS HELD THE STOCK FOR A REQUIRED HOLDING PERIOD.

For capital gains and for income distributions designated as qualified dividend
income, the following rates apply:

                                        TAX RATE FOR 10%      TAX RATE FOR
TYPE OF DISTRIBUTION                    AND 15% BRACKETS      ALL OTHER BRACKETS
- --------------------------------------------------------------------------------
Short-term capital gains                Ordinary Income       Ordinary Income
- --------------------------------------------------------------------------------
Long-term capital gains (> 1 year)
and Qualified Dividend Income           5%                    15%
- --------------------------------------------------------------------------------

If the fund's distributions exceed its taxable income and capital gains realized
during the tax year, all or a portion of the distributions made by the fund in
that tax year will be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.


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25


The tax status of any distributions of capital gains is determined by how long a
fund held the underlying security that was sold, not by how long you have been
invested in the fund, or whether you reinvest your distributions in additional
shares or take them in cash. For taxable accounts, American Century or your
financial intermediary will inform you of the tax status of fund distributions
for each calendar year in an annual tax mailing.

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

Taxes on Transactions

Your redemptions - including exchanges to other American Century funds - are
subject to capital gains tax. The table above can provide a general guide for
your potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss. However, you should note that loss realized upon the
sale or exchange of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain to you with respect to those shares. If a loss is realized on the
redemption of fund shares, the reinvestment in additional fund shares within 30
days before or after the redemption may be subject to the wash sale rules of the
Internal Revenue Code. This may result in a postponement of the recognition of
such loss for federal income tax purposes.

If you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.

Buying a Dividend

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

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

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


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26


MULTIPLE CLASS INFORMATION

American Century offers seven classes of shares of the fund: Investor Class,
Institutional Class, A Class, B Class, C Class, R Class and Advisor Class.

The classes have different fees, expenses and/or minimum investment
requirements. The difference in the fee structures between the classes is the
result of their separate arrangements for shareholder and distribution services.
It is not the result of any difference in advisory or custodial fees or other
expenses related to the management of the fund's assets, which do not vary by
class. Different fees and expenses will affect performance.

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

Service, Distribution and Administrative Fees

Investment Company Act Rule 12b-1 permits mutual funds that adopt a written plan
to pay certain expenses associated with the distribution of their shares out of
fund assets. Each class, except the Investor Class and Institutional Class,
offered by this prospectus has a 12b-1 plan. The plans provide for the fund to
pay annual fees of 0.25% for A Class, 1.00% for B and C Classes, and 0.50% for
Advisor and R Classes to the distributor for certain ongoing shareholder and
administrative services and for distribution services, including past
distribution services. Under the Advisor Class Plan, the fund's Advisor Class
pays the distributor an annual fee of 0.50% of Advisor Class average net assets,
half for certain ongoing shareholder and administrative services and half for
distribution services, including past distribution services. The distributor
pays all or a portion of such fees to the financial intermediaries that make the
classes available. Because these fees are used to pay for services that are not
related to prospective sales of the fund, each class will continue to make
payments under its plan even if it is closed to new investors. Because these
fees are paid out of the fund's assets on an ongoing basis, over time these fees
will increase the cost of your investment and may cost you more than other types
of sales charges. The higher fees for B and C Class shares may cost you more
over time than paying the initial sales charge for A Class shares. For
additional information about the plans and their terms, see MULTIPLE CLASS
STRUCTURE in the statement of additional information.



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27



Certain financial intermediaries perform recordkeeping and administrative
services for their clients that would otherwise be performed by American
Century's transfer agent. In some circumstances, the advisor will pay such
service providers a fee for performing those services. Also, the advisor and the
fund's distributor may make payments for various additional services or other
expenses out of their profits or other available sources. Such payments may be
made for one or more of the following: (1) distribution services, which include
expenses incurred by intermediaries for their sales activities with respect to
the fund, such as preparing, printing and distributing sales literature and
advertising materials and compensating registered representatives or other
employees of such financial intermediary for their sales activities; (2)
shareholder services, such as providing individual and custom investment
advisory services to clients of the financial intermediary; and (3) marketing
and promotional services, including business planning assistance, educating
personnel about the fund, and sponsorship of sales meetings, which may include
covering costs of providing speakers, meals and other entertainment. The
distributor may sponsor seminars and conferences designed to educate
intermediaries about the fund and may cover the expenses associated with
attendance at such meetings, including travel costs. These payments and
activities are intended to provide an incentive to intermediaries to sell the
fund by ensuring that they are educated about the fund, and to help such
intermediaries defray costs associated with offering the fund. The amount of any
payments described by this paragraph is determined by the advisor or the
distributor, and all such amounts are paid out of the available assets of the
advisor and distributor, and not by you or the fund. As a result, the total
expense ratio of the fund will not be affected by any such payments.



- ------
28


FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The tables on the next few pages itemize what contributed to the changes in
share price during the most recently ended fiscal year. They also show the
changes in share price for this period in comparison to changes over the last
five fiscal years (or a shorter period if the share class is not five years
old).

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

*  share price at the beginning of the period

*  investment income and capital gains or losses

*  distributions of income and capital gains paid to investors

*  share price at the end of the period

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

*  TOTAL RETURN - the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO - the operating expenses of the fund as a percentage of
   average net assets

*  NET INCOME RATIO - the net investment income of the fund as a percentage
   of average net assets

*  PORTFOLIO TURNOVER - the percentage of the fund's investment portfolio
   that is replaced during the period

The Financial Highlights that follow have been audited by Deloitte & Touche LLP.
The fund's Report of Independent Registered Public Accounting Firm and the
financial statements are included in the fund's annual report, which is
available upon request.


- ------
29


SELECT FUND

Investor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31

- --------------------------------------------------------------------------------
                               2006       2005      2004      2003      2002
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period            $37.04     $34.80    $33.77    $28.91    $34.94
- --------------------------------------------------------------------------------
Income From
Investment Operations
- --------------------------
   Net Investment
   Income (Loss)(1)            0.21       0.15      -(2)      0.01      0.07
- --------------------------
   Net Realized and
   Unrealized Gain (Loss)      (0.77)     2.17      1.03      4.92      (6.04)
- --------------------------------------------------------------------------------
   Total From
   Investment Operations       (0.56)     2.32      1.03      4.93      (5.97)
- --------------------------------------------------------------------------------
Distributions
- --------------------------
   From Net
   Investment Income           (0.26)     (0.08)    -         (0.07)    (0.06)
- --------------------------------------------------------------------------------
Net Asset Value,
End of Period                  $36.22     $37.04    $34.80    $33.77    $28.91
================================================================================
   TOTAL RETURN(3)             (1.55)%    6.67%     3.05%     17.11%    (17.11)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating
Expenses to Average
Net Assets                     1.00%      1.00%     1.00%     1.00%     1.00%
- --------------------------
Ratio of Net Investment
Income (Loss)
to Average Net Assets          0.57%      0.42%     (0.01)%   0.03%     0.21%
- --------------------------
Portfolio Turnover Rate        206%       55%       48%       84%       168%
- --------------------------
Net Assets, End of
Period (in millions)           $2,576     $3,329    $3,565    $3,828    $3,522
- --------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  PER-SHARE AMOUNT IS LESS THAN $0.005.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES
     WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD
     MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET
     ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC
     GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE
     CLASS AND ANOTHER.


- ------
30


SELECT FUND

Institutional Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31

- --------------------------------------------------------------------------------
                               2006       2005      2004      2003      2002
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period            $37.35     $35.09    $33.99    $29.10    $35.16
- --------------------------------------------------------------------------------
Income From
Investment Operations
- --------------------------
   Net Investment
   Income (Loss)(1)            0.30       0.24      0.07      0.07      0.13
- --------------------------
   Net Realized and
   Unrealized Gain (Loss)      (0.78)     2.18      1.03      4.95      (6.06)
- --------------------------------------------------------------------------------
   Total From
   Investment Operations       (0.48)     2.42      1.10      5.02      (5.93)
- --------------------------------------------------------------------------------
Distributions
- --------------------------
   From Net
   Investment Income           (0.34)     (0.16)    -         (0.13)    (0.13)
- --------------------------------------------------------------------------------
Net Asset Value,
End of Period                  $36.53     $37.35    $35.09    $33.99    $29.10
================================================================================
   TOTAL RETURN(2)             (1.35)%    6.87%     3.24%     17.34%    (16.93)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating
Expenses to Average
Net Assets                     0.80%      0.80%     0.80%     0.80%     0.80%
- --------------------------
Ratio of Net Investment
Income (Loss)
to Average Net Assets          0.77%      0.62%     0.19%     0.23%     0.41%
- --------------------------
Portfolio Turnover Rate        206%       55%       48%       84%       168%
- --------------------------
Net Assets, End of
Period (in thousands)          $148,717   $198,212  $234,815  $229,596  $185,897
- ---------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES
     WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD
     MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET
     ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC
     GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE
     CLASS AND ANOTHER.


- ------
31


SELECT FUND

A Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)

- --------------------------------------------------------------------------------
                              2006         2005         2004         2003(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period           $36.87       $34.66       $33.72       $27.75
- --------------------------------------------------------------------------------
Income From
Investment Operations
- --------------------------
   Net Investment
   Income (Loss)(2)           0.10         0.04         (0.10)       (0.14)
- --------------------------
   Net Realized and
   Unrealized Gain (Loss)     (0.75)       2.17         1.04         6.11
- --------------------------------------------------------------------------------
   Total From
   Investment Operations      (0.65)       2.21         0.94         5.97
- --------------------------------------------------------------------------------
Distributions
- --------------------------
   From Net
   Investment Income          (0.19)       -            -            -
- --------------------------------------------------------------------------------
Net Asset Value,
End of Period                 $36.03       $36.87       $34.66       $33.72
================================================================================
   TOTAL RETURN(3)            (1.81)%      6.38%        2.79%        21.51%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating
Expenses to Average
Net Assets                    1.25%        1.25%        1.25%        1.25%(4)
- --------------------------
Ratio of Net Investment
Income (Loss) to
Average Net Assets            0.32%        0.17%        (0.26)%      (0.56)%(4)
- --------------------------
Portfolio Turnover Rate       206%         55%          48%          84%(5)
- --------------------------
Net Assets, End of
Period (in thousands)         $28,371      $39,376      $32,624      $10,305
- --------------------------------------------------------------------------------

(1)  JANUARY 31, 2003 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2003.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL
     RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE
     INDICATED WAS CALCULATED FOR THE YEAR ENDED OCTOBER 31, 2003.


- ------
32


SELECT FUND

B Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)

- --------------------------------------------------------------------------------
                              2006         2005         2004         2003(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period           $36.12       $34.21       $33.53       $27.75
- --------------------------------------------------------------------------------
Income From
Investment Operations
- --------------------------
   Net Investment
   Income (Loss)(2)           (0.12)       (0.22)       (0.35)       (0.31)
- --------------------------
   Net Realized and
   Unrealized Gain (Loss)     (0.79)       2.13         1.03         6.09
- --------------------------------------------------------------------------------
   Total From
   Investment Operations      (0.91)       1.91         0.68         5.78
- --------------------------------------------------------------------------------
Net Asset Value,
End of Period                 $35.21       $36.12       $34.21       $33.53
================================================================================
   TOTAL RETURN(3)            (2.52)%      5.58%        2.03%        20.83%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating
Expenses to
Average Net Assets            2.00%        2.00%        2.00%        2.00%(4)
- --------------------------
Ratio of Net
Investment Income
(Loss) to Average
Net Assets                    (0.43)%      (0.58)%      (1.01)%      (1.28)%(4)
- --------------------------
Portfolio Turnover Rate       206%         55%          48%          84%(5)
- --------------------------
Net Assets, End of
Period (in thousands)         $5,880       $2,501       $2,273       $1,032
- --------------------------------------------------------------------------------

(1)  JANUARY 31, 2003 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2003.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL
     RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE
     INDICATED WAS CALCULATED FOR THE YEAR ENDED OCTOBER 31, 2003.


- ------
33


SELECT FUND

C Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)

- --------------------------------------------------------------------------------
                              2006         2005         2004         2003(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period           $36.15       $34.23       $33.56       $27.75
- --------------------------------------------------------------------------------
Income From
Investment Operations
- --------------------------
   Net Investment
   Income (Loss)(2)           (0.16)       (0.22)       (0.36)       (0.31)
- --------------------------
   Net Realized and
   Unrealized Gain (Loss)     (0.75)       2.14         1.03         6.12
- --------------------------------------------------------------------------------
   Total From
   Investment Operations      (0.91)       1.92         0.67         5.81
- --------------------------------------------------------------------------------
Net Asset Value,
End of Period                 $35.24       $36.15       $34.23       $33.56
================================================================================
   TOTAL RETURN(3)            (2.52)%      5.58%        2.03%        20.94%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating
Expenses to Average
Net Assets                    2.00%        2.00%        2.00%        2.00%(4)
- --------------------------
Ratio of Net Investment
Income (Loss) to
Average Net Assets            (0.43)%      (0.58)%      (1.01)%      (1.28)%(4)
- --------------------------
Portfolio Turnover Rate       206%         55%          48%          84%(5)
- --------------------------
Net Assets, End of
Period (in thousands)         $1,540       $3,511       $3,733       $1,136
- --------------------------------------------------------------------------------

(1)  JANUARY 31, 2003 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2003.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL
     RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE
     INDICATED WAS CALCULATED FOR THE YEAR ENDED OCTOBER 31, 2003.


- ------
34


SELECT FUND

R Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)

- --------------------------------------------------------------------------------
                                                      2006            2005(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period                                   $37.00          $38.34
- --------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(2)                    0.03            (0.05)
- ----------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                             (0.77)          (1.29)
- --------------------------------------------------------------------------------
   Total From Investment Operations                   (0.74)          (1.34)
- --------------------------------------------------------------------------------
Distributions
- ----------------------------------------
   From Net Investment Income                         (0.21)          -
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                        $36.05          $37.00
================================================================================
   TOTAL RETURN(3)                                    (2.04)%         (3.50)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                                 1.50%           1.50%(4)
- ----------------------------------------
Ratio of Net Investment Income (Loss)
to Average Net Assets                                 0.07%           (0.50)%(4)
- ----------------------------------------
Portfolio Turnover Rate                               206%            55%(5)
- ----------------------------------------
Net Assets, End of Period (in thousands)              $24             $24
- --------------------------------------------------------------------------------

(1)  JULY 29, 2005 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2005.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY
     REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING
     THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE
     CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE
     CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET
     VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND
     DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE
     INDICATED WAS CALCULATED FOR THE YEAR ENDED OCTOBER 31, 2005.


- ------
35


SELECT FUND

Advisor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31

- --------------------------------------------------------------------------------
                              2006      2005      2004      2003      2002
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period           $36.63    $34.43    $33.49    $28.66    $34.68
- --------------------------------------------------------------------------------
Income From
Investment Operations
- --------------------------
   Net Investment
   Income (Loss)(1)           0.12      0.04      (0.09)    (0.07)    (0.02)
- --------------------------
   Net Realized and
   Unrealized Gain (Loss)     (0.76)    2.16      1.03      4.90      (6.00)
- --------------------------------------------------------------------------------
   Total From
   Investment Operations      (0.64)    2.20      0.94      4.83      (6.02)
- --------------------------------------------------------------------------------
Distributions
- --------------------------
   From Net
   Investment Income          (0.19)    -         -         -(2)      -
- --------------------------------------------------------------------------------
Net Asset Value,
End of Period                 $35.80    $36.63    $34.43    $33.49    $28.66
================================================================================
   TOTAL RETURN(3)            (1.79)%   6.39%     2.81%     16.86%    (17.36)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets         1.25%     1.25%     1.25%     1.25%     1.25%
- --------------------------
Ratio of Net Investment
Income (Loss)
to Average Net Assets         0.32%     0.17%     (0.26)%   (0.22)%   (0.04)%
- --------------------------
Portfolio Turnover Rate       206%      55%       48%       84%       168%
- --------------------------
Net Assets, End of
Period (in thousands)         $21,455   $27,741   $22,626   $29,152   $20,432
- --------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  PER-SHARE AMOUNT IS LESS THAN $0.005.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES
     WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD
     MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET
     ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC
     GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE
     CLASS AND ANOTHER.


- ------
36


NOTES


- ------
37


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

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

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

IN PERSON           SEC Public Reference Room
                    Washington, D.C.
                    Call 202-942-8090 for location and hours.

ON THE INTERNET     * EDGAR database at sec.gov
                    * By email request at publicinfo@sec.gov

BY MAIL             SEC Public Reference Section
                    Washington, D.C. 20549-0102

This prospectus shall not constitute an offer to sell securities of the fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or qualified for sale, unless such registration or qualification
is not required, or under any circumstances in which such offer or solicitation
would be unlawful.

FUND REFERENCE               FUND CODE        TICKER         NEWSPAPER LISTING
- --------------------------------------------------------------------------------
Select Fund
  Investor Class             021              TWCIX          Select
- --------------------------------------------------------------------------------
  Institutional Class        321              TWSIX          Select
- --------------------------------------------------------------------------------
  A Class                    121              AASLX          Select
- --------------------------------------------------------------------------------
  B Class                    302              ABSLX          Select
- --------------------------------------------------------------------------------
  C Class                    412              ACSLX          Select
- --------------------------------------------------------------------------------
  R Class                    123              ASERX          Select
- --------------------------------------------------------------------------------
  Advisor Class              721              TWCAX          Select
- --------------------------------------------------------------------------------

Investment Company Act File No. 811-0816

AMERICAN CENTURY INVESTMENTS

americancentury.com
                                    Banks and Trust Companies, Broker-Dealers,
Self-Directed Retail Investors      Financial Professionals, Insurance Companies
P.O. Box 419200                     P.O. Box 419786
Kansas City, Missouri 64141-6200    Kansas City, Missouri 64141-6786
1-800-345-2021 or 816-531-5575      1-800-345-6488

0703
SH-PRS-52531













AMERICAN CENTURY INVESTMENTS

Prospectus

March 1, 2007

Capital Growth Fund


THE FUND IS AVAILABLE FOR PURCHASE ONLY THROUGH FINANCIAL INTERMEDIARIES BY
INVESTORS WHO SEEK ADVICE FROM THEM. THE FUND IS CLOSED TO OTHER INVESTORS.


THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

American Century Investment
Services, Inc., Distributor

[american century investments logo and text logo]





Table of Contents

AN OVERVIEW OF THE FUND. . . . . . . . . . . . . . . . . . . . . .  . . . . . 2

FUND PERFORMANCE HISTORY. . . . . . . . . . . . . . . . . . . . . . . . . . . 3

FEES AND EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

OBJECTIVES, STRATEGIES AND RISKS. . . . . . . . . . . . . . . . . . . . . . . 7

MANAGEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

INVESTING DIRECTLY WITH AMERICAN CENTURY. . . . . . . . . . . . . . . . . . .11

INVESTING THROUGH A FINANCIAL INTERMEDIARY. . . . . . . . . . . . . . . . . .13

ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT . . . . . . . . . . . . . . . .18

SHARE PRICE AND DISTRIBUTIONS . . . . . . . . . . . . . . . . . . . . . . . .22

TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24

MULTIPLE CLASS INFORMATION. . . . . . . . . . . . . . . . . . . . . . . . . .26

FINANCIAL HIGHLIGHTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . .27


          [graphic of triangle]

          THIS SYMBOL IS USED THROUGHOUT THE BOOK TO HIGHLIGHT DEFINITIONS
          OF KEY INVESTMENT TERMS AND TO PROVIDE OTHER HELPFUL INFORMATION.


American Century Investment Services, Inc., Distributor

©2007 American Century Proprietary Holdings, Inc. All rights reserved.

The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.





AN OVERVIEW OF THE FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

The portfolio managers look for stocks of companies they believe will increase
in value over time, using an investment strategy developed by American Century.
In implementing this strategy, the portfolio managers make their investment
decisions based primarily on their analysis of individual companies, rather than
on broad economic forecasts. Management of the fund is based on the belief that,
over the long term, stock price movements follow growth in earnings, revenues
and/or cash flow.

The fund's portfolio managers use a variety of analytical research tools and
techniques to identify the stocks of larger-sized companies that meet their
investment criteria. Under normal market conditions, the fund's portfolio will
primarily consist of securities of companies demonstrating business improvement.

The fund's principal risks include

*  GROWTH STOCKS - Investments in growth stocks may involve special risks and
   their prices may fluctuate more dramatically than the overall stock market.

*  FOREIGN SECURITIES - The fund may invest in foreign securities, which can
   be riskier than investing in U.S. securities.

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

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

*  PRINCIPAL LOSS - At any given time your shares may be worth less than the
   price you paid for them. In other words, it is possible to lose money by
   investing in the fund.

A more detailed description of the fund's investment strategies and risks may be
found under the heading OBJECTIVES, STRATEGIES AND RISKS, which begins on page
7.


          [graphic of triangle]

          AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT, AND IT IS NOT
          INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE
          CORPORATION (FDIC) OR ANY OTHER GOVERNMENT AGENCY.


- ------
2


FUND PERFORMANCE HISTORY

Annual Total Returns

The following bar chart shows the performance of the fund's A Class shares for
each full calendar year in the life of the class. It indicates the volatility of
the fund's historical returns from year to year. Account fees and sales charges,
if applicable, are not reflected in the chart below. If they had been included,
returns would have been lower than those shown. The returns of the fund's other
classes of shares will differ from those shown in the chart, depending on the
expenses of those classes.

CAPITAL GROWTH FUND - A CLASS

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


                               HIGHEST                         LOWEST
- --------------------------------------------------------------------------------
Capital Growth                 4.95% (3Q 2006)                 -4.06% (1Q 2005)
- --------------------------------------------------------------------------------


Average Annual Total Returns

The following table shows the average annual total returns of the fund's A Class
shares calculated three different ways. Additional tables show the average
annual total returns of the fund's other share classes calculated before the
impact of taxes. Returns assume the deduction of all sales loads, charges and
other fees associated with a particular class. Your actual returns may vary
depending on the circumstances of your investment.

Return Before Taxes shows the actual change in the value of fund shares over the
time periods shown, but does not reflect the impact of taxes on fund
distributions or the sale of fund shares. The two after-tax returns take into
account taxes that may be associated with owning fund shares. Return After Taxes
on Distributions is a fund's actual performance, adjusted by the effect of taxes
on distributions made by the fund during the periods shown. Return After Taxes
on Distributions and Sale of Fund Shares is further adjusted to reflect the tax
impact on any change in the value of fund shares as if they had been sold on the
last day of the period.

After-tax returns are calculated using the historical highest federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-tax returns shown are not relevant to investors who hold fund
shares through tax-deferred arrangements such as 401(k) plans or IRAs. After-tax
returns are shown only for A Class shares. After-tax returns for other share
classes will vary.



- ------
3


The benchmark is an unmanaged index that has no operating costs and is included
in each table for performance comparison.

A CLASS
                                                                       LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006          1 YEAR          CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                    1.47%           4.09%
Return After Taxes on Distributions                    1.29%           4.03%
Return After Taxes on Distributions
and Sale of Fund Shares                                1.20%           3.50%
Russell 1000® Growth Index                             9.07%           6.27%
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE A CLASS IS FEBRUARY 27, 2004.


B CLASS
                                                                       LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006          1 YEAR          CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                    2.81%           4.53%
Russell 1000® Growth Index                             9.07%           6.27%
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE B CLASS IS FEBRUARY 27, 2004.



C CLASS
                                                                       LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006          1 YEAR          CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                    6.81%           5.49%
Russell 1000® Growth Index                             9.07%           6.27%
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE C CLASS IS FEBRUARY 27, 2004.


R CLASS
                                                                       LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006          1 YEAR          CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                    7.36%           6.74%
Russell 1000® Growth Index                             9.07%           7.91%(2)
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE R CLASS IS JULY 29, 2005.

(2)  SINCE JULY 31, 2005, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.

INVESTOR CLASS
                                                                       LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006          1 YEAR           CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                    7.89%           7.25%
Russell 1000® Growth Index                             9.07%           7.91%(2)
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE INVESTOR CLASS IS JULY 29, 2005.

(2)  SINCE JULY 31, 2005, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.

INSTITUTIONAL CLASS
                                                                       LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006          1 YEAR          CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                    8.15%           7.50%
Russell 1000® Growth Index                             9.07%           7.91%(2)
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE INSTITUTIONAL CLASS IS JULY 29, 2005.

(2)  SINCE JULY 31, 2005, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.

Performance information is designed to help you see how fund returns can vary.
Keep in mind that past performance (before and after taxes) does not predict how
a fund will perform in the future.

For current performance information, please call us or visit
americancentury.com.


- ------
4


FEES AND EXPENSES

The following tables describe the fees and expenses you may pay if you buy and
hold shares of the fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
                                   INVESTOR  INSTITUTIONAL  A        B         C         R
                                   CLASS     CLASS          CLASS    CLASS     CLASS     CLASS
- -----------------------------------------------------------------------------------------------
Maximum Sales Charge (Load)        None      None           5.75%    None      None      None
Imposed on Purchases
   (as a percentage
   of offering price)
- -----------------------------------------------------------------------------------------------
Maximum Deferred Sales             None      None           None(1)  5.00%(2)  1.00%(3)  None
Charge (Load)
   (as a percentage of the
   original offering price for
   B Class shares or the lower
   of the original offering price
   or redemption proceeds for
   A and C Class shares)
- -----------------------------------------------------------------------------------------------
Maximum Account                    $25(4)    None           None     None      None      None
Maintenance Fee
- -----------------------------------------------------------------------------------------------

(1)  INVESTMENTS OF $1 MILLION OR MORE IN A CLASS SHARES MAY BE SUBJECT TO
     A CONTINGENT DEFERRED SALES CHARGE OF 1.00% IF THE SHARES ARE REDEEMED
     WITHIN ONE YEAR OF THE DATE OF PURCHASE.

(2)  THE CHARGE IS 5.00% DURING THE FIRST YEAR AFTER PURCHASE, DECLINES
     OVER THE NEXT FIVE YEARS AS SHOWN ON PAGE 15, AND IS ELIMINATED AFTER SIX
     YEARS.

(3)  THE CHARGE IS 1.00% DURING THE FIRST YEAR AFTER PURCHASE, AND IS
     ELIMINATED THEREAFTER.

(4)  APPLIES ONLY TO INVESTORS WHOSE TOTAL ELIGIBLE INVESTMENTS WITH
     AMERICAN CENTURY ARE LESS THAN $10,000. SEE Account Maintenance Fee UNDER
     Investing Directly with American Century FOR MORE DETAILS.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
                                   DISTRIBUTION                  TOTAL ANNUAL
                       MANAGEMENT  AND SERVICE      OTHER        FUND OPERATING
                       FEE(1)      (12B-1) FEES(2)  EXPENSES(3)  EXPENSES
- --------------------------------------------------------------------------------
Investor Class         1.00%       None             0.00%        1.00%
- --------------------------------------------------------------------------------
Institutional Class    0.80%       None             0.00%        0.80%
- --------------------------------------------------------------------------------
A Class                1.00%       0.25%            0.00%        1.25%
- --------------------------------------------------------------------------------
B Class                1.00%       1.00%            0.00%        2.00%
- --------------------------------------------------------------------------------
C Class                1.00%       1.00%            0.00%        2.00%
- --------------------------------------------------------------------------------
R Class                1.00%       0.50%            0.00%        1.50%
- --------------------------------------------------------------------------------

(1)  THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR
     ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. THE FEE SHOWN IS
     BASED ON ASSETS DURING THE FUND'S MOST RECENT FISCAL YEAR. THE FUND HAS A
     STEPPED FEE SCHEDULE. AS A RESULT, THE FUND'S UNIFIED MANAGEMENT FEE RATE
     GENERALLY DECREASES AS STRATEGY ASSETS INCREASE AND INCREASES AS STRATEGY
     ASSETS DECREASE. FOR MORE INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE,
     INCLUDING AN EXPLANATION OF STRATEGY ASSETS, SEE The Investment Advisor
     UNDER Management.

(2)  THE 12B-1 FEE IS DESIGNED TO PERMIT INVESTORS TO PURCHASE SHARES
     THROUGH BROKER-DEALERS, BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL
     INTERMEDIARIES. THE FEE MAY BE USED TO COMPENSATE SUCH FINANCIAL
     INTERMEDIARIES FOR DISTRIBUTION AND OTHER SHAREHOLDER SERVICES. FOR MORE
     INFORMATION, SEE Multiple Class Information AND Service, Distribution and
     Administrative Fees, PAGE 26.

(3)  OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
     INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, INTEREST, AND FEES AND
     EXPENSES INCURRED INDIRECTLY BY THE FUND AS A RESULT OF INVESTMENT IN
     SHARES OF ONE OR MORE MUTUAL FUNDS, HEDGE FUNDS, PRIVATE EQUITY FUNDS OR
     OTHER POOLED INVESTMENT VEHICLES, WERE LESS THAN 0.005% FOR THE MOST RECENT
     FISCAL YEAR.



- ------
5


EXAMPLE

The examples in the tables below are intended to help you compare the costs of
investing in the fund with the costs of investing in other mutual funds. Of
course, your actual costs may be higher or lower. Assuming you . . .

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

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

                           1 YEAR        3 YEARS        5 YEARS        10 YEARS
- --------------------------------------------------------------------------------
Investor Class             $102          $318           $551           $1,219
- --------------------------------------------------------------------------------
Institutional Class        $82           $255           $443           $987
- --------------------------------------------------------------------------------
A Class                    $695          $947           $1,219         $1,991
- --------------------------------------------------------------------------------
B Class                    $602          $923           $1,169         $2,115
- --------------------------------------------------------------------------------
C Class                    $202          $623           $1,069         $2,305
- --------------------------------------------------------------------------------
R Class                    $152          $472           $814           $1,778
- --------------------------------------------------------------------------------

The table above reflects a deduction for charges payable upon redemption. You
would pay the following expenses if you did not redeem your shares and thus did
not incur such charges:

                           1 YEAR        3 YEARS        5 YEARS        10 YEARS
- --------------------------------------------------------------------------------
Investor Class             $102          $318           $551           $1,219
- --------------------------------------------------------------------------------
Institutional Class        $82           $255           $443           $987
- --------------------------------------------------------------------------------
A Class                    $695          $947           $1,219         $1,991
- --------------------------------------------------------------------------------
B Class                    $202          $623           $1,069         $2,115
- --------------------------------------------------------------------------------
C Class                    $202          $623           $1,069         $2,305
- --------------------------------------------------------------------------------
R Class                    $152          $472           $814           $1,778
- --------------------------------------------------------------------------------


- ------
6


OBJECTIVES, STRATEGIES AND RISKS

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

The portfolio managers look for stocks of larger-sized companies they believe
will increase in value over time, using an investment strategy developed by
American Century. In implementing this strategy, the portfolio managers use a
bottom-up approach to stock selection. This means that the managers make their
investment decisions based primarily on their analysis of individual companies,
rather than on broad economic forecasts. Management of the fund is based on the
belief that, over the long term, stock price movements follow growth in
earnings, revenues and/or cash flow.

Using American Century's extensive computer database, as well as other primary
analytical research tools, the portfolio managers track financial information
for individual companies to identify and evaluate trends in earnings, revenues
and other business fundamentals. Under normal market conditions, the fund's
portfolio will primarily consist of securities of companies demonstrating
business improvement. Analytical indicators helping to identify signs of
business improvement could include accelerating earnings or revenue growth
rates, increasing cash flows, or other indications of the relative strength of a
company's business. These techniques help the portfolio managers buy or hold the
stocks of companies they believe have favorable growth prospects and sell the
stocks of companies whose characteristics no longer meet their criteria.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies, including
companies located in emerging markets. Investments in foreign securities present
some unique risks that are more fully described in the fund's statement of
additional information.

The portfolio managers do not attempt to time the market. Instead, under normal
market conditions, they intend to keep the fund essentially fully invested in
stocks regardless of the movement of stock prices generally. When the managers
believe it is prudent, the fund may invest a portion of its assets in debt
securities, preferred stock and equity-equivalent securities, such as
convertible securities, stock futures contracts or stock index futures
contracts. The fund generally limits its purchase of debt securities to
investment-grade obligations. Futures contracts, a type of derivative security,
can help the fund's cash assets remain liquid while performing more like stocks.
The fund has a policy governing futures contracts and similar derivative
securities to help manage the risk of these types of investments. A complete
description of the derivatives policy is included in the statement of additional
information.

In the event of exceptional market or economic conditions, the fund may, as a
temporary defensive measure, invest all or a substantial portion of its assets
in cash, cash-equivalent securities or short-term debt securities. To the extent
the fund assumes a defensive position it will not be pursuing its objective of
long-term capital growth.

A description of the policies and procedures with respect to the disclosure of
the fund's portfolio securities is available in the statement of additional
information.


- ------
7


WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?

Growth stocks are typically priced higher than other stocks, in relation to
earnings and other measures, because investors believe they have more growth
potential. This potential may or may not be realized and growth stock prices
tend to fluctuate more dramatically than the overall stock market.

The portfolio managers may buy a large amount of a company's stock quickly, and
often will dispose of it quickly if the company's earnings or revenues decline.
While the managers believe this strategy provides substantial appreciation
potential over the long term, in the short term it can create a significant
amount of share price volatility. This volatility can be greater than that of
the average stock fund.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies. Foreign
investment involves additional risks, including fluctuations in currency
exchange rates, less stable political and economic structures, reduced
availability of public information, and lack of uniform financial reporting and
regulatory practices similar to those that apply in the United States. These
factors make investing in foreign securities generally riskier than investing in
U.S. stocks. To the extent the fund invests in foreign securities, the overall
risk of the fund could be affected.

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 a
fund's style, the fund's gains may not be as big as, or its losses may be bigger
than, other equity funds using different investment styles.

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 the fund owns will go
up and down depending on the performance of the companies that issued them,
general market and economic conditions, and investor confidence.

At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the fund.


- ------
8


MANAGEMENT

WHO MANAGES THE FUND?

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


THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than three-fourths of the directors are independent of the fund's advisor;
that is, they have never been employed by and have no financial interest in the
advisor or any of its affiliated companies (other than as shareholders of
American Century funds).

THE INVESTMENT ADVISOR

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

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

For the services it provides to the fund, the advisor receives a unified
management fee based on a percentage of the daily net assets of each class of
shares of the fund. The amount of the fee is calculated daily and paid monthly
in arrears. Out of that fee, the advisor pays all expenses of managing and
operating the fund except brokerage expenses, taxes, interest, fees and expenses
of the independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the fund's management fee may be paid by the fund's
advisor to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of the
advisor.

The rate of the fee is determined by applying a formula that takes into account
all of the advisor's assets under management in the fund's investment strategy
(strategy assets). Strategy assets include the assets of the fund as well as
certain assets of other clients of the advisor outside the American Century fund
family (such as subadvised funds and separate accounts) that use very similar
investment teams and strategies. The use of strategy assets, rather than fund
assets, in calculating the fund's fee rate could allow the fund to realize
scheduled cost savings more quickly. However, it is possible that the fund's
strategy assets will not include assets of other client accounts or that any
such assets may not be sufficient to result in a lower fee rate.

MANAGEMENT FEES
PAID BY THE FUND
TO THE ADVISOR AS
A PERCENTAGE OF
AVERAGE NET ASSETS
FOR THE FISCAL
YEAR ENDED            INVESTOR   INSTITUTIONAL   A       B       C       R
OCTOBER 31, 2006      CLASS      CLASS           CLASS   CLASS   CLASS   CLASS
- --------------------------------------------------------------------------------
Capital Growth        1.00%      0.80%           1.00%   1.00%   1.00%   1.00%
- --------------------------------------------------------------------------------

A discussion regarding the basis for the Board of Directors' approval of the
fund's investment advisory contract with the advisor is available in the fund's
report to shareholders dated October 31, 2006.



- ------
9


THE FUND MANAGEMENT TEAM

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

The portfolio managers on the investment team who are jointly and primarily
responsible for the day-to-day management of the fund are identified below.

GREGORY J. WOODHAMS

Mr. Woodhams, Vice President and Senior Portfolio Manager, has been a member of
the team that manages the fund since its inception in February 2004. He joined
American Century in September 1997 and became a portfolio manager in May 1998.
He has a bachelor's degree in economics from Rice University and an M.A. in
economics from the University of Wisconsin. He is a CFA charterholder.

E. A. PRESCOTT LEGARD

Mr. LeGard, Vice President and Portfolio Manager, has been a member of the team
that manages the fund since its inception in February 2004. He joined American
Century in March 1999 and became a portfolio manager in April 2000. He has a
bachelor's degree in economics from DePauw University. He is a CFA
charterholder.

The statement of additional information provides additional information about
the other accounts managed by the portfolio managers, if any, the structure of
their compensation, and their ownership of fund securities.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the statement of additional
information and the investment objectives of the fund may not be changed without
shareholder approval. The Board of Directors and/or the advisor may change any
other policies and investment strategies.


- ------
10



INVESTING DIRECTLY WITH AMERICAN CENTURY

Although investors may only open new accounts through financial intermediaries,
current fund shareholders may, under certain circumstances, make additional
investments directly with American Century.

SERVICES AUTOMATICALLY AVAILABLE TO YOU

Most accounts automatically will have access to the services listed under WAYS
TO MANAGE YOUR ACCOUNT when the account is opened. If you do not want these
services, see CONDUCTING BUSINESS IN WRITING. If you have questions about the
services that apply to your account type, please call us.

CONDUCTING BUSINESS IN WRITING

If you prefer to conduct business in writing only, you can indicate this on the
account application. If you choose this option, you must provide written
instructions to invest, exchange and redeem. All account owners must sign
transaction instructions (with signatures guaranteed for redemptions in excess
of $100,000). By choosing this option, you are not eligible to enroll for
exclusive online account management to waive the account maintenance fee. See
ACCOUNT MAINTENANCE FEE in this section. If you want to add online and telephone
services later, you can complete an Investor Service Options form.

ACCOUNT MAINTENANCE FEE

If you hold Investor Class shares of any American Century fund, or Institutional
Class shares of the American Century Diversified Bond fund, in an American
Century account (i.e., not a financial intermediary or retirement plan account),
we may charge you a $12.50 semiannual account maintenance fee if the value of
those shares is less than $10,000. We will determine the amount of your total
eligible investments twice per year, generally the last Friday in October and
April. If the value of those investments is less than $10,000 at that time, we
will automatically redeem shares in one of your accounts to pay the $12.50 fee.
Please note that you may incur tax liability as a result of the redemption. In
determining your total eligible investment amount, we will include your
investments in all PERSONAL ACCOUNTS (including American Century Brokerage
accounts) registered under your Social Security number. We will not charge the
fee as long as you choose to manage your accounts exclusively online. You may
enroll for exclusive online account management on our Web site. To find out more
about exclusive online account management, visit americancentury.com/info/demo.

          [graphic of triangle]


          PERSONAL ACCOUNTS INCLUDE INDIVIDUAL ACCOUNTS, JOINT ACCOUNTS,
          UGMA/UTMA ACCOUNTS, PERSONAL TRUSTS, COVERDELL EDUCATION SAVINGS
          ACCOUNTS, IRAS (INCLUDING TRADITIONAL, ROTH, ROLLOVER, SEP-, SARSEP-
          AND SIMPLE-IRAS), AND CERTAIN OTHER RETIREMENT ACCOUNTS. IF YOU HAVE
          ONLY BUSINESS, BUSINESS RETIREMENT, EMPLOYER-SPONSORED OR AMERICAN
          CENTURY BROKERAGE ACCOUNTS, YOU ARE CURRENTLY NOT SUBJECT TO THIS
          FEE, BUT YOU MAY BE SUBJECT TO OTHER FEES.


WIRE PURCHASES

CURRENT INVESTORS: If you would like to make a wire purchase into an existing
account, your bank will need the following information. (To invest in a new
fund, please call us first to set up the new account.)

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

NEW INVESTORS: To make a wire purchase into a new account, please complete an
application prior to wiring money.


- ------
11


WAYS TO MANAGE YOUR ACCOUNT

ONLINE
- --------------------------------------------------------------------------------
americancentury.com

OPEN AN ACCOUNT: If you are a current or new investor, you can open an account
by completing and submitting our online application. Current investors also can
open an account by exchanging shares from another American Century account.

EXCHANGE SHARES: Exchange shares from another American Century account.

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

SELL SHARES*: Redeem shares and proceeds will be electronically transferred to
your authorized bank account.

* ONLINE REDEMPTIONS UP TO $25,000 PER DAY.

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

* 4500 Main Street, Kansas City, Missouri - 8 a.m. to 5 p.m., Monday - Friday

* 4917 Town Center Drive, Leawood, Kansas - 8 a.m. to 5 p.m., Monday - Friday,
  8 a.m. to noon, Saturday

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

BY TELEPHONE
- --------------------------------------------------------------------------------
INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021

INSTITUTIONAL SERVICE REPRESENTATIVE: 1-800-345-3533

BUSINESS, NOT-FOR-PROFIT AND EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533

AUTOMATED INFORMATION LINE: 1-800-345-8765

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

EXCHANGE SHARES: Call or use our Automated Information Line if you have
authorized us to accept telephone instructions. The Automated Information Line
is available only to Investor Class shareholders.

MAKE ADDITIONAL INVESTMENTS: Call or use our Automated Information Line if you
have authorized us to invest from your bank account. The Automated Information
Line is available only to Investor Class shareholders.

SELL SHARES: Call a Service Representative.

BY MAIL OR FAX
- --------------------------------------------------------------------------------
P.O. Box 419200, Kansas City, MO 64141-6200 - Fax: 816-340-7962

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

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

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

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

AUTOMATICALLY
- --------------------------------------------------------------------------------
OPEN AN ACCOUNT: Not available.

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

MAKE ADDITIONAL INVESTMENTS: With the automatic investment service, you can
purchase shares on a regular basis. You must invest at least $50 per month per
account.

SELL SHARES: You may sell shares automatically by establishing Check-A-Month or
Automatic Redemption plans.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


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12


INVESTING THROUGH A FINANCIAL INTERMEDIARY

The fund's A, C and R Classes are intended for purchase by participants in
employer-sponsored retirement plans. Additionally, the fund's A, B and C Classes
are intended for persons purchasing shares through FINANCIAL INTERMEDIARIES that
provide various administrative and distribution services. For more information
regarding employer-sponsored retirement plan types, please see BUYING AND
SELLING FUND SHARES in the statement of additional information.

          [graphic of triangle]

          FINANCIAL INTERMEDIARIES INCLUDE BANKS, BROKER-DEALERS, INSURANCE
          COMPANIES, PLAN SPONSORS AND FINANCIAL PROFESSIONALS.

Although each class of shares represents an interest in the same fund, each has
a different cost structure, as described below. Which class is right for you
depends on many factors, including how long you plan to hold the shares, how
much you plan to invest, the fee structure of each class, and how you wish to
compensate your financial professional for the services provided to you. Your
financial professional can help you choose the option that is most appropriate.

The following chart provides a summary description of these classes.

A CLASS                                  B CLASS
- --------------------------------------------------------------------------------
Initial sales charge(1)                  No initial sales charge
- --------------------------------------------------------------------------------
Generally no contingent deferred         Contingent deferred sales charge
sales charge(2)                          on redemptions within six years
- --------------------------------------------------------------------------------
12b-1 fee of 0.25%                       12b-1 fee of 1.00%
- --------------------------------------------------------------------------------
No conversion feature                    Convert to A Class shares
                                         eight years after purchase
- --------------------------------------------------------------------------------
Generally more appropriate for           Aggregate purchases limited to amounts
long-term investors                      less than $100,000; generally offered
                                         through financial intermediaries(3)
- --------------------------------------------------------------------------------

C CLASS                                  R CLASS
- --------------------------------------------------------------------------------
No initial sales charge                  No initial sales charge
- --------------------------------------------------------------------------------
Contingent deferred sales charge         No contingent deferred
on redemptions within 12 months          sales charge
- --------------------------------------------------------------------------------
12b-1 fee of 1.00%                       12b-1 fee of 0.50%
- --------------------------------------------------------------------------------
No conversion feature                    No conversion feature
- --------------------------------------------------------------------------------
Aggregate purchases limited to amounts   Generally offered through
less than $1,000,000; generally more     employer-sponsored retirement plans
appropriate for short-term investors     and other fee-based arrangements(4)
- --------------------------------------------------------------------------------

(1)  THE SALES CHARGE FOR A CLASS SHARES DECREASES DEPENDING ON THE SIZE OF
     YOUR INVESTMENT, AND MAY BE WAIVED FOR SOME PURCHASES. THERE IS NO SALES
     CHARGE FOR PURCHASES OF $1,000,000 OR MORE.

(2)  A CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 1.00% WILL BE CHARGED ON
     CERTAIN PURCHASES OF $1,000,000 OR MORE THAT ARE REDEEMED WITHIN ONE YEAR
     OF PURCHASE.

(3)  INVESTORS IN SIMPLE IRA PLANS, SEP IRA PLANS AND SARSEP PLANS ESTABLISHED
     PRIOR TO AUGUST 1, 2006, MAY MAKE ADDITIONAL PURCHASES. THIS CLASS IS
     NOT AVAILABLE FOR NEW EMPLOYER-SPONSORED RETIREMENT PLAN ACCOUNTS.

(4)  IRA ACCOUNTS IN R CLASS SHARES ESTABLISHED THROUGH FINANCIAL
     INTERMEDIARIES PRIOR TO AUGUST 1, 2006, MAY MAKE ADDITIONAL PURCHASES.



- ------
13


CALCULATION OF SALES CHARGES

The information regarding sales charges provided herein is included free of
charge and in a clear and prominent format at americancentury.com in the
INVESTORS USING ADVISORS and INVESTMENT PROFESSIONALS portions of the Web site.
From the description of A, B or C Class shares, a hyperlink will take you
directly to this disclosure.

A Class

A Class shares are sold at their offering price, which is net asset value plus
an initial sales charge. This sales charge varies depending on the amount of
your investment, and is deducted from your purchase before it is invested. The
sales charges and the amounts paid to your financial professional are:

                                                              AMOUNT PAID TO
                           SALES CHARGE    SALES CHARGE AS A  FINANCIAL ADVISOR
                           AS A % OF       % OF NET AMOUNT    AS A % OF
PURCHASE AMOUNT            OFFERING PRICE  INVESTED           OFFERING PRICE
- --------------------------------------------------------------------------------
Less than $50,000          5.75%           6.10%              5.00%
- --------------------------------------------------------------------------------
$50,000 - $99,999          4.75%           4.99%              4.00%
- --------------------------------------------------------------------------------
$100,000 - $249,999        3.75%           3.90%              3.25%
- --------------------------------------------------------------------------------
$250,000 - $499,999        2.50%           2.56%              2.00%
- --------------------------------------------------------------------------------
$500,000 - $999,999        2.00%           2.04%              1.75%
- --------------------------------------------------------------------------------
$1,000,000 - $3,999,999    0.00%           0.00%              1.00%(1)
- --------------------------------------------------------------------------------
$4,000,000 - $9,999,999    0.00%           0.00%              0.50%(1)
- --------------------------------------------------------------------------------
$10,000,000 or more        0.00%           0.00%              0.25%(1)
- --------------------------------------------------------------------------------

(1)  FOR PURCHASES OVER $1,000,000 BY EMPLOYER-SPONSORED RETIREMENT PLANS,
     NO UPFRONT AMOUNT WILL BE PAID TO
     FINANCIAL PROFESSIONALS.

There is no front-end sales charge for purchases of $1,000,000 or more, but if
you redeem your shares within one year of purchase you will pay a 1.00% deferred
sales charge, subject to the exceptions listed below. No sales charge applies to
reinvested dividends.

Reductions and Waivers of Sales Charges for A Class

You may qualify for a reduction or waiver of certain sales charges, but you or
your financial professional must provide certain information, including the
account numbers of any accounts to be aggregated, to American Century at the
time of purchase in order to take advantage of such reduction or waiver.

You and your immediate family (your spouse and your children under the age of
21) may combine investments to reduce your A Class sales charge in the following
ways:

ACCOUNT AGGREGATION. Investments made by you and your immediate family may be
aggregated at each account's current market value if made for your own
account(s) and/or certain other accounts, such as:

*  Certain trust accounts
*  Solely controlled business accounts
*  Single-participant retirement plans
*  Endowments or foundations established and controlled by you or an
   immediate family member

For purposes of aggregation, only investments made through individual-level
accounts, rather than accounts aggregated at the intermediary level, may be
included.

CONCURRENT PURCHASES. You may combine simultaneous purchases in A, B or C Class
shares of any two or more American Century Advisor Funds (funds that offer A, B
and C Class shares) to qualify for a reduced A Class sales charge.


- ------
14


RIGHTS OF ACCUMULATION. You may take into account the current value of your
existing holdings in A, B or C Class shares of any American Century Advisor Fund
to determine your A Class sales charge.

LETTER OF INTENT. A Letter of Intent allows you to combine all non-money market
fund purchases of all A, B and C Class shares you intend to make over a 13-month
period to determine the applicable sales charge. At your request, existing
holdings may be combined with new purchases and sales charge amounts may be
adjusted for purchases made within 90 days prior to our receipt of the Letter of
Intent. Capital appreciation, capital gains and reinvested dividends earned
during the Letter of Intent period do not apply toward its completion. A portion
of your account will be held in escrow to cover additional A Class sales charges
that will be due if your total investments over the 13-month period do not
qualify for the applicable sales charge reduction.

WAIVERS FOR CERTAIN INVESTORS. The sales charge on A Class shares may be waived
for:

*  Purchases by registered representatives and other employees of certain
   financial intermediaries (and their immediate family members) having selling
   agreements with the advisor or distributor

*  Broker-dealer sponsored wrap program accounts and/or fee-based accounts
   maintained for clients of certain financial intermediaries who have entered
   into selling agreements with American Century

*  Present or former officers, directors and employees (and their families)
   of American Century

*  Employer-sponsored retirement plan purchases. For plans under $1 million
   in assets, purchases with sales charges are allowed, but may be subject to
   the retirement plan recordkeeper's policies. Refer to BUYING AND SELLING FUND
   SHARES in the statement of additional information.

*  IRA Rollovers from any American Century Advisor Fund held in an
   employer-sponsored retirement plan

*  Certain other investors as deemed appropriate by American Century

B Class

B Class shares are sold at their net asset value without an initial sales
charge. For sales of B Class shares, the amount paid to your financial
professional is 4.00% of the amount invested. If you redeem your shares within
six years of purchase date, you will pay a contingent deferred sales charge
(CDSC) as set forth below. The purpose of the CDSC is to permit the fund's
distributor to recoup all or a portion of the up-front payment made to your
financial professional. There is no CDSC on shares acquired through reinvestment
of dividends or capital gains.

REDEMPTION DURING                         CDSC AS A % OF ORIGINAL PURCHASE PRICE
- --------------------------------------------------------------------------------
1st year                                  5.00%
- --------------------------------------------------------------------------------
2nd year                                  4.00%
- --------------------------------------------------------------------------------
3rd year                                  3.00%
- --------------------------------------------------------------------------------
4th year                                  3.00%
- --------------------------------------------------------------------------------
5th year                                  2.00%
- --------------------------------------------------------------------------------
6th year                                  1.00%
- --------------------------------------------------------------------------------
After 6th year                            None
- --------------------------------------------------------------------------------

B Class shares (which carry a 1.00% 12b-1 fee) will automatically convert to A
Class shares (which carry a 0.25% 12b-1 fee) within 31 days after the eight-year
anniversary of the purchase date.



- ------
15


C Class

C Class shares are sold at their net asset value without an initial sales
charge. For sales of C Class shares, the amount paid to your financial
professional is 1.00% of the amount invested. If you redeem your shares within
12 months of purchase, you will pay a CDSC of 1.00% of the original purchase
price or the current market value at redemption, whichever is less. The purpose
of the CDSC is to permit the fund's distributor to recoup all or a portion of
the up-front payment made to your financial professional.

The CDSC will not be charged on shares acquired through reinvestment of
dividends or distributions or increases in the net asset value of shares.

CALCULATION OF CONTINGENT DEFERRED SALES CHARGE (CDSC)

To minimize the amount of the CDSC you may pay when you redeem shares, the fund
will first redeem shares acquired through reinvested dividends and capital gain
distributions, which are not subject to a CDSC. Shares that have been in your
account long enough that they are not subject to a CDSC are redeemed next. For
any remaining redemption amount, shares will be sold in the order they were
purchased (earliest to latest).

CDSC WAIVERS

Any applicable CDSC may be waived in the following cases:

*  redemptions through systematic withdrawal plans not exceeding annually:

   *  12% of the lesser of the original purchase cost or current market
      value for A Class shares
   *  12% of the original purchase cost for B Class shares
   *  12% of the lesser of the original purchase cost or current market
      value for C Class shares

*  distributions from IRAs due to attainment of age 59-1/2 for A Class shares
   and for C Class shares

*  required minimum distributions from retirement accounts upon reaching age
   70-1/2

*  tax-free returns of excess contributions to IRAs

*  redemptions due to death or post-purchase disability

*  exchanges, unless the shares acquired by exchange are redeemed within the
   original CDSC period

*  IRA Rollovers from any American Century Advisor Fund held in an
   employer-sponsored retirement plan, for A Class shares only

*  if no broker was compensated for the sale

REINSTATEMENT PRIVILEGE

Within 90 days of a redemption of any A or B Class shares, you may reinvest all
of the redemption proceeds in A Class shares of any American Century Advisor
Fund at the then-current net asset value without paying an initial sales charge.
At your request, any CDSC you paid on an A Class redemption that you are
reinvesting will be credited to your account. You or your financial professional
must notify the fund's transfer agent in writing at the time of the reinvestment
to take advantage of this privilege, and you may use it only once per account.
This privilege applies only if the new account is owned by the original account
owner.



- ------
16


EXCHANGING SHARES

You may exchange shares of the fund for shares of the same class of another
American Century Advisor Fund without a sales charge if you meet the following
criteria:

*  The exchange is for a minimum of $100
*  For an exchange that opens a new account, the amount of the exchange must
   meet or exceed the minimum account size requirement for the fund receiving
   the exchange

For purposes of computing any applicable CDSC on shares that have been
exchanged, the holding period will begin as of the date of purchase of the
original fund owned. Exchanges from a money market fund are subject to a sales
charge on the fund being purchased, unless the money market fund shares were
acquired by exchange from a fund with a sales charge or by reinvestment of
dividends or capital gains distributions.

EXCHANGES BETWEEN FUNDS (C CLASS)

You may exchange C Class shares of a fund for C Class shares of any other
American Century fund. You may not exchange from the C Class to any other class.
We will not charge a CDSC on the shares you exchange, regardless of the length
of time you have owned them. When you do redeem shares that have been exchanged,
the CDSC will be based on the date you purchased the original shares.

BUYING AND SELLING SHARES

Your ability to purchase, exchange, redeem and transfer shares will be affected
by the policies of the financial intermediary through which you do business.
Some policy differences may include

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

In addition, your financial intermediary may charge a transaction fee for the
purchase or sale of fund shares. Those charges are retained by the financial
intermediary and are not shared with American Century or the fund. Please
contact your financial intermediary or plan sponsor for a complete description
of its policies. Copies of the fund's annual report, semiannual report and
statement of additional information are available from your financial
intermediary or plan sponsor.

The fund has authorized certain financial intermediaries to accept orders on the
fund's behalf. American Century has selling agreements with these financial
intermediaries requiring them to track the time investment orders are received
and to comply with procedures relating to the transmission of orders. Orders
must be received by the financial intermediary on the fund's behalf before the
time the net asset value is determined in order to receive that day's share
price. If those orders are transmitted to American Century and paid for in
accordance with the selling agreement, they will be priced at the net asset
value next determined after your request is received in the form required by the
financial intermediary.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
17


ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT


MINIMUM INITIAL INVESTMENT AMOUNTS (OTHER THAN INSTITUTIONAL CLASS)

Unless otherwise specified below, the minimum initial investment amount to open
an account is $2,500. Financial intermediaries may open an account with $250,
but may require their clients to meet different investment minimums. See
INVESTING THROUGH A FINANCIAL INTERMEDIARY for more information.

- --------------------------------------------------------------------------------
Broker-dealer sponsored wrap program accounts                         No minimum
and/or fee-based accounts
- --------------------------------------------------------------------------------
Coverdell Education Savings Account (CESA)                            $2,000(1)
- --------------------------------------------------------------------------------
Employer-sponsored retirement plans                                   No minimum
- --------------------------------------------------------------------------------

(1)  THE MINIMUM INITIAL INVESTMENT FOR FINANCIAL INTERMEDIARIES IS $250.
     FINANCIAL INTERMEDIARIES MAY HAVE DIFFERENT MINIMUMS FOR THEIR CLIENTS.

SUBSEQUENT PURCHASES

There is a $50 minimum for subsequent purchases. See WAYS TO MANAGE YOUR ACCOUNT
for more information about making additional investments directly with American
Century. However, there is no subsequent purchase minimum for financial
intermediaries or employer-sponsored retirement plans, but financial
intermediaries may require their clients to meet different subsequent purchase
requirements.

ELIGIBILITY FOR INSTITUTIONAL CLASS SHARES

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

MINIMUM INITIAL INVESTMENT AMOUNTS (INSTITUTIONAL CLASS)

The minimum initial investment amount is $5 million ($3 million for endowments
and foundations) per fund. If you invest with us through a financial
intermediary, this requirement may be met if your financial intermediary
aggregates your investments with those of other clients into a single group, or
omnibus, account that meets the minimum. The minimum investment requirement may
be waived if you, or your financial intermediary if you invest through an
omnibus account, have an aggregate investment in our family of funds of $10
million or more ($5 million for endowments and foundations). In addition,
financial intermediaries or plan recordkeepers may require retirement plans to
meet certain other conditions, such as plan size or a minimum level of assets
per participant, in order to be eligible to purchase Institutional Class shares.

REDEMPTIONS

If you sell your B and C Class or, in certain cases, A Class shares within a
certain time after their purchase, you will pay a sales charge the amount of
which is contingent upon the amount of time you have held your shares as
described above. Your redemption proceeds will be calculated using the NET ASSET
VALUE (NAV) next determined after we receive your transaction request in good
order.


          [graphic of triangle]

          A FUND'S NET ASSET VALUE, OR NAV, IS THE PRICE OF THE FUND'S SHARES.


- ------
18


However, we reserve the right to delay delivery of redemption proceeds up to
seven days. For example, each time you make an investment with American Century,
there is a seven-day holding period before we will release redemption proceeds
from those shares, unless you provide us with satisfactory proof that your
purchase funds have cleared. Investments by wire generally require only a
one-day holding period. If you change your address, we may require that any
redemption request made within 15 days be submitted in writing and be signed by
all authorized signers with their signatures guaranteed. If you change your bank
information, we may impose a 15-day holding period before we will transfer or
wire redemption proceeds to your bank. Please remember, if you request
redemptions by wire, $10 will be deducted from the amount redeemed. Your bank
also may charge a fee.

In addition, we reserve the right to honor certain redemptions with securities,
rather than cash, as described in the next section.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the value of a fund's assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. The portfolio
managers would select these securities from the fund's portfolio.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, you may have to pay
brokerage or other transaction costs to convert the securities to cash.

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

REDEMPTION OF SHARES IN ACCOUNTS BELOW MINIMUM

If your account balance falls below the minimum initial investment amount for
any reason other than as a result of market fluctuation, American Century
reserves the right to redeem the shares in the account and send the proceeds to
your address of record. Prior to doing so, we will notify you and give you 90
days to meet the minimum. Please note that shares redeemed in this manner may be
subject to a sales charge if held less than the applicable time period. You also
may incur tax liability as a result of the redemption. For Institutional Class
shares, we reserve the right to convert your shares to Investor Class shares of
the same fund. The Investor Class shares have a unified management fee that is
0.20% higher than the Institutional Class.

SIGNATURE GUARANTEES

A signature guarantee - which is different from a notarized signature - is a
warranty that the signature presented is genuine. We may require a signature
guarantee for the following transactions.

*  You have chosen to conduct business in writing only and would like to
   redeem over $100,000.

*  Your redemption or distribution check, Check-A-Month or automatic
   redemption is made payable to someone other than the account owners.

*  Your redemption proceeds or distribution amount is sent by EFT (ACH or
   wire) to a destination other than your personal bank account.

*  You are transferring ownership of an account over $100,000.


- ------
19


*  You change your address and request a redemption over $100,000 within 15
   days.

*  You change your bank information and request a redemption within 15 days.

We reserve the right to require a signature guarantee for other transactions, at
our discretion.

MODIFYING OR CANCELING AN INVESTMENT

Investment instructions are irrevocable. That means that once you have mailed or
otherwise transmitted your investment instruction, you may not modify or cancel
it. The fund reserves the right to suspend the offering of shares for a period
of time and to reject any specific investment (including a purchase by
exchange). Additionally, we may refuse a purchase if, in our judgment, it is of
a size that would disrupt the management of a fund.

ABUSIVE TRADING PRACTICES

Short-term trading and other so-called market timing practices are not defined
or explicitly prohibited by any federal or state law. However, short-term
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of short-term
trading activity is significant relative to a fund's net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund's performance could be negatively impacted by the increased trading costs
created by short-term trading if the additional trading costs are significant.

Because of the potentially harmful effects of abusive trading practices, the
fund's Board of Directors has approved American Century's abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
imposing redemption fees on certain funds, and using fair value pricing when
current market prices are not readily available. Although these efforts are
designed to discourage abusive trading practices, they cannot eliminate the
possibility that such activity will occur. American Century seeks to exercise
its judgment in implementing these tools to the best of its ability in a manner
that it believes is consistent with shareholder interests.

American Century uses a variety of techniques to monitor for and detect abusive
trading practices. These techniques may vary depending on the type of fund, the
class of shares or whether the shares are held directly or indirectly with
American Century. They may change from time to time as determined by American
Century in its sole discretion. To minimize harm to the funds and their
shareholders, we reserve the right to reject any purchase order (including
exchanges) from any shareholder we believe has a history of abusive trading or
whose trading, in our judgment, has been or may be disruptive to the funds. In
making this judgment, we may consider trading done in multiple accounts under
common ownership or control.

Currently, for shares held directly with American Century, we may deem the sale
of all or a substantial portion of a shareholder's purchase of fund shares to be
abusive if the sale is made

* within seven days of the purchase, or

* within 30 days of the purchase, if it happens more than once per year.

To the extent practicable, we try to use the same approach for defining abusive
trading for shares held through financial intermediaries. American Century
reserves the right, in its sole discretion, to identify other trading practices
as abusive and to modify its monitoring and other practices as necessary to deal
with novel or unique abusive trading practices.


- ------
20


In addition, American Century reserves the right to accept purchases and
exchanges in excess of the trading restrictions discussed above if it believes
that such transactions would not be inconsistent with the best interests of fund
shareholders or this policy.

American Century's policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American Century handles, there can be no assurance that American
Century's efforts will identify all trades or trading practices that may be
considered abusive. In addition, American Century's ability to monitor trades
that are placed by individual shareholders within group, or omnibus, accounts
maintained by financial intermediaries is severely limited because American
Century generally does not have access to the underlying shareholder account
information. However, American Century monitors aggregate trades placed in
omnibus accounts and seeks to work with financial intermediaries to discourage
shareholders from engaging in abusive trading practices and to impose
restrictions on excessive trades. There may be limitations on the ability of
financial intermediaries to impose restrictions on the trading practices of
their clients. As a result, American Century's ability to monitor and discourage
abusive trading practices in omnibus accounts may be limited.

YOUR RESPONSIBILITY FOR UNAUTHORIZED TRANSACTIONS

American Century and its affiliated companies use procedures reasonably designed
to confirm that telephone, electronic and other instructions are genuine. These
procedures include recording telephone calls, requesting personalized security
codes or other information, and sending confirmation of transactions. If we
follow these procedures, we are not responsible for any losses that may occur
due to unauthorized instructions. For transactions conducted over the Internet,
we recommend the use of a secure Internet browser. In addition, you should
verify the accuracy of your confirmation statements immediately after you
receive them.

A NOTE ABOUT MAILINGS TO SHAREHOLDERS

To reduce the amount of mail you receive from us, we may deliver a single copy
of certain investor documents (such as shareholder reports and prospectuses) to
investors who share an address, even if accounts are registered under different
names. If you prefer to receive multiple copies of these documents individually
addressed, please call us or your financial professional. For American Century
Brokerage accounts, please call 1-888-345-2071.

RIGHT TO CHANGE POLICIES

We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups. In addition, from time to time we may
waive a policy on a case-by-case basis, as the advisor deems appropriate.


- ------
21


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century will price the fund shares you purchase, exchange or redeem at
the net asset value (NAV) next determined after your order is received and
accepted by the fund's transfer agent, or other financial intermediary with the
authority to accept orders on the fund's behalf. We determine the NAV of the
fund as of the close of regular trading (usually 4 p.m. Eastern time) on the New
York Stock Exchange (NYSE) on each day the NYSE is open. On days when the NYSE
is closed (including certain U.S. national holidays), we do not calculate the
NAV. The fund's NAV is the current value of the fund's assets, minus any
liabilities, divided by the number of shares outstanding.

The fund values portfolio securities for which market quotations are readily
available at their market price. As a general rule, equity securities listed on
a U.S. exchange are valued at the last current reported sale price as of the
time of valuation. Securities listed on the NASDAQ National Market System
(Nasdaq) are valued at the Nasdaq Official Closing Price (NOCP), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the
time of valuation. The fund may use pricing services to assist in the
determination of market value. Unlisted securities for which market quotations
are readily available are valued at the last quoted sale price or the last
quoted ask price, as applicable, except that debt obligations with 60 days or
less remaining until maturity may be valued at amortized cost. Exchange-traded
options, futures and options on futures are valued at the settlement price as
determined by the appropriate clearing corporation.

If the fund determines that the market price for a portfolio security is not
readily available or that the valuation methods mentioned above do not reflect
the security's fair value, such security is valued at its fair value as
determined in good faith by, or in accordance with procedures adopted by, the
fund's board or its designee (a process referred to as "fair valuing" the
security). Circumstances that may cause the fund to fair value a security
include, but are not limited to:

*  if, after the close of the foreign exchange on which a portfolio security
   is principally traded, but before the close of the NYSE, an event occurs that
   may materially affect the value of the security;

*  a debt security has been declared in default; or

*  trading in a security has been halted during the trading day.

If such circumstances occur, the fund will fair value the security if the fair
valuation would materially impact the fund's NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with procedures adopted by
the fund's board.

The effect of using fair value determinations is that the fund's NAV will be
based, to some degree, on security valuations that the board or its designee
believes are fair rather than being solely determined by the market.

With respect to any portion of the fund's assets that are invested in one or
more open-end management investment companies that are registered with the SEC
(known as registered investment companies, or RICs), the fund's NAV will be
calculated based upon the NAVs of such RICs. These RICs are required by law to
explain the circumstances under which they will use fair value pricing and the
effects of using fair value pricing in their prospectuses.


- ------
22


Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based on the prevailing exchange rates on that day.

Trading of securities in foreign markets may not take place every day the NYSE
is open. Also, trading in some foreign markets and on some electronic trading
networks may take place on weekends or holidays when the fund's NAV is not
calculated. So, the value of the fund's portfolio may be affected on days when
you will not be able to purchase, exchange or redeem fund shares.

DISTRIBUTIONS

Federal tax laws require the fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means the fund should not be subject to state or
federal income tax on amounts distributed. The distributions generally consist
of dividends and interest received by the fund, as well as CAPITAL GAINS
realized by the fund on the sale of its investment securities. The fund
generally pays distributions from net income and capital gains, if any, once a
year in December. The fund may make more frequent distributions, if necessary,
to comply with Internal Revenue Code provisions.

          [graphic of triangle]

          CAPITAL GAINS ARE INCREASES IN THE VALUES OF CAPITAL ASSETS,
          SUCH AS STOCK, FROM THE TIME THE ASSETS ARE PURCHASED.

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

Participants in tax-deferred retirement plans must reinvest all distributions.
For investors investing through taxable accounts, we will reinvest distributions
unless you elect to have dividends and/or capital gains sent to another American
Century account, to your bank electronically, to your home address or to another
person or address by check.


- ------
23


TAXES

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

Tax-Deferred Accounts

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

Taxable Accounts

If you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund shares.

Taxability of Distributions

Fund distributions may consist of income, such as dividends and interest earned
by a fund from its investments, or capital gains generated by a fund from the
sale of its investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as QUALIFIED DIVIDEND INCOME and you meet a
minimum required holding period with respect to your shares of the fund, in
which case distributions of income are taxed as long-term capital gains.


          [graphic of triangle]

          QUALIFIED DIVIDEND INCOME IS A DIVIDEND RECEIVED BY A FUND FROM THE
          STOCK OF A DOMESTIC OR QUALIFYING FOREIGN CORPORATION, PROVIDED THAT
          THE FUND HAS HELD THE STOCK FOR A REQUIRED HOLDING PERIOD.

For capital gains and for income distributions designated as qualified dividend
income, the following rates apply:

                                        TAX RATE FOR 10%      TAX RATE FOR
TYPE OF DISTRIBUTION                    AND 15% BRACKETS      ALL OTHER BRACKETS
- --------------------------------------------------------------------------------
Short-term capital gains                Ordinary Income       Ordinary Income
- --------------------------------------------------------------------------------
Long-term capital gains (> 1 year)
and Qualified Dividend Income           5%                    15%
- --------------------------------------------------------------------------------

If the fund's distributions exceed its taxable income and capital gains realized
during the tax year, all or a portion of the distributions made by the fund in
that tax year will be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.

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


- ------
24


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

Taxes on Transactions

Your redemptions - including exchanges to other American Century funds - are
subject to capital gains tax. The table above can provide a general guide for
your potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss. However, you should note that loss realized upon the
sale or exchange of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain to you with respect to those shares. If a loss is realized on the
redemption of fund shares, the reinvestment in additional fund shares within 30
days before or after the redemption may be subject to the wash sale rules of the
Internal Revenue Code. This may result in a postponement of the recognition of
such loss for federal income tax purposes.

If you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.

Buying a Dividend

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

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

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


- ------
25


MULTIPLE CLASS INFORMATION

American Century offers six classes of shares of the fund: Investor Class,
Institutional Class, A Class, B Class, C Class and R Class.

The classes have different fees, expenses and/or minimum investment
requirements. The difference in the fee structures between the classes is the
result of their separate arrangements for shareholder and distribution services.
It is not the result of any difference in advisory or custodial fees or other
expenses related to the management of the fund's assets, which do not vary by
class. Different fees and expenses will affect performance.

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

Service, Distribution and Administrative Fees

Investment Company Act Rule 12b-1 permits mutual funds that adopt a written plan
to pay certain expenses associated with the distribution of their shares out of
fund assets. Each class, except the Investor Class and Institutional Class,
offered by this prospectus has a 12b-1 plan. The plans provide for the fund to
pay annual fees of 0.25% for A Class, 1.00% for B and C Classes, and 0.50% for R
Class to the distributor for certain ongoing shareholder and administrative
services and for distribution services, including past distribution services.
The distributor pays all or a portion of such fees to the financial
intermediaries that make the classes available. Because these fees are used to
pay for services that are not related to prospective sales of the fund, each
class will continue to make payments under its plan even if it is closed to new
investors. Because these fees are paid out of the fund's assets on an ongoing
basis, over time these fees will increase the cost of your investment and may
cost you more than other types of sales charges. The higher fees for B and C
Class shares may cost you more over time than paying the initial sales charge
for A Class shares. For additional information about the plans and their terms,
see MULTIPLE CLASS STRUCTURE in the statement of additional information.

Certain financial intermediaries perform recordkeeping and administrative
services for their clients that would otherwise be performed by American
Century's transfer agent. In some circumstances, the advisor will pay such
service providers a fee for performing those services. Also, the advisor and the
fund's distributor may make payments for various additional services or other
expenses out of their profits or other available sources. Such payments may be
made for one or more of the following: (1) distribution services, which include
expenses incurred by intermediaries for their sales activities with respect to
the fund, such as preparing, printing and distributing sales literature and
advertising materials and compensating registered representatives or other
employees of such Financial intermediary for their sales activities; (2)
shareholder services, such as providing individual and custom investment
advisory services to clients of the Financial intermediary; and (3) marketing
and promotional services, including business planning assistance, educating
personnel about the fund, and sponsorship of sales meetings, which may include
covering costs of providing speakers, meals and other entertainment. The
distributor may sponsor seminars and conferences designed to educate
intermediaries about the fund and may cover the expenses associated with
attendance at such meetings, including travel costs. These payments and
activities are intended to provide an incentive to intermediaries to sell the
fund by ensuring that they are educated about the fund, and to help such
intermediaries defray costs associated with offering the fund. The amount of any
payments described by this paragraph is determined by the advisor or the
distributor, and all such amounts are paid out of the available assets of the
advisor and distributor, and not by you or the fund. As a result, the total
expense ratio of the fund will not be affected by any such payments.



- ------
26


FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The tables on the next few pages itemize what contributed to the changes in
share price during the most recently ended fiscal year. They also show the
changes in share price for this period in comparison to changes over the last
five fiscal years (or a shorter period if the share class is not five years
old).

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

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

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

*  TOTAL RETURN - the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO - the operating expenses of the fund as a percentage of
   average net assets

*  NET INCOME RATIO - the net investment income of the fund as a percentage
   of average net assets

*  PORTFOLIO TURNOVER - the percentage of the fund's investment portfolio
   that is replaced during the period

The Financial Highlights that follow have been audited by Deloitte & Touche LLP.
The fund's Report of Independent Registered Public Accounting Firm and the
financial statements are included in the fund's annual report, which is
available upon request.


- ------
27


CAPITAL GROWTH FUND

Investor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)

- --------------------------------------------------------------------------------
                                                    2006             2005(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                $10.60           $10.80
- --------------------------------------------------------------------------------
Income From Investment Operations
- ------------------------------------------
   Net Investment Income (Loss)(2)                  -(3)             -(3)
- ------------------------------------------
   Net Realized and Unrealized Gain (Loss)          1.21             (0.20)
- --------------------------------------------------------------------------------
   Total From Investment Operations                 1.21             (0.20)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                      $11.81           $10.60
================================================================================
   TOTAL RETURN(4)                                  11.42%           (1.85)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                               1.00%            1.00%(5)
- ------------------------------------------
Ratio of Net Investment Income (Loss)
to Average Net Assets                               0.05%            (0.12)%(5)
- ------------------------------------------
Portfolio Turnover Rate                             140%             110%(6)
- ------------------------------------------
Net Assets, End of Period (in thousands)            $86              $25
- --------------------------------------------------------------------------------

(1)  JULY 29, 2005 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2005.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  PER-SHARE AMOUNT WAS LESS THAN $0.005.

(4)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY
     REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING
     THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE
     CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE
     CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET
     VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND
     DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(5)  ANNUALIZED.

(6)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE
     INDICATED WAS CALCULATED FOR THE YEAR ENDED OCTOBER 31, 2005.


- ------
28


CAPITAL GROWTH FUND

Institutional Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)

- --------------------------------------------------------------------------------
                                                     2006              2005(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                 $10.61            $10.80
- --------------------------------------------------------------------------------
Income From Investment Operations
- ------------------------------------------
   Net Investment Income (Loss)(2)                   0.03              -(3)
- ------------------------------------------
   Net Realized and Unrealized Gain (Loss)           1.20              (0.19)
- --------------------------------------------------------------------------------
   Total From Investment Operations                  1.23              (0.19)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                       $11.84            $10.61
================================================================================
   TOTAL RETURN(4)                                   11.59%            (1.76)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                                0.80%             0.80%(5)
- ------------------------------------------
Ratio of Net Investment Income (Loss)
to Average Net Assets                                0.25%             0.08%(5)
- ------------------------------------------
Portfolio Turnover Rate                              140%              110%(6)
- ------------------------------------------
Net Assets, End of Period (in thousands)             $27               $25
- --------------------------------------------------------------------------------

(1)  JULY 29, 2005 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2005.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  PER-SHARE AMOUNT WAS LESS THAN $0.005.

(4)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY
     REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING
     THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE
     CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE
     CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET
     VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND
     DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(5)  ANNUALIZED.

(6)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE
     INDICATED WAS CALCULATED FOR THE YEAR ENDED OCTOBER 31, 2005.


- ------
29


CAPITAL GROWTH FUND

A Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)

- --------------------------------------------------------------------------------
                                              2006       2005       2004(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period          $10.59     $9.89      $10.00
- --------------------------------------------------------------------------------
Income From Investment Operations
- ------------------------------------------
   Net Investment Income (Loss)(2)            (0.02)     -(3)       (0.03)
- ------------------------------------------
   Net Realized and Unrealized Gain (Loss)    1.21       0.70       (0.08)
- --------------------------------------------------------------------------------
   Total From Investment Operations           1.19       0.70       (0.11)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                $11.78     $10.59     $9.89
================================================================================
   TOTAL RETURN(4)                            11.24%     7.08%      (1.10)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                         1.25%      1.27%      1.25%(5)
- ------------------------------------------
Ratio of Net Investment Income (Loss)
to Average Net Assets                         (0.20)%    (0.03)%    (0.43)%(5)
- ------------------------------------------
Portfolio Turnover Rate                       140%       110%       87%
- ------------------------------------------
Net Assets, End of Period (in thousands)      $2,155     $1,216     $692
- --------------------------------------------------------------------------------

(1)  FEBRUARY 27, 2004 (FUND INCEPTION) THROUGH OCTOBER 31, 2004.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  PER-SHARE AMOUNT WAS LESS THAN $0.005.

(4)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL
     RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(5)  ANNUALIZED.


- ------
30


CAPITAL GROWTH FUND

B Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)

- --------------------------------------------------------------------------------
                                              2006       2005       2004(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period          $10.46     $9.84      $10.00
- --------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(2)            (0.10)     (0.08)     (0.08)
- ----------------------------------------
   Net Realized and Unrealized Gain (Loss)    1.18       0.70       (0.08)
- --------------------------------------------------------------------------------
   Total From Investment Operations           1.08       0.62       (0.16)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                $11.54     $10.46     $9.84
================================================================================
   TOTAL RETURN(3)                            10.33%     6.30%      (1.60)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                         2.00%      2.02%      2.00%(4)
- ----------------------------------------
Ratio of Net Investment Income (Loss)
to Average Net Assets                         (0.95)%    (0.78)%    (1.17)%(4)
- ----------------------------------------
Portfolio Turnover Rate                       140%       110%       87%
- ----------------------------------------
Net Assets, End of Period (in thousands)      $960       $772       $450
- --------------------------------------------------------------------------------

(1)  FEBRUARY 27, 2004 (FUND INCEPTION) THROUGH OCTOBER 31, 2004.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL
     RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.


- ------
31


CAPITAL GROWTH FUND

C Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)

- --------------------------------------------------------------------------------
                                              2006       2005       2004(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period          $10.46     $9.84      $10.00
- --------------------------------------------------------------------------------
Income From Investment Operations
- ------------------------------------------
   Net Investment Income (Loss)(2)            (0.10)     (0.08)     (0.08)
- ------------------------------------------
   Net Realized and Unrealized Gain (Loss)    1.18       0.70       (0.08)
- --------------------------------------------------------------------------------
   Total From Investment Operations           1.08       0.62       (0.16)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                $11.54     $10.46     $9.84
================================================================================
   TOTAL RETURN(3)                            10.33%     6.30%      (1.60)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                         2.00%      2.02%      2.00%(4)
- ------------------------------------------
Ratio of Net Investment Income (Loss)
to Average Net Assets                         (0.95)%    (0.78)%    (1.18)%(4)
- ------------------------------------------
Portfolio Turnover Rate                       140%       110%       87%
- ------------------------------------------
Net Assets, End of Period (in thousands)      $832       $609       $343
- --------------------------------------------------------------------------------

(1)  FEBRUARY 27, 2004 (FUND INCEPTION) THROUGH OCTOBER 31, 2004.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL
     RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.


- ------
32


CAPITAL GROWTH FUND

R Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)

- --------------------------------------------------------------------------------
                                                    2006             2005(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                $10.59           $10.80
- --------------------------------------------------------------------------------
Income From Investment Operations
- ------------------------------------------
   Net Investment Income (Loss)(2)                  (0.05)           (0.02)
- ------------------------------------------
   Net Realized and Unrealized Gain (Loss)          1.20             (0.19)
- --------------------------------------------------------------------------------
   Total From Investment Operations                 1.15             (0.21)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                      $11.74           $10.59
================================================================================
   TOTAL RETURN(3)                                  10.86%           (1.94)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                               1.50%            1.50%(4)
- ------------------------------------------
Ratio of Net Investment Income (Loss)
to Average Net Assets                               (0.45)%          (0.62)%(4)
- ------------------------------------------
Portfolio Turnover Rate                             140%             110%(5)
- ------------------------------------------
Net Assets, End of Period (in thousands)            $27              $25
- --------------------------------------------------------------------------------

(1)  JULY 29, 2005 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2005.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY
     REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING
     THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE
     CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE
     CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET
     VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND
     DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE
     INDICATED WAS CALCULATED FOR THE YEAR ENDED OCTOBER 31, 2005.


- ------
33


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

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

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

IN PERSON           SEC Public Reference Room
                    Washington, D.C.
                    Call 202-942-8090 for location and hours.

ON THE INTERNET     * EDGAR database at sec.gov
                    * By email request at publicinfo@sec.gov

BY MAIL             SEC Public Reference Section,
                    Washington, D.C. 20549-0102

This prospectus shall not constitute an offer to sell securities of the fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or qualified for sale, unless such registration or qualification
is not required, or under any circumstances in which such offer or solicitation
would be unlawful.

                                                                     NEWSPAPER
FUND REFERENCE                    FUND CODE          TICKER          LISTING
- --------------------------------------------------------------------------------
Capital Growth Fund
  Investor Class                  132                ACLIX           N/A
- --------------------------------------------------------------------------------
  Institutional Class             332                APLIX           N/A
- --------------------------------------------------------------------------------
  A Class                         129                ACCGX           N/A
- --------------------------------------------------------------------------------
  B Class                         329                ACGBX           N/A
- --------------------------------------------------------------------------------
  C Class                         429                ACPGX           N/A
- --------------------------------------------------------------------------------
  R Class                         232                APWRX           N/A
- --------------------------------------------------------------------------------

Investment Company Act File No. 811-0816

AMERICAN CENTURY INVESTMENTS
americancentury.com

                                  Banks and Trust Companies, Broker-Dealers,
Self-Directed Retail Investors    Financial Professionals, Insurance Companies
P.O. Box 419200                   P.O. Box 419786
Kansas City, Missouri 64141-6200  Kansas City, Missouri 64141-6786
1-800-345-2021 or 816-531-5575    1-800-345-6488

0703
SH-PRS-52519













AMERICAN CENTURY INVESTMENTS

Prospectus

March 1, 2007

Fundamental Equity Fund


THE FUND IS AVAILABLE FOR PURCHASE ONLY THROUGH FINANCIAL INTERMEDIARIES BY
INVESTORS WHO SEEK ADVICE FROM THEM. THE FUND IS CLOSED TO OTHER INVESTORS.


THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

American Century Investment
Services, Inc., Distributor

[american century investments logo and text logo]





Table of Contents

AN OVERVIEW OF THE FUND . . . . . . . . . . . . . . . . . . . . . . . 2

FUND PERFORMANCE HISTORY . . . . . . . . . . . . . . . . . . . . . . .3

FEES AND EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . 5

OBJECTIVES, STRATEGIES AND RISKS . . . . . . . . . . . . . . . . . . .7

MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

INVESTING DIRECTLY WITH AMERICAN CENTURY . . . . . . . . . . . . . . 11

INVESTING THROUGH A FINANCIAL INTERMEDIARY . . . . . . . . . . . . . 13

ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT . . . . . . . . . . . .18

SHARE PRICE AND DISTRIBUTIONS . . . . . . . . . . . . . . . . . . . .22

TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24

MULTIPLE CLASS INFORMATION . . . . . . . . . . . . . . . . . . . . . 26

FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . 27



    [graphic of triangle]

    THIS SYMBOL IS USED THROUGHOUT THE BOOK TO HIGHLIGHT DEFINITIONS OF KEY
    INVESTMENT TERMS AND TO PROVIDE OTHER HELPFUL INFORMATION.


American Century Investment Services, Inc., Distributor

©2007 American Century Proprietary Holdings, Inc. All rights reserved.

The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.





An Overview of the Fund

WHAT ARE THE FUND'S INVESTMENT OBJECTIVES?

The fund seeks long-term capital growth. Income is a secondary objective.

WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

The fund looks for common stocks of companies that the fund's portfolio managers
believe are priced attractively in relation to their earnings growth potential
and estimated dividend production. The fund will generally invest in larger
companies, although it may purchase shares in companies of other sizes.

The fund's principal risks include

*  STYLE RISK - If at any time the market is not favoring the fund's style,
   the fund's gains may not be as big as, or its losses may be bigger than,
   other equity funds using different investment styles.

*  FOREIGN SECURITIES - The fund may invest in foreign securities, which can
   be riskier than investing in U.S. securities.

*  IPO RISK - The fund's performance may be affected by investments in
   initial public offerings.

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

*  PRINCIPAL LOSS - At any given time your shares may be worth less than the
   price you paid for them. In other words, it is possible to lose money by
   investing in the fund.

A more detailed description of the fund's investment strategies and risks may be
found under the heading OBJECTIVES, STRATEGIES AND RISKS, which begins on page
7.


    [graphic of triangle]

    AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT, AND IT IS NOT INSURED OR
    GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER
    GOVERNMENT AGENCY.


- ------
2


FUND PERFORMANCE HISTORY

Annual Total Returns

The following bar chart shows the performance of the fund's A Class shares for
each full calendar year in the life of the class. It indicates the volatility of
the fund's historical returns from year to year. Account fees and sales charges,
if applicable, are not reflected in the chart below. If they had been included,
returns would have been lower than those shown. The returns of the fund's other
classes of shares will differ from those shown in the chart, depending on the
expenses of those classes.


FUNDAMENTAL EQUITY FUND - A CLASS

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


                                 HIGHEST                       LOWEST
- --------------------------------------------------------------------------------
Fundamental Equity               9.75% (4Q 2006)               -1.11% (2Q 2006)
- --------------------------------------------------------------------------------


Average Annual Total Returns

The following table shows the average annual total returns of the fund's A Class
shares calculated three different ways. Additional tables show the average
annual total returns of the fund's other share classes calculated before the
impact of taxes. Returns assume the deduction of all sales loads, charges and
other fees associated with a particular class. Your actual returns may vary
depending on the circumstances of your investment.

Return Before Taxes shows the actual change in the value of fund shares over the
periods shown, but does not reflect the impact of taxes on fund distributions or
the sale of fund shares. The two after-tax returns take into account taxes that
may be associated with owning fund shares. Return After Taxes on Distributions
is a fund's actual performance, adjusted by the effect of taxes on distributions
made by the fund during the period shown. Return After Taxes on Distributions
and Sale of Fund Shares is further adjusted to reflect the tax impact on any
change in the value of fund shares as if they had been sold on the last day of
the period.

After-tax returns are calculated using the historical highest federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-tax returns shown are not relevant to investors who hold fund
shares through tax-deferred arrangements such as 401(k) plans or IRAs. After-tax
returns are shown only for A Class shares. After tax returns for other share
classes will vary.

The benchmark is an unmanaged index that has no operating costs and is included
in each table for performance comparison.


- ------
3



A CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006           1 YEAR  LIFE OF CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                     13.73%  13.86%
Return After Taxes on Distributions                     13.20%  13.10%
Return After Taxes on Distributions                     9.06%   11.49%
   and Sale of Fund Shares
S&P 500® Index                                          15.79%  11.57%
   (reflects no deduction for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE A CLASS IS NOVEMBER 30, 2004.


B CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006           1 YEAR  LIFE OF CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                     15.70%  14.99%
S&P 500® Index                                          15.79%  11.57%
   (reflects no deduction for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE B CLASS IS NOVEMBER 30, 2004.


C CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006           1 YEAR  LIFE OF CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                     19.79%  16.26%
S&P 500® Index                                          15.79%  11.57%
   (reflects no deduction for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE C CLASS IS NOVEMBER 30, 2004.

R CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006           1 YEAR  LIFE OF CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                     20.32%  18.45%
S&P 500® Index                                          15.79%  12.45%(2)
   (reflects no deduction for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE R CLASS IS JULY 29, 2005.

(2)  SINCE JULY 31, 2005, THE DATE CLOSEST TO THE FUND'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.

INVESTOR CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006           1 YEAR  LIFE OF CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                     20.99%  19.09%
S&P 500® Index                                          15.79%  12.45%(2)
   (reflects no deduction for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE INVESTOR CLASS IS JULY 29, 2005.

(2)  SINCE JULY 31, 2005, THE DATE CLOSEST TO THE FUND'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.

INSTITUTIONAL CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006           1 YEAR  LIFE OF CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                     21.17%  19.26%
S&P 500® Index                                          15.79%  12.45%(2)
   (reflects no deduction for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE INSTITUTIONAL CLASS IS JULY 29, 2005.

(2)  SINCE JULY 31, 2005, THE DATE CLOSEST TO THE FUND'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.


Performance information is designed to help you see how fund returns can vary.
Keep in mind that past performance (before and after taxes) does not predict how
the fund will perform in the future.

For current performance information, please call us or visit
americancentury.com.


- ------
4


FEES AND EXPENSES

The following tables describe the fees and expenses you may pay if you buy and
hold shares of the fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
                       INVESTOR  INSTITUTIONAL   A        B         C          R
                       CLASS     CLASS           CLASS    CLASS     CLASS      CLASS
- ------------------------------------------------------------------------------------
Maximum Sales          None      None            5.75%    None      None       None
Charge (Load)
   Imposed on
   Purchases
   (as a percentage
   of offering price)
- ------------------------------------------------------------------------------------
Maximum Deferred       None      None            None(1)  5.00%(2)  1.00%(3)  None
Sales Charge (Load)
   (as a percentage
   of the original
   offering price for
   B Class shares
   and the lower
   of the original
   offering price or
   redemption
   proceeds for A
   and C Class
   shares)
- ------------------------------------------------------------------------------------
Maximum Account        $25(4)    None            None     None      None       None
Maintenance Fee
- ------------------------------------------------------------------------------------

(1)  INVESTMENTS OF $1 MILLION OR MORE IN A CLASS SHARES MAY BE SUBJECT TO
     A CONTINGENT DEFERRED SALES CHARGE OF 1.00% IF THE SHARES ARE REDEEMED
     WITHIN ONE YEAR OF THE DATE OF PURCHASE.

(2)  THE CHARGE IS 5.00% DURING THE FIRST YEAR AFTER PURCHASE, DECLINES
     OVER THE NEXT FIVE YEARS AS SHOWN ON PAGE 15, AND IS ELIMINATED AFTER SIX
     YEARS.

(3)  THE CHARGE IS 1.00% DURING THE FIRST YEAR AFTER PURCHASE, AND IS
     ELIMINATED THEREAFTER.

(4)  APPLIES ONLY TO INVESTORS WHOSE TOTAL ELIGIBLE INVESTMENTS WITH
     AMERICAN CENTURY ARE LESS THAN $10,000. SEE Account Maintenance Fee UNDER
     Investing Directly with American Century FOR MORE DETAILS.


ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
                              DISTRIBUTION                   TOTAL ANNUAL
                 MANAGEMENT   AND SERVICE       OTHER        FUND OPERATING
                 FEE(1)       (12B-1) FEES(2)   EXPENSES(3)  EXPENSES
- --------------------------------------------------------------------------------
Investor
Class            1.00%        0.00%             0.01%        1.01%
- --------------------------------------------------------------------------------
Institutional
Class            0.80%        0.00%             0.01%        0.81%
- --------------------------------------------------------------------------------
A Class          1.00%        0.25%             0.01%        1.26%
- --------------------------------------------------------------------------------
B Class          1.00%        1.00%             0.01%        2.01%
- --------------------------------------------------------------------------------
C Class          1.00%        1.00%             0.01%        2.01%
- --------------------------------------------------------------------------------
R Class          1.00%        0.50%             0.01%        1.51%
- --------------------------------------------------------------------------------

(1)  THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR
     ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. THE FEE SHOWN IS
     BASED ON ASSETS DURING THE FUND'S MOST RECENT FISCAL YEAR. THE FUND HAS A
     STEPPED FEE SCHEDULE. AS A RESULT, THE FUND'S UNIFIED MANAGEMENT FEE RATE
     GENERALLY DECREASES AS STRATEGY ASSETS INCREASE AND INCREASES AS STRATEGY
     ASSETS DECREASE. FOR MORE INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE,
     INCLUDING AN EXPLANATION OF STRATEGY ASSETS, SEE The Investment Advisor
     UNDER Management.

(2)  THE 12B-1 FEE IS DESIGNED TO PERMIT INVESTORS TO PURCHASE SHARES
     THROUGH BROKER-DEALERS, BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL
     INTERMEDIARIES. THE FEE MAY BE USED TO COMPENSATE SUCH FINANCIAL
     INTERMEDIARIES FOR DISTRIBUTION AND OTHER SHAREHOLDER SERVICES. FOR MORE
     INFORMATION, see Multiple Class Information AND Service, Distribution and
     Administrative Fees, PAGE 26.

(3)  OTHER EXPENSES INCLUDE THE FEES AND EXPENSES OF THE FUND'S INDEPENDENT
     DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST. OTHER EXPENSES ALSO
     INCLUDE FEES AND EXPENSES INCURRED INDIRECTLY BY THE FUND AS A RESULT OF
     INVESTMENT IN SHARES OF ONE OR MORE MUTUAL FUNDS, HEDGE FUNDS, PRIVATE
     EQUITY FUNDS OR OTHER POOLED INVESTMENT VEHICLES.



- ------
5


EXAMPLE

The examples in the tables below are intended to help you compare the costs of
investing in the fund with the costs of investing in other mutual funds. Of
course, your actual costs may be higher or lower. Assuming you . . .

*  invest $10,000 in the fund

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

*  earn a 5% return each year

*  incur the same operating expenses as shown above

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


                     1 YEAR        3 YEARS        5 YEARS        10 YEARS
- --------------------------------------------------------------------------------
Investor             $103          $321           $556           $1,231
Class
- --------------------------------------------------------------------------------
Institutional        $83           $258           $449           $998
Class
- --------------------------------------------------------------------------------
A Class              $696          $950           $1,224         $2,002
- --------------------------------------------------------------------------------
B Class              $603          $926           $1,174         $2,126
- --------------------------------------------------------------------------------
C Class              $203          $626           $1,074         $2,315
- --------------------------------------------------------------------------------
R Class              $153          $475           $819           $1,789
- --------------------------------------------------------------------------------


The table above reflects a deduction for charges payable upon redemption. You
would pay the following expenses if you did not redeem your shares and thus did
not incur such charges:


                     1 YEAR        3 YEARS        5 YEARS        10 YEARS
- --------------------------------------------------------------------------------
Investor             $103          $321           $556           $1,231
Class
- --------------------------------------------------------------------------------
Institutional        $83           $258           $449           $998
Class
- --------------------------------------------------------------------------------
A Class              $696          $950           $1,224         $2,002
- --------------------------------------------------------------------------------
B Class              $203          $626           $1,074         $2,126
- --------------------------------------------------------------------------------
C Class              $203          $626           $1,074         $2,315
- --------------------------------------------------------------------------------
R Class              $153          $475           $819           $1,789
- --------------------------------------------------------------------------------



- ------
6


OBJECTIVES, STRATEGIES AND RISKS

WHAT ARE THE FUND'S INVESTMENT OBJECTIVES?

The fund seeks long-term capital growth. Income is a secondary objective.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVES?

The fund generally looks for common stocks that the fund's portfolio managers
believe are attractively priced relative to the companies' earnings growth
potential and dividend yields. In implementing this approach, the managers use
an investment methodology that focuses on stock-specific internal factors, such
as achievable earnings estimates, sustainable growth rates and dividend payouts.
Risk control measures implemented by the portfolio managers help to provide
diversification of securities and sectors within the fund.

The fund's investment approach is expected to generate returns with a lower
level of price volatility than is associated with more aggressive investments.
As a result, the fund is designed to meet the needs of long-term investors who
seek capital growth but do not want the price volatility typically associated
with more aggressive growth strategies.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies, including
companies located in emerging markets. Investments in foreign securities present
some unique risks that are more fully described in the fund's statement of
additional information.

The portfolio managers do not attempt to time the market. Instead, under normal
market conditions, they intend to keep at least 80% of the fund's assets
invested in EQUITY SECURITIES at all times. When the managers believe it is
prudent, the fund may invest a portion of its assets in debt securities. The
fund generally limits its purchase of debt securities to investment-grade
obligations. Futures contracts, a type of derivative security, can help the
fund's cash assets remain liquid while performing more like stocks. The fund has
a policy governing futures contracts and similar derivative securities to help
manage the risk of these types of investments. A complete description of the
derivatives policy is included in the statement of additional information.


    [graphic of triangle]

    EQUITY SECURITIES INCLUDE COMMON STOCK, PREFERRED STOCK, AND
    EQUITY-EQUIVALENT SECURITIES, SUCH AS SECURITIES CONVERTIBLE INTO COMMON
    STOCK, STOCK FUTURES CONTRACTS OR STOCK INDEX FUTURES CONTRACTS.

When determining whether to sell a security, the portfolio managers consider
among other things, a security's price, whether a security's risk parameters
outweigh its return opportunities, general market conditions and any other
factor deemed relevant by the portfolio managers.

A description of the policies and procedures with respect to the disclosure of
the fund's portfolio securities is available in the statement of additional
information.

In the event of exceptional market or economic conditions, the fund may, as a
temporary defensive measure, invest all or a substantial portion of its assets
in cash, cash equivalent securities or short-term debt securities. To the extent
the fund assumes a temporary defensive position it will not be pursing its
investment objectives.



- ------
7


WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies. Foreign
investment involves additional risks, including fluctuations in currency
exchange rates, less stable political and economic structures, reduced
availability of public information, and lack of uniform financial reporting and
regulatory practices similar to those that apply in the United States. These
factors make investing in foreign securities generally riskier than investing in
U.S. stocks. To the extent the fund invests in foreign securities, the overall
risk of the fund could be affected.

The fund's performance also may be affected by investments in initial public
offerings (IPOs). The impact of IPOs on a fund's performance depends on the
strength of the IPO market and the size of the fund. IPOs may have less impact
on a fund's performance as its assets grow.

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 a
fund's style, the fund's gains may not be as big as, or its losses may be bigger
than, other equity funds using different investment styles.

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 the fund owns will go
up and down depending on the performance of the companies that issued them,
general market and economic conditions, and investor confidence.

At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the fund.



- ------
8


MANAGEMENT

WHO MANAGES THE FUND?

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

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than three-fourths of the directors are independent of the fund's advisor;
that is, they have never been employed by and have no financial interest in the
advisor or any of its affiliated companies (other than as shareholders of
American Century funds).

THE INVESTMENT ADVISOR

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

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

For the services it provides to the fund, the advisor receives a unified
management fee based on a percentage of the daily net assets of each class of
shares of the fund. The amount of the fee is calculated daily and paid monthly
in arrears. Out of that fee, the advisor pays all expenses of managing and
operating the fund except brokerage expenses, taxes, interest, fees and expenses
of the independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the fund's management fee may be paid by the fund's
advisor to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of the
advisor.

The rate of the fee is determined by applying a formula that takes into account
all of the advisor's assets under management in the fund's investment strategy
(strategy assets). Strategy assets include the assets of the fund as well as
certain assets of other clients of the advisor outside the American Century fund
family (such as subadvised funds and separate accounts) that use very similar
investment teams and strategies. The use of strategy assets, rather than fund
assets, in calculating the fund's fee rate could allow the fund to realize
scheduled cost savings more quickly. However, the fund's strategy assets
currently do not include assets of other client accounts. In addition, if such
assets are acquired in the future, they may not be sufficient to result in a
lower fee rate.

MANAGEMENT FEES PAID
BY THE FUND TO THE ADVISOR
AS A PERCENTAGE OF AVERAGE
NET ASSETS FOR THE FISCAL YEAR  INVESTOR   INSTITUTIONAL   A      B      C      R
ENDED OCTOBER 31, 2006          CLASS      CLASS           CLASS  CLASS  CLASS  CLASS
- -------------------------------------------------------------------------------------
Fundamental Equity              1.00%      0.80%           1.00%  1.00%  1.00%  1.00%
- -------------------------------------------------------------------------------------

A discussion regarding the basis for the Board of Directors' approval of the
fund's investment advisory contract with the advisor is available in the fund's
report to shareholders dated October 31, 2006.



- ------
9


THE FUND MANAGEMENT TEAM

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

The portfolio managers on the investment team who are jointly and primarily
responsible for the day-to-day management of the fund are identified below.

JERRY SULLIVAN

Mr. Sullivan, Vice President and Portfolio Manager, has been a member of the
team that manages the fund since its inception in November 2004. Since joining
American Century in February 2000, he has served as a portfolio manager for the
Select Fund and continues to serve as a portfolio manager for the Ultra Fund. He
has a bachelor's degree in political science from Columbia University and an MBA
with a concentration in finance and accounting from the Columbia University
Graduate School of Business.

ROBERT M. BROOKBY

Mr. Brookby, Portfolio Manager, has been a member of the team that manages the
fund since February 2005. He joined American Century in June 2000 as an
investment analyst and became a portfolio manager in February 2005. He has a
bachelor's degree in economics from Northwestern University and an MBA from
Harvard University.

The statement of additional information provides additional information about
the other accounts managed by the portfolio managers, if any, the structure of
their compensation, and their ownership of fund securities.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the statement of additional
information and the investment objectives of the fund may not be changed without
shareholder approval. The Board of Directors and/or the advisor may change any
other policies and investment strategies.


- ------
10



INVESTING DIRECTLY WITH AMERICAN CENTURY

Although investors may only open new accounts through financial intermediaries,
current fund shareholders may, under certain circumstances, make additional
investments directly with American Century.

SERVICES AUTOMATICALLY AVAILABLE TO YOU

Most accounts automatically will have access to the services listed under WAYS
TO MANAGE YOUR ACCOUNT when the account is opened. If you do not want these
services, see CONDUCTING BUSINESS IN WRITING. If you have questions about the
services that apply to your account type, please call us.

CONDUCTING BUSINESS IN WRITING

If you prefer to conduct business in writing only, you can indicate this on the
account application. If you choose this option, you must provide written
instructions to invest, exchange and redeem. All account owners must sign
transaction instructions (with signatures guaranteed for redemptions in excess
of $100,000). By choosing this option, you are not eligible to enroll for
exclusive online account management to waive the account maintenance fee. See
ACCOUNT MAINTENANCE FEE in this section. If you want to add online and telephone
services later, you can complete an Investor Service Options form.

ACCOUNT MAINTENANCE FEE

If you hold Investor Class shares of any American Century fund, or Institutional
Class shares of the American Century Diversified Bond fund, in an American
Century account (i.e., not a financial intermediary or retirement plan account),
we may charge you a $12.50 semiannual account maintenance fee if the value of
those shares is less than $10,000. We will determine the amount of your total
eligible investments twice per year, generally the last Friday in October and
April. If the value of those investments is less than $10,000 at that time, we
will automatically redeem shares in one of your accounts to pay the $12.50 fee.
Please note that you may incur tax liability as a result of the redemption. In
determining your total eligible investment amount, we will include your
investments in all PERSONAL ACCOUNTS (including American Century Brokerage
accounts) registered under your Social Security number. We will not charge the
fee as long as you choose to manage your accounts exclusively online. You may
enroll for exclusive online account management on our Web site. To find out more
about exclusive online account management, visit americancentury.com/info/demo.


    [graphic of triangle]


    PERSONAL ACCOUNTS INCLUDE INDIVIDUAL ACCOUNTS, JOINT ACCOUNTS, UGMA/UTMA
    ACCOUNTS, PERSONAL TRUSTS, COVERDELL EDUCATION SAVINGS ACCOUNTS, IRAS
    (INCLUDING TRADITIONAL, ROTH, ROLLOVER, SEP-, SARSEP- AND SIMPLE-IRAS),
    RETIREMENT, EMPLOYER-SPONSORED OR AMERICAN CENTURY BROKERAGE ACCOUNTS,
    YOU ARE CURRENTLY NOT SUBJECT TO THIS FEE, BUT YOU MAY BE SUBJECT TO
    OTHER FEES.


WIRE PURCHASES

CURRENT INVESTORS: If you would like to make a wire purchase into an existing
account, your bank will need the following information. (To invest in a new
fund, please call us first to set up the new account.)

*  American Century's bank information: Commerce Bank N.A., Routing No.
   101000019, Account No. 2804918

*  Your American Century account number and fund name

*  Your name

*  The contribution year (for IRAs only)

NEW INVESTORS: To make a wire purchase into a new account, please complete an
application prior to wiring money.


- ------
11


WAYS TO MANAGE YOUR ACCOUNT

ONLINE
- --------------------------------------------------------------------------------
americancentury.com

OPEN AN ACCOUNT: If you are a current or new investor, you can open an account
by completing and submitting our online application. Current investors also can
open an account by exchanging shares from another American Century account.

EXCHANGE SHARES: Exchange shares from another American Century account.

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

SELL SHARES*: Redeem shares and proceeds will be electronically transferred to
your authorized bank account.

* ONLINE REDEMPTIONS UP TO $25,000 PER DAY.

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

* 4500 Main Street, Kansas City, Missouri - 8 a.m. to 5 p.m., Monday - Friday

* 4917 Town Center Drive, Leawood, Kansas - 8 a.m. to 5 p.m., Monday - Friday,
  8 a.m. to noon, Saturday

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

BY TELEPHONE
- --------------------------------------------------------------------------------
INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021

INSTITUTIONAL SERVICE REPRESENTATIVE: 1-800-345-3533

BUSINESS, NOT-FOR-PROFIT AND EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533

AUTOMATED INFORMATION LINE: 1-800-345-8765

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

EXCHANGE SHARES: Call or use our Automated Information Line if you have
authorized us to accept telephone instructions. The Automated Information Line
is available only to Investor Class shareholders.

MAKE ADDITIONAL INVESTMENTS: Call or use our Automated Information Line if you
have authorized us to invest from your bank account. The Automated Information
Line is available only to Investor Class shareholders.

SELL SHARES: Call a Service Representative.

BY MAIL OR FAX
- --------------------------------------------------------------------------------
P.O. Box 419200, Kansas City, MO 64141-6200 - Fax: 816-340-7962

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

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

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

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

AUTOMATICALLY
- --------------------------------------------------------------------------------
OPEN AN ACCOUNT: Not available.

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

MAKE ADDITIONAL INVESTMENTS: With the automatic investment service, you can
purchase shares on a regular basis. You must invest at least $50 per month per
account.

SELL SHARES: You may sell shares automatically by establishing Check-A-Month or
Automatic Redemption plans.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
12


INVESTING THROUGH A FINANCIAL INTERMEDIARY

The fund's A, C and R Classes are intended for purchase by participants in
employer-sponsored retirement plans. Additionally, the fund's A, B and C Classes
are intended for persons purchasing shares through FINANCIAL INTERMEDIARIES that
provide various administrative and distribution services. For more information
regarding employer-sponsored retirement plan types, please see BUYING AND
SELLING FUND SHARES in the statement of additional information.


    [graphic of triangle]

    FINANCIAL INTERMEDIARIES INCLUDE BANKS, BROKER-DEALERS, INSURANCE
    COMPANIES, PLAN SPONSORS AND FINANCIAL PROFESSIONALS.

Although each class of shares represents an interest in the same fund, each has
a different cost structure, as described below. Which class is right for you
depends on many factors, including how long you plan to hold the shares, how
much you plan to invest, the fee structure of each class, and how you wish to
compensate your financial professional for the services provided to you. Your
financial professional can help you choose the option that is most appropriate.

The following chart provides a summary description of these classes.

A CLASS                                       B CLASS
- --------------------------------------------------------------------------------
Initial sales charge(1)                       No initial sales charge
- --------------------------------------------------------------------------------
Generally no contingent                       Contingent deferred sales charge
deferred sales charge(2)                      on redemptions within six years
- --------------------------------------------------------------------------------
12b-1 fee of 0.25%                            12b-1 fee of 1.00%
- --------------------------------------------------------------------------------
No conversion feature                         Convert to A Class shares
                                              eight years after purchase
- --------------------------------------------------------------------------------
Generally more appropriate                    Aggregate purchases limited
for long-term investors                       to amounts less than $100,000;
                                              generally offered through
                                              financial intermediaries(3)
- --------------------------------------------------------------------------------

C CLASS                                             R CLASS
- --------------------------------------------------------------------------------
No initial sales charge                             No initial sales charge
- --------------------------------------------------------------------------------
Contingent deferred sales charge                    No contingent deferred
on redemptions within 12 months                     sales charge
- --------------------------------------------------------------------------------
12b-1 fee of 1.00%                                  12b-1 fee of 0.50%
- --------------------------------------------------------------------------------
No conversion feature                               No conversion feature
- --------------------------------------------------------------------------------
Aggregate purchases limited                         Generally offered through
to amounts less than $1,000,000;                    employer-sponsored
generally more appropriate for                      retirement plans and other
short-term investors                                fee-based arrangements(4)
- --------------------------------------------------------------------------------

(1)  THE SALES CHARGE FOR A CLASS SHARES DECREASES DEPENDING ON THE SIZE OF
     YOUR INVESTMENT, AND MAY BE WAIVED FOR SOME PURCHASES. THERE IS NO SALES
     CHARGE FOR PURCHASES OF $1,000,000 OR MORE.

(2)  A CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 1.00% WILL BE CHARGED ON
     CERTAIN PURCHASES OF $1,000,000 OR MORE THAT ARE REDEEMED WITHIN ONE YEAR
     OF PURCHASE.

(3)  INVESTORS IN SIMPLE IRA PLANS, SEP IRA PLANS AND SARSEP PLANS
     ESTABLISHED PRIOR TO AUGUST 1, 2006, MAY MAKE ADDITIONAL PURCHASES. THIS
     CLASS IS NOT AVAILABLE FOR NEW EMPLOYER-SPONSORED RETIREMENT PLAN ACCOUNTS.

(4)  IRA ACCOUNTS IN R CLASS SHARES ESTABLISHED THROUGH FINANCIAL
     INTERMEDIARIES PRIOR TO AUGUST 1, 2006, MAY MAKE ADDITIONAL PURCHASES.



- ------
13


CALCULATION OF SALES CHARGES

The information regarding sales charges provided herein is included free of
charge and in a clear and prominent format at americancentury.com in the
INVESTORS USING ADVISORS and INVESTMENT PROFESSIONALS portions of the Web site.
From the description of A, B or C Class shares, a hyperlink will take you
directly to this disclosure.

A Class

A Class shares are sold at their offering price, which is net asset value plus
an initial sales charge. This sales charge varies depending on the amount of
your investment, and is deducted from your purchase before it is invested. The
sales charges and the amounts paid to your financial professional are:

                                           SALES CHARGE     AMOUNT PAID TO
                          SALES CHARGE     AS A % OF        FINANCIAL ADVISOR
                          AS A % OF        NET AMOUNT       AS A % OF
PURCHASE AMOUNT           OFFERING PRICE   INVESTED         OFFERING PRICE
- --------------------------------------------------------------------------------
Less than $50,000         5.75%            6.10%            5.00%
- --------------------------------------------------------------------------------
$50,000 - $99,999         4.75%            4.99%            4.00%
- --------------------------------------------------------------------------------
$100,000 - $249,999       3.75%            3.90%            3.25%
- --------------------------------------------------------------------------------
$250,000 - $499,999       2.50%            2.56%            2.00%
- --------------------------------------------------------------------------------
$500,000 - $999,999       2.00%            2.04%            1.75%
- --------------------------------------------------------------------------------
$1,000,000 - $3,999,999   0.00%            0.00%            1.00%(1)
- --------------------------------------------------------------------------------
$4,000,000 - $9,999,999   0.00%            0.00%            0.50%(1)
- --------------------------------------------------------------------------------
$10,000,000 or more       0.00%            0.00%            0.25%(1)
- --------------------------------------------------------------------------------

(1)  FOR PURCHASES OVER $1,000,000 BY EMPLOYER-SPONSORED RETIREMENT PLANS,
     NO UPFRONT AMOUNT WILL BE PAID TO FINANCIAL PROFESSIONALS.

There is no front-end sales charge for purchases of $1,000,000 or more, but if
you redeem your shares within one year of purchase you will pay a 1.00% deferred
sales charge, subject to the exceptions listed below. No sales charge applies to
reinvested dividends.

Reductions and Waivers of Sales Charges for A Class

You may qualify for a reduction or waiver of certain sales charges, but you or
your financial professional must provide certain information, including the
account numbers of any accounts to be aggregated, to American Century at the
time of purchase in order to take advantage of such reduction or waiver.

You and your immediate family (your spouse and your children under the age of
21) may combine investments to reduce your A Class sales charge in the following
ways:

ACCOUNT AGGREGATION. Investments made by you and your immediate family may be
aggregated at each account's current market value if made for your own
account(s) and/or certain other accounts, such as:

*  Certain trust accounts

*  Solely controlled business accounts

*  Single-participant retirement plans

*  Endowments or foundations established and controlled by you or an
   immediate family member

For purposes of aggregation, only investments made through individual-level
accounts, rather than accounts aggregated at the intermediary level, may be
included.

CONCURRENT PURCHASES. You may combine simultaneous purchases in A, B or C Class
shares of any two or more American Century Advisor Funds (funds that offer A, B
and C Class shares) to qualify for a reduced A Class sales charge.


- ------
14


RIGHTS OF ACCUMULATION. You may take into account the current value of your
existing holdings in A, B or C Class shares of any American Century Advisor Fund
to determine your A Class sales charge.

LETTER OF INTENT. A Letter of Intent allows you to combine all non-money market
fund purchases of all A, B and C Class shares you intend to make over a 13-month
period to determine the applicable sales charge. At your request, existing
holdings may be combined with new purchases and sales charge amounts may be
adjusted for purchases made within 90 days prior to our receipt of the Letter of
Intent. Capital appreciation, capital gains and reinvested dividends earned
during the Letter of Intent period do not apply toward its completion. A portion
of your account will be held in escrow to cover additional A Class sales charges
that will be due if your total investments over the 13-month period do not
qualify for the applicable sales charge reduction.

WAIVERS FOR CERTAIN INVESTORS. The sales charge on A Class shares may be waived
for:

*  Purchases by registered representatives and other employees of certain
   financial intermediaries (and their immediate family members) having selling
   agreements with the advisor or distributor

*  Broker-dealer sponsored wrap program accounts and/or fee-based accounts
   maintained for clients of certain financial intermediaries who have entered
   into selling agreements with American Century

*  Present or former officers, directors and employees (and their families)
   of American Century

*  Employer-sponsored retirement plan purchases. For plans under $1 million
   in assets, purchases with sales charges are allowed, but may be subject to
   the retirement plan recordkeeper's policies. Refer to BUYING AND SELLING FUND
   SHARES in the statement of additional information.

*  IRA Rollovers from any American Century Advisor Fund held in an
   employer-sponsored retirement plan

*  Certain other investors as deemed appropriate by American Century

B Class

B Class shares are sold at their net asset value without an initial sales
charge. For sales of B Class shares, the amount paid to your financial
professional is 4.00% of the amount invested. If you redeem your shares within
six years of purchase date, you will pay a contingent deferred sales charge
(CDSC) as set forth below. The purpose of the CDSC is to permit the fund's
distributor to recoup all or a portion of the up-front payment made to your
financial professional. There is no CDSC on shares acquired through reinvestment
of dividends or capital gains.

REDEMPTION DURING                         CDSC AS A % OF ORIGINAL PURCHASE PRICE
- --------------------------------------------------------------------------------
1st year                                  5.00%
- --------------------------------------------------------------------------------
2nd year                                  4.00%
- --------------------------------------------------------------------------------
3rd year                                  3.00%
- --------------------------------------------------------------------------------
4th year                                  3.00%
- --------------------------------------------------------------------------------
5th year                                  2.00%
- --------------------------------------------------------------------------------
6th year                                  1.00%
- --------------------------------------------------------------------------------
After 6th year                            None
- --------------------------------------------------------------------------------

B Class shares (which carry a 1.00% 12b-1 fee) will automatically convert to A
Class shares (which carry a 0.25% 12b-1 fee) within 31 days after the eight-year
anniversary of the purchase date.



- ------
15


C Class

C Class shares are sold at their net asset value without an initial sales
charge. For sales of C Class shares, the amount paid to your financial
professional is 1.00% of the amount invested. If you redeem your shares within
12 months of purchase, you will pay a CDSC of 1.00% of the original purchase
price or the current market value at redemption, whichever is less. The purpose
of the CDSC is to permit the fund's distributor to recoup all or a portion of
the up-front payment made to your financial professional.

The CDSC will not be charged on shares acquired through reinvestment of
dividends or distributions or increases in the net asset value of shares.

CALCULATION OF CONTINGENT DEFERRED SALES CHARGE (CDSC)

To minimize the amount of the CDSC you may pay when you redeem shares, the fund
will first redeem shares acquired through reinvested dividends and capital gain
distributions, which are not subject to a CDSC. Shares that have been in your
account long enough that they are not subject to a CDSC are redeemed next. For
any remaining redemption amount, shares will be sold in the order they were
purchased (earliest to latest).

CDSC WAIVERS

Any applicable CDSC may be waived in the following cases:

*  redemptions through systematic withdrawal plans not exceeding annually:

   *  12% of the lesser of the original purchase cost or current market value
      for A Class shares

   *  12% of the original purchase cost for B Class shares

   *  12% of the lesser of the original purchase cost or current market value
      for C Class shares

*  distributions from IRAs due to attainment of age 59-1/2 for A Class shares
   and for C Class shares

*  required minimum distributions from retirement accounts upon reaching age
   70-1/2

*  tax-free returns of excess contributions to IRAs

*  redemptions due to death or post-purchase disability

*  exchanges, unless the shares acquired by exchange are redeemed within the
   original CDSC period

*  IRA Rollovers from any American Century Advisor Fund held in an
   employer-sponsored retirement plan, for A Class shares only

*  if no broker was compensated for the sale

REINSTATEMENT PRIVILEGE

Within 90 days of a redemption of any A or B Class shares, you may reinvest all
of the redemption proceeds in A Class shares of any American Century Advisor
Fund at the then-current net asset value without paying an initial sales charge.
At your request, any CDSC you paid on an A Class redemption that you are
reinvesting will be credited to your account. You or your financial professional
must notify the fund's transfer agent in writing at the time of the reinvestment
to take advantage of this privilege, and you may use it only once per account.
This privilege applies only if the new account is owned by the original account
owner.



- ------
16


EXCHANGING SHARES

You may exchange shares of the fund for shares of the same class of another
American Century Advisor Fund without a sales charge if you meet the following
criteria:

*  The exchange is for a minimum of $100

*  For an exchange that opens a new account, the amount of the exchange must
   meet or exceed the minimum account size requirement for the fund receiving
   the exchange

For purposes of computing any applicable CDSC on shares that have been
exchanged, the holding period will begin as of the date of purchase of the
original fund owned. Exchanges from a money market fund are subject to a sales
charge on the fund being purchased, unless the money market fund shares were
acquired by exchange from a fund with a sales charge or by reinvestment of
dividends or capital gains distributions.

EXCHANGES BETWEEN FUNDS (C CLASS)

You may exchange C Class shares of a fund for C Class shares of any other
American Century fund. You may not exchange from the C Class to any other class.
We will not charge a CDSC on the shares you exchange, regardless of the length
of time you have owned them. When you do redeem shares that have been exchanged,
the CDSC will be based on the date you purchased the original shares.

BUYING AND SELLING SHARES

Your ability to purchase, exchange, redeem and transfer shares will be affected
by the policies of the financial intermediary through which you do business.
Some policy differences may include

*  minimum investment requirements

*  exchange policies

*  fund choices

*  cutoff time for investments

*  trading restrictions

In addition, your financial intermediary may charge a transaction fee for the
purchase or sale of fund shares. Those charges are retained by the financial
intermediary and are not shared with American Century or the fund. Please
contact your financial intermediary or plan sponsor for a complete description
of its policies. Copies of the fund's annual report, semiannual report and
statement of additional information are available from your financial
intermediary or plan sponsor.

The fund has authorized certain financial intermediaries to accept orders on the
fund's behalf. American Century has selling agreements with these financial
intermediaries requiring them to track the time investment orders are received
and to comply with procedures relating to the transmission of orders. Orders
must be received by the financial intermediary on the fund's behalf before the
time the net asset value is determined in order to receive that day's share
price. If those orders are transmitted to American Century and paid for in
accordance with the selling agreement, they will be priced at the net asset
value next determined after your request is received in the form required by the
financial intermediary.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
17


ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT

MINIMUM INITIAL INVESTMENT AMOUNTS (OTHER THAN INSTITUTIONAL CLASS)

Unless otherwise specified below, the minimum initial investment amount to open
an account is $2,500. Financial intermediaries may open an account with $250,
but may require their clients to meet different investment minimums. See
INVESTING THROUGH A FINANCIAL INTERMEDIARY for more information.

- --------------------------------------------------------------------------------
Broker-dealer sponsored wrap program accounts                         No minimum
and/or fee-based accounts
- --------------------------------------------------------------------------------
Coverdell Education Savings Account (CESA)                            $2,000(1)
- --------------------------------------------------------------------------------
Employer-sponsored retirement plans                                   No minimum
- --------------------------------------------------------------------------------

(1)  THE MINIMUM INITIAL INVESTMENT FOR FINANCIAL INTERMEDIARIES IS $250.
     FINANCIAL INTERMEDIARIES MAY HAVE DIFFERENT MINIMUMS FOR THEIR CLIENTS.

SUBSEQUENT PURCHASES

There is a $50 minimum for subsequent purchases. See WAYS TO MANAGE YOUR ACCOUNT
for more information about making additional investments directly with American
Century. However, there is no subsequent purchase minimum for financial
intermediaries or employer-sponsored retirement plans, but financial
intermediaries may require their clients to meet different subsequent purchase
requirements.

ELIGIBILITY FOR INSTITUTIONAL CLASS SHARES

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

MINIMUM INITIAL INVESTMENT AMOUNTS (INSTITUTIONAL CLASS)

The minimum initial investment amount is $5 million ($3 million for endowments
and foundations) per fund. If you invest with us through a financial
intermediary, this requirement may be met if your financial intermediary
aggregates your investments with those of other clients into a single group, or
omnibus, account that meets the minimum. The minimum investment requirement may
be waived if you, or your financial intermediary if you invest through an
omnibus account, have an aggregate investment in our family of funds of $10
million or more ($5 million for endowments and foundations). In addition,
financial intermediaries or plan recordkeepers may require retirement plans to
meet certain other conditions, such as plan size or a minimum level of assets
per participant, in order to be eligible to purchase Institutional Class shares.


- ------
18


REDEMPTIONS

If you sell your B and C Class or, in certain cases, A Class shares within a
certain time after their purchase, you will pay a sales charge the amount of
which is contingent upon the amount of time you have held your shares, as
described above. Your redemption proceeds will be calculated using the NET ASSET
VALUE (NAV) next determined after we receive your transaction request in good
order.


    [graphic of triangle]

    A FUND'S NET ASSET VALUE, OR NAV, IS THE PRICE OF THE FUND'S SHARES.

However, we reserve the right to delay delivery of redemption proceeds up to
seven days. For example, each time you make an investment with American Century,
there is a seven-day holding period before we will release redemption proceeds
from those shares, unless you provide us with satisfactory proof that your
purchase funds have cleared. Investments by wire generally require only a
one-day holding period. If you change your address, we may require that any
redemption request made within 15 days be submitted in writing and be signed by
all authorized signers with their signatures guaranteed. If you change your bank
information, we may impose a 15-day holding period before we will transfer or
wire redemption proceeds to your bank. Please remember, if you request
redemptions by wire, $10 will be deducted from the amount redeemed. Your bank
also may charge a fee.

In addition, we reserve the right to honor certain redemptions with securities,
rather than cash, as described in the next section.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the value of a fund's assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. The portfolio
managers would select these securities from the fund's portfolio.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, you may have to pay
brokerage or other transaction costs to convert the securities to cash.

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

REDEMPTION OF SHARES IN ACCOUNTS BELOW MINIMUM

If your account balance falls below the minimum initial investment amount for
any reason other than as a result of market fluctuation, American Century
reserves the right to redeem the shares in the account and send the proceeds to
your address of record. Prior to doing so, we will notify you and give you 90
days to meet the minimum. Please note that shares redeemed in this manner may be
subject to a sales charge if held less than the applicable time period. You also
may incur tax liability as a result of the redemption. For Institutional Class
shares, we reserve the right to convert your shares to Investor Class shares of
the same fund. The Investor Class shares have a unified management fee that is
0.20% higher than the Institutional Class.



- ------
19


SIGNATURE GUARANTEES

A signature guarantee - which is different from a notarized signature - is a
warranty that the signature presented is genuine. We may require a signature
guarantee for the following transactions.

*  You have chosen to conduct business in writing only and would like to
   redeem over $100,000.

*  Your redemption or distribution check, Check-A-Month or automatic
   redemption is made payable to someone other than the account owners.

*  Your redemption proceeds or distribution amount is sent by EFT (ACH or
   wire) to a destination other than your personal bank account.

*  You are transferring ownership of an account over $100,000.

*  You change your address and request a redemption over $100,000 within 15
   days.

*  You change your bank information and request a redemption within 15 days.

We reserve the right to require a signature guarantee for other transactions, at
our discretion.

MODIFYING OR CANCELING AN INVESTMENT

Investment instructions are irrevocable. That means that once you have mailed or
otherwise transmitted your investment instruction, you may not modify or cancel
it. The fund reserves the right to suspend the offering of shares for a period
of time and to reject any specific investment (including a purchase by
exchange). Additionally, we may refuse a purchase if, in our judgment, it is of
a size that would disrupt the management of the fund.

ABUSIVE TRADING PRACTICES

Short-term trading and other so-called market timing practices are not defined
or explicitly prohibited by any federal or state law. However, short-term
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of short-term
trading activity is significant relative to a fund's net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund's performance could be negatively impacted by the increased trading costs
created by short-term trading if the additional trading costs are significant.

Because of the potentially harmful effects of abusive trading practices, the
fund's Board of Directors has approved American Century's abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
imposing redemption fees on certain funds, and using fair value pricing when
current market prices are not readily available. Although these efforts are
designed to discourage abusive trading practices, they cannot eliminate the
possibility that such activity will occur. American Century seeks to exercise
its judgment in implementing these tools to the best of its ability in a manner
that it believes is consistent with shareholder interests.

American Century uses a variety of techniques to monitor for and detect abusive
trading practices. These techniques may vary depending on the type of fund, the
class of shares or whether the shares are held directly or indirectly with
American Century. They may change from time to time as determined by American
Century in its sole discretion. To minimize harm to the funds and their
shareholders, we reserve the right to reject any purchase order (including
exchanges) from any shareholder we believe has a history of abusive trading or
whose trading, in our judgment, has been or may be disruptive to the funds. In
making this judgment, we may consider trading done in multiple accounts under
common ownership or control.


- ------
20


Currently, for shares held directly with American Century, we may deem the sale
of all or a substantial portion of a shareholder's purchase of fund shares to be
abusive if the sale is made

*  within seven days of the purchase, or

*  within 30 days of the purchase, if it happens more than once per year.

To the extent practicable, we try to use the same approach for defining abusive
trading for shares held through financial intermediaries. American Century
reserves the right, in its sole discretion, to identify other trading practices
as abusive and to modify its monitoring and other practices as necessary to deal
with novel or unique abusive trading practices.

In addition, American Century reserves the right to accept purchases and
exchanges in excess of the trading restrictions discussed above if it believes
that such transactions would not be inconsistent with the best interests of fund
shareholders or this policy.

American Century's policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American Century handles, there can be no assurance that American
Century's efforts will identify all trades or trading practices that may be
considered abusive. In addition, American Century's ability to monitor trades
that are placed by individual shareholders within group, or omnibus, accounts
maintained by financial intermediaries is severely limited because American
Century generally does not have access to the underlying shareholder account
information. However, American Century monitors aggregate trades placed in
omnibus accounts and seeks to work with financial intermediaries to discourage
shareholders from engaging in abusive trading practices and to impose
restrictions on excessive trades. There may be limitations on the ability of
financial intermediaries to impose restrictions on the trading practices of
their clients. As a result, American Century's ability to monitor and discourage
abusive trading practices in omnibus accounts may be limited.

YOUR RESPONSIBILITY FOR UNAUTHORIZED TRANSACTIONS

American Century and its affiliated companies use procedures reasonably designed
to confirm that telephone, electronic and other instructions are genuine. These
procedures include recording telephone calls, requesting personalized security
codes or other information, and sending confirmation of transactions. If we
follow these procedures, we are not responsible for any losses that may occur
due to unauthorized instructions. For transactions conducted over the Internet,
we recommend the use of a secure Internet browser. In addition, you should
verify the accuracy of your confirmation statements immediately after you
receive them.

A NOTE ABOUT MAILINGS TO SHAREHOLDERS

To reduce the amount of mail you receive from us, we may deliver a single copy
of certain investor documents (such as shareholder reports and prospectuses) to
investors who share an address, even if accounts are registered under different
names. If you prefer to receive multiple copies of these documents individually
addressed, please call us or your financial professional. For American Century
Brokerage accounts, please call 1-888-345-2071.

RIGHT TO CHANGE POLICIES

We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups. In addition, from time to time we may
waive a policy on a case-by-case basis, as the advisor deems appropriate.


- ------
21


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century will price the fund shares you purchase, exchange or redeem at
the net asset value (NAV) next determined after your order is received and
accepted by the fund's transfer agent, or other financial intermediary with the
authority to accept orders on the fund's behalf. We determine the NAV of the
fund as of the close of regular trading (usually 4 p.m. Eastern time) on the New
York Stock Exchange (NYSE) on each day the NYSE is open. On days when the NYSE
is closed (including certain U.S. national holidays), we do not calculate the
NAV. The fund's NAV is the current value of the fund's assets, minus any
liabilities, divided by the number of shares outstanding.

The fund values portfolio securities for which market quotations are readily
available at their market price. As a general rule, equity securities listed on
a U.S. exchange are valued at the last current reported sale price as of the
time of valuation. Securities listed on the NASDAQ National Market System
(Nasdaq) are valued at the Nasdaq Official Closing Price (NOCP), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the
time of valuation. The fund may use pricing services to assist in the
determination of market value. Unlisted securities for which market quotations
are readily available are valued at the last quoted sale price or the last
quoted ask price, as applicable, except that debt obligations with 60 days or
less remaining until maturity may be valued at amortized cost. Exchange-traded
options, futures and options on futures are valued at the settlement price as
determined by the appropriate clearing corporation.

If the fund determines that the market price for a portfolio security is not
readily available or that the valuation methods mentioned above do not reflect
the security's fair value, such security is valued at its fair value as
determined in good faith by, or in accordance with procedures adopted by, the
fund's board or its designee (a process referred to as "fair valuing" the
security). Circumstances that may cause the fund to fair value a security
include, but are not limited to:

*  if, after the close of the foreign exchange on which a portfolio security
   is principally traded, but before the close of the NYSE, an event occurs that
   may materially affect the value of the security;

*  a debt security has been declared in default; or

*  trading in a security has been halted during the trading day.

If such circumstances occur, the fund will fair value the security if the fair
valuation would materially impact the fund's NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with procedures adopted by
the fund's board.

The effect of using fair value determinations is that the fund's NAV will be
based, to some degree, on security valuations that the board or its designee
believes are fair rather than being solely determined by the market.


- ------
22


With respect to any portion of the fund's assets that are invested in one or
more open-end management investment companies that are registered with the SEC
(known as registered investment companies, or RICs), the fund's NAV will be
calculated based upon the NAVs of such RICs. These RICs are required by law to
explain the circumstances under which they will use fair value pricing and the
effects of using fair value pricing in their prospectuses.

Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based on the prevailing exchange rates on that day.

Trading of securities in foreign markets may not take place every day the NYSE
is open. Also, trading in some foreign markets and on some electronic trading
networks may take place on weekends or holidays when the fund's NAV is not
calculated. So, the value of the fund's portfolio may be affected on days when
you will not be able to purchase, exchange or redeem fund shares.

DISTRIBUTIONS

Federal tax laws require the fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means the fund should not be subject to state or
federal income tax on amounts distributed. The distributions generally consist
of dividends and interest received by the fund, as well as CAPITAL GAINS
realized by the fund on the sale of its investment securities. The fund
generally pays distributions from net income and capital gains, if any, once a
year in December. The fund may make more frequent distributions, if necessary,
to comply with Internal Revenue Code provisions.

     [graphic of triangle]

     CAPITAL GAINS ARE INCREASES IN THE VALUES OF CAPITAL ASSETS, SUCH AS STOCK,
     FROM THE TIME THE ASSETS ARE PURCHASED.

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

Participants in tax-deferred retirement plans must reinvest all distributions.
For investors investing through taxable accounts, we will reinvest distributions
unless you elect to have dividends and/or capital gains sent to another American
Century account, to your bank electronically, or to your home address or to
another person or address by check.


- ------
23


TAXES

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

Tax-Deferred Accounts

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

Taxable Accounts

If you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund shares.

Taxability of Distributions

Fund distributions may consist of income, such as dividends and interest earned
by a fund from its investments, or capital gains generated by the fund from the
sale of investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as QUALIFIED DIVIDEND INCOME and you meet a
minimum required holding period with respect to your shares of the fund, in
which case distributions of income are taxed as long-term capital gains.


    [graphic of triangle]

    QUALIFIED DIVIDEND INCOME IS A DIVIDEND RECEIVED BY THE FUND FROM THE STOCK
    OF A DOMESTIC OR QUALIFYING FOREIGN CORPORATION, PROVIDED THAT THE FUND HAS
    HELD THE STOCK FOR A REQUIRED HOLDING PERIOD.

For capital gains and for income distributions designated as qualified dividend
income, the following rates apply:

                                        TAX RATE FOR 10%      TAX RATE FOR
TYPE OF DISTRIBUTION                    AND 15% BRACKETS      ALL OTHER BRACKETS
- --------------------------------------------------------------------------------
Short-term capital gains                Ordinary Income       Ordinary Income
- --------------------------------------------------------------------------------
Long-term capital gains (> 1 year)
and Qualified Dividend Income           5%                    15%
- --------------------------------------------------------------------------------

If the fund's distributions exceed its taxable income and capital gains realized
during the tax year, all or a portion of the distributions made by the fund in
that tax year will be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.


- ------
24


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

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

Taxes on Transactions

Your redemptions-including exchanges to other American Century funds-are subject
to capital gains tax. The table above can provide a general guide for your
potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss. However, you should note that loss realized upon the
sale or exchange of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain to you with respect to those shares. If a loss is realized on the
redemption of fund shares, the reinvestment in additional fund shares within 30
days before or after the redemption may be subject to the wash sale rules of the
Internal Revenue Code. This may result in a postponement of the recognition of
such loss for federal income tax purposes.

If you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.

Buying a Dividend

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

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

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


- ------
25


MULTIPLE CLASS INFORMATION

American Century offers six classes of shares of the fund: Investor Class,
Institutional Class, A Class, B Class, C Class and R Class.

The classes have different fees, expenses and/or minimum investment
requirements. The difference in the fee structures between the classes is the
result of their separate arrangements for shareholder and distribution services.
It is not the result of any difference in advisory or custodial fees or other
expenses related to the management of the fund's assets, which do not vary by
class. Different fees and expenses will affect performance.

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

Service, Distribution and Administrative Fees

Investment Company Act Rule 12b-1 permits mutual funds that adopt a written plan
to pay certain expenses associated with the distribution of their shares out of
fund assets. Each class, except the Investor Class and Institutional Class,
offered by this prospectus has a 12b-1 plan. The plans provide for the fund to
pay annual fees of 0.25% for A Class, 1.00% for B and C Classes, and 0.50% for R
Class to the distributor. The distributor may use these fees to pay for certain
ongoing shareholder and administrative services and for distribution services,
including past distribution services. The distributor pays all or a portion of
such fees to the financial intermediaries that make the classes available.
Because these fees are used to pay for services that are not related to
prospective sales of the fund, each class will continue to make payments under
its plan even if it is closed to new investors. Because these fees are paid out
of the fund's assets on an ongoing basis, over time these fees will increase the
cost of your investment and may cost you more than other types of sales charges.
The higher fees for B and C Class shares may cost you more over time than paying
the initial sales charge for A Class shares. For additional information about
the plans and their terms, see MULTIPLE CLASS STRUCTURE in the statement of
additional information.

Certain financial intermediaries perform recordkeeping and administrative
services for their clients that would otherwise be performed by American
Century's transfer agent. In some circumstances, the advisor will pay such
service providers a fee for performing those services. Also, the advisor and the
fund's distributor may make payments for various additional services or other
expenses out of their profits or other available sources. Such payments may be
made for one or more of the following: (1) distribution services, which include
expenses incurred by intermediaries for their sales activities with respect to
the fund, such as preparing, printing and distributing sales literature and
advertising materials and compensating registered representatives or other
employees of such financial intermediary for their sales activities; (2)
shareholder services, such as providing individual and custom investment
advisory services to clients of the financial intermediary; and (3) marketing
and promotional services, including business planning assistance, educating
personnel about the fund, and sponsorship of sales meetings, which may include
covering costs of providing speakers, meals and other entertainment. The
distributor may sponsor seminars and conferences designed to educate
intermediaries about the fund and may cover the expenses associated with
attendance at such meetings, including travel costs. These payments and
activities are intended to provide an incentive to intermediaries to sell the
fund by ensuring that they are educated about the fund, and to help such
intermediaries defray costs associated with offering the fund. The amount of any
payments described by this paragraph is determined by the advisor or the
distributor, and all such amounts are paid out of the available assets of the
advisor and distributor, and not by you or the fund. As a result, the total
expense ratio of the fund will not be affected by any such payments.



- ------
26


FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The tables on the next few pages itemize what contributed to the changes in
share price during the most recently ended fiscal year. They also show the
changes in share price for this period in comparison to changes over the last
five fiscal years (or a shorter period if the share class is not five years
old).

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

*  share price at the beginning of the period

*  investment income and capital gains or losses

*  distributions of income and capital gains paid to investors

*  share price at the end of the period

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

*  TOTAL RETURN - the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO - the operating expenses of the fund as a percentage of
   average net assets

*  NET INCOME RATIO - the net investment income of the fund as a percentage
   of average net assets

*  PORTFOLIO TURNOVER - the percentage of the fund's investment portfolio
   that is replaced during the period

The Financial Highlights that follow have been audited by Deloitte & Touche LLP.
The fund's Report of Independent Registered Public Accounting Firm and the
financial statements are included in the fund's annual report, which is
available upon request.



- ------
27


FUNDAMENTAL EQUITY FUND
Investor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)
- --------------------------------------------------------------------------------
                                                     2006              2005(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                 $11.04            $10.88
- --------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(2)                   0.08              0.02
- ----------------------------------------
   Net Realized and Unrealized Gain (Loss)           2.12              0.14
- --------------------------------------------------------------------------------
   Total From Investment Operations                  2.20              0.16
- --------------------------------------------------------------------------------
Distributions
- ----------------------------------------
   From Net Realized Gains                           (0.36)            -
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                       $12.88            $11.04
================================================================================
   TOTAL RETURN(3)                                   20.37%            1.47%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                                1.00%             1.00%(4)
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                         0.74%             0.59%(4)
- ----------------------------------------
Portfolio Turnover Rate                              174%              101%(5)
- ----------------------------------------
Net Assets, End of Period (in thousands)             $3,836            $25
- --------------------------------------------------------------------------------

(1)  JULY 29, 2005 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2005.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY
     REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING
     THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE
     CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE
     CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET
     VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND
     DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE
     INDICATED WAS CALCULATED FOR THE PERIOD NOVEMBER 30, 2004 (FUND INCEPTION)
     THROUGH OCTOBER 31, 2005.


- ------
28


FUNDAMENTAL EQUITY FUND
Institutional Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)
- --------------------------------------------------------------------------------
                                                     2006              2005(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                 $11.05            $10.88
- --------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(2)                   0.12              0.02
- ----------------------------------------
   Net Realized and Unrealized Gain (Loss)           2.10              0.15
- --------------------------------------------------------------------------------
   Total From Investment Operations                  2.22              0.17
- --------------------------------------------------------------------------------
Distributions
- ----------------------------------------
   From Net Realized Gains                           (0.37)            -
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                       $12.90            $11.05
================================================================================
   TOTAL RETURN(3)                                   20.51%            1.56%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                                0.80%             0.80%(4)
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                         0.94%             0.79%(4)
- ----------------------------------------
Portfolio Turnover Rate                              174%              101%(5)
- ----------------------------------------
Net Assets, End of Period (in thousands)             $31               $25
- --------------------------------------------------------------------------------

(1)  JULY 29, 2005 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2005.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY
     REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING
     THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE
     CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE
     CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET
     VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND
     DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE
     INDICATED WAS CALCULATED FOR THE PERIOD NOVEMBER 30, 2004 (FUND INCEPTION)
     THROUGH OCTOBER 31, 2005.


- ------
29


FUNDAMENTAL EQUITY FUND
A Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)
- --------------------------------------------------------------------------------
                                                     2006               2005(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                 $11.03             $10.00
- --------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(2)                   0.06               0.02
- ----------------------------------------
   Net Realized and Unrealized Gain (Loss)           2.11               1.01
- --------------------------------------------------------------------------------
   Total From Investment Operations                  2.17               1.03
- --------------------------------------------------------------------------------
Distributions
- ----------------------------------------
   From Net Realized Gains                           (0.35)             -
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                       $12.85             $11.03
================================================================================
   TOTAL RETURN(3)                                   20.12%             10.30%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                                1.25%              1.28%(4)
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                         0.49%              0.17%(4)
- ----------------------------------------
Portfolio Turnover Rate                              174%               101%
- ----------------------------------------
Net Assets, End of Period (in thousands)             $37,314            $1,636
- --------------------------------------------------------------------------------

(1)  NOVEMBER 30, 2004 (FUND INCEPTION) THROUGH OCTOBER 31, 2005.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL
     RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.


- ------
30


FUNDAMENTAL EQUITY FUND
B Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)
- --------------------------------------------------------------------------------
                                                    2006             2005(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                $10.96           $10.00
- --------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(2)                  (0.02)           (0.06)
- ----------------------------------------
   Net Realized and Unrealized Gain (Loss)          2.07             1.02
- --------------------------------------------------------------------------------
   Total From Investment Operations                 2.05             0.96
- --------------------------------------------------------------------------------
Distributions
- ----------------------------------------
   From Net Realized Gains                          (0.27)           -
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                      $12.74           $10.96
================================================================================
   TOTAL RETURN(3)                                  19.04%           9.60%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                               2.00%            2.03%(4)
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                        (0.26)%          (0.58)%(4)
- ----------------------------------------
Portfolio Turnover Rate                             174%             101%
- ----------------------------------------
Net Assets, End of Period (in thousands)            $1,498           $469
- --------------------------------------------------------------------------------

(1)  NOVEMBER 30, 2004 (FUND INCEPTION) THROUGH OCTOBER 31, 2005.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL
     RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.


- ------
31


FUNDAMENTAL EQUITY FUND
C Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)
- --------------------------------------------------------------------------------
                                                    2006             2005(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                $10.96           $10.00
- --------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(2)                  (0.03)           (0.06)
- ----------------------------------------
   Net Realized and Unrealized Gain (Loss)          2.09             1.02
- --------------------------------------------------------------------------------
   Total From Investment Operations                 2.06             0.96
- --------------------------------------------------------------------------------
Distributions
- ----------------------------------------
  From Net Realized Gains                           (0.27)           -
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                      $12.75           $10.96
================================================================================
   TOTAL RETURN(3)                                  19.13%           9.60%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                               2.00%            2.03%(4)
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                        (0.26)%          (0.58)%(4)
- ----------------------------------------
Portfolio Turnover Rate                             174%             101%
- ----------------------------------------
Net Assets, End of Period (in thousands)            $4,530           $693
- --------------------------------------------------------------------------------

(1)  NOVEMBER 30, 2004 (FUND INCEPTION) THROUGH OCTOBER 31, 2005.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL
     RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.


- ------
32


FUNDAMENTAL EQUITY FUND
R Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)
- --------------------------------------------------------------------------------
                                                      2006              2005(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                  $11.03            $10.88
- --------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(2)                    0.04              -(3)
- ----------------------------------------
   Net Realized and Unrealized Gain (Loss)            2.08              0.15
- --------------------------------------------------------------------------------
   Total From Investment Operations                   2.12              0.15
- --------------------------------------------------------------------------------
Distributions
- ----------------------------------------
   From Net Realized Gains                            (0.34)            -
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                        $12.81            $11.03
================================================================================
   TOTAL RETURN(4)                                    19.67%            1.38%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                                 1.50%             1.50%(5)
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                          0.24%             0.09%(5)
- ----------------------------------------
Portfolio Turnover Rate                               174%              101%(6)
- ----------------------------------------
Net Assets, End of Period (in thousands)              $30               $25
- --------------------------------------------------------------------------------

(1)  JULY 29, 2005 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2005.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  PER-SHARE AMOUNT IS LESS THAN $0.005.

(4)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY
     REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING
     THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE
     CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE
     CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET
     VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND
     DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(5)  ANNUALIZED.

(6)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE
     INDICATED WAS CALCULATED FOR THE PERIOD NOVEMBER 30, 2004 (FUND INCEPTION)
     THROUGH OCTOBER 31, 2005.


- ------
33


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

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

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

IN PERSON            SEC Public Reference Room
                     Washington, D.C.
                     Call 202-942-8090 for location and hours.

ON THE INTERNET      * EDGAR database at sec.gov
                     * By email request at publicinfo@sec.gov

BY MAIL              SEC Public Reference Section
                     Washington, D.C. 20549-0102

This prospectus shall not constitute an offer to sell securities of the fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or qualified for sale, unless such registration or qualification
is not required, or under any circumstances in which such offer or solicitation
would be unlawful.

                                 FUND            TICKER            NEWSPAPER
FUND REFERENCE                   CODE            SYMBOL            LISTING
- --------------------------------------------------------------------------------
Fundamental Equity Fund
  Investor Class                   118             AFDIX             N/A
- --------------------------------------------------------------------------------
  Institutional Class              413             AFEIX             N/A
- --------------------------------------------------------------------------------
  A Class                          113             AFDAX             N/A
- --------------------------------------------------------------------------------
  B Class                          313             AFDBX             N/A
- --------------------------------------------------------------------------------
  C Class                          613             AFDCX             N/A
- --------------------------------------------------------------------------------
  R Class                          213             AFDRX             N/A
- --------------------------------------------------------------------------------

INVESTMENT COMPANY ACT FILE NO. 811-0816

AMERICAN CENTURY INVESTMENTS
americancentury.com

                                   Banks and Trust Companies, Broker-Dealers,
Self-Directed Retail Investors     Financial Professionals, Insurance Companies
P.O. Box 419200                    P.O. Box 419786
Kansas City, Missouri 64141-6200   Kansas City, Missouri 64141-6786
1-800-345-2021 or 816-531-5575     1-800-345-6488

0703
SH-PRS-52522













AMERICAN CENTURY INVESTMENTS

Prospectus


March 1, 2007


New Opportunities II Fund

THE FUND IS AVAILABLE FOR PURCHASE ONLY THROUGH FINANCIAL INTERMEDIARIES BY
INVESTORS WHO SEEK ADVICE FROM THEM. THE FUND IS CLOSED TO OTHER INVESTORS, BUT
THOSE WITH OPEN ACCOUNTS MAY MAKE ADDITIONAL INVESTMENTS AND REINVEST DIVIDENDS
AND CAPITAL GAINS DISTRIBUTIONS AS LONG AS SUCH ACCOUNTS REMAIN OPEN.

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

American Century Investment Services, Inc., Distributor

[american century investments logo and text logo]





Table of Contents

AN OVERVIEW OF THE FUND . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

FUND PERFORMANCE HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

FEES AND EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

OBJECTIVES, STRATEGIES AND RISKS . . . . . . . . . . . . . . . . . . . . . . . 7

MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

INVESTING DIRECTLY WITH AMERICAN CENTURY . . . . . . . . . . . . . . . . . . .11

INVESTING THROUGH A FINANCIAL INTERMEDIARY . . . . . . . . . . . . . . . . . .13

ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT . . . . . . . . . . . . . . . . 18

SHARE PRICE AND DISTRIBUTIONS . . . . . . . . . . . . . . . . . . . . . . . . 23

TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

MULTIPLE CLASS INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . .27

FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

        [graphic of triangle]

        THIS SYMBOL IS USED THROUGHOUT THE BOOK TO HIGHLIGHT DEFINITIONS OF KEY
        INVESTMENT TERMS AND TO PROVIDE OTHER HELPFUL INFORMATION.




American Century Investment Services, Inc., Distributor

©2007 American Century Proprietary Holdings, Inc. All rights reserved.

The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.




AN OVERVIEW OF THE FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

The portfolio managers look for stocks of smaller-sized companies they believe
will increase in value over time, using an investment strategy developed by
American Century. In implementing this strategy, the portfolio managers make
their investment decisions based primarily on their analysis of individual
companies, rather than on broad economic forecasts. Management of the fund is
based on the belief that, over the long term, stock price movements follow
growth in earnings and revenues. The portfolio managers' principal analytical
technique involves the identification of companies with earnings and revenues
that are not only growing, but growing at an accelerating pace.

The fund's principal risks include

*  GROWTH STOCKS - Investments in growth stocks may involve special risks and
   their prices may fluctuate more dramatically than the overall stock market.

*  SMALL CAP STOCKS - The smaller companies in which the fund invests may
   present greater opportunities for capital appreciation than larger companies,
   but may also present greater risks.

*  FOREIGN SECURITIES - The fund may invest in foreign securities, which can
   be riskier than investing in U.S. securities.

*  HIGH TURNOVER - The fund's PORFOLIO TURNOVER may be unusually high. This
   could result in relatively high commission costs, which could hurt the fund's
   performance, and capital gains tax liabilities for the fund's shareholders.

        [graphic of triangle]

        PORTFOLIO TURNOVER IS A MEASURE OF HOW FREQUENTLY A FUND BUYS AND SELLS
        PORTFOLIO SECURITIES.

*  IPO RISK - The fund's performance may be affected by investments in
   initial public offerings.

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

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

*  PRINCIPAL LOSS - At any given time your shares may be worth less than the
   price you paid for them. In other words, it is possible to lose money by
   investing in the fund.

A more detailed description of the fund's investment strategies and risks may be
found under the heading OBJECTIVES, STRATEGIES AND RISKS, which begins on page
7.

        [graphic of triangle]

        AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT, AND IT IS NOT INSURED
        OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY
        OTHER GOVERNMENT AGENCY.


- ------
2


FUND PERFORMANCE HISTORY

Annual Total Returns

The following bar chart shows the performance of the fund's Investor Class
shares for each full calendar year in the life of the class. It indicates the
volatility of the fund's historical returns from year to year. Account fees and
sales charges, if applicable, are not reflected in the chart below. If they had
been included, returns would have been lower than those shown. The returns of
the fund's other classes of shares will differ from those shown in the chart,
depending on the expenses of those classes.


NEW OPPORTUNITIES II FUND-INVESTOR CLASS

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

                                 HIGHEST                      LOWEST
- --------------------------------------------------------------------------------
New Opportunities II             21.51% (4Q 2003)             -17.80% (3Q 2002)
- --------------------------------------------------------------------------------

Average Annual Total Returns

The following table shows the average annual total returns of the fund's
Investor Class shares calculated three different ways. Additional tables show
the average annual total returns of the fund's other share classes calculated
before the impact of taxes. Returns assume the deduction of all sales loads,
charges and other fees associated with a particular class. Your actual returns
may vary depending on the circumstances of your investment. Because the
Institutional Class had not commenced operations as of the calendar year end, it
is not included.

Return Before Taxes shows the actual change in the value of fund shares over the
time periods shown, but does not reflect the impact of taxes on fund
distributions or the sale of fund shares. The two after-tax returns take into
account taxes that may be associated with owning fund shares. Return After Taxes
on Distributions is a fund's actual performance, adjusted by the effect of taxes
on distributions made by the fund during the periods shown. Return After Taxes
on Distributions and Sale of Fund Shares is further adjusted to reflect the tax
impact on any change in the value of fund shares as if they had been sold on the
last day of the period.

After-tax returns are calculated using the historical highest federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-tax returns shown are not relevant to investors who hold fund
shares through tax-deferred arrangements such as 401(k) plans or IRAs. After-tax
returns are shown only for Investor Class shares. After-tax returns for other
share classes will vary.


- ------
3



The benchmark is an unmanaged index that has no operating costs and is included
in each table for performance comparison.

INVESTOR CLASS
FOR THE CALENDAR YEAR ENDED                                           LIFE OF
DECEMBER 31, 2006                           1 YEAR       5 YEAR       CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                         13.64%      10.54%        9.54%
Return After Taxes on Distributions         11.80%       9.89%        8.97%
Return After Taxes on Distributions         10.46%       9.00%        8.16%
   and Sale of Fund Shares
Russell 2000® Growth Index                  13.35%       6.93%        4.85%(2)
   (reflects no deduction for fees,
   expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE INVESTOR CLASS IS JUNE 1, 2001.

(2)  SINCE MAY 31, 2001, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.


A CLASS
                                                                      LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006              1 YEAR     CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                        6.74%      17.34%
Russell 2000® Growth Index                                13.35%      20.27%
   (reflects no deduction for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE A CLASS IS JANUARY 31, 2003.


B CLASS
                                                                      LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006              1 YEAR     CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                        8.47%      17.78%
Russell 2000® Growth Index                                13.35%      20.27%
   (reflects no deduction for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE B CLASS IS JANUARY 31, 2003.


C CLASS
                                                                      LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006              1 YEAR     CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                        12.58%     18.36%(2)
Russell 2000® Growth Index                                 13.35%     20.27%
   (reflects no deduction for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE C CLASS IS JANUARY 31, 2003.

(2)  RETURN WOULD HAVE BEEN LOWER IF SERVICE AND DISTRIBUTION FEES HAD NOT
     BEEN WAIVED FROM FEBRUARY 1, 2003 TO JUNE 30, 2003.

Performance information is designed to help you see how fund returns can vary.
Keep in mind that past performance (before and after taxes) does not predict how
the fund will perform in the future.

For current performance information, please call us or visit
americancentury.com.


- ------
4


FEES AND EXPENSES

The following tables describe the fees and expenses you may pay if you buy and
hold shares of the fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
                        INVESTOR    INSTITUTIONAL   A        B         C
                        CLASS       CLASS           CLASS    CLASS     CLASS
- --------------------------------------------------------------------------------
Maximum Sales
Charge (Load)
Imposed on              None        None            5.75%    None      None
Purchases
   (as a
   percentage
   of offering
   price)
- --------------------------------------------------------------------------------
Maximum                 None        None            None(1)  5.00%(2)  1.00%(3)
Deferred Sales
Charge (Load)
   (as a
   percentage
   of the original
   offering price
   for B Class
   shares or the
   lower of the
   original offering
   price or
   redemption
   proceeds for
   A and C
   Class shares)
- --------------------------------------------------------------------------------
Redemption/             2.00%(4)    2.00%(4)        None     None      None
Exchange Fee
(as a percentage
of amount
redeemed or
exchanged)
- --------------------------------------------------------------------------------
Maximum Account         $25(5)      None            None     None      None
Maintenance Fee
- --------------------------------------------------------------------------------


(1)  INVESTMENTS OF $1 MILLION OR MORE IN A CLASS SHARES MAY BE SUBJECT TO
     A CONTINGENT DEFERRED SALES CHARGE OF 1.00% IF THE SHARES ARE REDEEMED
     WITHIN ONE YEAR OF THE DATE OF PURCHASE.

(2)  THE CHARGE IS 5.00% DURING THE FIRST YEAR AFTER PURCHASE, DECLINES
     OVER THE NEXT FIVE YEARS AS SHOWN ON PAGE 15, AND IS ELIMINATED AFTER SIX
     YEARS.

(3)  THE CHARGE IS 1.00% DURING THE FIRST YEAR AFTER PURCHASE, AND IS
     ELIMINATED THEREAFTER.

(4)  APPLIES ONLY TO INVESTOR AND INSTITUTIONAL CLASS SHARES HELD FOR LESS
     THAN 180 DAYS. THE FEE DOES NOT APPLY TO SHARES PURCHASED THROUGH
     REINVESTED DIVIDENDS OR CAPITAL GAINS.

(5)  APPLIES ONLY TO INVESTORS WHOSE TOTAL ELIGIBLE INVESTMENTS WITH
     AMERICAN CENTURY ARE LESS THAN $10,000. SEE Account Maintenance Fee UNDER
     Investing Directly with American Century FOR MORE DETAILS.


ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
                                  DISTRIBUTION                    TOTAL ANNUAL
                     MANAGEMENT   AND SERVICE       OTHER         FUND OPERATING
                     FEE(1)       (12B-1) FEES(2)   EXPENSES(3)   EXPENSES
- --------------------------------------------------------------------------------
Investor Class       1.50%        None              0.00%         1.50%
- --------------------------------------------------------------------------------
Institutional Class  1.30%        None              0.00%         1.30%
- --------------------------------------------------------------------------------
A Class              1.50%        0.25%             0.00%         1.75%
- --------------------------------------------------------------------------------
B Class              1.50%        1.00%             0.00%         2.50%
- --------------------------------------------------------------------------------
C Class              1.50%        1.00%             0.00%         2.50%
- --------------------------------------------------------------------------------

(1)  THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR
     ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. THE FEE SHOWN IS
     BASED ON ASSETS DURING THE FUND'S MOST RECENT FISCAL YEAR. THE FUND HAS A
     STEPPED FEE SCHEDULE. AS A RESULT, THE FUND'S UNIFIED MANAGEMENT FEE RATE
     GENERALLY DECREASES AS STRATEGY ASSETS INCREASE AND INCREASES AS STRATEGY
     ASSETS DECREASE. FOR MORE INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE,
     INCLUDING AN EXPLANATION OF STRATEGY ASSETS, SEE The Investment Advisor
     UNDER Management.

(2)  THE 12B-1 FEE IS DESIGNED TO PERMIT INVESTORS TO PURCHASE SHARES
     THROUGH BROKER-DEALERS, BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL
     INTERMEDIARIES. THE FEE MAY BE USED TO COMPENSATE SUCH FINANCIAL
     INTERMEDIARIES FOR DISTRIBUTION AND OTHER SHAREHOLDER SERVICES. FOR MORE
     INFORMATION, SEE Multiple Class Information AND Service, Distribution and
     Administrative Fees, PAGE 27.

(3)  OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
     INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST, WERE
     LESS THAN 0.005% FOR THE MOST RECENT FISCAL YEAR.


- ------
5


EXAMPLE

The examples in the tables below are intended to help you compare the costs of
investing in the fund with the costs of investing in other mutual funds. Of
course, your actual costs may be higher or lower. Assuming you . . .

*  invest $10,000 in the fund

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

*  earn a 5% return each year

*  incur the same operating expenses as shown above

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

                           1 YEAR        3 YEARS        5 YEARS        10 YEARS
- --------------------------------------------------------------------------------
Investor Class             $152          $472           $814           $1,778
- --------------------------------------------------------------------------------
Institutional Class        $132          $410           $710           $1,558
- --------------------------------------------------------------------------------
A Class                    $742          $1,091         $1,463         $2,503
- --------------------------------------------------------------------------------
B Class                    $651          $1,071         $1,417         $2,623
- --------------------------------------------------------------------------------
C Class                    $251          $771           $1,317         $2,803
- --------------------------------------------------------------------------------

The table above reflects a deduction for charges payable upon redemption. You
would pay the following expenses if you did not redeem your shares.

                         1 YEAR        3 YEARS        5 YEARS        10 YEARS
- --------------------------------------------------------------------------------
Investor Class           $152          $472           $814           $1,778
- --------------------------------------------------------------------------------
Institutional Class      $132          $410           $710           $1,558
- --------------------------------------------------------------------------------
A Class                  $742          $1,091         $1,463         $2,503
- --------------------------------------------------------------------------------
B Class                  $251          $771           $1,317         $2,623
- --------------------------------------------------------------------------------
C Class                  $251          $771           $1,317         $2,803
- --------------------------------------------------------------------------------


- ------
6


OBJECTIVES, STRATEGIES AND RISKS

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

The portfolio managers look for stocks of smaller-sized companies they believe
will increase in value over time, using an investment strategy developed by
American Century. In implementing this strategy, the portfolio managers use a
bottom-up approach to stock selection. This means that the managers make their
investment decisions based primarily on their analysis of individual companies,
rather than on broad economic forecasts. Management of the fund is based on the
belief that, over the long term, stock price movements follow growth in earnings
and revenues.

Using American Century's extensive computer database, as well as other primary
analytical research tools, the portfolio managers track financial information
for thousands of individual companies to identify and evaluate trends in
earnings, revenues and other business fundamentals. The portfolio managers'
principal analytical technique involves the identification of companies with
earnings and revenues that are not only growing, but growing at an accelerating
pace. This includes companies whose growth rates, although still negative, are
less negative than prior periods, and companies whose growth rates are expected
to accelerate. These techniques help the portfolio managers buy or hold the
stocks of companies they believe have favorable growth prospects and sell the
stocks of companies whose characteristics no longer meet their criteria.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies, including
companies located in emerging markets. Investments in foreign securities present
some unique risks that are more fully described in the fund's statement of
additional information.

The portfolio managers do not attempt to time the market. Instead, under normal
market conditions, they intend to keep the fund essentially fully invested in
stocks regardless of the movement of stock prices generally. When the managers
believe it is prudent, the fund may invest a portion of its assets in debt
securities, preferred stock and equity-equivalent securities, such as
convertible securities, stock futures contracts or stock index futures
contracts. The fund generally limits its purchase of debt securities to
investment-grade obligations. Futures contracts, a type of derivative security,
can help the fund's cash assets remain liquid while performing more like stocks.
The fund has a policy governing futures contracts and similar derivative
securities to help manage the risk of these types of investments. A complete
description of the derivatives policy is included in the statement of additional
information.

In the event of exceptional market or economic conditions, the fund may, as a
temporary defensive measure, invest all or a substantial portion of its assets
in cash, cash-equivalent securities or short-term debt securities. To the extent
a fund assumes a defensive position it will not be pursuing its objective of
long-term capital growth.

When determining whether a company is smaller-sized, the portfolio managers will
consider, among other factors, the capitalization of the company and the amount
of revenues, as well as other information they obtain about the company. If the
companies in which the fund invests are successful, these companies may grow
into larger-sized companies. In addition, if the portfolio managers determine
that the availability of smaller-sized companies in which to invest is not
adequate to meet the fund's investment needs, the portfolio managers may invest
in medium- and large-sized companies.

A description of the policies and procedures with respect to the disclosure of
the fund's portfolio securities is available in the statement of additional
information.


- ------
7


WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?


Growth stocks are typically priced higher than other stocks, in relation to
earnings and other measures, because investors believe they have more growth
potential. This potential may or may not be realized and growth stock prices
tend to fluctuate more dramatically than the overall stock market.

The portfolio managers may buy a large amount of a company's stock quickly, and
often will dispose of it quickly if the company's characteristics no longer meet
the fund's investment criteria. While the managers believe this strategy
provides substantial appreciation potential over the long term, in the short
term it can create a significant amount of share price volatility. This
volatility can be greater than that of the average stock fund.

Because the fund generally invests in smaller companies, it may be more
volatile, and subject to greater short-term risk, than funds that invest
primarily in larger companies. Smaller companies may have limited financial
resources, product lines and markets, and their securities may trade less
frequently and in more limited volumes than the securities of larger companies.
In addition, smaller companies may have less publicly available information.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies. Foreign
investment involves additional risks, including fluctuations in currency
exchange rates, less stable political and economic structures, reduced
availability of public information, and lack of uniform financial reporting and
regulatory practices similar to those that apply in the United States. These
factors make investing in foreign securities generally riskier than investing in
U.S. stocks. To the extent the fund invests in foreign securities, the overall
risk of the fund could be affected.

Investing in securities of companies located in emerging market countries
generally is also riskier than investing in securities of companies located in
foreign developed countries. Emerging market countries may have unstable
governments and/or economies that are subject to sudden change. These changes
may be magnified by the countries' emergent financial markets, resulting in
significant volatility to investments in these countries. These countries also
may lack the legal, business and social framework to support securities markets.

The fund's turnover may be unusually high. This could result in relatively high
comission costs, which could hurt the fund's performance, and capital gains tax
liabilities for the fund's shareholders.

The fund's performance also may be affected by investments in initial public
offerings (IPOs). The impact of IPOs on the fund's performance depends on the
strength of the IPO market and the size of the fund. IPOs may have less impact
on the fund's performance as its assets grow.

Market performance tends to be cyclical, and, in the various cycles, certain
investment styles may fall in and out of favor. If the market is not favoring
the fund's style, the fund's gains may not be as big as, or its losses may be
bigger than, other equity funds using different investment styles.

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 the fund owns will go
up and down depending on the performance of the companies that issued them,
general market and economic conditions, and investor confidence.

At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the fund.


- ------
8


MANAGEMENT

WHO MANAGES THE FUND?

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

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than three-fourths of the directors are independent of the fund's advisor;
that is, they have never been employed by and have no financial interest in the
advisor or any of its affiliated companies (other than as shareholders of
American Century funds).

THE INVESTMENT ADVISOR

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

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

For the services it provides to the fund, the advisor receives a unified
management fee based on a percentage of the daily net assets of each class of
shares of the fund. The amount of the fee is calculated daily and paid monthly
in arrears. Out of that fee, the advisor pays all expenses of managing and
operating the fund except brokerage expenses, taxes, interest, fees and expenses
of the independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the fund's management fee may be paid by the fund's
advisor to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of the
advisor.

The rate of the fee is determined by applying a formula that takes into account
all of the advisor's assets under management in the fund's investment strategy
(strategy assets). Strategy assets include the assets of the fund as well as
certain assets of other clients of the advisor outside the American Century fund
family (such as subadvised funds and separate accounts) that use very similar
investment teams and strategies. The use of strategy assets, rather than fund
assets, in calculating the fund's fee rate could allow the fund to realize
scheduled cost savings more quickly. However, it is possible that the fund's
strategy assets will not include assets of other client accounts or that any
such assets may not be sufficient to result in a lower fee rate.

MANAGEMENT FEES PAID BY
THE FUND TO THE ADVISOR
AS A PERCENTAGE OF AVERAGE
NET ASSETS FOR THE
FISCAL YEAR ENDED             INVESTOR   INSTITUTIONAL   A      B      C
OCTOBER 31, 2006              CLASS      CLASS           CLASS  CLASS  CLASS
- --------------------------------------------------------------------------------
New Opportunities II          1.50%      N/A(1)          1.50%  1.50%  1.50%
- --------------------------------------------------------------------------------

(1)  THE INSTITUTIONAL CLASS HAD NOT COMMENCED OPERATIONS AS OF OCTOBER 31,
     2006. THE INSTITUTIONAL CLASS WILL PAY THE ADVISOR A UNIFIED MANAGEMENT FEE
     OF 1.30% OF ITS PRO RATA SHARE OF THE FIRST $250 MILLION OF THE STRATEGY
     ASSETS, 1.05% OF ITS PRO RATA SHARE OF THE NEXT $250 MILLION OF THE
     STRATEGY ASSETS, 0.95% OF ITS PRO RATA SHARE OF THE NEXT $250 MILLION OF
     THE STRATEGY ASSETS, AND 0.90% OF ITS PRO RATA SHARE OVER $750 MILLION OF
     THE STRATEGY ASSETS.

A discussion regarding the basis for the Board of Directors' approval of the
fund's investment advisory contract with the advisor is available in the fund's
report to shareholders dated October 31, 2006.



- ------
9



THE FUND MANAGEMENT TEAM

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

The portfolio managers on the investment team who are jointly and primarily
responsible for the day-to-day management of the fund are identified below.

STAFFORD SOUTHWICK

Mr. Southwick, Portfolio Manager, has been a member of the team that manages the
fund since joining American Century in June 2001 as an investment analyst. He
became a portfolio manager in April 2006. He has a bachelor's degree in
accounting from Southern Utah University and an MBA from the University of Texas
at Austin. He is a CFA charterholder.

MATTHEW FERRETTI

Mr. Ferretti, Portfolio Manager, rejoined the team that manages the fund in July
2006. He joined American Century in July 2002 as an investment analyst for the
fund. In May 2006, he became a senior investment analyst for the Select Fund. He
became a portfolio manager for the fund in July 2006. Prior to joining American
Century, Mr. Ferretti was a portfolio manager at Teacher Retirement System of
Texas. He has a bachelor of science from the University of Notre Dame, a JD from
Villanova University and an MBA from the University of Texas. He is a CFA
charterholder.

The statement of additional information provides additional information about
the other accounts managed by the portfolio managers, if any, the structure of
their compensation, and their ownership of fund securities.

FUND PERFORMANCE

New Opportunities and New Opportunities II have the same management team and
investment policies as one another. The fees and expenses of the funds are
expected to be similar, and they will be managed with substantially the same
investment objective and strategies. Notwithstanding these general similarities,
New Opportunities and New Opportunities II are separate mutual funds that will
have different investment performance. Differences in cash flows into and out of
the two funds, the level of assets under management in each portfolio and the
specific investments held by each of the two funds will cause performance to
differ.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the statement of additional
information and the investment objective of the fund may not be changed without
shareholder approval. The Board of Directors and/or the advisor may change any
other policies and investment strategies.


- ------
10


INVESTING DIRECTLY WITH AMERICAN CENTURY

SERVICES AUTOMATICALLY AVAILABLE TO YOU

Most accounts automatically will have access to the services listed under WAYS
TO MANAGE YOUR ACCOUNT when the account is opened. If you do not want these
services, see CONDUCTING BUSINESS IN WRITING. If you have questions about the
services that apply to your account type, please call us.

CONDUCTING BUSINESS IN WRITING

If you prefer to conduct business in writing only, you can indicate this on the
account application. If you choose this option, you must provide written
instructions to invest exchange and redeem. All account owners must sign
transaction instructions (with signatures guaranteed for redemptions in excess
of $100,000). By choosing this option, you are not eligible to enroll for
exclusive online account management to waive the account maintenance fee. See
ACCOUNT MAINTENANCE FEE in this section. If you want to add online and telephone
services later, you can complete an Investor Service Options form.

ACCOUNT MAINTENANCE FEE

If you hold Investor Class shares of any American Century fund, or Institutional
Class shares of the American Century Diversified Bond fund, in an American
Century account (i.e., not a financial intermediary or retirement plan account),
we may charge you a $12.50 semiannual account maintenance fee if the value of
those shares is less than $10,000. We will determine the amount of your total
eligible investments twice per year, generally the last Friday in October and
April. If the value of those investments is less than $10,000 at that time, we
will automatically redeem shares in one of your accounts to pay the $12.50 fee.
Please note that you may incur tax liability as a result of the redemption. In
determining your total eligible investment amount, we will include your
investments in all PERSONAL ACCOUNTS (including American Century Brokerage
accounts) registered under your Social Security number. We will not charge the
fee as long as you choose to manage your accounts exclusively online. You may
enroll for exclusive online account management on our Web site. To find out more
about exclusive online account management, visit americancentury.com/info/demo.

        [graphic of triangle]

        PERSONAL ACCOUNTS INCLUDE INDIVIDUAL ACCOUNTS, JOINT ACCOUNTS, UGMA/UTMA
        ACCOUNTS, PERSONAL TRUSTS, COVERDELL EDUCATION SAVINGS ACCOUNTS, IRAS
        (INCLUDING TRADITIONAL, ROTH, ROLLOVER, SEP-, SARSEP- AND SIMPLE-IRAS),
        AND CERTAIN OTHER RETIREMENT ACCOUNTS. IF YOU HAVE ONLY BUSINESS,
        BUSINESS RETIREMENT, EMPLOYER-SPONSORED OR AMERICAN CENTURY BROKERAGE
        ACCOUNTS, YOU ARE CURRENTLY NOT SUBJECT TO THIS FEE, BUT YOU MAY BE
        SUBJECT TO OTHER FEES.

WIRE PURCHASES

CURRENT INVESTORS: If you would like to make a wire purchase into an existing
account, your bank will need the following information. (To invest in a new
fund, please call us first to set up the new account.)

*  American Century's bank information: Commerce Bank N.A., Routing No.
   101000019, Account No. 2804918

*  Your American Century account number and fund name

*  Your name

*  The contribution year (for IRAs only)

NEW INVESTORS: To make a wire purchase into a new account, please complete an
application prior to wiring money.



- ------
11


WAYS TO MANAGE YOUR ACCOUNT

ONLINE
- --------------------------------------------------------------------------------
americancentury.com

OPEN AN ACCOUNT: If you are a current or new investor, you can open an account
by completing and submitting our online application. Current investors also can
open an account by exchanging shares from another American Century account.

EXCHANGE SHARES: Exchange shares from another American Century account.

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

SELL SHARES*: Redeem shares and proceeds will be electronically transferred to
your authorized bank account.

* ONLINE REDEMPTIONS UP TO $25,000 PER DAY.

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

* 4500 Main Street, Kansas City, Missouri - 8 a.m. to 5 p.m., Monday - Friday

* 4917 Town Center Drive, Leawood, Kansas - 8 a.m. to 5 p.m., Monday - Friday, 8
a.m. to noon, Saturday

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

BY TELEPHONE
- --------------------------------------------------------------------------------
INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021

INSTITUTIONAL SERVICE REPRESENTATIVE: 1-800-345-3533

BUSINESS, NOT-FOR-PROFIT AND EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533

AUTOMATED INFORMATION LINE: 1-800-345-8765

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

EXCHANGE SHARES: Call or use our Automated Information Line if you have
authorized us to accept telephone instructions. The Automated Information Line
is available only to Investor Class shareholders.

MAKE ADDITIONAL INVESTMENTS: Call or use our Automated Information Line if you
have authorized us to invest from your bank account. The Automated Information
Line is available only to Investor Class shareholders.

SELL SHARES: Call a Service Representative.

BY MAIL OR FAX
- --------------------------------------------------------------------------------
P.O. Box 419200, Kansas City, MO 64141-6200 - Fax: 816-340-7962

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

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

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

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

AUTOMATICALLY
- --------------------------------------------------------------------------------
OPEN AN ACCOUNT: Not available.

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

MAKE ADDITIONAL INVESTMENTS: With the automatic investment service, you can
purchase shares on a regular basis. You must invest at least $50 per month per
account.

SELL SHARES: You may sell shares automatically by establishing Check-A-Month or
Automatic Redemption plans.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
12


INVESTING THROUGH A FINANCIAL INTERMEDIARY

The fund's A and C Classes are intended for purchase by participants in
employer-sponsored retirement plans. Additionally, the fund's A, B and C Classes
are intended for persons purchasing shares through FINANCIAL INTERMEDIARIES that
provide various administrative and distribution services. For more information
regarding employer-sponsored retirement plan types, please see BUYING AND
SELLING FUND SHARES in the statement of additional information.

        [graphic of triangle]

        FINANCIAL INTERMEDIARIES INCLUDE BANKS, BROKER-DEALERS, INSURANCE
        COMPANIES, PLAN SPONSORS AND FINANCIAL PROFESSIONALS.

Although each class of shares represents an interest in the same fund, each has
a different cost structure, as described below. Which class is right for you
depends on many factors, including how long you plan to hold the shares, how
much you plan to invest, the fee structure of each class, and how you wish to
compensate your financial professional for the services provided to you. Your
financial professional can help you choose the option that is most appropriate.

The following chart provides a summary description of these classes.

A CLASS                                 B CLASS
- --------------------------------------------------------------------------------
Initial sales charge(1)                 No initial sales charge
- --------------------------------------------------------------------------------
Generally no contingent                 Contingent deferred sales charge
deferred sales charge(2)                on redemptions within six years
- --------------------------------------------------------------------------------
12b-1 fee of 0.25%                      12b-1 fee of 1.00%
- --------------------------------------------------------------------------------
No conversion feature                   Convert to A Class shares eight
                                        years after purchase
- --------------------------------------------------------------------------------
Generally more appropriate              Aggregate purchases limited to amounts
for long-term investors                 less than $100,000; generally offered
                                        through financial intermediaries(3)
- --------------------------------------------------------------------------------

C CLASS
- --------------------------------------------------------------------------------
No initial sales charge
- --------------------------------------------------------------------------------
Contingent deferred sales charge on redemptions within 12 months
- --------------------------------------------------------------------------------
12b-1 fee of 1.00%
- --------------------------------------------------------------------------------
No conversion feature
- --------------------------------------------------------------------------------
Aggregate purchases limited to amounts less than $1,000,000;
generally more appropriate for short-term investors
- --------------------------------------------------------------------------------

(1)  THE SALES CHARGE FOR A CLASS SHARES DECREASES DEPENDING ON THE SIZE OF
     YOUR INVESTMENT, AND MAY BE WAIVED FOR SOME PURCHASES. THERE IS NO SALES
     CHARGE FOR PURCHASES OF $1,000,000 OR MORE.

(2)  A CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 1.00% WILL BE CHARGED ON
     CERTAIN PURCHASES OF $1,000,000 OR MORE THAT ARE REDEEMED WITHIN ONE YEAR
     OF PURCHASE.

(3)  INVESTORS IN SIMPLE IRA PLANS, SEP IRA PLANS AND SARSEP PLANS
     ESTABLISHED PRIOR TO AUGUST 1, 2006, MAY MAKE ADDITIONAL PURCHASES. THIS
     CLASS IS NOT AVAILABLE FOR NEW EMPLOYER-SPONSORED RETIREMENT PLAN ACCOUNTS.



- ------
13


CALCULATION OF SALES CHARGES

The information regarding sales charges provided herein is included free of
charge and in a clear and prominent format at americancentury.com in the
INVESTORS USING ADVISORS and INVESTMENT PROFESSIONALS portions of the Web site.
From the description of A, B or C Class shares, a hyperlink will take you
directly to this disclosure.

A Class

A Class shares are sold at their offering price, which is net asset value plus
an initial sales charge. This sales charge varies depending on the amount of
your investment, and is deducted from your purchase before it is invested. The
sales charges and the amounts paid to your financial professional are:

                                           SALES CHARGE     AMOUNT PAID TO
                          SALES CHARGE     AS A % OF        FINANCIAL ADVISOR
                          AS A % OF        NET AMOUNT       AS A % OF
PURCHASE AMOUNT           OFFERING PRICE   INVESTED         OFFERING PRICE
- --------------------------------------------------------------------------------
Less than $50,000         5.75%            6.10%            5.00%
- --------------------------------------------------------------------------------
$50,000 - $99,999         4.75%            4.99%            4.00%
- --------------------------------------------------------------------------------
$100,000 - $249,999       3.75%            3.90%            3.25%
- --------------------------------------------------------------------------------
$250,000 - $499,999       2.50%            2.56%            2.00%
- --------------------------------------------------------------------------------
$500,000 - $999,999       2.00%            2.04%            1.75%
- --------------------------------------------------------------------------------
$1,000,000 - $3,999,999   0.00%            0.00%            1.00%(1)
- --------------------------------------------------------------------------------
$4,000,000 - $9,999,999   0.00%            0.00%            0.50%(1)
- --------------------------------------------------------------------------------
$10,000,000 or more       0.00%            0.00%            0.25%(1)
- --------------------------------------------------------------------------------

(1)  FOR PURCHASES OVER $1,000,000 BY EMPLOYER-SPONSORED RETIREMENT PLANS,
     NO UPFRONT AMOUNT WILL BE PAID TO FINANCIAL PROFESSIONALS.

There is no front-end sales charge for purchases of $1,000,000 or more, but if
you redeem your shares within one year of purchase you will pay a 1.00% deferred
sales charge, subject to the exceptions listed below. No sales charge applies to
reinvested dividends.

Reductions and Waivers of Sales Charges for A Class

You may qualify for a reduction or waiver of certain sales charges, but you or
your financial professional must provide certain information, including the
account numbers of any accounts to be aggregated, to American Century at the
time of purchase in order to take advantage of such reduction or waiver.

You and your immediate family (your spouse and your children under the age of
21) may combine investments to reduce your A Class sales charge in the following
ways:

ACCOUNT AGGREGATION. Investments made by you and your immediate family may be
aggregated at each account's current market value if made for your own
account(s) and/or certain other accounts, such as:

*  Certain trust accounts

*  Solely controlled business accounts

*  Single-participant retirement plans

*  Endowments or foundations established and controlled by you or an
   immediate family member

For purposes of aggregation, only investments made through individual-level
accounts, rather than accounts aggregated at the intermediary level, may be
included.

CONCURRENT PURCHASES. You may combine simultaneous purchases in A, B or C Class
shares of any two or more American Century Advisor Funds (funds that offer A, B
and C Class shares) to qualify for a reduced A Class sales charge.


- ------
14


RIGHTS OF ACCUMULATION. You may take into account the current value of your
existing holdings in A, B or C Class shares of any American Century Advisor Fund
to determine your A Class sales charge.

LETTER OF INTENT. A Letter of Intent allows you to combine all non-money market
fund purchases of all A, B and C Class shares you intend to make over a 13-month
period to determine the applicable sales charge. At your request, existing
holdings may be combined with new purchases and sales charge amounts may be
adjusted for purchases made within 90 days prior to our receipt of the Letter of
Intent. Capital appreciation, capital gains and reinvested dividends earned
during the Letter of Intent period do not apply toward its completion. A portion
of your account will be held in escrow to cover additional A Class sales charges
that will be due if your total investments over the 13-month period do not
qualify for the applicable sales charge reduction.

WAIVERS FOR CERTAIN INVESTORS. The sales charge on A Class shares may be waived
for:

*  Purchases by registered representatives and other employees of certain
   financial intermediaries (and their immediate family members) having selling
   agreements with the advisor or distributor

*  Broker-dealer sponsored wrap program accounts and/or fee-based accounts
   maintained for clients of certain financial intermediaries who have entered
   into selling agreements with American Century

*  Present or former officers, directors and employees (and their families)
   of American Century

*  Employer-sponsored retirement plan purchases. For plans under $1 million
   in assets, purchases with sales charges are allowed, but may be subject to
   the retirement plan recordkeeper's policies. Refer to BUYING AND SELLING FUND
   SHARES in the statement of additional information.

*  IRA Rollovers from any American Century Advisor Fund held in an
   employer-sponsored retirement plan

*  Certain other investors as deemed appropriate by American Century

B Class

B Class shares are sold at their net asset value without an initial sales
charge. For sales of B Class shares, the amount paid to your financial
professional is 4.00% of the amount invested. If you redeem your shares within
six years of purchase date, you will pay a contingent deferred sales charge
(CDSC) as set forth below. The purpose of the CDSC is to permit the fund's
distributor to recoup all or a portion of the up-front payment made to your
financial professional. There is no CDSC on shares acquired through reinvestment
of dividends or capital gains.

REDEMPTION DURING                         CDSC AS A % OF ORIGINAL PURCHASE PRICE
- --------------------------------------------------------------------------------
1st year                                  5.00%
- --------------------------------------------------------------------------------
2nd year                                  4.00%
- --------------------------------------------------------------------------------
3rd year                                  3.00%
- --------------------------------------------------------------------------------
4th year                                  3.00%
- --------------------------------------------------------------------------------
5th year                                  2.00%
- --------------------------------------------------------------------------------
6th year                                  1.00%
- --------------------------------------------------------------------------------
After 6th year                            None
- --------------------------------------------------------------------------------

B Class shares (which carry a 1.00% 12b-1 fee) will automatically convert to A
Class shares (which carry a 0.25% 12b-1 fee) within 31 days after the eight-year
anniversary of the purchase date.



- ------
15


C Class

C Class shares are sold at their net asset value without an initial sales
charge. For sales of C Class shares, the amount paid to your financial
professional is 1.00% of the amount invested. If you redeem your shares within
12 months of purchase, you will pay a CDSC of 1.00% of the original purchase
price or the current market value at redemption, whichever is less. The purpose
of the CDSC is to permit the fund's distributor to recoup all or a portion of
the up-front payment made to your financial professional.

The CDSC will not be charged on shares acquired through reinvestment of
dividends or distributions or increases in the net asset value of shares.

CALCULATION OF CONTINGENT DEFERRED SALES CHARGE (CDSC)

To minimize the amount of the CDSC you may pay when you redeem shares, the fund
will first redeem shares acquired through reinvested dividends and capital gain
distributions, which are not subject to a CDSC. Shares that have been in your
account long enough that they are not subject to a CDSC are redeemed next. For
any remaining redemption amount, shares will be sold in the order they were
purchased (earliest to latest).

CDSC WAIVERS

Any applicable CDSC may be waived in the following cases:

*  redemptions through systematic withdrawal plans not exceeding annually:

   *  12% of the lesser of the original purchase cost or current market
      value for A Class shares

   *  12% of the original purchase cost for B Class shares

   *  12% of the lesser of the original purchase cost or current market
      value for C Class shares

*  distributions from IRAs due to attainment of age 59 1/2 for A Class
   shares and for C Class shares

*  required minimum distributions from retirement accounts upon reaching age
   70 1/2

*  tax-free returns of excess contributions to IRAs

*  redemptions due to death or post-purchase disability

*  exchanges, unless the shares acquired by exchange are redeemed within the
   original CDSC period

*  IRA Rollovers from any American Century Advisor Fund held in an
   employer-sponsored retirement plan, for A Class shares only

*  if no broker was compensated for the sale

REINSTATEMENT PRIVILEGE

Within 90 days of a redemption of any A or B Class shares, you may reinvest all
of the redemption proceeds in A Class shares of any American Century Advisor
Fund at the then-current net asset value without paying an initial sales charge.
At your request, any CDSC you paid on an A Class redemption that you are
reinvesting will be credited to your account. You or your financial professional
must notify the fund's transfer agent in writing at the time of the reinvestment
to take advantage of this privilege, and you may use it only once per account.
This privilege applies only if the new account is owned by the original account
owner.



- ------
16


EXCHANGING SHARES

You may exchange shares of the fund for shares of the same class of another
American Century Advisor Fund without a sales charge if you meet the following
criteria:

*  The exchange is for a minimum of $100

*  For an exchange that opens a new account, the amount of the exchange must
   meet or exceed the minimum account size requirement for the fund receiving
   the exchange

For purposes of computing any applicable CDSC on shares that have been
exchanged, the holding period will begin as of the date of purchase of the
original fund owned. Exchanges from a money market fund are subject to a sales
charge on the fund being purchased, unless the money market fund shares were
acquired by exchange from a fund with a sales charge or by reinvestment of
dividends or capital gains distributions.

EXCHANGES BETWEEN FUNDS (C CLASS)

You may exchange C Class shares of a fund for C Class shares of any other
American Century fund. You may not exchange from the C Class to any other class.
We will not charge a CDSC on the shares you exchange, regardless of the length
of time you have owned them. When you do redeem shares that have been exchanged,
the CDSC will be based on the date you purchased the original shares.

BUYING AND SELLING SHARES

Your ability to purchase, exchange, redeem and transfer shares will be affected
by the policies of the financial intermediary through which you do business.
Some policy differences may include

*  minimum investment requirements

*  exchange policies

*  fund choices

*  cutoff time for investments

*  trading restrictions

In addition, your financial intermediary may charge a transaction fee for the
purchase or sale of fund shares. Those charges are retained by the financial
intermediary and are not shared with American Century or the fund. Please
contact your financial intermediary or plan sponsor for a complete description
of its policies. Copies of the fund's annual report, semiannual report and
statement of additional information are available from your financial
intermediary or plan sponsor.

The fund has authorized certain financial intermediaries to accept orders on the
fund's behalf. American Century has selling agreements with these financial
intermediaries requiring them to track the time investment orders are received
and to comply with procedures relating to the transmission of orders. Orders
must be received by the financial intermediary on the fund's behalf before the
time the net asset value is determined in order to receive that day's share
price. If those orders are transmitted to American Century and paid for in
accordance with the selling agreement, they will be priced at the net asset
value next determined after your request is received in the form required by the
financial intermediary.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
17


ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT

MINIMUM INITIAL INVESTMENT AMOUNTS (OTHER THAN INSTITUTIONAL CLASS)

Unless otherwise specified below, the minimum initial investment amount to open
an account is $2,500. Financial intermediaries may open an account with $250,
but may require their clients to meet different investment minimums. See
INVESTING THROUGH A FINANCIAL INTERMEDIARY for more information.

- --------------------------------------------------------------------------------
Broker-dealer sponsored wrap program accounts
and/or fee-based accounts                                             No minimum
- --------------------------------------------------------------------------------
Coverdell Education Savings Account (CESA)                            $2,000(1)
- --------------------------------------------------------------------------------
Employer-sponsored retirement plans                                   No minimum
- --------------------------------------------------------------------------------

(1)  THE MINIMUM INITIAL INVESTMENT FOR FINANCIAL INTERMEDIARIES IS $250.
     FINANCIAL INTERMEDIARIES MAY HAVE DIFFERENT MINIMUMS FOR THEIR CLIENTS.

SUBSEQUENT PURCHASES

There is a $50 minimum for subsequent purchases. See WAYS TO MANAGE YOUR ACCOUNT
for more information about making additional investments directly with American
Century. However, there is no subsequent purchase minimum for financial
intermediaries or employer-sponsored retirement plans, but financial
intermediaries may require their clients to meet different subsequent purchase
requirements.

ELIGIBILITY FOR INSTITUTIONAL CLASS SHARES

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

MINIMUM INITIAL INVESTMENT AMOUNTS (INSTITUTIONAL CLASS)

The minimum initial investment amount is $5 million ($3 million for endowments
and foundations) per fund. If you invest with us through a financial
intermediary, this requirement may be met if your financial intermediary
aggregates your investments with those of other clients into a single group, or
omnibus, account that meets the minimum. The minimum investment requirement may
be waived if you, or your financial intermediary if you invest through an
omnibus account, have an aggregate investment in our family of funds of $10
million or more ($5 million for endowments and foundations). In addition,
financial intermediaries or plan recordkeepers may require retirement plans to
meet certain other conditions, such as plan size or a minimum level of assets
per participant, in order to be eligible to purchase Institutional Class shares.

REDEMPTIONS

Investor and Institutional Class shares may be subject to a 2% redemption fee if
they are sold within 180 days of such purchase. Therefore, if you redeem shares
of these classes within 180 days of their purchase, you will receive 98% of
their value at redemption. The remaining 2% is retained by the fund and helps
cover transaction costs that long-term investors may bear when the fund sells
securities to meet investor redemptions.

The redemption fee does not apply to shares purchased through reinvested
distributions (dividends and capital gains). The fund may not charge the
redemption fee in certain situations deemed appropriate by American Century,
including where the capability to charge the fee does not exist or is
impractical and/or other systems to deter abusive trading practices are in
place.



- ------
18


If you sell your B or C Class or, in certain cases, A Class shares within a
certain time after their purchase, you will pay a sales charge the amount of
which is contingent upon the length of time you have held your shares, as
described above. Your redemption proceeds will be calculated using the NET ASSET
VALUE (NAV) next determined after we receive your transaction request in good
order.

        [graphic of triangle]

        A FUND'S NET ASSET VALUE, OR NAV, IS THE PRICE OF THE FUND'S SHARES.

However, we reserve the right to delay delivery of redemption proceeds up to
seven days. For example, each time you make an investment with American Century,
there is a seven-day holding period before we will release redemption proceeds
from those shares, unless you provide us with satisfactory proof that your
purchase funds have cleared. Investments by wire generally require only a
one-day holding period. If you change your address, we may require that any
redemption request made within 15 days be submitted in writing and be signed by
all authorized signers with their signatures guaranteed. If you change your bank
information, we may impose a 15-day holding period before we will transfer or
wire redemption proceeds to your bank. Please remember, if you request
redemptions by wire, $10 will be deducted from the amount redeemed. Your bank
also may charge a fee.

In addition, we reserve the right to honor certain redemptions with securities,
rather than cash, as described in the next section.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the value of a fund's assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. The portfolio
managers would select these securities from the fund's portfolio.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, you may have to pay
brokerage or other transaction costs to convert the securities to cash.

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

REDEMPTION OF SHARES IN ACCOUNTS BELOW MINIMUM

If your account balance falls below the minimum initial investment amount for
any reason other than as a result of market fluctuation, American Century
reserves the right to redeem the shares in the account and send the proceeds to
your address of record. Prior to doing so, we will notify you and give you 90
days to meet the minimum. Investor and Institutional Class shares redeemed in
this manner may be subject to a 2% redemption fee if held less than 180 days.
Please note that shares redeemed in this manner may be subject to a sales charge
if held less than the applicable time period. You also may incur tax liability
as a result of the redemption. For Institutional Class shares, we reserve the
right to convert your shares to Investor Class shares of the same fund. The
Investor Class shares have a unified management fee that is 0.20% higher than
the Institutional Class.



- ------
19


SIGNATURE GUARANTEES

A signature guarantee - which is different from a notarized signature - is a
warranty that the signature presented is genuine. We may require a signature
guarantee for the following transactions.

*  You have chosen to conduct business in writing only and would like to
   redeem over $100,000.

*  Your redemption or distribution check, Check-A-Month or automatic
   redemption is made payable to someone other than the account owners.

*  Your redemption proceeds or distribution amount is sent by EFT (ACH or
   wire) to a destination other than your personal bank account.

*  You are transferring ownership of an account over $100,000.

*  You change your address and request a redemption over $100,000 within 15
   days.

*  You change your bank information and request a redemption within 15 days.

We reserve the right to require a signature guarantee for other transactions, at
our discretion.

MODIFYING OR CANCELING AN INVESTMENT

Investment instructions are irrevocable. That means that once you have mailed or
otherwise transmitted your investment instruction, you may not modify or cancel
it. The fund reserves the right to suspend the offering of shares for a period
of time and to reject any specific investment (including a purchase by
exchange). Additionally, we may refuse a purchase if, in our judgment, it is of
a size that would disrupt the management of a fund.

ABUSIVE TRADING PRACTICES

Short-term trading and other so-called market timing practices are not defined
or explicitly prohibited by any federal or state law. However, short-term
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of short-term
trading activity is significant relative to a fund's net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund's performance could be negatively impacted by the increased trading costs
created by short-term trading if the additional trading costs are significant.

Because of the potentially harmful effects of abusive trading practices, the
fund's Board of Directors has approved American Century's abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
imposing redemption fees on certain funds, and using fair value pricing when
current market prices are not readily available. Although these efforts are
designed to discourage abusive trading practices, they cannot eliminate the
possibility that such activity will occur. American Century seeks to exercise
its judgment in implementing these tools to the best of its ability in a manner
that it believes is consistent with shareholder interests.

American Century uses a variety of techniques to monitor for and detect abusive
trading practices. These techniques may vary depending on the type of fund, the
class of shares or whether the shares are held directly or indirectly with
American Century. They may change from time to time as determined by American
Century in its sole discretion. To minimize harm to the funds and their
shareholders, we reserve the right to reject any purchase order (including
exchanges) from any shareholder we believe has a history of abusive trading or
whose trading, in our judgment, has been or may be disruptive to the funds. In
making this judgment, we may consider trading done in multiple accounts under
common ownership or control.



- ------
20


Currently, for shares held directly with American Century, we may deem the sale
of all or a substantial portion of a shareholder's purchase of fund shares to be
abusive if the sale is made

* within seven days of the purchase, or

* within 30 days of the purchase, if it happens more than once per year.

To the extent practicable, we try to use the same approach for defining abusive
trading for shares held through financial intermediaries. American Century
reserves the right, in its sole discretion, to identify other trading practices
as abusive and to modify its monitoring and other practices as necessary to deal
with novel or unique abusive trading practices.

As a heightened measure for the fund, the board has approved the imposition of a
redemption fee for redemption of shares within a specified number of days of
purchase. See REDEMPTIONS, page 18, for a complete description of the redemption
fee applicable to the fund.

In addition, American Century reserves the right to accept purchases and
exchanges in excess of the trading restrictions discussed above if it believes
that such transactions would not be inconsistent with the best interests of fund
shareholders or this policy.

American Century's policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American Century handles, there can be no assurance that American
Century's efforts will identify all trades or trading practices that may be
considered abusive. In addition, American Century's ability to monitor trades
that are placed by individual shareholders within group, or omnibus, accounts
maintained by financial intermediaries is severely limited because American
Century generally does not have access to the underlying shareholder account
information. However, American Century monitors aggregate trades placed in
omnibus accounts and seeks to work with financial intermediaries to discourage
shareholders from engaging in abusive trading practices and to impose
restrictions on excessive trades. There may be limitations on the ability of
financial intermediaries to impose restrictions on the trading practices of
their clients. As a result, American Century's ability to monitor and discourage
abusive trading practices in omnibus accounts may be limited.

YOUR RESPONSIBILITY FOR UNAUTHORIZED TRANSACTIONS

American Century and its affiliated companies use procedures reasonably designed
to confirm that telephone, electronic and other instructions are genuine. These
procedures include recording telephone calls, requesting personalized security
codes or other information, and sending confirmation of transactions. If we
follow these procedures, we are not responsible for any losses that may occur
due to unauthorized instructions. For transactions conducted over the Internet,
we recommend the use of a secure Internet browser. In addition, you should
verify the accuracy of your confirmation statements immediately after you
receive them.


- ------
21


A NOTE ABOUT MAILINGS TO SHAREHOLDERS

To reduce the amount of mail you receive from us, we may deliver a single copy
of certain investor documents (such as shareholder reports and prospectuses) to
investors who share an address, even if accounts are registered under different
names. If you prefer to receive multiple copies of these documents individually
addressed, please call us or your financial professional. For American Century
Brokerage accounts, please call 1-888-345-2071.

RIGHT TO CHANGE POLICIES

We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups. In addition, from time to time we may
waive a policy on a case-by-case basis, as the advisor deems appropriate.


- ------
22


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century will price the fund shares you purchase, exchange or redeem at
the net asset value (NAV) next determined after your order is received and
accepted by the fund's transfer agent, or other financial intermediary with the
authority to accept orders on the fund's behalf. We determine the NAV of the
fund as of the close of regular trading (usually 4 p.m. Eastern time) on the New
York Stock Exchange (NYSE) on each day the NYSE is open. On days when the NYSE
is closed (including certain U.S. national holidays), we do not calculate the
NAV. The fund's NAV is the current value of the fund's assets, minus any
liabilities, divided by the number of shares outstanding.

The fund values portfolio securities for which market quotations are readily
available at their market price. As a general rule, equity securities listed on
a U.S. exchange are valued at the last current reported sale price as of the
time of valuation. Securities listed on the NASDAQ National Market System
(Nasdaq) are valued at the Nasdaq Official Closing Price (NOCP), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the
time of valuation. The fund may use pricing services to assist in the
determination of market value. Unlisted securities for which market quotations
are readily available are valued at the last quoted sale price or the last
quoted ask price, as applicable, except that debt obligations with 60 days or
less remaining until maturity may be valued at amortized cost. Exchange-traded
options, futures and options on futures are valued at the settlement price as
determined by the appropriate clearing corporation.

If the fund determines that the market price for a portfolio security is not
readily available or that the valuation methods mentioned above do not reflect
the security's fair value, such security is valued at its fair value as
determined in good faith by, or in accordance with procedures adopted by, the
fund's board or its designee (a process referred to as "fair valuing" the
security). Circumstances that may cause the fund to fair value a security
include, but are not limited to:

*  if, after the close of the foreign exchange on which a portfolio security
   is principally traded, but before the close of the NYSE, an event occurs that
   may materially affect the value of the security;

*  a debt security has been declared in default; or

*  trading in a security has been halted during the trading day.

If such circumstances occur, the fund will fair value the security if the fair
valuation would materially impact the fund's NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with procedures adopted by
the fund's board.

The effect of using fair value determinations is that the fund's NAV will be
based, to some degree, on security valuations that the board or its designee
believes are fair rather than being solely determined by the market.

With respect to any portion of the fund's assets that are invested in one or
more open-end management investment companies that are registered with the SEC
(known as registered investment companies, or RICs), the fund's NAV will be
calculated based upon the NAVs of such RICs. These RICs are required by law to
explain the circumstances under which they will use fair value pricing and the
effects of using fair value pricing in their prospectuses.

Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based on the prevailing exchange rates on that day.

Trading of securities in foreign markets may not take place every day the NYSE
is open. Also, trading in some foreign markets and on some electronic trading
networks may take place on weekends or holidays when the fund's NAV is not
calculated. So, the value of the fund's portfolio may be affected on days when
you will not be able to purchase, exchange or redeem fund shares.


- ------
23


DISTRIBUTIONS

Federal tax laws require the fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means the fund should not be subject to state or
federal income tax on amounts distributed. The distributions generally consist
of dividends and interest received by the fund, as well as CAPITAL GAINS
realized by the fund on the sale of its investment securities. The fund
generally pays distributions from net income and capital gains, if any, once a
year in December. The fund may make more frequent distributions, if necessary,
to comply with Internal Revenue Code provisions.

        [graphic of triangle]

        CAPITAL GAINS ARE INCREASES IN THE VALUES OF CAPITAL ASSETS, SUCH AS
        STOCK, FROM THE TIME THE ASSETS ARE PURCHASED.

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

Participants in tax-deferred retirement plans must reinvest all distributions.
For investors investing through taxable accounts, we will reinvest distributions
unless you elect to have dividends and/or capital gains sent to another American
Century account, to your bank electronically, or to your home address or to
another person or address by check.


- ------
24


TAXES

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

Tax-Deferred Accounts

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

Taxable Accounts

If you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund shares.

Taxability of Distributions

Fund distributions may consist of income, such as dividends and interest earned
by a fund from its investments, or capital gains generated by a fund from the
sale of its investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as QUALIFIED DIVIDEND INCOME and you meet a
minimum required holding period with respect to your shares of the fund, in
which case distributions of income are taxed as long-term capital gains.

        [graphic of triangle]

        QUALIFIED DIVIDEND INCOME IS A DIVIDEND RECEIVED BY A FUND FROM THE
        STOCK OF A DOMESTIC OR QUALIFYING FOREIGN CORPORATION, PROVIDED THAT THE
        FUND HAS HELD THE STOCK FOR A REQUIRED HOLDING PERIOD.

For capital gains and for income distributions designated as qualified dividend
income, the following rates apply:

                                        TAX RATE FOR 10%      TAX RATE FOR
TYPE OF DISTRIBUTION                    AND 15% BRACKETS      ALL OTHER BRACKETS
- --------------------------------------------------------------------------------
Short-term capital gains                Ordinary Income       Ordinary Income
- --------------------------------------------------------------------------------
Long-term capital gains (> 1 year)
and Qualified Dividend Income           5%                    15%
- --------------------------------------------------------------------------------

If the fund's distributions exceed its taxable income and capital gains realized
during the tax year, all or a portion of the distributions made by the fund in
that tax year will be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.

The tax status of any distributions of capital gains is determined by how long a
fund held the underlying security that was sold, not by how long you have been
invested in the fund, or whether you reinvest your distributions in additional
shares or take them in cash. For taxable accounts, American Century or your
financial intermediary will inform you of the tax status of fund distributions
for each calendar year in an annual tax mailing.


- ------
25


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

Taxes on Transactions

Your redemptions - including exchanges to other American Century funds - are
subject to capital gains tax. The table above can provide a general guide for
your potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss. However, you should note that loss realized upon the
sale or exchange of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain to you with respect to those shares. If a loss is realized on the
redemption of fund shares, the reinvestment in additional fund shares within 30
days before or after the redemption may be subject to the wash sale rules of the
Internal Revenue Code. This may result in a postponement of the recognition of
such loss for federal income tax purposes.

If you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.

Buying a Dividend

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

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

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


- ------
26


MULTIPLE CLASS INFORMATION

American Century offers five classes of shares of the fund: Investor Class,
Institutional Class, A Class, B Class and C Class.

The classes have different fees, expenses and/or minimum investment
requirements. The difference in the fee structures between the classes is the
result of their separate arrangements for shareholder and distribution services.
It is not the result of any difference in advisory or custodial fees or other
expenses related to the management of the fund's assets, which do not vary by
class. Different fees and expenses will affect performance.

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

Service, Distribution and Administrative Fees

Investment Company Act Rule 12b-1 permits mutual funds that adopt a written plan
to pay certain expenses associated with the distribution of their shares out of
fund assets. Each class, except the Investor Class and Institutional Class,
offered by this prospectus has a 12b-1 plan. The plans provide for the fund to
pay annual fees of 0.25% for A Class and 1.00% for B and C Classes to the
distributor for certain ongoing shareholder and administrative services and for
distribution services, including past distribution services. The distributor
pays all or a portion of such fees to the financial intermediaries that make the
classes available. Because these fees are used to pay for services that are not
related to prospective sales of the fund, each class will continue to make
payments under its plan even if it is closed to new investors. Because these
fees are paid out of the fund's assets on an ongoing basis, over time these fees
will increase the cost of your investment and may cost you more than other types
of sales charges. The higher fees for B and C Class shares may cost you more
over time than paying the initial sales charge for A Class shares. For
additional information about the plans and their terms, see MULTIPLE CLASS
STRUCTURE in the statement of additional information.

Certain financial intermediaries perform recordkeeping and administrative
services for their clients that would otherwise be performed by American
Century's transfer agent. In some circumstances, the advisor will pay such
service providers a fee for performing those services. Also, the advisor and the
fund's distributor may make payments for various additional services or other
expenses out of their profits or other available sources. Such payments may be
made for one or more of the following: (1) distribution services, which include
expenses incurred by intermediaries for their sales activities with respect to
the fund, such as preparing, printing and distributing sales literature and
advertising materials and compensating registered representatives or other
employees of such financial intermediary for their sales activities; (2)
shareholder services, such as providing individual and custom investment
advisory services to clients of the financial intermediary; and (3) marketing
and promotional services, including business planning assistance, educating
personnel about the fund, and sponsorship of sales meetings, which may include
covering costs of providing speakers, meals and other entertainment. The
distributor may sponsor seminars and conferences designed to educate
intermediaries about the fund and may cover the expenses associated with
attendance at such meetings, including travel costs. These payments and
activities are intended to provide an incentive to intermediaries to sell the
fund by ensuring that they are educated about the fund, and to help such
intermediaries defray costs associated with offering the fund. The amount of any
payments described by this paragraph is determined by the advisor or the
distributor, and all such amounts are paid out of the available assets of the
advisor and distributor, and not by you or the fund. As a result, the total
expense ratio of the fund will not be affected by any such payments.



- ------
27


FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The tables on the next few pages itemize what contributed to the changes in
share price during the most recently ended fiscal year. They also show the
changes in share price for this period in comparison to changes over the last
five fiscal years (or a shorter period if the share class is not five years
old). Because the Institutional Class of the fund was not in operation as of the
fiscal year end, financial highlights are not available for this class.

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

*  share price at the beginning of the period

*  investment income and capital gains or losses

*  distributions of income and capital gains paid to investors

*  share price at the end of the period

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

*  TOTAL RETURN - the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO - the operating expenses of the fund as a percentage of
   average net assets

*  NET INCOME RATIO - the net investment income of the fund as a percentage
   of average net assets

*  PORTFOLIO TURNOVER - the percentage of the fund's investment portfolio
   that is replaced during the period

The Financial Highlights that follow have been audited by Deloitte & Touche LLP.
The fund's Report of Independent Registered Public Accounting Firm and the
financial statements are included in the fund's annual report, which is
available upon request.


- ------
28


NEW OPPORTUNITIES II FUND

Investor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31

- -------------------------------------------------------------------------------
                               2006      2005      2004     2003      2002
- -------------------------------------------------------------------------------
PER-SHARE DATA
- -------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period            $6.75     $6.29     $5.75    $4.15     $4.52
- -------------------------------------------------------------------------------
Income From
Investment Operations
- --------------------------
   Net Investment
   Income (Loss)(1)            (0.06)    (0.06)    (0.07)   (0.05)    (0.05)
- --------------------------
   Net Realized and
   Unrealized Gain (Loss)      1.16      0.69      0.61     1.65      (0.32)
- -------------------------------------------------------------------------------
   Total From
   Investment Operations       1.10      0.63      0.54     1.60      (0.37)
- -------------------------------------------------------------------------------
Distributions
- --------------------------
   From Net
   Realized Gains              (0.22)    (0.17)    -        -         -
- -------------------------------------------------------------------------------
Net Asset Value,
End of Period                  $7.63     $6.75     $6.29    $5.75     $4.15
===============================================================================
   TOTAL RETURN(2)             16.52%    10.14%    9.39%    38.55%    (8.19)%

RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------
Ratio of Operating
Expenses to Average
Net Assets                     1.50%     1.50%     1.50%    1.50%     1.50%
- --------------------------
Ratio of Net Investment
Income (Loss)
to Average Net Assets          (0.80)%   (0.93)%   (1.09)%  (1.11)%   (1.02)%
- --------------------------
Portfolio Turnover Rate        299%      269%      255%     236%      182%
- --------------------------
Net Assets, End of
Period (in thousands)          $51,336   $43,157   $38,917  $32,512   $25,479
- -------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES
     WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD
     MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET
     ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC
     GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE
     CLASS AND ANOTHER.


- ------
29


NEW OPPORTUNITIES II FUND

A Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)

- --------------------------------------------------------------------------------
                               2006        2005        2004        2003(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period            $6.72       $6.26       $5.74       $4.15
- --------------------------------------------------------------------------------
Income From
Investment Operations
- --------------------------
   Net Investment
   Income (Loss)(2)            (0.08)      (0.08)      (0.08)      (0.05)
- --------------------------
   Net Realized and
   Unrealized Gain (Loss)      1.16        0.70        0.60        1.64
- --------------------------------------------------------------------------------
   Total From
   Investment Operations       1.08        0.62        0.52        1.59
- --------------------------------------------------------------------------------
Distributions
- --------------------------
   From Net
   Realized Gains              (0.21)       (0.16)     -           -
- --------------------------------------------------------------------------------
Net Asset Value,
End of Period                  $7.59       $6.72       $6.26       $5.74
================================================================================
   TOTAL RETURN(3)             16.22%      9.91%       9.06%       38.31%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating
Expenses to Average
Net Assets                     1.75%       1.75%       1.75%       1.75%(4)
- --------------------------
Ratio of Net Investment
Income (Loss) to
Average Net Assets             (1.05)%     (1.18)%     (1.34)%     (1.47)%(4)
- --------------------------
Portfolio Turnover Rate        299%        269%        255%        236%(5)
- --------------------------
Net Assets, End of
Period (in thousands)          $73,383     $47,937     $20,337     $891
- --------------------------------------------------------------------------------

(1)  JANUARY 31, 2003 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2003.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL
     RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE
     INDICATED WAS CALCULATED FOR THE YEAR ENDED OCTOBER 31, 2003.


- ------
30


NEW OPPORTUNITIES II FUND

B Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)

- --------------------------------------------------------------------------------
                               2006        2005        2004        2003(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period            $6.63       $6.18       $5.71       $4.15
- --------------------------------------------------------------------------------
Income From
Investment Operations
- --------------------------
   Net Investment
   Income (Loss)(2)            (0.14)      (0.13)      (0.13)      (0.08)
- --------------------------
   Net Realized and
   Unrealized Gain (Loss)      1.15        0.69        0.60        1.64
- --------------------------------------------------------------------------------
   Total From
   Investment Operations       1.01        0.56        0.47        1.56
- --------------------------------------------------------------------------------
Distributions
- --------------------------
   From Net
   Realized Gains              (0.15)      (0.11)      -           -
- --------------------------------------------------------------------------------
Net Asset Value,
End of Period                  $7.49       $6.63       $6.18       $5.71
================================================================================
   TOTAL RETURN(3)             15.46%      9.03%       8.23%       37.59%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating
Expenses to
Average Net Assets             2.50%       2.50%       2.50%       2.50%(4)
- --------------------------
Ratio of Net Investment
Income (Loss) to
Average Net Assets             (1.80)%     (1.93)%     (2.09)%     (2.20)%(4)
- --------------------------
Portfolio Turnover Rate        299%        269%        255%        236%(5)
- --------------------------
Net Assets, End of
Period (in thousands)          $3,383      $2,367      $1,163      $215
- --------------------------------------------------------------------------------

(1)  JANUARY 31, 2003 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2003.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. RETURNS
     ARE CALCULATED BASED ON THE NET ASSET VALUE ON THE LAST BUSINESS DAY. THE
     TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE
     INDICATED WAS CALCULATED FOR THE YEAR ENDED OCTOBER 31, 2003.


- ------
31


NEW OPPORTUNITIES II FUND

C Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)

- --------------------------------------------------------------------------------
                               2006        2005        2004        2003(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period            $6.66       $6.20       $5.73       $4.15
- --------------------------------------------------------------------------------
Income From
Investment Operations
- --------------------------
   Net Investment
   Income (Loss)(2)            (0.14)      (0.13)      (0.13)      (0.07)
- --------------------------
   Net Realized and
   Unrealized Gain (Loss)      1.15        0.70        0.60        1.65
- --------------------------------------------------------------------------------
   Total From
   Investment Operations       1.01        0.57        0.47        1.58
- --------------------------------------------------------------------------------
Distributions
- --------------------------
   From Net
   Realized Gains              (0.15)      (0.11)      -           -
- --------------------------------------------------------------------------------
Net Asset Value,
End of Period                  $7.52       $6.66       $6.20       $5.73
================================================================================
   TOTAL RETURN(3)             15.24%      9.16%       8.20%       38.07%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating
Expenses to
Average Net Assets             2.50%       2.50%       2.50%       2.22%(4)(5)
- --------------------------
Ratio of Net Investment
Income (Loss) to
Average Net Assets             (1.80)%     (1.93)%     (2.09)%     (1.97)%(4)(5)
- --------------------------
Portfolio Turnover Rate        299%        269%        255%        236%(6)
- --------------------------
Net Assets, End of
Period (in thousands)          $4,424      $3,414      $1,294      $34
- --------------------------------------------------------------------------------

(1)  JANUARY 31, 2003 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2003.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL
     RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  DURING A PORTION OF THE PERIOD ENDED OCTOBER 31, 2003, THE DISTRIBUTOR
     AGREED TO VOLUNTARILY WAIVE THE DISTRIBUTION AND SERVICE FEES. HAD FEES NOT
     BEEN WAIVED THE ANNUALIZED RATIO OF OPERATING EXPENSES TO AVERAGE NET
     ASSETS AND THE ANNUALIZED RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE
     NET ASSETS WOULD HAVE BEEN 2.50% AND (2.25)%, RESPECTIVELY.

(6)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE
     INDICATED WAS CALCULATED FOR THE YEAR ENDED OCTOBER 31, 2003.


- ------
32


NOTES


- ------
33


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

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

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

IN PERSON           SEC Public Reference Room
                    Washington, D.C.
                    Call 202-942-8090 for location and hours.

ON THE INTERNET     * EDGAR database at sec.gov
                    * By email request at publicinfo@sec.gov

BY MAIL             SEC Public Reference Section
                    Washington, D.C. 20549-0102

This prospectus shall not constitute an offer to sell securities of the fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or qualified for sale, unless such registration or qualification
is not required, or under any circumstances in which such offer or solicitation
would be unlawful.

FUND REFERENCE                  FUND CODE           TICKER           NEWSPAPER
                                                                     LISTING
- --------------------------------------------------------------------------------
New Opportunities II Fund
  Investor Class                136                 ANOIX            NewOppII
- --------------------------------------------------------------------------------
  Institutional Class           336                 N/A              NewOppII
- --------------------------------------------------------------------------------
  A Class                       106                 ANOAX            NewOppII
- --------------------------------------------------------------------------------
  B Class                       306                 ANOBX            NewOppII
- --------------------------------------------------------------------------------
  C Class                       436                 ANOCX            NewOppII
- --------------------------------------------------------------------------------

Investment Company Act File No. 811-0816

AMERICAN CENTURY INVESTMENTS
americancentury.com

                                   Banks and Trust Companies, Broker-Dealers,
Self-Directed Retail Investors     Financial Professionals, Insurance Companies
P.O. Box 419200                    P.O. Box 419786
Kansas City, Missouri 64141-6200   Kansas City, Missouri 64141-6786
1-800-345-2021 or 816-531-5575     1-800-345-6488

0703
SH-PRS-52529













AMERICAN CENTURY INVESTMENTS

Prospectus


March 1, 2007


New Opportunities Fund

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

American Century Investment
Services, Inc., Distributor

[american century investments logo and text logo]





Table of Contents

AN OVERVIEW OF THE FUND . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

FUND PERFORMANCE HISTORY. . . . . . . . . . . . . . . . . . . . . . . . . . . .3

FEES AND EXPENSES. . .  . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

OBJECTIVES, STRATEGIES AND RISKS. . . . . . . . . . . . . . . . . . . . . . . .6

MANAGEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

INVESTING DIRECTLY WITH AMERICAN CENTURY. . . . . . . . . . . . . . . . . . . 10

INVESTING THROUGH A FINANCIAL INTERMEDIARY  . . . . . . . . . . . . . . . . . 12

ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT . . . . . . . . . . . . . . . . 14

SHARE PRICE AND DISTRIBUTIONS . . . . . . . . . . . . . . . . . . . . . . . . 18

TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

FINANCIAL HIGHLIGHTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22


        [GRAPHIC OF TRIANGLE]

        THIS SYMBOL IS USED THROUGHOUT THE BOOK TO HIGHLIGHT DEFINITIONS OF KEY
        INVESTMENT TERMS AND TO PROVIDE OTHER HELPFUL INFORMATION.




American Century Investment Services, Inc., Distributor

©2007 American Century Proprietary Holdings, Inc. All rights reserved.

The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.




AN OVERVIEW OF THE FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

The portfolio managers look for stocks of smaller-sized companies they believe
will increase in value over time, using an investment strategy developed by
American Century. In implementing this strategy, the portfolio managers make
their investment decisions based primarily on their analysis of individual
companies, rather than on broad economic forecasts. Management of the fund is
based on the belief that, over the long term, stock price movements follow
growth in earnings and revenues. The portfolio managers' principal analytical
technique involves the identification of companies with earnings and revenues
that are not only growing, but growing at an accelerating pace.

The fund's principal risks include

*  GROWTH STOCKS - Investments in growth stocks may involve special risks and
   their prices may fluctuate more dramatically than the overall stock market.

*  SMALL CAP STOCKS - The smaller companies in which the fund invests may
   present greater opportunities for capital appreciation than larger companies,
   but may also present greater risks.

*  FOREIGN SECURITIES - The fund may invest in foreign securities, which can
   be riskier than investing in U.S. securities.

*  HIGH TURNOVER - The fund's PORTFOLIO TURNOVER may be unusually high. This
   could result in relatively high commission costs, which could hurt the fund's
   performance, and capital gains tax liabilities for the fund's shareholders.

        [GRAPHIC OF TRIANGLE]

        PORTFOLIO TURNOVER IS A MEASURE OF HOW FREQUENTLY A FUND BUYS AND SELLS
        PORTFOLIO SECURITIES.

*  IPO RISK - The fund's performance may be affected by investments in
   initial public offerings.

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

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

*  PRINCIPAL LOSS - At any given time your shares may be worth less than the
   price you paid for them. In other words, it is possible to lose money by
   investing in the fund.

A more detailed description of the fund's investment strategies and risks may be
found under the heading OBJECTIVES, STRATEGIES AND RISKS, which begins on page
6.

        [GRAPHIC OF TRIANGLE]

        AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT, AND IT IS NOT INSURED
        OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR
        ANY OTHER GOVERNMENT AGENCY.


- ------
2


FUND PERFORMANCE HISTORY

Annual Total Returns

The following bar chart shows the performance of the fund's Investor Class
shares for each of the last 10 calendar years. It indicates the volatility of
the fund's historical returns from year to year. Account fees are not reflected
in the chart below. If they had been included, returns would be lower than those
shown.

NEW OPPORTUNITIES FUND - INVESTOR CLASS

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

                                HIGHEST                        LOWEST
- --------------------------------------------------------------------------------
New Opportunities               77.33% (4Q 1999)               -36.62% (4Q 2000)
- --------------------------------------------------------------------------------

Average Annual Total Returns

The following table shows the average annual total returns of the fund's
Investor Class shares calculated three different ways.

Return Before Taxes shows the actual change in the value of fund shares over the
periods shown, but does not reflect the impact of taxes on fund distributions or
the sale of fund shares. The two after-tax returns take into account taxes that
may be associated with owning fund shares. Return After Taxes on Distributions
is a fund's actual performance, adjusted by the effect of taxes on distributions
made by the fund during the period shown. Return After Taxes on Distributions
and Sale of Fund Shares is further adjusted to reflect the tax impact on any
change in the value of fund shares as if they had been sold on the last day of
the period.

After-tax returns are calculated using the historical highest federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-tax returns shown are not relevant to investors who hold fund
shares through tax-deferred arrangements such as 401(k) plans or IRAs.


- ------
3


The benchmark is an unmanaged index that has no operating costs and is included
in the table for performance comparison.

INVESTOR CLASS

FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    10 YEARS
- --------------------------------------------------------------------------------
Return Before Taxes                              10.76%    4.61%      7.65%
Return After Taxes on Distributions              10.76%    4.61%      6.36%
Return After Taxes on Distributions              6.99%     3.97%      6.22%
   and Sale of Fund Shares
Russell 2000® Growth Index                       13.35%    6.93%      4.88%
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

Performance information is designed to help you see how fund returns can vary.
Keep in mind that past performance (before and after taxes) does not predict how
the fund will perform in the future.

For current performance information, please call us or visit
americancentury.com.


- ------
4


FEES AND EXPENSES

There are no sales loads, fees or other charges

*  to buy fund shares directly from American Century

*  to reinvest dividends in additional shares

The following tables describe the fees and expenses you may pay if you buy and
hold shares of the fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
- --------------------------------------------------------------------------------
Redemption/Exchange Fee (as a percentage of amount redeemed/exchanged)  2.00%(1)
- --------------------------------------------------------------------------------
Maximum Account Maintenance Fee                                         $25(2)
- --------------------------------------------------------------------------------

(1)  APPLIES ONLY TO SHARES HELD FOR LESS THAN 180 DAYS, EXCLUDING SHARES
     PURCHASED THROUGH REINVESTED DIVIDENDS OR CAPITAL GAINS.

(2)  APPLIES ONLY TO INVESTORS WHOSE TOTAL ELIGIBLE INVESTMENTS WITH
     AMERICAN CENTURY ARE LESS THAN $10,000. SEE Account Maintenance Fee UNDER
     Investing Directly with American Century FOR MORE DETAILS.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
                             DISTRIBUTION                     TOTAL ANNUAL
              MANAGEMENT     AND SERVICE       OTHER          FUND OPERATING
              FEE(1)         (12B-1) FEES      EXPENSES(2)    EXPENSES
- --------------------------------------------------------------------------------
Investor      1.50%          None              0.00%          1.50%
Class
- --------------------------------------------------------------------------------

(1)  THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR
     ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. THE FEE SHOWN IS
     BASED ON ASSETS DURING THE FUND'S MOST RECENT FISCAL YEAR. THE FUND HAS A
     STEPPED FEE SCHEDULE. AS A RESULT, THE FUND'S UNIFIED MANAGEMENT FEE RATE
     GENERALLY DECREASES AS STRATEGY ASSETS INCREASE AND INCREASES AS STRATEGY
     ASSETS DECREASE. FOR MORE INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE,
     INCLUDING AN EXPLANATION OF STRATEGY ASSETS, SEE The Investment Advisor
     UNDER Management.

(2)  OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
     INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST, WERE
     LESS THAN 0.005% FOR THE MOST RECENT FISCAL YEAR.

EXAMPLE

The examples in the table below are intended to help you compare the costs of
investing in the fund with the costs of investing in other mutual funds. Of
course, your actual costs may be higher or lower. Assuming you . . .

*  invest $10,000 in the fund

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

*  earn a 5% return each year

*  incur the same operating expenses as shown above

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

                       1 YEAR         3 YEARS         5 YEARS         10 YEARS
- --------------------------------------------------------------------------------
Investor Class         $152           $472            $814            $1,778
- --------------------------------------------------------------------------------


- ------
5


OBJECTIVES, STRATEGIES AND RISKS

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

The portfolio managers look for stocks of smaller-sized companies they believe
will increase in value over time, using an investment strategy developed by
American Century. In implementing this strategy, the portfolio managers use a
bottom-up approach to stock selection. This means that the managers make their
investment decisions based primarily on their analysis of individual companies,
rather than on broad economic forecasts. Management of the fund is based on the
belief that, over the long term, stock price movements follow growth in earnings
and revenues.

Using American Century's extensive computer database, as well as other primary
analytical research tools, the portfolio managers track financial information
for thousands of individual companies to identify and evaluate trends in
earnings, revenues and other business fundamentals. The portfolio managers'
principal analytical technique involves the identification of companies with
earnings and revenues that are not only growing, but growing at an accelerating
pace. This includes companies whose growth rates, although still negative, are
less negative than prior periods, and companies whose growth rates are expected
to accelerate. These techniques help the portfolio managers buy or hold the
stocks of companies they believe have favorable growth prospects and sell the
stocks of companies whose characteristics no longer meet their criteria.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies, including
companies located in emerging markets. Investments in foreign securities present
some unique risks that are more fully described in the fund's statement of
additional information.

The portfolio managers do not attempt to time the market. Instead, under normal
market conditions, they intend to keep the fund essentially fully invested in
stocks regardless of the movement of stock prices generally. When the managers
believe it is prudent, the fund may invest a portion of its assets in debt
securities, preferred stock and equity-equivalent securities, such as
convertible securities, stock futures contracts or stock index futures
contracts. The fund generally limits its purchase of debt securities to
investment-grade obligations. Futures contracts, a type of derivative security,
can help the fund's cash assets remain liquid while performing more like stocks.
The fund has a policy governing futures contracts and similar derivative
securities to help manage the risk of these types of investments. A complete
description of the derivatives policy is included in the statement of additional
information.

In the event of exceptional market or economic conditions, the fund may, as a
temporary defensive measure, invest all or a substantial portion of its assets
in cash, cash equivalent securities or short-term debt securities. To the extent
a fund assumes a defensive position it will not be pursuing its objective of
long-term capital growth.

When determining whether a company is smaller-sized, the portfolio managers will
consider, among other factors, the capitalization of the company and the amount
of revenues, as well as other information they obtain about the company. If the
companies in which the fund invests are successful, these companies may grow
into larger-sized companies. In addition, if the portfolio managers determine
that the availability of small-sized companies in which to invest is not
adequate to meet the fund's investment needs, the portfolio managers may invest
in medium- and large-sized companies.

A description of the policies and procedures with respect to the disclosure of
the fund's portfolio securities is available in the statement of additional
information.


- ------
6


WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?

Growth stocks are typically priced higher than other stocks, in relation to
earnings and other measures, because investors believe they have more growth
potential. This potential may or may not be realized and growth stock prices
tend to fluctuate more dramatically than the overall stock market.

The portfolio managers may buy a large amount of a company's stock quickly, and
often will dispose of it quickly if the company's characteristics no longer meet
the fund's investment criteria. While the managers believe this strategy
provides substantial appreciation potential over the long term, in the short
term it can create a significant amount of share price volatility. This
volatility can be greater than that of the average stock fund.

Because the fund generally invests in smaller companies, it may be more
volatile, and subject to greater short-term risk, than funds that invest
primarily in larger companies. Smaller companies may have limited financial
resources, product lines and markets, and their securities may trade less
frequently and in more limited volumes than the securities of larger companies.
In addition, smaller companies may have less publicly available information.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies. Foreign
investment involves additional risks, including fluctuations in currency
exchange rates, less stable political and economic structures, reduced
availability of public information, and lack of uniform financial reporting and
regulatory practices similar to those that apply in the United States. These
factors make investing in foreign securities generally riskier than investing in
U.S. stocks. To the extent the fund invests in foreign securities, the overall
risk of the fund could be affected.

Investing in securities of companies located in emerging market countries
generally is also riskier than investing in securities of companies located in
foreign developed countries. Emerging market countries may have unstable
governments and/or economies that are subject to sudden change. These changes
may be magnified by the countries' emergent financial markets, resulting in
significant volatility to investments in these countries. These countries also
may lack the legal, business and social framework to support securities markets.

The fund's turnover may be unusually high. This could result in relatively high
commission costs, which could hurt the fund's performance, and capital gains tax
liabilities for the fund's shareholders.

The fund's performance also may be affected by investments in initial public
offerings (IPOs). The impact of IPOs on the fund's performance depends on the
strength of the IPO market and the size of the fund. IPOs may have less impact
on the fund's performance as its assets grow.

Market performance tends to be cyclical, and, in the various cycles, certain
investment styles may fall in and out of favor. If the market is not favoring
the fund's style, the fund's gains may not be as big as, or its losses may be
bigger than, other equity funds using different investment styles.

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 the fund owns will go
up and down depending on the performance of the companies that issued them,
general market and economic conditions, and investor confidence.

At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the fund.


- ------
7


MANAGEMENT

WHO MANAGES THE FUND?

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

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than three-fourths of the directors are independent of the fund's advisor;
that is, they have never been employed by and have no financial interest in the
advisor or any of its affiliated companies (other than as shareholders of
American Century funds).

THE INVESTMENT ADVISOR

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

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

For the services it provides to the fund, the advisor receives a unified
management fee based on a percentage of the daily net assets of each class of
shares of the fund. The amount of the fee is calculated daily and paid monthly
in arrears. Out of that fee, the advisor pays all expenses of managing and
operating the fund except brokerage expenses, taxes, interest, fees and expenses
of the independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the fund's management fee may be paid by the fund's
advisor to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of the
advisor.

The rate of the fee is determined by applying a formula that takes into account
all of the advisor's assets under management in the fund's investment strategy
(strategy assets). Strategy assets include the assets of the fund as well as
certain assets of other clients of the advisor outside the American Century fund
family (such as subadvised funds and separate accounts) that use very similar
investment teams and strategies. The use of strategy assets, rather than fund
assets, in calculating the fund's fee rate could allow the fund to realize
scheduled cost savings more quickly. However, it is possible that the fund's
strategy assets will not include assets of other client accounts or that any
such assets may not be sufficient to result in a lower fee rate.

MANAGEMENT FEES PAID BY THE FUND
TO THE ADVISOR AS A PERCENTAGE OF
AVERAGE NET ASSETS FOR THE FISCAL                                     INVESTOR
YEAR ENDED OCTOBER 31, 2006                                           CLASS
- --------------------------------------------------------------------------------
New Opportunities                                                     1.50%
- --------------------------------------------------------------------------------

A discussion regarding the basis for the Board of Directors' approval of the
fund's investment advisory contract with the advisor is available in the fund's
report to shareholders dated October 31, 2006.



- ------
8


THE FUND MANAGEMENT TEAM

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

The portfolio managers on the investment team who are jointly and primarily
responsible for the day-to-day management of the fund are identified below.

STAFFORD SOUTHWICK

Mr. Southwick, Portfolio Manager, has been a member of the team that manages the
fund since joining American Century in June 2001 as an investment analyst. He
became a portfolio manager in April 2006. He has a bachelor's degree in
accounting from Southern Utah University and an MBA from the University of Texas
at Austin. He is a CFA charterholder.

MATTHEW FERRETTI

Mr. Ferretti, Portfolio Manager, rejoined the team that manages the fund in July
2006. He joined American Century in July 2002 as an investment analyst for the
fund. In May 2006, he became a senior investment analyst for the Select Fund. He
became a portfolio manager for the fund in July 2006. Prior to joining American
Century, Mr. Ferretti was a portfolio manager at Teacher Retirement System of
Texas. He has a bachelor of science from the University of Notre Dame, a JD from
Villanova University and an MBA from the University of Texas. He is a CFA
charterholder.

The statement of additional information provides additional information about
the other accounts managed by the portfolio managers, if any, the structure of
their compensation, and their ownership of fund securities.

FUND PERFORMANCE

New Opportunities and New Opportunities II have the same management team and
investment policies as one another. The fees and expenses of the funds are
expected to be similar, and they will be managed with substantially the same
investment objective and strategies. Notwithstanding these general similarities,
New Opportunities and New Opportunities II are separate mutual funds that will
have different investment performance. Differences in cash flows into and out of
the two funds, the level of assets under management in each portfolio and the
specific investments held by each of the two funds will cause performance to
differ.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the statement of additional
information and the investment objective of the fund may not be changed without
shareholder approval. The Board of Directors and/or the advisor may change any
other policies and investment strategies.


- ------
9


INVESTING DIRECTLY WITH AMERICAN CENTURY

SERVICES AUTOMATICALLY AVAILABLE TO YOU

Most accounts automatically will have access to the services listed under WAYS
TO MANAGE YOUR ACCOUNT when the account is opened. If you do not want these
services, see CONDUCTING BUSINESS IN WRITING. If you have questions about the
services that apply to your account type, please call us.

CONDUCTING BUSINESS IN WRITING

If you prefer to conduct business in writing only, you can indicate this on the
account application. If you choose this option, you must provide written
instructions to invest, exchange and redeem. All account owners must sign
transaction instructions (with signatures guaranteed for redemptions in excess
of $100,000). By choosing this option, you are not eligible to enroll for
exclusive online account management to waive the account maintenance fee. See
ACCOUNT MAINTENANCE FEE in this section. If you want to add online and telephone
services later, you can complete an Investor Service Options form.

ACCOUNT MAINTENANCE FEE

If you hold Investor Class shares of any American Century fund, or Institutional
Class shares of the American Century Diversified Bond fund, in an American
Century account (i.e., not a financial intermediary or retirement plan account),
we may charge you a $12.50 semiannual account maintenance fee if the value of
those shares is less than $10,000. We will determine the amount of your total
eligible investments twice per year, generally the last Friday in October and
April. If the value of those investments is less than $10,000 at that time, we
will automatically redeem shares in one of your accounts to pay the $12.50 fee.
Please note that you may incur tax liability as a result of the redemption. In
determining your total eligible investment amount, we will include your
investments in all PERSONAL ACCOUNTS (including American Century Brokerage
accounts) registered under your Social Security number. We will not charge the
fee as long as you choose to manage your accounts exclusively online. You may
enroll for exclusive online account management on our Web site. To find out more
about exclusive online account management, visit americancentury.com/info/demo.

        [GRAPHIC OF TRIANGLE]

        PERSONAL ACCOUNTS INCLUDE INDIVIDUAL ACCOUNTS, JOINT ACCOUNTS, UGMA/UTMA
        ACCOUNTS, PERSONAL TRUSTS, COVERDELL EDUCATION SAVINGS ACCOUNTS, IRAS
        (INCLUDING TRADITIONAL, ROTH, ROLLOVER, SEP-, SARSEP- AND SIMPLE-IRAS),
        AND CERTAIN OTHER RETIREMENT ACCOUNTS. IF YOU HAVE ONLY BUSINESS,
        BUSINESS RETIREMENT, EMPLOYER-SPONSORED OR AMERICAN CENTURY BROKERAGE
        ACCOUNTS, YOU ARE CURRENTLY NOT SUBJECT TO THIS FEE, BUT YOU MAY BE
        SUBJECT TO OTHER FEES.

WIRE PURCHASES

CURRENT INVESTORS: If you would like to make a wire purchase into an existing
account, your bank will need the following information. (To invest in a new
fund, please call us first to set up the new account.)

*  American Century's bank information: Commerce Bank N.A., Routing No.
   101000019, Account No. 2804918

*  Your American Century account number and fund name

*  Your name

*  The contribution year (for IRAs only)

NEW INVESTORS: To make a wire purchase into a new account, please complete an
application prior to wiring money.


- ------
10


WAYS TO MANAGE YOUR ACCOUNT

ONLINE
- --------------------------------------------------------------------------------
americancentury.com

OPEN AN ACCOUNT: If you are a current or new investor, you can open an account
by completing and submitting our online application. Current investors also can
open an account by exchanging shares from another American Century account.

EXCHANGE SHARES: Exchange shares from another American Century account.

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

SELL SHARES*: Redeem shares and proceeds will be electronically transferred to
your authorized bank account.

* ONLINE REDEMPTIONS UP TO $25,000 PER DAY.

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

* 4500 Main Street, Kansas City, Missouri - 8 a.m. to 5 p.m., Monday - Friday

* 4917 Town Center Drive, Leawood, Kansas - 8 a.m. to 5 p.m., Monday - Friday,
  8 a.m. to noon, Saturday

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

BY TELEPHONE
- --------------------------------------------------------------------------------
INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021

BUSINESS, NOT-FOR-PROFIT AND EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533

AUTOMATED INFORMATION LINE: 1-800-345-8765

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

EXCHANGE SHARES: Call or use our Automated Information Line if you have
authorized us to accept telephone instructions. The Automated Information Line
is available only to Investor Class shareholders.

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

SELL SHARES: Call a Service Representative.

BY MAIL OR FAX
- --------------------------------------------------------------------------------
P.O. Box 419200, Kansas City, MO 64141-6200 - Fax: 816-340-7962

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

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

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

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

AUTOMATICALLY
- --------------------------------------------------------------------------------
OPEN AN ACCOUNT: Not available.

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

MAKE ADDITIONAL INVESTMENTS: With the automatic investment service, you can
purchase shares on a regular basis. You must invest at least $50 per month per
account.

SELL SHARES: You may sell shares automatically by establishing Check-A-Month or
Automatic Redemption plans.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
11


INVESTING THROUGH A FINANCIAL INTERMEDIARY

If you do business with us through a financial intermediary or a retirement
plan, your ability to purchase, exchange, redeem and transfer shares will be
affected by the policies of that entity. For more information regarding
employer-sponsored retirement plan types, please see BUYING AND SELLING FUND
SHARES in the statement of additional information.

Some policy differences may include

*  minimum investment requirements

*  exchange policies

*  fund choices

*  cutoff time for investments

*  trading restrictions

Please contact your FINANCIAL INTERMEDIARY or plan sponsor for a complete
description of its policies. Copies of the fund's annual report, semiannual
report and statement of additional information are available from your financial
intermediary or plan sponsor.

        [GRAPHIC OF TRIANGLE]

        FINANCIAL INTERMEDIARIES INCLUDE BANKS, BROKER-DEALERS, INSURANCE
        COMPANIES, PLAN SPONSORS AND FINANCIAL PROFESSIONALS.

Certain financial intermediaries perform recordkeeping and administrative
services for their clients that would otherwise be performed by American
Century's transfer agent. In some circumstances, the advisor will pay such
service providers a fee for performing those services. Also, the advisor and the
fund's distributor may make payments for various additional services or other
expenses out of their profits or other available sources. Such payments may be
made for one or more of the following: (1) distribution services, which include
expenses incurred by intermediaries for their sales activities with respect to
the fund, such as preparing, printing and distributing sales literature and
advertising materials and compensating registered representatives or other
employees of such financial intermediary for their sales activities; (2)
shareholder services, such as providing individual and custom investment
advisory services to clients of the financial intermediary; and (3) marketing
and promotional services, including business planning assistance, educating
personnel about the fund, and sponsorship of sales meetings, which may include
covering costs of providing speakers, meals and other entertainment. The
distributor may sponsor seminars and conferences designed to educate
intermediaries about the fund and may cover the expenses associated with
attendance at such meetings, including travel costs. These payments and
activities are intended to provide an incentive to intermediaries to sell the
fund by ensuring that they are educated about the fund, and to help such
intermediaries defray costs associated with offering the fund. The amount of any
payments described by this paragraph is determined by the advisor or the
distributor, and all such amounts are paid out of the available assets of the
advisor and distributor, and not by you or the fund. As a result, the total
expense ratio of the fund will not be affected by any such payments.

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


- ------
12


The fund has authorized certain financial intermediaries to accept orders on the
fund's behalf. American Century has selling agreements with these financial
intermediaries requiring them to track the time investment orders are received
and to comply with procedures relating to the transmission of orders. Orders
must be received by the financial intermediary on the fund's behalf before the
time the net asset value is determined in order to receive that day's share
price. If those orders are transmitted to American Century and paid for in
accordance with the selling agreement, they will be priced at the net asset
value next determined after your request is received in the form required by the
financial intermediary.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
13


ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT

MINIMUM INITIAL INVESTMENT AMOUNTS

Unless otherwise specified below, the minimum initial investment amount to open
an account is $2,500. Financial intermediaries may open an account with $250,
but may require their clients to meet different investment minimums. See
INVESTING THROUGH A FINANCIAL INTERMEDIARY for more information.

- --------------------------------------------------------------------------------
Broker-dealer sponsored wrap program                                  No minimum
accounts and/or fee-based accounts
- --------------------------------------------------------------------------------
Coverdell Education Savings Account (CESA)                            $2,000(1)
- --------------------------------------------------------------------------------
Employer-sponsored retirement plans                                   No minimum
- --------------------------------------------------------------------------------

(1)  THE MINIMUM INITIAL INVESTMENT FOR FINANCIAL INTERMEDIARIES IS $250.
     FINANCIAL INTERMEDIARIES MAY HAVE DIFFERENT MINIMUMS FOR THEIR CLIENTS.

SUBSEQUENT PURCHASES

There is a $50 minimum for subsequent purchases. See WAYS TO MANAGE YOUR ACCOUNT
for more information about making additional investments directly with American
Century. However, there is no subsequent purchase minimum for financial
intermediaries or employer-sponsored retirement plans, but financial
intermediaries may require their clients to meet different subsequent purchase
requirements.

REDEMPTIONS

If you sell your shares of the fund (by redemption or exchange) within 180 days
of purchase, you will pay a redemption fee of 2% of the value of the shares
sold. Therefore, if you redeem shares within 180 days, you will receive 98% of
their value at redemption. The remaining 2% is retained by the fund and helps
cover transaction costs that long-term investors may bear when the fund sells
securities to meet investor redemptions.

The redemption fee does not apply to shares purchased through reinvested
distributions (dividends and capital gains). The fund may not charge the
redemption fee in certain situations deemed appropriate by American Century,
including where the capability to charge the fee does not exist or is
impractical and/or other systems to deter abusive trading practices are in
place.

Your redemption proceeds will be calculated using the NET ASSET VALUE (NAV) next
determined after we receive your transaction request in good order.

        [GRAPHIC OF TRIANGLE]

        A FUND'S NET ASSET VALUE, OR NAV, IS THE PRICE OF THE FUND'S SHARES.

However, we reserve the right to delay delivery of redemption proceeds up to
seven days. For example, each time you make an investment with American Century,
there is a seven-day holding period before we will release redemption proceeds
from those shares, unless you provide us with satisfactory proof that your
purchase funds have cleared. Investments by wire generally require only a
one-day holding period. If you change your address, we may require that any
redemption request made within 15 days be submitted in writing and be signed by
all authorized signers with their signatures guaranteed. If you change your bank
information, we may impose a 15-day holding period before we will transfer or
wire redemption proceeds to your bank. Please remember, if you request
redemptions by wire, $10 will be deducted from the amount redeemed. Your bank
also may charge a fee.

In addition, we reserve the right to honor certain redemptions with securities,
rather than cash, as described in the next section.


- ------
14


SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the value of a fund's assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. The portfolio
managers would select these securities from the fund's portfolio.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, you may have to pay
brokerage or other transaction costs to convert the securities to cash.

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

REDEMPTION OF SHARES IN ACCOUNTS BELOW MINIMUM

If your account balance falls below the minimum initial investment amount for
any reason other than as a result of market fluctuation, American Century
reserves the right to redeem the shares in the account and send the proceeds to
your address of record. Prior to doing so, we will notify you and give you 90
days to meet the minimum. Please note that shares redeemed in this manner may be
subject to a 2% redemption fee if held less than 180 days. You also may incur
tax liability as a result of the redemption.

SIGNATURE GUARANTEES

A signature guarantee - which is different from a notarized signature - is a
warranty that the signature presented is genuine. We may require a signature
guarantee for the following transactions.

*  You have chosen to conduct business in writing only and would like to
   redeem over $100,000.

*  Your redemption or distribution check, Check-A-Month or automatic
   redemption is made payable to someone other than the account owners.

*  Your redemption proceeds or distribution amount is sent by EFT (ACH or
   wire) to a destination other than your personal bank account.

*  You are transferring ownership of an account over $100,000.

*  You change your address and request a redemption over $100,000 within 15
   days.

*  You change your bank information and request a redemption within 15 days.

We reserve the right to require a signature guarantee for other transactions, at
our discretion.

MODIFYING OR CANCELING AN INVESTMENT

Investment instructions are irrevocable. That means that once you have mailed or
otherwise transmitted your investment instruction, you may not modify or cancel
it. The fund reserves the right to suspend the offering of shares for a period
of time and to reject any specific investment (including a purchase by
exchange). Additionally, we may refuse a purchase if, in our judgment, it is of
a size that would disrupt the management of a fund.


- ------
15


ABUSIVE TRADING PRACTICES

Short-term trading and other so-called market timing practices are not defined
or explicitly prohibited by any federal or state law. However, short-term
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of short-term
trading activity is significant relative to a fund's net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund's performance could be negatively impacted by the increased trading costs
created by short-term trading if the additional trading costs are significant.

Because of the potentially harmful effects of abusive trading practices, the
fund's Board of Directors has approved American Century's abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
imposing redemption fees on certain funds, and using fair value pricing when
current market prices are not readily available. Although these efforts are
designed to discourage abusive trading practices, they cannot eliminate the
possibility that such activity will occur. American Century seeks to exercise
its judgment in implementing these tools to the best of its ability in a manner
that it believes is consistent with shareholder interests.

American Century uses a variety of techniques to monitor for and detect abusive
trading practices. These techniques may vary depending on the type of fund, the
class of shares or whether the shares are held directly or indirectly with
American Century. They may change from time to time as determined by American
Century in its sole discretion. To minimize harm to the funds and their
shareholders, we reserve the right to reject any purchase order (including
exchanges) from any shareholder we believe has a history of abusive trading or
whose trading, in our judgment, has been or may be disruptive to the funds. In
making this judgment, we may consider trading done in multiple accounts under
common ownership or control.

Currently, for shares held directly with American Century, we may deem the sale
of all or a substantial portion of a shareholder's purchase of fund shares to be
abusive if the sale is made

*  within seven days of the purchase, or

*  within 30 days of the purchase, if it happens more than once per year.

To the extent practicable, we try to use the same approach for defining abusive
trading for shares held through financial intermediaries. American Century
reserves the right, in its sole discretion, to identify other trading practices
as abusive and to modify its monitoring and other practices as necessary to deal
with novel or unique abusive trading practices.

As a heightened measure for the fund, the board has approved the imposition of a
redemption fee for redemption of shares within a specified number of days of
purchase. See REDEMPTIONS, page 14, for a complete description of the redemption
fee applicable to the fund.

In addition, American Century reserves the right to accept purchases and
exchanges in excess of the trading restrictions discussed above if it believes
that such transactions would not be inconsistent with the best interests of fund
shareholders or this policy.


- ------
16


American Century's policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American Century handles, there can be no assurance that American
Century's efforts will identify all trades or trading practices that may be
considered abusive. In addition, American Century's ability to monitor trades
that are placed by individual shareholders within group, or omnibus, accounts
maintained by financial intermediaries is severely limited because American
Century generally does not have access to the underlying shareholder account
information. However, American Century monitors aggregate trades placed in
omnibus accounts and seeks to work with financial intermediaries to discourage
shareholders from engaging in abusive trading practices and to impose
restrictions on excessive trades. There may be limitations on the ability of
financial intermediaries to impose restrictions on the trading practices of
their clients. As a result, American Century's ability to monitor and discourage
abusive trading practices in omnibus accounts may be limited.

YOUR RESPONSIBILITY FOR UNAUTHORIZED TRANSACTIONS

American Century and its affiliated companies use procedures reasonably designed
to confirm that telephone, electronic and other instructions are genuine. These
procedures include recording telephone calls, requesting personalized security
codes or other information, and sending confirmation of transactions. If we
follow these procedures, we are not responsible for any losses that may occur
due to unauthorized instructions. For transactions conducted over the Internet,
we recommend the use of a secure Internet browser. In addition, you should
verify the accuracy of your confirmation statements immediately after you
receive them.

A NOTE ABOUT MAILINGS TO SHAREHOLDERS

To reduce the amount of mail you receive from us, we may deliver a single copy
of certain investor documents (such as shareholder reports and prospectuses) to
investors who share an address, even if accounts are registered under different
names. If you prefer to receive multiple copies of these documents individually
addressed, please call us or your financial professional. For American Century
Brokerage accounts, please call 1-888-345-2071.

RIGHT TO CHANGE POLICIES

We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups. In addition, from time to time we may
waive a policy on a case-by-case basis, as the advisor deems appropriate.


- ------
17


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century will price the fund shares you purchase, exchange or redeem at
the net asset value (NAV) next determined after your order is received and
accepted by the fund's transfer agent, or other financial intermediary with the
authority to accept orders on the fund's behalf. We determine the NAV of the
fund as of the close of regular trading (usually 4 p.m. Eastern time) on the New
York Stock Exchange (NYSE) on each day the NYSE is open. On days when the NYSE
is closed (including certain U.S. national holidays), we do not calculate the
NAV. The fund's NAV is the current value of the fund's assets, minus any
liabilities, divided by the number of shares outstanding.

The fund values portfolio securities for which market quotations are readily
available at their market price. As a general rule, equity securities listed on
a U.S. exchange are valued at the last current reported sale price as of the
time of valuation. Securities listed on the NASDAQ National Market System
(Nasdaq) are valued at the Nasdaq Official Closing Price (NOCP), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the
time of valuation. The fund may use pricing services to assist in the
determination of market value. Unlisted securities for which market quotations
are readily available are valued at the last quoted sale price or the last
quoted ask price, as applicable, except that debt obligations with 60 days or
less remaining until maturity may be valued at amortized cost. Exchange-traded
options, futures and options on futures are valued at the settlement price as
determined by the appropriate clearing corporation.

If the fund determines that the market price for a portfolio security is not
readily available or that the valuation methods mentioned above do not reflect
the security's fair value, such security is valued at its fair value as
determined in good faith by, or in accordance with procedures adopted by, the
fund's board or its designee (a process referred to as "fair valuing" the
security). Circumstances that may cause the fund to fair value a security
include, but are not limited to:

*  if, after the close of the foreign exchange on which a portfolio security
   is principally traded, but before the close of the NYSE, an event occurs that
   may materially affect the value of the security;

*  a debt security has been declared in default; or

*  trading in a security has been halted during the trading day.

If such circumstances occur, the fund will fair value the security if the fair
valuation would materially impact the fund's NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with procedures adopted by
the fund's board.

The effect of using fair value determinations is that the fund's NAV will be
based, to some degree, on security valuations that the board or its designee
believes are fair rather than being solely determined by the market.

With respect to any portion of the fund's assets that are invested in one or
more open-end management investment companies that are registered with the SEC
(known as registered investment companies, or RICs), the fund's NAV will be
calculated based upon the NAVs of such RICs. These RICs are required by law to
explain the circumstances under which they will use fair value pricing and the
effects of using fair value pricing in their prospectuses.

Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based on the prevailing exchange rates on that day.


- ------
18


Trading of securities in foreign markets may not take place every day the NYSE
is open. Also, trading in some foreign markets and on some electronic trading
networks may take place on weekends or holidays when the fund's NAV is not
calculated. So, the value of the fund's portfolio may be affected on days when
you will not be able to purchase, exchange or redeem fund shares.

DISTRIBUTIONS

Federal tax laws require the fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means the fund should not be subject to state or
federal income tax on amounts distributed. The distributions generally consist
of dividends and interest received by the fund, as well as CAPITAL GAINS
realized by the fund on the sale of its investment securities. The fund
generally pays distributions from net income and capital gains, if any, once a
year in December. The fund may make more frequent distributions, if necessary,
to comply with Internal Revenue Code provisions.

        [GRAPHIC OF TRIANGLE]

        CAPITAL GAINS ARE INCREASES IN THE VALUES OF CAPITAL ASSETS, SUCH AS
        STOCK, FROM THE TIME THE ASSETS ARE PURCHASED.

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

Participants in tax-deferred retirement plans must reinvest all distributions.
For investors investing through taxable accounts, we will reinvest distributions
unless you elect to have dividends and/or capital gains sent to another American
Century account, to your bank electronically, or to your home address or to
another person or address by check.


- ------
19


TAXES

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

Tax-Deferred Accounts

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

Taxable Accounts

If you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund shares.

Taxability of Distributions

Fund distributions may consist of income, such as dividends and interest earned
by a fund from its investments, or capital gains generated by a fund from the
sale of investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as QUALIFIED DIVIDEND INCOME and you meet a
minimum required holding period with respect to your shares of the fund, in
which case distributions of income are taxed as long-term capital gains.

        [GRAPHIC OF TRIANGLE]

        QUALIFIED DIVIDEND INCOME IS A DIVIDEND RECEIVED BY THE FUND FROM THE
        STOCK OF A DOMESTIC OR QUALIFYING FOREIGN CORPORATION, PROVIDED THAT
        THE FUND HAS HELD THE STOCK FOR A REQUIRED HOLDING PERIOD.

For capital gains and for income distributions designated as qualified dividend
income, the following rates apply:

                                        TAX RATE FOR 10%      TAX RATE FOR
TYPE OF DISTRIBUTION                    AND 15% BRACKETS      ALL OTHER BRACKETS
- --------------------------------------------------------------------------------
Short-term capital gains                Ordinary Income       Ordinary Income
- --------------------------------------------------------------------------------
Long-term capital gains (> 1 year)
and Qualified Dividend Income           5%                    15%
- --------------------------------------------------------------------------------

If the fund's distributions exceed its taxable income and capital gains realized
during the tax year, all or a portion of the distributions made by the fund in
that tax year will be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.


- ------
20


The tax status of any distributions of capital gains is determined by how long
the fund held the underlying security that was sold, not by how long you have
been invested in the fund, or whether you reinvest your distributions in
additional shares or take them in cash. For taxable accounts, American Century
or a financial intermediary will inform you of the tax status of fund
distributions for each calendar year in an annual tax mailing.

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

Taxes on Transactions

Your redemptions - including exchanges to other American Century funds - are
subject to capital gains tax. The table above can provide a general guide for
your potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss. However, you should note that loss realized upon the
sale or exchange of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain to you with respect to those shares. If a loss is realized on the
redemption of fund shares, the reinvestment in additional fund shares within 30
days before or after the redemption may be subject to the wash sale rules of the
Internal Revenue Code. This may result in a postponement of the recognition of
such loss for federal income tax purposes.

If you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.

Buying a Dividend

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

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

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


- ------
21


FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The table on the next page itemizes what contributed to the changes in share
price during the most recently ended fiscal year. It also shows the changes in
share price for this period in comparison to changes over the last five fiscal
years.

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

*  share price at the beginning of the period

*  investment income and capital gains or losses

*  distributions of income and capital gains paid to investors

*  share price at the end of the period

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

*  TOTAL RETURN - the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO - the operating expenses of the fund as a percentage of
   average net assets

*  NET INCOME RATIO - the net investment income of the fund as a percentage
   of average net assets

*  PORTFOLIO TURNOVER - the percentage of the fund's investment portfolio
   that is replaced during the period

The Financial Highlights that follow have been audited by Deloitte & Touche LLP.
The fund's Report of Independent Registered Public Accounting Firm and the
financial statements are included in the fund's annual report, which is
available upon request.



- ------
22


NEW OPPORTUNITIES FUND
Investor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31

- -------------------------------------------------------------------------------------------
                                           2006      2005      2004      2003      2002
- -------------------------------------------------------------------------------------------
PER-SHARE DATA
- -------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period       $5.63     $5.06     $5.06     $4.01     $4.80
- -------------------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)            (0.06)    (0.06)    (0.06)    (0.04)    (0.05)
- ----------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                  0.87      0.63      0.06      1.09      (0.74)
- -------------------------------------------------------------------------------------------
   Total From Investment Operations        0.81      0.57      -         1.05      (0.79)
- -------------------------------------------------------------------------------------------
Net Asset Value, End of Period             $6.44     $5.63     $5.06     $5.06     $4.01
===========================================================================================
   TOTAL RETURN(1)                         14.39%    11.26%    0.00%     26.18%    (16.46)%

RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                      1.50%     1.50%     1.49%     1.50%     1.50%
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets               (0.84)%   (0.98)%   (1.04)%   (0.98)%   (1.02)%
- ----------------------------------------
Portfolio Turnover Rate                    298%      260%      269%      217%      175%
- ----------------------------------------
Net Assets, End of Period
(in thousands)                             $247,876  $240,464  $273,555  $318,226  $297,180
- -------------------------------------------------------------------------------------------

(1)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY.


- ------
23


NOTES


- ------
24


NOTES


- ------
25


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

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

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

IN PERSON           SEC Public Reference Room
                    Washington, D.C.
                    Call 202-942-8090 for location and hours.

ON THE INTERNET     * EDGAR database at sec.gov
                    * By email request at publicinfo@sec.gov

BY MAIL             SEC Public Reference Section
                    Washington, D.C. 20549-0102

This prospectus shall not constitute an offer to sell securities of the fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or qualified for sale, unless such registration or qualification
is not required, or under any circumstances in which such offer or solicitation
would be unlawful.

FUND REFERENCE                FUND CODE        TICKER        NEWSPAPER LISTING
- --------------------------------------------------------------------------------
New Opportunities Fund
  Investor Class                036              TWNOX         New Opp
- --------------------------------------------------------------------------------

Investment Company Act File No. 811-0816

AMERICAN CENTURY INVESTMENTS
americancentury.com
                                    Banks and Trust Companies, Broker-Dealers,
Self-Directed Retail Investors      Financial Professionals, Insurance Companies
P.O. Box 419200                     P.O. Box 419786
Kansas City, Missouri 64141-6200    Kansas City, Missouri 64141-6786
1-800-345-2021 or 816-531-5575      1-800-345-6488

0703
SH-PRS-52528













AMERICAN CENTURY INVESTMENTS

Prospectus


March 1, 2007


Balanced Fund

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

American Century Investment
Services, Inc., Distributor

[american century investments logo and text logo]





Table of Contents

AN OVERVIEW OF THE FUND. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

FUND PERFORMANCE HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

FEES AND EXPENSES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

OBJECTIVES, STRATEGIES AND RISKS . . . . . . . . . . . . . . . . . . . . . . . 8

MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

INVESTING DIRECTLY WITH AMERICAN CENTURY . . . . . . . . . . . . . . . . . . .14

INVESTING THROUGH A FINANCIAL INTERMEDIARY . . . . . . . . . . . . . . . . . .16

ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT. . . . . . . . . . . . . . . . .17

SHARE PRICE AND DISTRIBUTIONS. . . . . . . . . . . . . . . . . . . . . . . . .21

TAXES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

MULTIPLE CLASS INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . .25

FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26


          [graphic of triangle]

          THIS SYMBOL IS USED THROUGHOUT THE BOOK TO HIGHLIGHT DEFINITIONS
          OF KEY INVESTMENT TERMS AND TO PROVIDE  OTHER HELPFUL INFORMATION.




American Century Investment Services, Inc., Distributor

©2007 American Century Proprietary Holdings, Inc. All rights reserved.

The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.




AN OVERVIEW OF THE FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth and current income by investing
approximately 60% of its assets in equity securities and the remainder in bonds
and other fixed-income securities.


WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGY AND PRINCIPAL RISKS?

For the equity portion of Balanced, the portfolio managers select stocks
primarily from the largest 1,500 publicly traded U.S. companies. For the
fixed-income portion of the fund, the portfolio managers invest in a diversified
portfolio of high-grade securities.

The fund's principal risks include

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

*  INTEREST RATE RISK - When interest rates change, the value of the fund's
   fixed-income securities will be affected.

*  CREDIT RISK - The value of the fund's debt securities will be affected
   adversely by any erosion in the ability of the issuers of these securities to
   make interest and principal payments as they become due.

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

*  PRINCIPAL LOSS - At any given time your shares may be worth less than the
   price you paid for them. In other words, it is possible to lose money by
   investing in the fund.

A more detailed description of the fund's investment strategy and risks may be
found under the heading OBJECTIVES, STRATEGIES AND RISKS, which begins on page
8.

          [graphic of triangle]

          AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT, AND IT IS NOT
          INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE
          CORPORATION (FDIC) OR ANY OTHER GOVERNMENT AGENCY.


- ------
2


FUND PERFORMANCE HISTORY

Annual Total Returns

The following bar chart shows the performance of the fund's Investor Class
shares for each of the last 10 calendar years. It indicates the volatility of
the fund's historical returns from year to year. Account fees are not reflected
in the chart below. If they had been included, returns would be lower than those
shown. The returns of the fund's other classes of shares will differ from those
shown in the chart, depending on the expenses of those classes.

BALANCED FUND -- INVESTOR CLASS

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

                            HIGHEST                            LOWEST
- --------------------------------------------------------------------------------
Balanced                    12.31% ( 2Q1997)                   -8.77% (3Q 2002)
- --------------------------------------------------------------------------------

Average Annual Total Returns

The following table shows the average annual total returns of the fund's
Investor Class shares calculated three different ways. Additional tables show
the average annual total returns of the fund's other share classes calculated
before the impact of taxes.

Return Before Taxes shows the actual change in the value of fund shares over the
time periods shown, but does not reflect the impact of taxes on fund
distributions or the sale of fund shares. The two after-tax returns take into
account taxes that may be associated with owning fund shares. Return After Taxes
on Distributions is a fund's actual performance, adjusted by the effect of taxes
on distributions made by the fund during the periods shown. Return After Taxes
on Distributions and Sale of Fund Shares is further adjusted to reflect the tax
impact on any change in the value of fund shares as if they had been sold on the
last day of the period.

After-tax returns are calculated using the historical highest federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-tax returns shown are not relevant to investors who hold fund
shares through tax-deferred arrangements such as 401(k) plans or IRAs. After-tax
returns are shown only for Investor Class shares. After-tax returns for the
other classes will vary.

The benchmarks are unmanaged indices that have no operating costs and are
included in each table for performance comparison.



- ------
3



INVESTOR CLASS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006        1 YEAR   5 YEARS   10 YEARS
- --------------------------------------------------------------------------------
Return Before Taxes                                   9.63%   6.39%     6.70%
Return After Taxes on Distributions                   8.31%   5.47%     4.80%
Return After Taxes on Distributions                   7.23%   5.15%     4.85%
and Sale of Fund Shares
New Blended Index(1)                                 11.11%   6.00%     7.89%
    (reflects no deduction for
    fees, expenses or taxes)
Old Blended Index                                    11.11%   5.98%     7.88%
    (reflects no deduction for
    fees, expenses or taxes)
S&P 500® Index                                       15.79%   6.19%     8.42%
    (reflects no deduction for
    fees, expenses or taxes)
Citigroup US Broad Investment-Grade Bond Index(1)     4.33%   5.10%     6.26%
    (reflects no deduction for
    fees, expenses or taxes)
Lehman Brothers U.S. Aggregate Index                  4.33%   5.06%     6.24%
    (reflects no deduction for
    fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  IN SEPTEMBER 2006, THE FUND'S BLENDED INDEX CHANGED. THE OLD BLENDED
     INDEX WAS REPRESENTED BY 60% OF THE S&P 500® INDEX AND THE REMAINING
     40% WAS REPRESENTED BY THE LEHMAN BROTHERS U.S. AGGREGATE INDEX. THE NEW
     BLENDED INDEX IS REPRESENTED BY 60% OF THE S&P 500® INDEX AND THE
     REMAINING 40% IS REPRESENTED BY THE CITIGROUP US BROAD INVESTMENT-GRADE
     BOND INDEX. THE FUND'S INVESTMENT ADVISOR BELIEVES THIS INDEX BETTER
     REPRESENTS THE FUND'S PORTFOLIO COMPOSITION.

INSTITUTIONAL CLASS                                                   LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                               9.84%    6.60%      3.75%
New Blended Index(2)                             11.11%    6.00%      3.66%(3)
    (reflects no deduction for
    fees, expenses or taxes)
Old Blended Index                                11.11%    5.98%      3.64%(3)
    (reflects no deduction for
    fees, expenses or taxes)
S&P 500® Index
   (reflects no deduction for
    fees, expenses or taxes)                     15.79%    6.19%      1.30%(3)
Citigroup US Broad                                4.33%    5.10%      6.53%(3)
Investment-Grade Bond Index(2)
    (reflects no deduction for
    fees, expenses or taxes)
Lehman Brothers                                   4.33%     5.06%      6.48%(3)
U.S. Aggregate Index
   (reflects no deduction for
    fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE INSTITUTIONAL CLASS IS MAY 1, 2000. ONLY
     CLASSES WITH PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR
     LIFE OF CLASS.

(2)  IN SEPTEMBER 2006, THE FUND'S BLENDED INDEX CHANGED. THE OLD BLENDED
     INDEX WAS REPRESENTED BY 60% OF THE S&P 500® INDEX AND THE REMAINING
     40% WAS REPRESENTED BY THE LEHMAN BROTHERS U.S. AGGREGATE INDEX. THE NEW
     BLENDED INDEX IS REPRESENTED BY 60% OF THE S&P 500® INDEX AND THE
     REMAINING 40% IS REPRESENTED BY THE CITIGROUP US BROAD INVESTMENT-GRADE
     BOND INDEX. THE FUND'S INVESTMENT ADVISOR BELIEVES THIS INDEX BETTER
     REPRESENTS THE FUND'S PORTFOLIO COMPOSITION.

(3)  SINCE APRIL 30, 2000, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.


- ------
4



ADVISOR CLASS                                                         LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                               9.36%     6.14%     6.33%
New Blended Index(2)                             11.11%    6.00%      7.89%(3)
    (reflects no deduction for
    fees, expenses or taxes)
Old Blended Index                                11.11%    5.98%      7.88%(3)
   (reflects no deduction for
    fees, expenses or taxes)
S&P 500® Index                                   15.79%    6.19%      8.42%(3)
   (reflects no deduction for
    fees, expenses or taxes)
Citigroup US Broad                                4.33%    5.10%      6.26%(3)
Investment-Grade Bond Index(2)
    (reflects no deduction for
    fees, expenses or taxes)
Lehman Brothers                                   4.33%    5.06%      6.24%(3)
U.S. Aggregate Index
   (reflects no deduction for
    fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE ADVISOR CLASS IS JANUARY 6, 1997. ONLY
     CLASSES WITH PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR
     LIFE OF CLASS.

(2)  IN SEPTEMBER 2006, THE FUND'S BLENDED INDEX CHANGED.  THE OLD BLENDED INDEX
     WAS REPRESENTED BY 60% OF THE S&P 500®  INDEX AND THE REMAINING 40%
     WAS  REPRESENTED  BY THE LEHMAN  BROTHERS  U.S.  AGGREGATE  INDEX.  THE NEW
     BLENDED INDEX IS REPRESENTED BY 60% OF THE S&P  500®  INDEX AND THE
     REMAINING 40% IS  REPRESENTED  BY THE  CITIGROUP US BROAD  INVESTMENT-GRADE
     BOND  INDEX.  THE FUND'S  INVESTMENT  ADVISOR  BELIEVES  THIS INDEX  BETTER
     REPRESENTS THE FUND'S PORTFOLIO COMPOSITION.

(3)  SINCE DECEMBER 31, 1996, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.

Performance information is designed to help you see how fund returns can vary.
Keep in mind that past performance (before and after taxes) does not predict how
a fund will perform in the future.

For current performance information, including yields, please call or visit
americancentury.com.


- ------
5


FEES AND EXPENSES

There are no sales loads, fees or other charges

*  to buy fund shares directly from American Century
*  to reinvest dividends in additional shares
*  to exchange into the same class of shares of other American Century funds
*  to redeem your shares, other than a $10 fee to redeem by wire

The following tables describe the fees and expenses you may pay if you buy and
hold shares of the fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
- --------------------------------------------------------------------------------
Investor Class
  Maximum Account Maintenance Fee                                        $25(1)
- --------------------------------------------------------------------------------

(1)  APPLIES ONLY TO INVESTORS WHOSE TOTAL ELIGIBLE INVESTMENTS WITH
     AMERICAN CENTURY ARE LESS THAN $10,000. SEE Account Maintenance Fee UNDER
     Investing Directly with American Century FOR MORE DETAILS.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
                                  DISTRIBUTION                   TOTAL ANNUAL
                  MANAGEMENT      AND SERVICE      OTHER         FUND OPERATING
                  FEE(1)          (12B-1) FEES(2)  EXPENSES(3)   EXPENSES
- --------------------------------------------------------------------------------
Investor          0.90%           None             0.00%         0.90%
- --------------------------------------------------------------------------------
Institutional     0.70%           None             0.00%         0.70%
- --------------------------------------------------------------------------------
Advisor           0.65%           0.50%            0.00%         1.15%
- --------------------------------------------------------------------------------


(1)  THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR
     ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. THE FEE SHOWN IS
     BASED ON ASSETS DURING THE FUND'S MOST RECENT FISCAL YEAR. THE FUND HAS A
     STEPPED FEE SCHEDULE. AS A RESULT, THE FUND'S UNIFIED MANAGEMENT FEE RATE
     GENERALLY DECREASES AS STRATEGY ASSETS INCREASE AND INCREASES AS STRATEGY
     ASSETS DECREASE. FOR MORE INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE,
     INCLUDING AN EXPLANATION OF STRATEGY ASSETS, SEE The Investment Advisor
     UNDER Management.

(2)  THE 12B-1 FEE IS DESIGNED TO PERMIT INVESTORS TO PURCHASE SHARES
     THROUGH BROKER-DEALERS, BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL
     INTERMEDIARIES. THE FEE MAY BE USED TO COMPENSATE SUCH FINANCIAL
     INTERMEDIARIES FOR DISTRIBUTION AND OTHER SHAREHOLDER SERVICES. IN
     ADDITION, HALF OF THE ADVISOR CLASS 12B-1 FEE (0.25%) IS FOR ONGOING
     RECORDKEEPING AND ADMINISTRATIVE SERVICES PROVIDED BY FINANCIAL
     INTERMEDIARIES, WHICH WOULD OTHERWISE BE PAID BY THE ADVISOR OUT OF THE
     UNIFIED MANAGEMENT FEE. THE ADVISOR HAS REDUCED ITS UNIFIED MANAGEMENT FEE
     BY 0.25% FOR ADVISOR CLASS SHARES, BUT THE FEE FOR CORE INVESTMENT ADVISORY
     SERVICES IS THE SAME FOR ALL CLASSES. FOR MORE INFORMATION, SEE Multiple
     Class Information AND Service, Distribution and Administrative Fees, PAGE
     25.

(3)  OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
     INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST, WERE
     LESS THAN 0.005% FOR THE MOST RECENT FISCAL YEAR.


- ------
6


EXAMPLE

The examples in the table below are intended to help you compare the costs of
investing in a fund with the costs of investing in other mutual funds. Of
course, your actual costs may be higher or lower. Assuming you . . .

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

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

                      1 YEAR         3 YEARS         5 YEARS         10 YEARS
- --------------------------------------------------------------------------------
Investor              $92            $286            $497            $1,104
- --------------------------------------------------------------------------------
Institutional         $71            $224            $389            $868
- --------------------------------------------------------------------------------
Advisor               $117           $364            $630            $1,390
- --------------------------------------------------------------------------------


- ------
7


OBJECTIVES, STRATEGIES AND RISKS

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

This fund seeks long-term capital growth and current income by investing
approximately 60% of its assets in equity securities and the remainder in bonds
and other fixed-income securities.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

For the equity portion of the fund's portfolio, the portfolio managers utilize
quantitative management techniques in a two-step process that draws heavily on
computer technology. In the first step, the portfolio managers rank stocks,
primarily the 1,500 largest publicly traded companies in the United States
(measured by the value of their stock), from most attractive to least
attractive. These rankings are determined by using a computer model that
combines measures of a stock's value, as well as measures of its growth
potential. To measure value, the managers use ratios of stock price-to-book
value and stock price-to-cash flow, among others. To measure growth, the
managers use the rate of growth of a company's earnings and changes in its
earnings estimates, as well as other factors.

In the second step, the managers use a technique called portfolio optimization.
In portfolio optimization, the managers use a computer to build a portfolio of
stocks from the ranking described above that they believe will provide the
optimal balance between risk and expected return. The goal is to create an
equity portfolio that provides better returns than the S&P 500® without taking
on significant additional risk.

The portfolio managers also consult the rankings described above when
determining whether to sell a particular security. As a security's ranking
falls, the portfolio managers will consider many factors in addition to the
computer-generated information for the security, including, among other things,
a security's price, whether a security's risk parameters outweigh its return
opportunities, general market conditions, and any other factors deemed relevant
by the portfolio manager.

The fixed-income portion of the fund's portfolio is invested primarily in a
diversified portfolio of high-grade government, corporate, asset-backed and
similar securities payable in U.S. currency. At least 80% of the fixed-income
assets will be invested in securities that are rated within the three highest
categories by a nationally recognized statistical rating organization. Up to 20%
of the fixed-income portion may be invested in securities rated in the fourth
category, and up to 15% may be invested in securities rated in the fifth
category. The rating category of a security will be determined at the time of
purchase. In the event a security is subsequently downgraded, the fund will not
be obligated to dispose of that security, but may continue to hold the security
if deemed appropriate by the portfolio managers. Under normal market conditions,
the WEIGHTED AVERAGE MATURITY for the fixed-income portfolio will be in the
three- to 10-year range.

          [graphic of triangle]

          WEIGHTED AVERAGE MATURITY IS A TOOL THE PORTFOLIO MANAGERS USE TO
          APPROXIMATE THE REMAINING TERM TO MATURITY OF A FUND'S INVESTMENT
          PORTFOLIO. GENERALLY, THE LONGER A FUND'S WEIGHTED AVERAGE MATURITY,
          THE MORE SENSITIVE IT IS TO CHANGES IN INTEREST RATES.


- ------
8


The portfolio managers do not attempt to time the market. Instead, under normal
market conditions, they intend to keep the equity portion of the fund
essentially fully invested in stocks regardless of the movement of stock prices
generally. When the portfolio managers believe it is prudent, the fund may
invest a portion of its assets in foreign securities, short-term securities,
preferred stock and equity-equivalent securities, such as convertible securities
and nonleveraged futures contracts. The fund may purchase mortgage-backed
securities, on a when-issued or forward commitment basis. These transactions may
be executed using dollar rolls or other investment techniques. Futures
contracts, a type of derivative security, can help the fund's cash assets remain
liquid while performing more like stocks. The fund has a policy governing
futures contracts and similar derivative securities to help manage the risk of
these types of investments. A complete description of the derivatives policy is
included in the statement of additional information.

The fund may invest in securities issued or guaranteed by the U.S. Treasury and
certain U.S. government agencies or instrumentalities such as the Government
National Mortgage Association (Ginnie Mae). Ginnie Mae is supported by the full
faith and credit of the U.S. government. Securities issued or guaranteed by
other U.S. government agencies or instrumentalities, such as the Federal
National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage
Corporation (Freddie Mac), and the Federal Home Loan Bank (FHLB) are not
guaranteed by the U.S. Treasury or supported by the full faith and credit of the
U.S. government. However, they are authorized to borrow from the U.S. Treasury
to meet their obligations.

A description of the policies and procedures with respect to the disclosure of
the fund's portfolio securities is available in the statement of additional
information.

WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?

The value of the fund's shares depends on the value of the stocks, bonds and
other securities it owns.

*  The value of the individual equity securities the fund owns will go up and
   down depending on the performance of the companies that issued them, general
   market and economic conditions, and investor confidence.

*  The value of the fund's fixed-income securities will be affected primarily
   by rising or falling interest rates and the continued ability of the issuers
   of these securities to make payments of interest and principal as they become
   due.

Generally, when interest rates rise, the value of the fund's fixed-income
securities will decline. The opposite is true when interest rates decline. The
interest rate risk is higher for the fixed-income portion of the fund than for
funds that have a shorter-weighted average maturity, such as money market and
short-term bond funds.



- ------
9



The lower-rated bonds in which the fund may invest, BBB- and BB rated bonds,
contain some speculative characteristics. As a result, the fund has some credit
risk. Although their securities are considered investment-grade, issuers of
BBB-rated securities (and securities of similar quality) are more likely to have
problems making interest and principal payments than issuers of higher rated
securities. Issuers of BB-rated securities (and securities of similar quality)
are considered even more vulnerable to adverse business, financial or economic
conditions that could lead to difficulties in making timely payments of
principal and interest. Having these bonds in the fund's portfolio means the
fund's value may go down more if interest rates or other economic conditions
change than if the fund contained only higher-rated bonds.

          [graphic of triangle]

          FIXED-INCOME SECURITIES ARE RATED BY NATIONALLY RECOGNIZED
          SECURITIES RATING ORGANIZATIONS (SROS), SUCH AS MOODY'S AND
          STANDARD & POOR'S. EACH SRO HAS ITS OWN SYSTEM FOR CLASSIFYING
          SECURITIES, BUT EACH TRIES TO INDICATE A COMPANY'S ABILITY TO
          MAKE TIMELY PAYMENTS OF INTEREST AND PRINCIPAL. A DETAILED
          DESCRIPTION OF SROS, THEIR RATINGS SYSTEMS AND WHAT WE DO IF
          A SECURITY ISN'T RATED IS INCLUDED IN THE STATEMENT OF
          ADDITIONAL INFORMATION.

Because the equity portion of the fund uses quantitative management techniques
to try to achieve a total return that exceeds the total return of the S&P 500®
Index, its performance will correlate to the index's performance. If the index
goes down, it is likely that the fund's performance will go down.

At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the fund.


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10


MANAGEMENT

WHO MANAGES THE FUND?

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

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than three-fourths of the directors are independent of the fund's advisor;
that is, they have never been employed by and have no financial interest in the
advisor or any of its affiliated companies (other than as shareholders of
American Century funds).

THE INVESTMENT ADVISOR

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

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

For the services it provides to the fund, the advisor receives a unified
management fee based on a percentage of the daily net assets of each class of
shares of the fund. The amount of the fee is calculated daily and paid monthly
in arrears. Out of that fee, the advisor pays all expenses of managing and
operating the fund except brokerage expenses, taxes, interest, fees and expenses
of the independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the fund's management fee may be paid by the fund's
advisor to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of the
advisor.

The rate of the fee is determined by applying a formula that takes into account
all of the advisor's assets under management in the fund's investment strategy
(strategy assets). Strategy assets include the assets of the fund as well as
certain assets of other clients of the advisor outside the American Century fund
family (such as subadvised funds and separate accounts) that use very similar
investment teams and strategies. The use of strategy assets, rather than fund
assets, in calculating the fund's fee rate could allow the fund to realize
scheduled cost savings more quickly. However, it is possible that the fund's
strategy assets will not include assets of other client accounts or that any
such assets may not be sufficient to result in a lower fee rate.

MANAGEMENT FEES PAID
BY THE FUND TO THE
ADVISOR AS A PERCENTAGE
OF AVERAGE NET ASSETS
FOR THE FISCAL YEAR ENDED        INVESTOR        INSTITUTIONAL        ADVISOR
OCTOBER 31, 2006                 CLASS           CLASS                CLASS
- --------------------------------------------------------------------------------
Balanced                         0.90%           0.70%                0.65%
- --------------------------------------------------------------------------------

A discussion regarding the basis for the Board of Directors' approval of the
fund's investment advisory contract with the advisor is available in the fund's
report to shareholders dated October 31, 2006.



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11



THE FUND MANAGEMENT TEAM

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

The portfolio managers on the investment team who are jointly and primarily
responsible for the day-to-day management of the fund are identified below.

Equity Portion of Balanced

WILLIAM MARTIN

Mr. Martin, Senior Vice President and Senior Portfolio Manager, has been a
member of the team that manages the fund since May 1992. He joined American
Century in October 1989 and became a portfolio manager in April 1991. He has a
bachelor's degree in economics from the University of Illinois and is a CFA
charterholder.

THOMAS P. VAIANA

Mr. Vaiana, Vice President and Portfolio Manager, has been a member of the team
that manages the fund since February 2001. He joined American Century in
February 1997 and became a portfolio manager in August 2000. He has a bachelor's
degree in business finance from California State University.

FEI ZOU

Mr. Zou, Vice President, Portfolio Manager and Senior Quantitative Analyst, has
been a member of the team that manages the fund since September 2000. He joined
American Century in September 2000 as a quantitative analyst and became a
portfolio manager in February 2004. He has a master's degree in economics and a
Ph.D. in finance from the University of Texas - Austin.

Fixed-Income Portion of Balanced

G. DAVID MACEWEN

Mr. MacEwen, Chief Investment Officer - Fixed Income, has been a member of the
team that manages the fund since May 2001. He joined American Century in May
1991 as a portfolio manager. He has a bachelor's degree in economics from Boston
University and an MBA in finance from the University of Delaware.

ROBERT V. GAHAGAN

Mr. Gahagan, Senior Vice President and Senior Portfolio Manager, has been a
member of the team that manages the fund since December 2001. He joined American
Century in February 1983 and became a portfolio manager in January 1991. He has
a bachelor's degree in economics and an MBA from the University of Missouri --
Kansas City.

JAMES F. KEEGAN

Mr. Keegan, Senior Vice President and Senior Portfolio Manager, has been a
member of the team that manages the fund since he joined American Century in
February 2006. Prior to joining American Century, he was chief investment
officer with Westmoreland Capital Management, LLC from 2002 to 2003. He has a
bachelor's degree in business management from St. Francis College and an MBA
from Fordham University Graduate School of Business.


- ------
12



JEFFREY L. HOUSTON

Mr. Houston, Vice President and Senior Portfolio Manager, has been a member of
the team that manages the fund since June 1995. He joined American Century in
November 1990 and became a portfolio manager in January 1994. He has a bachelor
of arts in history and political science from the University of Delaware and an
MPA from Syracuse University. He is a CFA charterholder.

ALEJANDRO H. AGUILAR

Mr. Aguilar, Vice President and Senior Portfolio Manager, has been a member of
the team that manages the fund since he joined American Century in October 2003
as a portfolio manager. Prior to joining American Century, he was an investment
officer with CalPERS from July 2002 to October 2003 and director of portfolio
management at TIAA-CREF from June 1994 to March 2002. He has a bachelor's degree
in economics from the University of California - Berkeley and an MBA from the
University of Michigan. He is a CFA charterholder.

BRIAN HOWELL

Mr. Howell, Vice President and Senior Portfolio Manager, has been a member of
the team that manages the fund since January 1999. He joined American Century in
June 1987 and became a portfolio manager in January 1996. He has a bachelor's
degree in mathematics/statistics and an MBA from the University of California --
Berkeley.

JOHN F. WALSH

Mr. Walsh, Vice President and Portfolio Manager, has been a member of the team
that manages the fund since January 1999. He joined American Century in February
1996 and became a portfolio manager in September 1997. He has a bachelor's
degree in marketing from Loyola Marymount University and an MBA in finance from
Creighton University.

DAN SHIFFMAN

Mr. Shiffman, Vice President and Portfolio Manager, has been a member of the
team that manages the fund since February 2006. He joined American Century in
May 2004 as a portfolio manager. Prior to joining American Century, he was an
investment officer at CalPERS from August 1996 to April 2004. He has a bachelor
of arts in social sciences from the University of California - Berkeley and an
MBA from Thunderbird, The Garvin School of International Management. He is a CFA
charterholder.

The statement of additional information provides additional information about
the other accounts managed by the portfolio managers, if any, the structure of
their compensation, and their ownership of fund securities.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the statement of additional
information and the investment objectives of the fund may not be changed without
shareholder approval. The Board of Directors and/or the advisor may change any
other policies and investment strategies.


- ------
13


INVESTING DIRECTLY WITH AMERICAN CENTURY

SERVICES AUTOMATICALLY AVAILABLE TO YOU

Most accounts automatically will have access to the services listed under WAYS
TO MANAGE YOUR ACCOUNT when the account is opened. If you do not want these
services, see CONDUCTING BUSINESS IN WRITING. If you have questions about the
services that apply to your account type, please call us.

CONDUCTING BUSINESS IN WRITING

If you prefer to conduct business in writing only, you can indicate this on the
account application. If you choose this option, you must provide written
instructions to invest, exchange and redeem. All account owners must sign
transaction instructions (with signatures guaranteed for redemptions in excess
of $100,000). By choosing this option, you are not eligible to enroll for
exclusive online account management to waive the account maintenance fee. See
ACCOUNT MAINTENANCE FEE in this section. If you want to add online and telephone
services later, you can complete an Investor Service Options form.

ACCOUNT MAINTENANCE FEE

If you hold Investor Class shares of any American Century fund, or Institutional
Class shares of the American Century Diversified Bond fund, in an American
Century account (i.e., not a financial intermediary or retirement plan account),
we may charge you a $12.50 semiannual account maintenance fee if the value of
those shares is less than $10,000. We will determine the amount of your total
eligible investments twice per year, generally the last Friday in October and
April. If the value of those investments is less than $10,000 at that time, we
will automatically redeem shares in one of your accounts to pay the $12.50 fee.
Please note that you may incur tax liability as a result of the redemption. In
determining your total eligible investment amount, we will include your
investments in all PERSONAL ACCOUNTS (including American Century Brokerage
accounts) registered under your Social Security number. We will not charge the
fee as long as you choose to manage your accounts exclusively online. You may
enroll for exclusive online account management on our Web site. To find out more
about exclusive online account management, visit americancentury.com/info/demo.

          [graphic of triangle]


          PERSONAL ACCOUNTS INCLUDE INDIVIDUAL ACCOUNTS, JOINT ACCOUNTS,
          UGMA/UTMA ACCOUNTS, PERSONAL TRUSTS, COVERDELL EDUCATION SAVINGS
          ACCOUNTS, IRAS (INCLUDING TRADITIONAL, ROTH, ROLLOVER, SEP-,
          SARSEP- AND SIMPLE-IRAS), AND CERTAIN OTHER RETIREMENT ACCOUNTS.
          IF YOU HAVE ONLY BUSINESS, BUSINESS RETIREMENT, EMPLOYER-SPONSORED
          OR AMERICAN CENTURY BROKERAGE ACCOUNTS, YOU ARE CURRENTLY NOT
          SUBJECT TO THIS FEE, BUT YOU MAY BE SUBJECT TO OTHER FEES.


WIRE PURCHASES

CURRENT INVESTORS: If you would like to make a wire purchase into an existing
account, your bank will need the following information. (To invest in a new
fund, please call us first to set up the new account.)

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

NEW INVESTORS: To make a wire purchase into a new account, please complete an
application prior to wiring money.


- ------
14


WAYS TO MANAGE YOUR ACCOUNT

ONLINE

americancentury.com

OPEN AN ACCOUNT: If you are a current or new investor, you can open an account
by completing and submitting our online application. Current investors also can
open an account by exchanging shares from another American Century account.

EXCHANGE SHARES: Exchange shares from another American Century account.

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

SELL SHARES*: Redeem shares and proceeds will be electronically transferred to
your authorized bank account.

* ONLINE REDEMPTIONS UP TO $25,000 PER DAY.

IN PERSON

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

* 4500 Main Street, Kansas City, Missouri - 8 a.m. to 5 p.m., Monday - Friday

* 4917 Town Center Drive, Leawood, Kansas - 8 a.m. to 5 p.m., Monday - Friday,
  8 a.m. to noon, Saturday

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

BY TELEPHONE

INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021

INSTITUTIONAL SERVICE REPRESENTATIVE: 1-800-345-3533

BUSINESS, NOT-FOR-PROFIT AND EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533

AUTOMATED INFORMATION LINE: 1-800-345-8765

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

EXCHANGE SHARES: Call or use our Automated Information Line if you have
authorized us to accept telephone instructions. The Automated Information Line
is available only to Investor Class shareholders.

MAKE ADDITIONAL INVESTMENTS: Call or use our Automated Information Line if you
have authorized us to invest from your bank account. The Automated Information
Line is available only to Investor Class shareholders.

SELL SHARES: Call a Service Representative.

BY MAIL OR FAX

P.O. Box 419200, Kansas City, MO 64141-6200 - Fax: 816-340-7962

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

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

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

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

AUTOMATICALLY

OPEN AN ACCOUNT: Not available.

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

MAKE ADDITIONAL INVESTMENTS: With the automatic investment service, you can
purchase shares on a regular basis. You must invest at least $50 per month per
account.

SELL SHARES: You may sell shares automatically by establishing Check-A-Month or
Automatic Redemption plans.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


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15


INVESTING THROUGH A FINANCIAL INTERMEDIARY

The Advisor Class shares are intended for purchase by participants in
employer-sponsored retirement plans and for persons purchasing shares through
FINANCIAL INTERMEDIARIES that provide various administrative and distribution
services. For more information regarding employer-sponsored retirement plan
types, please see BUYING AND SELLING FUND SHARES in the statement of additional
information.


          [graphic of triangle]

          FINANCIAL INTERMEDIARIES INCLUDE BANKS, BROKER-DEALERS, INSURANCE
          COMPANIES, PLAN SPONSORS AND FINANCIAL PROFESSIONALS.

Your ability to purchase, exchange, redeem and transfer shares will be affected
by the policies of the financial intermediary through which you do business.
Some policy differences may include

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

In addition, your financial intermediary may charge a transaction fee for the
purchase or sale of fund shares. Those charges are retained by the financial
intermediary and are not shared with American Century or the fund. Please
contact your financial intermediary or plan sponsor for a complete description
of its policies. Copies of the fund's annual report, semiannual report and
statement of additional information are available from your financial
intermediary or plan sponsor.

The fund has authorized certain financial intermediaries to accept orders on the
fund's behalf. American Century has selling agreements with these financial
intermediaries requiring them to track the time investment orders are received
and to comply with procedures relating to the transmission of orders. Orders
must be received by the financial intermediary on the fund's behalf before the
time the net asset value is determined in order to receive that day's share
price. If those orders are transmitted to American Century and paid for in
accordance with the selling agreement, they will be priced at the net asset
value next determined after your request is received in the form required by the
financial intermediary.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
16


ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT

MINIMUM INITIAL INVESTMENT AMOUNTS (OTHER THAN INSTITUTIONAL CLASS)

Unless otherwise specified below, the minimum initial investment amount to open
an account is $2,500. Financial intermediaries may open an account with $250,
but may require their clients to meet different investment minimums. See
INVESTING THROUGH A FINANCIAL INTERMEDIARY for more information.

- --------------------------------------------------------------------------------
Broker-dealer sponsored wrap program                                  No minimum
accounts and/or fee-based accounts
- --------------------------------------------------------------------------------
Coverdell Education Savings Account (CESA)                            $2,000(1)
- --------------------------------------------------------------------------------
Employer-sponsored retirement plans                                   No minimum
- --------------------------------------------------------------------------------

(1)  THE MINIMUM INITIAL INVESTMENT FOR FINANCIAL INTERMEDIARIES IS $250.
     FINANCIAL INTERMEDIARIES MAY HAVE DIFFERENT MINIMUMS FOR THEIR CLIENTS.

SUBSEQUENT PURCHASES

There is a $50 minimum for subsequent purchases. See WAYS TO MANAGE YOUR ACCOUNT
for more information about making additional investments directly with American
Century. However, there is no subsequent purchase minimum for financial
intermediaries or employer-sponsored retirement plans, but financial
intermediaries may require their clients to meet different subsequent purchase
requirements.

ELIGIBILITY FOR INSTITUTIONAL CLASS SHARES

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

MINIMUM INITIAL INVESTMENT AMOUNTS (INSTITUTIONAL CLASS)

The minimum initial investment amount is $5 million ($3 million for endowments
and foundations) per fund. If you invest with us through a financial
intermediary, this requirement may be met if your financial intermediary
aggregates your investments with those of other clients into a single group, or
omnibus, account that meets the minimum. The minimum investment requirement may
be waived if you, or your financial intermediary if you invest through an
omnibus account, have an aggregate investment in our family of funds of $10
million or more ($5 million for endowments and foundations). In addition,
financial intermediaries or plan recordkeepers may require retirement plans to
meet certain other conditions, such as plan size or a minimum level of assets
per participant, in order to be eligible to purchase Institutional Class shares.

ELIGIBILITY FOR ADVISOR CLASS SHARES

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



- ------
17


REDEMPTIONS

Your redemption proceeds will be calculated using the NET ASSET VALUE (NAV) next
determined after we receive your transaction request in good order.

          [graphic of triangle]

          A FUND'S NET ASSET VALUE, OR NAV, IS THE PRICE OF THE FUND'S SHARES.

However, we reserve the right to delay delivery of redemption proceeds up to
seven days. For example, each time you make an investment with American Century,
there is a seven-day holding period before we will release redemption proceeds
from those shares, unless you provide us with satisfactory proof that your
purchase funds have cleared. Investments by wire generally require only a
one-day holding period. If you change your address, we may require that any
redemption request made within 15 days be submitted in writing and be signed by
all authorized signers with their signatures guaranteed. If you change your bank
information, we may impose a 15-day holding period before we will transfer or
wire redemption proceeds to your bank. Please remember, if you request
redemptions by wire, $10 will be deducted from the amount redeemed. Your bank
also may charge a fee.

In addition, we reserve the right to honor certain redemptions with securities,
rather than cash, as described in the next section.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the value of a fund's assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. The portfolio
managers would select these securities from the fund's portfolio.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, you may have to pay
brokerage or other transaction costs to convert the securities to cash.

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

REDEMPTION OF SHARES IN ACCOUNTS BELOW MINIMUM

If your account balance falls below the minimum initial investment amount for
any reason other than as a result of market fluctuation, American Century
reserves the right to redeem the shares in the account and send the proceeds to
your address of record. Prior to doing so, we will notify you and give you 90
days to meet the minimum. Please note that you may incur tax liability as a
result of the redemption. For Institutional Class shares, we reserve the right
to convert your shares to Investor Class shares of the same fund. The Investor
Class shares have a unified management fee that is 0.20% higher than the
Institutional Class.

SIGNATURE GUARANTEES

A signature guarantee - which is different from a notarized signature - is a
warranty that the signature presented is genuine. We may require a signature
guarantee for the following transactions.


- ------
18


*  You have chosen to conduct business in writing only and would like to
   redeem over $100,000.

*  Your redemption or distribution check, Check-A-Month or automatic
   redemption is made payable to someone other than the account owners.

*  Your redemption proceeds or distribution amount is sent by EFT (ACH or
   wire) to a destination other than your personal bank account.

*  You are transferring ownership of an account over $100,000.

*  You change your address and request a redemption over $100,000 within 15
   days.

*  You change your bank information and request a redemption within 15 days.

We reserve the right to require a signature guarantee for other transactions, at
our discretion.

MODIFYING OR CANCELING AN INVESTMENT

Investment instructions are irrevocable. That means that once you have mailed or
otherwise transmitted your investment instruction, you may not modify or cancel
it. Each fund reserves the right to suspend the offering of shares for a period
of time and to reject any specific investment (including a purchase by
exchange). Additionally, we may refuse a purchase if, in our judgment, it is of
a size that would disrupt the management of a fund.

ABUSIVE TRADING PRACTICES

Short-term trading and other so-called market timing practices are not defined
or explicitly prohibited by any federal or state law. However, short-term
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of short-term
trading activity is significant relative to a fund's net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund's performance could be negatively impacted by the increased trading costs
created by short-term trading if the additional trading costs are significant.

Because of the potentially harmful effects of abusive trading practices, the
fund's Board of Directors has approved American Century's abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
imposing redemption fees on certain funds, and using fair value pricing when
current market prices are not readily available. Although these efforts are
designed to discourage abusive trading practices, they cannot eliminate the
possibility that such activity will occur. American Century seeks to exercise
its judgment in implementing these tools to the best of its ability in a manner
that it believes is consistent with shareholder interests.

American Century uses a variety of techniques to monitor for and detect abusive
trading practices. These techniques may vary depending on the type of fund, the
class of shares or whether the shares are held directly or indirectly with
American Century. They may change from time to time as determined by American
Century in its sole discretion. To minimize harm to the funds and their
shareholders, we reserve the right to reject any purchase order (including
exchanges) from any shareholder we believe has a history of abusive trading or
whose trading, in our judgment, has been or may be disruptive to the funds. In
making this judgment, we may consider trading done in multiple accounts under
common ownership or control.

Currently, for shares held directly with American Century, we may deem the sale
of all or a substantial portion of a shareholder's purchase of fund shares to be
abusive if the sale is made

* within seven days of the purchase, or

* within 30 days of the purchase, if it happens more than once per year.


- ------
19


To the extent practicable, we try to use the same approach for defining abusive
trading for shares held through financial intermediaries. American Century
reserves the right, in its sole discretion, to identify other trading practices
as abusive and to modify its monitoring and other practices as necessary to deal
with novel or unique abusive trading practices.

In addition, American Century reserves the right to accept purchases and
exchanges in excess of the trading restrictions discussed above if it believes
that such transactions would not be inconsistent with the best interests of fund
shareholders or this policy.

American Century's policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American Century handles, there can be no assurance that American
Century's efforts will identify all trades or trading practices that may be
considered abusive. In addition, American Century's ability to monitor trades
that are placed by individual shareholders within group, or omnibus, accounts
maintained by financial intermediaries is severely limited because American
Century generally does not have access to the underlying shareholder account
information. However, American Century monitors aggregate trades placed in
omnibus accounts and seeks to work with financial intermediaries to discourage
shareholders from engaging in abusive trading practices and to impose
restrictions on excessive trades. There may be limitations on the ability of
financial intermediaries to impose restrictions on the trading practices of
their clients. As a result, American Century's ability to monitor and discourage
abusive trading practices in omnibus accounts may be limited.

YOUR RESPONSIBILITY FOR UNAUTHORIZED TRANSACTIONS

American Century and its affiliated companies use procedures reasonably designed
to confirm that telephone, electronic and other instructions are genuine. These
procedures include recording telephone calls, requesting personalized security
codes or other information, and sending confirmation of transactions. If we
follow these procedures, we are not responsible for any losses that may occur
due to unauthorized instructions. For transactions conducted over the Internet,
we recommend the use of a secure Internet browser. In addition, you should
verify the accuracy of your confirmation statements immediately after you
receive them.

A NOTE ABOUT MAILINGS TO SHAREHOLDERS

To reduce the amount of mail you receive from us, we may deliver a single copy
of certain investor documents (such as shareholder reports and prospectuses) to
investors who share an address, even if accounts are registered under different
names. If you prefer to receive multiple copies of these documents individually
addressed, please call us or your financial professional. For American Century
Brokerage accounts, please call 1-888-345-2071.

RIGHT TO CHANGE POLICIES

We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups. In addition, from time to time we may
waive a policy on a case-by-case basis, as the advisor deems appropriate.


- ------
20


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century will price the fund shares you purchase, exchange or redeem at
the net asset value (NAV) next determined after your order is received and
accepted by the fund's transfer agent, or other financial intermediary with the
authority to accept orders on the fund's behalf. We determine the NAV of the
fund as of the close of regular trading (usually 4 p.m. Eastern time) on the New
York Stock Exchange (NYSE) on each day the NYSE is open. On days when the NYSE
is closed (including certain U.S. national holidays), we do not calculate the
NAV. The fund's NAV is the current value of the fund's assets, minus any
liabilities, divided by the number of shares outstanding.

The fund values portfolio securities for which market quotations are readily
available at their market price. As a general rule, equity securities listed on
a U.S. exchange are valued at the last current reported sale price as of the
time of valuation. Securities listed on the NASDAQ National Market System
(Nasdaq) are valued at the Nasdaq Official Closing Price (NOCP), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the
time of valuation. The fund may use pricing services to assist in the
determination of market value. Unlisted securities for which market quotations
are readily available are valued at the last quoted sale price or the last
quoted ask price, as applicable, except that debt obligations with 60 days or
less remaining until maturity may be valued at amortized cost. Exchange-traded
options, futures and options on futures are valued at the settlement price as
determined by the appropriate clearing corporation.

If the fund determines that the market price for a portfolio security is not
readily available or that the valuation methods mentioned above do not reflect
the security's fair value, such security is valued at its fair value as
determined in good faith by, or in accordance with procedures adopted by, the
fund's board or its designee (a process referred to as "fair valuing" the
security). Circumstances that may cause the fund to fair value a security
include, but are not limited to:

*  if, after the close of the foreign exchange on which a portfolio security
   is principally traded, but before the close of the NYSE, an event occurs that
   may materially affect the value of the security;

*  a debt security has been declared in default; or

*  trading in a security has been halted during the trading day.

If such circumstances occur, the fund will fair value the security if the fair
valuation would materially impact the fund's NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with procedures adopted by
the fund's board.

The effect of using fair value determinations is that the fund's NAV will be
based, to some degree, on security valuations that the board or its designee
believes are fair rather than being solely determined by the market.

With respect to any portion of the fund's assets that are invested in one or
more open-end management investment companies that are registered with the SEC
(known as registered investment companies or RICs), the fund's NAV will be
calculated based upon the NAVs of such RICs. These RICs are required by law to
explain the circumstances under which they will use fair value pricing and the
effects of using fair value pricing in their prospectuses.


- ------
21


Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based on the prevailing exchange rates on that day.

Trading of securities in foreign markets may not take place every day the NYSE
is open. Also, trading in some foreign markets and on some electronic trading
networks may take place on weekends or holidays when the fund's NAV is not
calculated. So, the value of the fund's portfolio may be affected on days when
you will not be able to purchase, exchange or redeem fund shares.

DISTRIBUTIONS

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

          [graphic of triangle]

          CAPITAL GAINS ARE INCREASES IN THE VALUES OF CAPITAL ASSETS, SUCH AS
          STOCK, FROM THE TIME THE ASSETS ARE PURCHASED.

Balanced pays distributions from net income quarterly and generally pays
distributions from realized capital gains, if any, once a year in December. The
fund may make more frequent distributions, if necessary, to comply with Internal
Revenue Code provisions.

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

Participants in tax-deferred retirement plans must reinvest all distributions.
For investors investing through taxable accounts, we will reinvest distributions
unless you elect to have dividends and/or capital gains sent to another American
Century account, to your bank electronically, or to your home address or to
another person or address by check.


- ------
22


TAXES

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

Tax-Deferred Accounts

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

Taxable Accounts

If you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund shares.

Taxability of Distributions

Fund distributions may consist of income, such as dividends and interest earned
by a fund from its investments, or capital gains generated by a fund from the
sale of investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as QUALIFIED DIVIDEND INCOME and you meet a
minimum required holding period with respect to your shares of the fund, in
which case distributions of income are taxed as long-term capital gains.

          [graphic of triangle]

          QUALIFIED DIVIDEND INCOME IS A DIVIDEND RECEIVED BY A FUND FROM
          THE STOCK OF A DOMESTIC OR QUALIFYING FOREIGN CORPORATION,
          PROVIDED THAT THE FUND HAS HELD THE STOCK FOR A REQUIRED
          HOLDING PERIOD.

For capital gains and for income distributions designated as qualified dividend
income, the following rates apply:

                                   TAX RATE FOR 10%           TAX RATE FOR
TYPE OF DISTRIBUTION               AND 15% BRACKETS           ALL OTHER BRACKETS
- --------------------------------------------------------------------------------
Short-term capital gains           Ordinary Income            Ordinary Income
- --------------------------------------------------------------------------------
Long-term capital gains
(> 1 year) and Qualified
Dividend Income                    5%                         15%
- --------------------------------------------------------------------------------

If the fund's distributions exceed its taxable income and capital gains realized
during the tax year, all or a portion of the distributions made by the fund in
that tax year will be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.



- ------
23


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

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

Taxes on Transactions

Your redemptions -- including exchanges to other American Century funds -- are
subject to capital gains tax. The table above can provide a general guide for
your potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss. However, you should note that loss realized upon the
sale or exchange of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain to you with respect to those shares. If a loss is realized on the
redemption of fund shares, the reinvestment in additional fund shares within 30
days before or after the redemption may be subject to the wash sale rules of the
Internal Revenue Code. This may result in a postponement of the recognition of
such loss for federal income tax purposes.

If you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.

Buying a Dividend

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

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

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


- ------
24


MULTIPLE CLASS INFORMATION

American Century offers three classes of shares of the fund: Investor Class,
Institutional Class and Advisor Class.

The classes have different fees, expenses and/or minimum investment
requirements. The difference in the fee structures between the classes is the
result of their separate arrangements for shareholder and distribution services.
It is not the result of any difference in advisory or custodial fees or other
expenses related to the management of the fund's assets, which do not vary by
class. Different fees and expenses will affect performance.

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

Service, Distribution and Administrative Fees

Investment Company Act Rule 12b-1 permits mutual funds that adopt a written plan
to pay certain expenses associated with the distribution of their shares out of
fund assets. The Advisor Class offered by this prospectus has a 12b-1 plan.
Under the Advisor Class Plan, the fund's Advisor Class pays the distributor an
annual fee of 0.50% of Advisor Class average net assets, half for certain
ongoing shareholder and administrative services and half for distribution
services, including past distribution services. The distributor pays all or a
portion of such fees to the investment advisors, banks, broker-dealers and
insurance companies that make Advisor Class shares available. Because these fees
are used to pay for services that are not related to prospective sales of the
fund, the Advisor Class will continue to make payments under its plan even if it
is closed to new investors. Because these fees are paid out of the fund's assets
on an ongoing basis, over time these fees will increase the cost of your
investment and may cost you more than paying other types of sales charges. For
additional information about the Plan and its terms, see MULTIPLE CLASS
STRUCTURE in the statement of additional information.

Certain financial intermediaries perform recordkeeping and administrative
services for their clients that would otherwise be performed by American
Century's transfer agent. In some circumstances, the advisor will pay such
service providers a fee for performing those services. Also, the advisor and the
fund's distributor may make payments for various additional services or other
expenses out of their profits or other available sources. Such payments may be
made for one or more of the following: (1) distribution services, which include
expenses incurred by intermediaries for their sales activities with respect to
the fund, such as preparing, printing and distributing sales literature and
advertising materials and compensating registered representatives or other
employees of such financial intermediary for their sales activities, (2)
shareholder services, such as providing individual and custom investment
advisory services to clients of the financial intermediary; and (3) marketing
and promotional services, including business planning assistance, educating
personnel about the fund, and sponsorship of sales meetings, which may include
covering costs of providing speakers, meals and other entertainment. The
distributor may sponsor seminars and conferences designed to educate
intermediaries about the fund and may cover the expenses associated with
attendance at such meetings, including travel costs. These payments and
activities are intended to provide an incentive to intermediaries to sell the
fund by ensuring that they are educated about the fund, and to help such
intermediaries defray costs associated with offering the fund. The amount of any
payments described by this paragraph is determined by the advisor or the
distributor, and all such amounts are paid out of the available assets of the
advisor and distributor, and not by you or the fund. As a result, the total
expense ratio of the fund will not be affected by any such payments.



- ------
25


FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The tables on the next few pages itemize what contributed to the changes in
share price during the most recently ended fiscal year. They also show the
changes in share price for this period in comparison to changes over the last
five fiscal years.

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

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

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

*  TOTAL RETURN -- the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO -- the operating expenses of the fund as a percentage of
   average net assets

*  NET INCOME RATIO -- the net investment income of the fund as a percentage
   of average net assets

*  PORTFOLIO TURNOVER -- the percentage of the fund's investment portfolio
   that is replaced during the period

The Financial Highlights that follow have been audited by Deloitte & Touche LLP.
The fund's Report of Independent Registered Public Accounting Firm and the
financial statements are included in the fund's annual report, which is
available upon request.



- ------
26


BALANCED FUND

Investor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31

- -------------------------------------------------------------------------------------------
                                             2006       2005      2004     2003     2002
- -------------------------------------------------------------------------------------------
PER-SHARE DATA
- -------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period         $16.52     $15.73    $14.77   $12.98   $14.28
- -------------------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(1)           0.35       0.31      0.26     0.27     0.35
- ----------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                    1.40       0.77      0.98     1.77     (1.30)
- -------------------------------------------------------------------------------------------
   Total From Investment Operations          1.75       1.08      1.24     2.04     (0.95)
- -------------------------------------------------------------------------------------------
Distributions
- ----------------------------------------
   From Net Investment Income                (0.35)     (0.29)    (0.28)   (0.25)   (0.35)
- ----------------------------------------
   From Net Realized Gains                   (0.89)       --         --       --       --
- -------------------------------------------------------------------------------------------
   Total Distributions                       (1.24)     (0.29)    (0.28)   (0.25)   (0.35)
- -------------------------------------------------------------------------------------------
Net Asset Value, End of Period               $17.03     $16.52    $15.73   $14.77   $12.98
===========================================================================================
   TOTAL RETURN(2)                           11.04%     6.89%     8.46%    15.92%   (6.80)%

RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                        0.90%      0.90%     0.90%    0.90%    0.90%
- ----------------------------------------
Ratio of Net Investment Income (Loss)
to Average Net Assets                        2.13%      1.89%     1.65%    1.96%    2.46%
- ----------------------------------------
Portfolio Turnover Rate                      197%       206%      204%     133%     108%
- ----------------------------------------
Net Assets, End of Period (in millions)      $637       $615      $595     $583     $541
- -------------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES
     WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD
     MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET
     ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC
     GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE
     CLASS AND ANOTHER.


- ------
27


BALANCED FUND

Institutional Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31

- -------------------------------------------------------------------------------------------
                                         2006       2005       2004      2003      2002
- -------------------------------------------------------------------------------------------
PER-SHARE DATA
- -------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period     $16.53     $15.73     $14.78    $12.99    $14.28
- -------------------------------------------------------------------------------------------
Income From Investment Operations
- -------------------------------------
   Net Investment Income (Loss)(1)       0.38       0.33       0.28      0.41      0.37
- -------------------------------------
   Net Realized and                      1.40       0.80       0.98      1.66      (1.29)
   Unrealized Gain (Loss)
- -------------------------------------------------------------------------------------------
   Total From Investment Operations      1.78       1.13       1.26      2.07      (0.92)
- -------------------------------------------------------------------------------------------
Distributions
- -------------------------------------
   From Net Investment Income            (0.38)     (0.33)     (0.31)    (0.28)    (0.37)
- -------------------------------------
   From Net Realized Gains               (0.89)        --         --        --        --
- -------------------------------------------------------------------------------------------
   Total Distributions                   (1.27)     (0.33)     (0.31)    (0.28)    (0.37)
- -------------------------------------------------------------------------------------------
Net Asset Value, End of Period           $17.04     $16.53     $15.73    $14.78    $12.99
===========================================================================================
   TOTAL RETURN(2)                       11.26%     7.17%      8.61%     16.13%    (6.54)%

RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                    0.70%      0.70%      0.70%     0.70%     0.70%
- -------------------------------------
Ratio of Net Investment
Income (Loss)
to Average Net Assets                    2.33%      2.09%      1.85%     2.16%     2.66%
- -------------------------------------
Portfolio Turnover Rate                  197%       206%       204%      133%      108%
- -------------------------------------
Net Assets, End of Period
(in thousands)                           $1,228     $1,237     $225      $155      $16,245
- -------------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET
     VALUES WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN
     DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES.
     THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN
     ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS
     OF VALUE BETWEEN ONE CLASS AND ANOTHER.


- ------
28


BALANCED FUND

Advisor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31

- -------------------------------------------------------------------------------------------
                                          2006       2005      2004       2003     2002
- -------------------------------------------------------------------------------------------
PER-SHARE DATA
- -------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period      $16.52     $15.72    $14.77     $12.97   $14.27
- -------------------------------------------------------------------------------------------
Income From Investment Operations
- -------------------------------------
   Net Investment Income (Loss)(1)        0.31       0.27      0.22       0.22     0.31
- -------------------------------------
   Net Realized and                       1.39       0.78      0.97       1.80     (1.30)
   Unrealized Gain (Loss)
- -------------------------------------------------------------------------------------------
   Total From Investment Operations       1.70       1.05      1.19       2.02     (0.99)
- -------------------------------------------------------------------------------------------
Distributions
- -------------------------------------
   From Net Investment Income             (0.31)     (0.25)    (0.24)     (0.22)   (0.31)
- -------------------------------------
   From Net Realized Gains                (0.89)        --        --         --       --
- -------------------------------------------------------------------------------------------
   Total Distributions                    (1.20)     (0.25)    (0.24)     (0.22)   (0.31)
- -------------------------------------------------------------------------------------------
Net Asset Value, End of Period            $17.02     $16.52    $15.72     $14.77   $12.97
===========================================================================================
   TOTAL RETURN(2)                        10.71%     6.70%     8.11%      15.74%   (7.04)%

RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                     1.15%      1.15%     1.15%      1.15%    1.15%
- -------------------------------------
Ratio of Net Investment Income (Loss)
to Average Net Assets                     1.88%      1.64%     1.40%      1.71%    2.21%
- -------------------------------------
Portfolio Turnover Rate                   197%       206%      204%       133%     108%
- -------------------------------------
Net Assets, End of Period
(in thousands)                            $15,889    $16,189   $16,439    $17,482  $13,985
- -------------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES
     WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD
     MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET
     ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC
     GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE
     CLASS AND ANOTHER.


- ------
29


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

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

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

IN PERSON           SEC Public Reference Room, Washington, D.C.
                    Call 202-942-8090 for location and hours.

ON THE INTERNET     * EDGAR database at sec.gov
                    * By email request at publicinfo@sec.gov

BY MAIL             SEC Public Reference Section
                    Washington, D.C. 20549-0102


This prospectus shall not constitute an offer to sell securities of the fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or qualified for sale, unless such registration or qualification
is not required, or under any circumstances in which such offer or solicitation
would be unlawful.

                                                                     NEWSPAPER
FUND REFERENCE                  FUND CODE           TICKER           LISTING
- --------------------------------------------------------------------------------
Balanced Fund
  Investor Class                031                 TWBIX            Balanced
- --------------------------------------------------------------------------------
  Institutional Class           331                 ABINX            Balanced
- --------------------------------------------------------------------------------
  Advisor Class                 731                 TWBAX            Balanced
- --------------------------------------------------------------------------------

Investment Company Act File No. 811-0816

AMERICAN CENTURY INVESTMENTS
americancentury.com

                                    Banks and Trust Companies, Broker-Dealers,
Self-Directed Retail Investors      Financial Professionals, Insurance Companies
P.O. Box 419200                     P.O. Box 419786
Kansas City, Missouri 64141-6200    Kansas City, Missouri 64141-6786
1-800-345-2021 or 816-531-5575      1-800-345-6488

0703
SH-PRS-52518













AMERICAN CENTURY INVESTMENTS

Prospectus


March 1, 2007


Veedot® Fund

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

American Century Investment
Services, Inc., Distributor

[american century investments logo and text logo]





Table of Contents

AN OVERVIEW OF THE FUND . . . . . . . . . . . . . . . . . . . . . . . 2

FUND PERFORMANCE HISTORY. . . . . . . . . . . . . . . . . . . . . . . 4

FEES AND EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . 6

OBJECTIVES, STRATEGIES AND RISKS. . . . . . . . . . . . . . . . . . . 7

MANAGEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

INVESTING DIRECTLY WITH AMERICAN CENTURY. . . . . . . . . . . . . . .11

INVESTING THROUGH A FINANCIAL INTERMEDIARY. . . . . . . . . . . . . .13

ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT . . . . . . . . . . . .15

SHARE PRICE AND DISTRIBUTIONS . . . . . . . . . . . . . . . . . . . .19

TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

MULTIPLE CLASS INFORMATION. . . . . . . . . . . . . . . . . . . . . .23

FINANCIAL HIGHLIGHTS. . . . . . . . . . . . . . . . . . . . . . . . .24


        [GRAPHIC OF TRIANGLE]
        THIS SYMBOL IS USED THROUGHOUT THE BOOK TO HIGHLIGHT DEFINITIONS OF KEY
        INVESTMENT TERMS AND TO PROVIDE OTHER HELPFUL INFORMATION.

American Century Investment Services, Inc., Distributor

©2007 American Century Proprietary Holdings, Inc. All rights reserved.

The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.




AN OVERVIEW OF THE FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

The portfolio manager looks for stocks of companies he believes will increase in
value over time, using an investment strategy developed by American Century. In
implementing this strategy, the portfolio manager makes his investment decisions
based primarily on his analysis of individual companies, rather than on broad
economic forecasts. Management of the fund is based on the belief that, over the
long term, stock price movements follow growth in earnings, revenues and/or cash
flow.

The portfolio manager uses an approach to common stock investing designed to
identify companies, regardless of size, industry type or geographic location,
that are growing at an accelerating rate and whose share price patterns suggest
their stocks are likely to increase in value.

The fund's principal risks include

*  GROWTH STOCKS - Investments in growth stocks may involve special risks and
   their prices may fluctuate more dramatically than the overall stock market.

*  INVESTMENT PROCESS - There is also risk associated with reliance on the
   fund's computer-based investment process. If the investment style embedded in
   this process falls out of favor with the market, the fund's performance may
   suffer.

*  NONDIVERSIFICATION - The fund is classified as NONDIVERSIFIED. This gives
   the portfolio manager the flexibility to hold large positions in a small
   number of securities. If so, a price change in any one of those securities
   may have a greater impact on the fund's share prices than would be the case
   in a diversified fund.

        [GRAPHIC OF TRIANGLE]

        A NONDIVERSIFIED FUND MAY INVEST A GREATER PERCENTAGE OF ITS ASSETS IN A
        SMALLER NUMBER OF SECURITIES THAN A DIVERSIFIED FUND.

*  HIGH TURNOVER - The fund's PORTFOLIO TURNOVER may be unusually high. This
   could result in relatively high commission costs, which could hurt the fund's
   performance, and capital gains tax liabilities for the fund's shareholders.

        [GRAPHIC OF TRIANGLE]

        PORTFOLIO TURNOVER IS A MEASURE OF HOW FREQUENTLY A FUND BUYS AND SELLS
        PORTFOLIO SECURITIES.


- ------
2


*  FOREIGN SECURITIES - The fund may invest in foreign securities, which can
   be riskier than investing in U.S. securities.

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

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

*  PRINCIPAL LOSS - At any given time your shares may be worth less than the
   price you paid for them. In other words, it is possible to lose money by
   investing in the fund.

A more detailed description of the fund's investment strategies and risks may be
found under the heading OBJECTIVES, STRATEGIES AND RISKS, which begins on page
7.

    [GRAPHIC OF TRIANGLE]

    AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT, AND IT IS NOT INSURED OR
    GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER
    GOVERNMENT AGENCY.


- ------
3


FUND PERFORMANCE HISTORY

Annual Total Returns

The following bar chart shows the performance of the fund's Investor Class
shares for each full calendar year in the life of the class. It indicates the
volatility of the fund's historical returns from year to year. Account fees are
not reflected in the chart below. If they had been included, returns would be
lower than those shown. The returns of the fund's other class of shares will
differ from those shown in the chart, depending on the expenses of that class.

VEEDOT FUND - INVESTOR CLASS

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

                          HIGHEST                             LOWEST
- --------------------------------------------------------------------------------
Veedot                    25.17% (1Q 2000)                    -17.98% (1Q 2001)
- --------------------------------------------------------------------------------

Average Annual Total Returns

The following table shows the average annual total returns of the fund's
Investor Class shares calculated three different ways. An additional table shows
the average annual total returns of the fund's other share class calculated
before the impact of taxes.

Return Before Taxes shows the actual change in the value of fund shares over the
time periods shown, but does not reflect the impact of taxes on fund
distributions or the sale of fund shares. The two after-tax returns take into
account taxes that may be associated with owning fund shares. Return After Taxes
on Distributions is a fund's actual performance, adjusted by the effect of taxes
on distributions made by the fund during the periods shown. Return After Taxes
on Distributions and Sale of Fund Shares is further adjusted to reflect the tax
impact on any change in the value of fund shares as if they had been sold on the
last day of the period.

After-tax returns are calculated using the historical highest federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-tax returns shown are not relevant to investors who hold fund
shares through tax-deferred arrangements such as 401(k) plans or IRAs. After-tax
returns are shown only for the Investor Class shares. After-tax returns for the
other share class will vary.


- ------
4


The benchmark is an unmanaged index that has no operating costs and is included
in each table for performance comparison.


INVESTOR CLASS
                                                                       LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR     5 YEARS    CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes(2)                           7.90%      6.65%      3.61%
Return After Taxes on Distributions              7.90%      6.65%      3.61%
Return After Taxes on Distributions
   and Sale of Fund Shares                       5.14%      5.75%      3.12%
Russell 3000® Index                              15.72%     7.17%      2.99%
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE INVESTOR CLASS IS NOVEMBER 30, 1999.

(2)  FUND RETURNS REFLECT THE DEDUCTION OF A 2% REDEMPTION FEE, INCURRED
     ONLY IF SHARES WERE REDEEMED WITHIN THE FIRST FIVE YEARS AFTER PURCHASE.
     HAD THE 2% REDEMPTION FEE NOT BEEN APPLIED, FUND RETURNS WOULD HAVE BEEN
     10.10% FOR THE 1-YEAR PERIOD. EFFECTIVE MARCH 1, 2007, THE 2% REDEMPTION
     FEE APPLIES ONLY TO SHARES REDEEMED WITHIN 180 DAYS AFTER PURCHASE.

INSTITUTIONAL CLASS
                                                                      LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes(2)                           8.13%     6.87%      0.97%
Russell 3000® Index                              15.72%    7.17%      2.45%(3)
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE INSTITUTIONAL CLASS IS AUGUST 1, 2000.

(2)  FUND RETURNS REFLECT THE DEDUCTION OF A 2% REDEMPTION FEE, INCURRED
     ONLY IF SHARES WERE REDEEMED WITHIN THE FIRST FIVE YEARS AFTER PURCHASE.
     HAD THE 2% REDEMPTION FEE NOT BEEN APPLIED, FUND RETURNS WOULD HAVE BEEN
     10.34% FOR THE 1-YEAR PERIOD. EFFECTIVE MARCH 1, 2007, THE 2% REDEMPTION
     FEE APPLIES ONLY TO SHARES REDEEMED WITHIN 180 DAYS AFTER PURCHASE.

(3)  SINCE JULY 31, 2000, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.

Performance information is designed to help you see how fund returns can vary.
Keep in mind that past performance (before and after taxes) does not predict how
a fund will perform in the future.

For current performance information, please call us or visit americancentury.com.


- ------
5


FEES AND EXPENSES

There are no sales loads, fees or other charges

*  to buy fund shares directly from American Century

*  to reinvest dividends in additional shares

The following tables describe the fees and expenses you may pay if you buy and
hold shares of the fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
- --------------------------------------------------------------------------------
Investor Class
   Maximum Account Maintenance Fee                                      $25(1)
- --------------------------------------------------------------------------------
Investor Class and Institutional Class
   Redemption/Exchange Fee (as a percentage                             2.00%(2)
   of amount redeemed/exchanged)
- --------------------------------------------------------------------------------

(1)  APPLIES ONLY TO INVESTORS WHOSE TOTAL ELIGIBLE INVESTMENTS WITH
     AMERICAN CENTURY ARE LESS THAN $10,000. SEE Account Maintenance Fee UNDER
     Investing Directly with American Century FOR MORE DETAILS.

(2)  APPLIES ONLY TO SHARES HELD FOR LESS THAN 180 DAYS, EXCLUDING SHARES
     PURCHASED THROUGH REINVESTED DIVIDENDS OR CAPITAL GAINS.


ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
                                DISTRIBUTION                   TOTAL ANNUAL
                  MANAGEMENT    AND SERVICE      OTHER         FUND OPERATING
                  FEE(1)(2)     (12B-1) FEES     EXPENSES(3)   EXPENSES
- --------------------------------------------------------------------------------
Investor          1.25%         None             0.00%         1.25%
Class
- --------------------------------------------------------------------------------
Institutional     1.05%         None             0.00%         1.05%
Class
- --------------------------------------------------------------------------------

(1)  THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR
     ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. THE FEE SHOWN IS
     BASED ON ASSETS DURING THE FUND'S MOST RECENT FISCAL YEAR. THE FUND HAS A
     STEPPED FEE SCHEDULE. AS A RESULT, THE FUND'S UNIFIED MANAGEMENT FEE RATE
     GENERALLY DECREASES AS STRATEGY ASSETS INCREASE AND INCREASES AS STRATEGY
     ASSETS DECREASE. FOR MORE INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE,
     INCLUDING AN EXPLANATION OF STRATEGY ASSETS, SEE The Investment Advisor
     UNDER Management.

(2)  THE EXPENSE INFORMATION HAS BEEN RESTATED TO REFLECT THE CURRENT
     MANAGEMENT FEE AMOUNT, WHICH WAS REDUCED EFFECTIVE AUGUST 1, 2006.

(3)  OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
     INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST, WERE
     LESS THAN 0.005% FOR THE MOST RECENT FISCAL YEAR.

EXAMPLE

The examples in the table below are intended to help you compare the costs of
investing in the fund with the costs of investing in other mutual funds. Of
course, your actual costs may be higher or lower. Assuming you . . .

*  invest $10,000 in the fund

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

*  earn a 5% return each year

*  incur the same operating expenses as shown above

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

                           1 YEAR        3 YEARS        5 YEARS        10 YEARS
- --------------------------------------------------------------------------------
Investor Class             $127          $395           $683           $1,503
- --------------------------------------------------------------------------------
Institutional Class        $107          $333           $577           $1,277
- --------------------------------------------------------------------------------



- ------
6


OBJECTIVES, STRATEGIES AND RISKS

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

The fund uses an approach to common stock investing developed by American
Century. This approach relies heavily on quantitative tools to identify
attractive investment opportunities, regardless of company size, industry type
or geographic location, on a disciplined, consistent basis.

These tools include a fundamental process that screens thousands of publicly
traded securities to identify those that meet the fund's proprietary
accelerating growth requirements.

The fund's methodology also attempts to identify companies whose share price
patterns suggest increasing or decreasing investor demand (commonly referred to
as technical analysis). This technical analysis is particularly oriented to
identifying attractive price patterns for companies whose earnings and revenues
are not only growing, but growing at an accelerating pace. This includes
companies whose growth rates, although still negative, are less negative than
prior periods, and companies whose growth rates are expected to accelerate.
These companies would be candidates for purchase. Conversely, companies whose
share price patterns suggest a likely decline in price would be candidates for
sale, if owned by the fund. On occasion, the process may look favorably on a
company whose share price pattern appears attractive even though the company
looks less attractive based on the growth screen.

Although the portfolio manager intends to invest the fund's assets in U.S.
companies, the fund may invest in securities of foreign companies, including
companies located in emerging markets. The fund will usually purchase common
stocks, but it can purchase other types of securities as well, such as U.S.
Government and other debt securities, preferred stock and equity-equivalent
securities, such as convertible securities, stock futures contracts or stock
index futures contracts. The fund generally limits its purchase of debt
securities to investment-grade obligations.

The portfolio manager does not attempt to time the market. Instead, he intends
to keep the fund essentially fully invested in stocks that meet the fund's
selection criteria. However, at the portfolio manager's discretion, the fund may
invest up to 100% of its assets in U.S. government securities if the fund's
investment methodology fails to generate sufficient investment ideas or to
respond to adverse market, economic, political or other conditions. The fund may
not achieve its investment objectives while taking such a temporary defensive
position.

A description of the policies and procedures with respect to the disclosure of
the fund's portfolio securities is available in the statement of additional
information.


- ------
7


WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?

Growth stocks are typically priced higher than other stocks, in relation to
earnings and other measures, because investors believe they have more growth
potential. This potential may or may not be realized and growth stock prices
tend to fluctuate more dramatically than the overall stock market.

The portfolio manager may buy a large amount of a company's stock quickly and
often will dispose of it quickly if it no longer meets his investment criteria.
While the portfolio manager believes this strategy provides substantial
appreciation potential over the long term, in the short term it can create a
significant amount of share price volatility. This volatility can be greater
than that of the average stock fund.

The fund is classified as nondiversified. This means that the fund's portfolio
manager may choose to invest in a relatively small number of securities. If so,
a price change in any one of these securities may have a greater impact on the
fund's share price than would be the case if the fund were diversified. Although
the fund's portfolio manager expects it will ordinarily satisfy the requirements
for a diversified fund, its nondiversified status gives him more flexibility to
invest heavily in the most attractive companies identified by the fund's
methodology.

The process driving the fund is specifically designed to respond quickly to
changing stock market conditions. As a result, the fund's portfolio turnover may
be significantly higher than that of many other funds. This heavy turnover,
perhaps as much as 200-400% per year or more, could result in relatively high
commission costs, which could hurt the fund's performance, and capital gains tax
liabilities for the fund's shareholders.

Although the portfolio manager intends to invest the fund's assets in U.S.
stocks, the fund may invest in securities of foreign companies. Foreign
investment involves additional risks, including fluctuations in currency
exchange rates, less stable political and economic structures, reduced
availability of public information, and lack of uniform financial reporting and
regulatory practices similar to those that apply in the United States. These
factors make investing in foreign securities generally riskier than investing in
U.S. stocks. To the extent the fund invests in foreign securities, the overall
risk of the fund could be affected.

Investing in securities of companies located in emerging market countries
generally is also riskier than investing in securities of companies located in
foreign developed countries. Emerging market countries may have unstable
governments and/or economies that are subject to sudden change. These changes
may be magnified by the countries' emergent financial markets, resulting in
significant volatility to investments in these countries. These countries also
may lack the legal, business and social framework to support securities markets.

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 style embedded in the fund's investment process, the fund's gains may not be
as big as, or its losses may be bigger than, other equity funds using different
investment styles.

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 a fund owns will go
up and down depending on the performance of the companies that issued them,
general market and economic conditions, and investor confidence.

At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the fund.


- ------
8


MANAGEMENT

WHO MANAGES THE FUND?

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

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than three-fourths of the directors are independent of the fund's advisor;
that is, they have never been employed by and have no financial interest in the
advisor or any of its affiliated companies (other than as shareholders of
American Century funds).

THE INVESTMENT ADVISOR

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

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

For the services it provides to the fund, the advisor receives a unified
management fee based on a percentage of the daily net assets of each class of
shares of the fund. The amount of the fee is calculated daily and paid monthly
in arrears. Out of that fee, the advisor pays all expenses of managing and
operating the fund except brokerage expenses, taxes, interest, fees and expenses
of the independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the fund's management fee may be paid by the fund's
advisor to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of the
advisor.

The rate of the fee is determined by applying a formula that takes into account
all of the advisor's assets under management in the fund's investment strategy
(strategy assets). Strategy assets include the assets of the fund as well as
certain assets of other clients of the advisor outside the American Century fund
family (such as subadvised funds and separate accounts) that use very similar
investment teams and strategies. The use of strategy assets, rather than fund
assets, in calculating the fund's fee rate could allow the fund to realize
scheduled cost savings more quickly. However, the fund's strategy assets
currently do not include assets of other client accounts. In addition, if such
assets are acquired in the future, they may not be sufficient to result in a
lower fee rate.

MANAGEMENT FEES PAID BY THE FUND
TO THE ADVISOR AS A PERCENTAGE OF
AVERAGE NET ASSETS FOR THE FISCAL            INVESTOR            INSTITUTIONAL
YEAR ENDED OCTOBER 31, 2006                  CLASS               CLASS
- --------------------------------------------------------------------------------
Veedot                                       1.45%               1.25%
- --------------------------------------------------------------------------------

A discussion regarding the basis for the Board of Directors' approval of the
fund's investment advisory contract with the advisor is available in the fund's
report to shareholders dated October 31, 2006.



- ------
9



THE FUND MANAGEMENT TEAM

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

The portfolio manager on the investment team who is primarily responsible for
the day-to-day management of the fund is:

JOHN T. SMALL JR.

Mr. Small, Vice President and Portfolio Manager, has been a member of the team
that manages the fund since its inception in November 1999. He joined American
Century in May 1991 and became a portfolio manager in February 1999. He has a
bachelor's degree in zoology from Rockford College, a master's degree in laser
optics physics from the Air Force Institute of Technology, and an MBA from Baker
University.

The statement of additional information provides additional information about
the other accounts managed by the portfolio manager, if any, the structure of
his compensation, and his ownership of fund securities.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the statement of additional
information and the investment objectives of the fund may not be changed without
shareholder approval. The Board of Directors and/or the advisor may change any
other policies and investment strategies.


- ------
10


INVESTING DIRECTLY WITH AMERICAN CENTURY

SERVICES AUTOMATICALLY AVAILABLE TO YOU

Most accounts automatically will have access to the services listed under WAYS
TO MANAGE YOUR ACCOUNT when the account is opened. If you do not want these
services, see CONDUCTING BUSINESS IN WRITING. If you have questions about the
services that apply to your account type, please call us.

CONDUCTING BUSINESS IN WRITING

If you prefer to conduct business in writing only, you can indicate this on the
account application. If you choose this option, you must provide written
instructions to invest, exchange and redeem. All account owners must sign
transaction instructions (with signatures guaranteed for redemptions in excess
of $100,000). By choosing this option, you are not eligible to enroll for
exclusive online account management to waive the account maintenance fee. See
ACCOUNT MAINTENANCE FEE in this section. If you want to add online and telephone
services later, you can complete an Investor Service Options form.

ACCOUNT MAINTENANCE FEE

If you hold Investor Class shares of any American Century fund, or Institutional
Class shares of the American Century Diversified Bond fund, in an American
Century account (i.e., not a financial intermediary or retirement plan account),
we may charge you a $12.50 semiannual account maintenance fee if the value of
those shares is less than $10,000. We will determine the amount of your total
eligible investments twice per year, generally the last Friday in October and
April. If the value of those investments is less than $10,000 at that time, we
will automatically redeem shares in one of your accounts to pay the $12.50 fee.
Please note that you may incur tax liability as a result of the redemption. In
determining your total eligible investment amount, we will include your
investments in all PERSONAL ACCOUNTS (including American Century Brokerage
accounts) registered under your Social Security number. We will not charge the
fee as long as you choose to manage your accounts exclusively online. You may
enroll for exclusive online account management on our Web site. To find out more
about exclusive online account management, visit americancentury.com/info/demo.

        [GRAPHIC OF TRIANGLE]

        PERSONAL ACCOUNTS INCLUDE INDIVIDUAL ACCOUNTS, JOINT ACCOUNTS, UGMA/UTMA
        ACCOUNTS, PERSONAL TRUSTS, COVERDELL EDUCATION SAVINGS ACCOUNTS, IRAS
        (INCLUDING TRADITIONAL, ROTH, ROLLOVER, SEP-, SARSEP- AND SIMPLE-IRAS),
        AND CERTAIN OTHER RETIREMENT ACCOUNTS. IF YOU HAVE ONLY BUSINESS,
        BUSINESS RETIREMENT, EMPLOYER-SPONSORED OR AMERICAN CENTURY BROKERAGE
        ACCOUNTS, YOU ARE CURRENTLY NOT SUBJECT TO THIS FEE, BUT YOU MAY BE
        SUBJECT TO OTHER FEES.

WIRE PURCHASES

CURRENT INVESTORS: If you would like to make a wire purchase into an existing
account, your bank will need the following information. (To invest in a new
fund, please call us first to set up the new account.)

*  American Century's bank information: Commerce Bank N.A., Routing No.
   101000019, Account No. 2804918

*  Your American Century account number and fund name

*  Your name

*  The contribution year (for IRAs only)

NEW INVESTORS: To make a wire purchase into a new account, please complete an
application prior to wiring money.


- ------
11


WAYS TO MANAGE YOUR ACCOUNT

ONLINE
- --------------------------------------------------------------------------------
americancentury.com

OPEN AN ACCOUNT: If you are a current or new investor, you can open an account
by completing and submitting our online application. Current investors also can
open an account by exchanging shares from another American Century account.

EXCHANGE SHARES: Exchange shares from another American Century account.

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

SELL SHARES*: Redeem shares and proceeds will be electronically transferred to
your authorized bank account.

* ONLINE REDEMPTIONS UP TO $25,000 PER DAY.

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

* 4500 Main Street, Kansas City, Missouri - 8 a.m. to 5 p.m., Monday - Friday

* 4917 Town Center Drive, Leawood, Kansas - 8 a.m. to 5 p.m., Monday - Friday,
  8 a.m. to noon, Saturday

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

BY TELEPHONE
- --------------------------------------------------------------------------------
INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021

BUSINESS, NOT-FOR-PROFIT AND EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533

AUTOMATED INFORMATION LINE: 1-800-345-8765

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

EXCHANGE SHARES: Call or use our Automated Information Line if you have
authorized us to accept telephone instructions. The Automated Information Line
is available only to Investor Class shareholders.

MAKE ADDITIONAL INVESTMENTS: Call or use our Automated Information Line if you
have authorized us to invest from your bank account. The Automated Information
Line is available only to Investor Class shareholders.

SELL SHARES: Call a Service Representative.

BY MAIL OR FAX
- --------------------------------------------------------------------------------
P.O. Box 419200, Kansas City, MO 64141-6200 - Fax: 816-340-7962

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

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

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

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

AUTOMATICALLY
- --------------------------------------------------------------------------------
OPEN AN ACCOUNT: Not available.

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

MAKE ADDITIONAL INVESTMENTS: With the automatic investment service, you can
purchase shares on a regular basis. You must invest at least $50 per month per
account.

SELL SHARES: You may sell shares automatically by establishing Check-A-Month or
Automatic Redemption plans.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
12


INVESTING THROUGH A FINANCIAL INTERMEDIARY

If you do business with us through a financial intermediary or a retirement
plan, your ability to purchase, exchange, redeem and transfer shares will be
affected by the policies of that entity. For more information regarding
employer-sponsored retirement plan types, please see BUYING AND SELLING FUND
SHARES in the statement of additional information.

Some policy differences may include

*  minimum investment requirements

*  exchange policies

*  fund choices

*  cutoff time for investments

*  trading restrictions

Please contact your FINANCIAL INTERMEDIARY or plan sponsor for a complete
description of its policies. Copies of the fund's annual report, semiannual
report and statement of additional information are available from your financial
intermediary or plan sponsor.

        [GRAPHIC OF TRIANGLE]

        FINANCIAL INTERMEDIARIES INCLUDE BANKS, BROKER-DEALERS, INSURANCE COMPANIES,
        PLAN SPONSORS AND FINANCIAL PROFESSIONALS.

Certain financial intermediaries perform recordkeeping and administrative
services for their clients that would otherwise be performed by American
Century's transfer agent. In some circumstances, the advisor will pay such
service providers a fee for performing those services. Also, the advisor and the
fund's distributor may make payments for various additional services or other
expenses out of their profits or other available sources. Such payments may be
made for one or more of the following: (1) distribution services, which include
expenses incurred by intermediaries for their sales activities with respect to
the fund, such as preparing, printing and distributing sales literature and
advertising materials and compensating registered representatives or other
employees of such financial intermediary for their sales activities; (2)
shareholder services, such as providing individual and custom investment
advisory services to clients of the financial intermediary; and (3) marketing
and promotional services, including business planning assistance, educating
personnel about the fund, and sponsorship of sales meetings, which may include
covering costs of providing speakers, meals and other entertainment. The
distributor may sponsor seminars and conferences designed to educate
intermediaries about the fund and may cover the expenses associated with
attendance at such meetings, including travel costs. These payments and
activities are intended to provide an incentive to intermediaries to sell the
fund by ensuring that they are educated about the fund, and to help such
intermediaries defray costs associated with offering the fund. The amount of any
payments described by this paragraph is determined by the advisor or the
distributor, and all such amounts are paid out of the available assets of the
advisor and distributor, and not by you or the fund. As a result, the total
expense ratio of the fund will not be affected by any such payments.


- ------
13


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

The fund has authorized certain financial intermediaries to accept orders on the
fund's behalf. American Century has selling agreements with these financial
intermediaries requiring them to track the time investment orders are received
and to comply with procedures relating to the transmission of orders. Orders
must be received by the financial intermediary on a fund's behalf before the
time the net asset value is determined in order to receive that day's share
price. If those orders are transmitted to American Century and paid for in
accordance with the selling agreement, they will be priced at the net asset
value next determined after your request is received in the form required by the
financial intermediary.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
14


ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT

MINIMUM INITIAL INVESTMENT AMOUNTS (OTHER THAN INSTITUTIONAL CLASS)

Unless otherwise specified below, the minimum initial investment amount to open
an account is $2,500. Financial intermediaries may open an account with $250,
but may require their clients to meet different investment minimums. See
INVESTING THROUGH A FINANCIAL INTERMEDIARY for more information.

- --------------------------------------------------------------------------------
Broker-dealer sponsored wrap program                                  No minimum
accounts and/or fee-based accounts
- --------------------------------------------------------------------------------
Coverdell Education Savings Account (CESA)                            $2,000(1)
- --------------------------------------------------------------------------------
Employer-sponsored retirement plans                                   No minimum
- --------------------------------------------------------------------------------

(1)  THE MINIMUM INITIAL INVESTMENT FOR FINANCIAL INTERMEDIARIES IS $250.
     FINANCIAL INTERMEDIARIES MAY HAVE DIFFERENT MINIMUMS FOR THEIR CLIENTS.

SUBSEQUENT PURCHASES

There is a $50 minimum for subsequent purchases. See WAYS TO MANAGE YOUR ACCOUNT
for more information about making additional investments directly with American
Century. However, there is no subsequent purchase minimum for financial
intermediaries or employer-sponsored retirement plans, but financial
intermediaries may require their clients to meet different subsequent purchase
requirements.

ELIGIBILITY FOR INSTITUTIONAL CLASS SHARES

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

MINIMUM INITIAL INVESTMENT AMOUNTS (INSTITUTIONAL CLASS)

The minimum initial investment amount is $5 million ($3 million for endowments
and foundations) per fund. If you invest with us through a financial
intermediary, this requirement may be met if your financial intermediary
aggregates your investments with those of other clients into a single group, or
omnibus, account that meets the minimum. The minimum investment requirement may
be waived if you, or your financial intermediary if you invest through an
omnibus account, have an aggregate investment in our family of funds of $10
million or more ($5 million for endowments and foundations). In addition,
financial intermediaries or plan recordkeepers may require retirement plans to
meet certain other conditions, such as plan size or a minimum level of assets
per participant, in order to be eligible to purchase Institutional Class shares.

REDEMPTIONS

If you sell your shares (by redemption or exchange) within 180 days of purchase,
you will pay a redemption fee of 2% of the value of the shares sold. Therefore,
if you redeem your shares within 180 days, you will receive 98% of their value
at redemption. The remaining 2% is retained by the fund and helps cover
transaction costs that long-term investors may bear when the fund sells
securities to meet investor redemptions.

The redemption fee does not apply to shares purchased through reinvested
distributions (dividends and capital gains). The fund may not charge the
redemption fee in certain situations deemed appropriate by American Century,
including where the capability to charge the fee does not exist or is
impractical and/or other systems to deter abusive trading practices are in
place.


- ------
15


Your redemption proceeds will be calculated using the NET ASSET VALUE (NAV) next
determined after we receive your transaction request in good order.

        [GRAPHIC OF TRIANGLE]

        A FUND'S NET ASSET VALUE, OR NAV, IS THE PRICE OF THE FUND'S SHARES.

However, we reserve the right to delay delivery of redemption proceeds up to
seven days. For example, each time you make an investment with American Century,
there is a seven-day holding period before we will release redemption proceeds
from those shares, unless you provide us with satisfactory proof that your
purchase funds have cleared. Investments by wire generally require only a
one-day holding period. If you change your address, we may require that any
redemption request made within 15 days be submitted in writing and be signed by
all authorized signers with their signatures guaranteed. If you change your bank
information, we may impose a 15-day holding period before we will transfer or
wire redemption proceeds to your bank. Please remember, if you request
redemptions by wire, $10 will be deducted from the amount redeemed. Your bank
also may charge a fee.

In addition, we reserve the right to honor certain redemptions with securities,
rather than cash, as described in the next section.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the value of a fund's assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. The portfolio
manager would select these securities from the fund's portfolio.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, you may have to pay
brokerage or other transaction costs to convert the securities to cash.

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

REDEMPTION OF SHARES IN ACCOUNTS BELOW MINIMUM

If your account balance falls below the minimum initial investment amount for
any reason other than as a result of market fluctuation, American Century
reserves the right to redeem the shares in the account and send the proceeds to
your address of record. Prior to doing so, we will notify you and give you 90
days to meet the minimum. Please note that shares redeemed in this manner may be
subject to a 2% redemption fee if held less than 180 days. You also may incur
tax liability as a result of the redemption. For Institutional Class shares, we
reserve the right to convert your shares to Investor Class shares of the same
fund. The Investor Class shares have a unified management fee that is 0.20%
higher than the Institutional Class.



- ------
16


SIGNATURE GUARANTEES

A signature guarantee - which is different from a notarized signature - is a
warranty that the signature presented is genuine. We may require a signature
guarantee for the following transactions.

*  You have chosen to conduct business in writing only and would like to
   redeem over $100,000.

*  Your redemption or distribution check, Check-A-Month or automatic
   redemption is made payable to someone other than the account owners.

*  Your redemption proceeds or distribution amount is sent by EFT (ACH or
   wire) to a destination other than your personal bank account.

*  You are transferring ownership of an account over $100,000.

*  You change your address and request a redemption over $100,000 within 15
   days.

*  You change your bank information and request a redemption within 15 days.

We reserve the right to require a signature guarantee for other transactions, at
our discretion.

MODIFYING OR CANCELING AN INVESTMENT

Investment instructions are irrevocable. That means that once you have mailed or
otherwise transmitted your investment instruction, you may not modify or cancel
it. The fund reserves the right to suspend the offering of shares for a period
of time and to reject any specific investment (including a purchase by
exchange). Additionally, we may refuse a purchase if, in our judgment, it is of
a size that would disrupt the management of the fund.

ABUSIVE TRADING PRACTICES

Short-term trading and other so-called market timing practices are not defined
or explicitly prohibited by any federal or state law. However, short-term
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of short-term
trading activity is significant relative to a fund's net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund's performance could be negatively impacted by the increased trading costs
created by short-term trading if the additional trading costs are significant.

Because of the potentially harmful effects of abusive trading practices, the
fund's Board of Directors has approved American Century's abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
imposing redemption fees on certain funds, and using fair value pricing when
current market prices are not readily available. Although these efforts are
designed to discourage abusive trading practices, they cannot eliminate the
possibility that such activity will occur. American Century seeks to exercise
its judgment in implementing these tools to the best of its ability in a manner
that it believes is consistent with shareholder interests.

American Century uses a variety of techniques to monitor for and detect abusive
trading practices. These techniques may vary depending on the type of fund, the
class of shares or whether the shares are held directly or indirectly with
American Century. They may change from time to time as determined by American
Century in its sole discretion. To minimize harm to the funds and their
shareholders, we reserve the right to reject any purchase order (including
exchanges) from any shareholder we believe has a history of abusive trading or
whose trading, in our judgment, has been or may be disruptive to the funds. In
making this judgment, we may consider trading done in multiple accounts under
common ownership or control.

Currently, for shares held directly with American Century, we may deem the sale
of all or a substantial portion of a shareholder's purchase of fund shares to be
abusive if the sale is made

* within seven days of the purchase, or

* within 30 days of the purchase, if it happens more than once per year.


- ------
17


To the extent practicable, we try to use the same approach for defining abusive
trading for shares held through financial intermediaries. American Century
reserves the right, in its sole discretion, to identify other trading practices
as abusive and to modify its monitoring and other practices as necessary to deal
with novel or unique abusive trading practices.

As a heightened measure for the fund, the board has approved the imposition of a
redemption fee for redemption of shares within a specified number of days of
purchase. See REDEMPTIONS, page 15, for a complete description of the redemption
fee applicable to the fund.

In addition, American Century reserves the right to accept purchases and
exchanges in excess of the trading restrictions discussed above if it believes
that such transactions would not be inconsistent with the best interests of fund
shareholders or this policy.

American Century's policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American Century handles, there can be no assurance that American
Century's efforts will identify all trades or trading practices that may be
considered abusive. In addition, American Century's ability to monitor trades
that are placed by individual shareholders within group, or omnibus, accounts
maintained by financial intermediaries is severely limited because American
Century generally does not have access to the underlying shareholder account
information. However, American Century monitors aggregate trades placed in
omnibus accounts and seeks to work with financial intermediaries to discourage
shareholders from engaging in abusive trading practices and to impose
restrictions on excessive trades. There may be limitations on the ability of
financial intermediaries to impose restrictions on the trading practices of
their clients. As a result, American Century's ability to monitor and discourage
abusive trading practices in omnibus accounts may be limited.

YOUR RESPONSIBILITY FOR UNAUTHORIZED TRANSACTIONS

American Century and its affiliated companies use procedures reasonably designed
to confirm that telephone, electronic and other instructions are genuine. These
procedures include recording telephone calls, requesting personalized security
codes or other information, and sending confirmation of transactions. If we
follow these procedures, we are not responsible for any losses that may occur
due to unauthorized instructions. For transactions conducted over the Internet,
we recommend the use of a secure Internet browser. In addition, you should
verify the accuracy of your confirmation statements immediately after you
receive them.

A NOTE ABOUT MAILINGS TO SHAREHOLDERS

To reduce the amount of mail you receive from us, we may deliver a single copy
of certain investor documents (such as shareholder reports and prospectuses) to
investors who share an address, even if accounts are registered under different
names. If you prefer to receive multiple copies of these documents individually
addressed, please call us or your financial professional. For American Century
Brokerage accounts, please call 1-888-345-2071.

RIGHT TO CHANGE POLICIES

We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups. In addition, from time to time we may
waive a policy on a case-by-case basis, as the advisor deems appropriate.


- ------
18


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century will price the fund shares you purchase, exchange or redeem at
the net asset value (NAV) next determined after your order is received and
accepted by the fund's transfer agent, or other financial intermediary with the
authority to accept orders on the fund's behalf. We determine the NAV of the
fund as of the close of regular trading (usually 4 p.m. Eastern time) on the New
York Stock Exchange (NYSE) on each day the NYSE is open. On days when the NYSE
is closed (including certain U.S. national holidays), we do not calculate the
NAV. The fund's NAV is the current value of the fund's assets, minus any
liabilities, divided by the number of shares outstanding.

The fund values portfolio securities for which market quotations are readily
available at their market price. As a general rule, equity securities listed on
a U.S. exchange are valued at the last current reported sale price as of the
time of valuation. Securities listed on the NASDAQ National Market System
(Nasdaq) are valued at the Nasdaq Official Closing Price (NOCP), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the
time of valuation. The fund may use pricing services to assist in the
determination of market value. Unlisted securities for which market quotations
are readily available are valued at the last quoted sale price or the last
quoted ask price, as applicable, except that debt obligations with 60 days or
less remaining until maturity may be valued at amortized cost. Exchange-traded
options, futures and options on futures are valued at the settlement price as
determined by the appropriate clearing corporation.

If the fund determines that the market price for a portfolio security is not
readily available or that the valuation methods mentioned above do not reflect
the security's fair value, such security is valued at its fair value as
determined in good faith by, or in accordance with procedures adopted by, the
fund's board or its designee (a process referred to as "fair valuing" the
security). Circumstances that may cause the fund to fair value a security
include, but are not limited to:

*  if, after the close of the foreign exchange on which a portfolio security
   is principally traded, but before the close of the NYSE, an event occurs that
   may materially affect the value of the security;

*  a debt security has been declared in default; or

*  trading in a security has been halted during the trading day.

If such circumstances occur, the fund will fair value the security if the fair
valuation would materially impact the fund's NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with procedures adopted by
the fund's board.

The effect of using fair value determinations is that the fund's NAV will be
based, to some degree, on security valuations that the board or its designee
believes are fair rather than being solely determined by the market.

With respect to any portion of the fund's assets that are invested in one or
more open-end management investment companies that are registered with the SEC
(known as registered investment companies, or RICs), the fund's NAV will be
calculated based upon the NAVs of such RICs. These RICs are required by law to
explain the circumstances under which they will use fair value pricing and the
effects of using fair value pricing in their prospectuses.


- ------
19


Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based on the prevailing exchange rates on that day.

Trading of securities in foreign markets may not take place every day the NYSE
is open. Also, trading in some foreign markets and on some electronic trading
networks may take place on weekends or holidays when the fund's NAV is not
calculated. So, the value of the fund's portfolio may be affected on days when
you will not be able to purchase, exchange or redeem fund shares.

DISTRIBUTIONS

Federal tax laws require the fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means that the fund should not be subject to state
or federal income tax on amounts distributed. The distributions generally
consist of dividends and interest received by the fund, as well as CAPITAL GAINS
realized by the fund on the sale of its investment securities. The fund
generally pays distributions from net income and capital gains, if any, once a
year in December. The fund may make more frequent distributions, if necessary,
to comply with Internal Revenue Code provisions.

        [GRAPHIC OF TRIANGLE]

        CAPITAL GAINS ARE INCREASES IN THE VALUES OF CAPITAL ASSETS, SUCH AS
        STOCK, FROM THE TIME THE ASSETS ARE PURCHASED.

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

Participants in tax-deferred retirement plans must reinvest all distributions.
For investors investing through taxable accounts, we will reinvest distributions
unless you elect to have dividends and/or capital gains sent to another American
Century account, to your bank electronically, or to your home address or to
another person or address by check.


- ------
20


TAXES

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

Tax-Deferred Accounts

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

Taxable Accounts

If you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund shares.

Taxability of Distributions

Fund distributions may consist of income, such as dividends and interest earned
by a fund from its investments, or capital gains generated by a fund from the
sale of investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as QUALIFIED DIVIDEND INCOME and you meet a
minimum required holding period with respect to your shares of the fund, in
which case distributions of income are taxed as long-term capital gains.

        [GRAPHIC OF TRIANGLE]

        QUALIFIED DIVIDEND INCOME IS A DIVIDEND RECEIVED BY THE FUND FROM THE
        STOCK OF A DOMESTIC OR QUALIFYING FOREIGN CORPORATION, PROVIDED THAT
        THE FUND HAS HELD THE STOCK FOR A REQUIRED HOLDING PERIOD.

For capital gains and for income distributions designated as qualified dividend
income, the following rates apply:

                                        TAX RATE FOR 10%      TAX RATE FOR
TYPE OF DISTRIBUTION                    AND 15% BRACKETS      ALL OTHER BRACKETS
- --------------------------------------------------------------------------------
Short-term capital gains                Ordinary Income       Ordinary Income
- --------------------------------------------------------------------------------
Long-term capital gains (> 1 year)
and Qualified Dividend Income           5%                    15%
- --------------------------------------------------------------------------------

If the fund's distributions exceed its taxable income and capital gains realized
during the tax year, all or a portion of the distributions made by the fund in
that tax year will be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.


- ------
21


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

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

Taxes on Transactions

Your redemptions - including exchanges to other American Century funds - are
subject to capital gains tax. The table above can provide a general guide for
your potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss. However, you should note that loss realized upon the
sale or exchange of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain to you with respect to those shares. If a loss is realized on the
redemption of fund shares, the reinvestment in additional fund shares within 30
days before or after the redemption may be subject to the wash sale rules of the
Internal Revenue Code. This may result in a postponement of the recognition of
such loss for federal income tax purposes.

If you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.

Buying a Dividend

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

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

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


- ------
22


MULTIPLE CLASS INFORMATION

American Century offers two classes of shares of the fund: Investor Class and
Institutional Class.

The classes have different fees, expenses and/or minimum investment
requirements. The difference in the fee structures between the classes is the
result of their separate arrangements for shareholder and distribution services.
It is not the result of any difference in advisory or custodial fees or other
expenses related to the management of the fund's assets, which do not vary by
class. Different fees and expenses will affect performance.

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


- ------
23


FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The tables on the next few pages itemize what contributed to the changes in
share price during the most recently ended fiscal year. They also show the
changes in share price for this period in comparison to changes over the last
five fiscal years.

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

*  share price at the beginning of the period

*  investment income and capital gains or losses

*  distributions of income and capital gains paid to investors

*  share price at the end of the period

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

*  TOTAL RETURN - the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO - the operating expenses of the fund as a percentage of
   average net assets

*  NET INCOME RATIO - the net investment income of the fund as a percentage
   of average net assets

*  PORTFOLIO TURNOVER - the percentage of the fund's investment portfolio
   that is replaced during the period

The Financial Highlights that follow have been audited by Deloitte & Touche LLP.
The fund's Report of Independent Registered Public Accounting Firm and the
financial statements are included in the fund's annual report, which is
available upon request.



- ------
24


VEEDOT FUND
Investor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31
- -------------------------------------------------------------------------------------------
                                           2006      2005      2004      2003      2002
- -------------------------------------------------------------------------------------------
PER-SHARE DATA
- -------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period       $5.57     $5.06     $4.99     $3.77     $4.32
- -------------------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(1)         (0.02)    (0.03)    (0.03)    (0.03)    (0.01)
- ----------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                  0.62      0.53      0.09      1.24      (0.55)
- -------------------------------------------------------------------------------------------
   Total From Investment Operations        0.60      0.50      0.06      1.21      (0.56)
- -------------------------------------------------------------------------------------------
Redemption Fees(1)                         -(2)      0.01      0.01      0.01      0.01
- -------------------------------------------------------------------------------------------
Net Asset Value, End of Period             $6.17     $5.57     $5.06     $4.99     $3.77
===========================================================================================
   TOTAL RETURN(3)                         10.77%    10.08%    1.40%     32.36%    (12.73)%

RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                      1.45%     1.50%     1.50%     1.50%     1.50%
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets               (0.39)%   (0.51)%   (0.57)%   (0.68)%   (0.31)%
- ----------------------------------------
Portfolio Turnover Rate                    330%      399%      344%      415%      330%
- ----------------------------------------
Net Assets, End of Period
(in thousands)                             $154,374  $178,078  $219,618  $228,724  $187,451
- -------------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  PER-SHARE AMOUNT WAS LESS THAN $0.005.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE REDEMPTION
     FEES. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS
     EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET
     VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE
     DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE
     CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO
     DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT
     RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.


- ------
25


VEEDOT FUND

Institutional Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31

- ----------------------------------------------------------------------------------------
                                            2006     2005     2004     2003     2002
- ----------------------------------------------------------------------------------------
PER-SHARE DATA
- ----------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period        $5.63    $5.10    $5.02    $3.79    $4.33
- ----------------------------------------------------------------------------------------
Income From Investment Operations
- ----------------------------------------
   Net Investment Income (Loss)(1)          (0.01)   (0.02)   (0.02)   (0.02)   -  (2)
- ----------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                   0.63     0.54     0.09     1.24     (0.55)
- ----------------------------------------------------------------------------------------
   Total From Investment Operations         0.62     0.52     0.07     1.22     (0.55)
- ----------------------------------------------------------------------------------------
Redemption Fees(1)                          -  (2)   0.01     0.01      0.01     0.01
- ----------------------------------------------------------------------------------------
Net Asset Value, End of Period              $6.25    $5.63    $5.10    $5.02    $3.79
========================================================================================
   TOTAL RETURN(3)                          11.01%   10.39%   1.59%    32.45%   (12.47)%

RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                       1.25%    1.30%    1.30%    1.30%    1.30%
- ----------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                (0.19)%  (0.31)%  (0.37)%  (0.48)%  (0.11)%
- ----------------------------------------
Portfolio Turnover Rate                     330%     399%     344%     415%     330%
- ----------------------------------------
Net Assets, End of Period
(in thousands)                              $11,237  $11,440  $12,400  $12,458  $8,709
- ----------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  PER-SHARE AMOUNT WAS LESS THAN $0.005.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE REDEMPTION
     FEES. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS
     EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET
     VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE
     DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE
     CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO
     DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT
     RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.


- ------
26


NOTES


- ------
27


NOTES


- ------
28


NOTES


- ------
29


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

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

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

IN PERSON           SEC Public Reference Room
                    Washington, D.C.
                    Call 202-942-8090 for location and hours.

ON THE INTERNET     * EDGAR database at sec.gov
                    * By email request at publicinfo@sec.gov

BY MAIL             SEC Public Reference Section
                    Washington, D.C. 20549-0102

This prospectus shall not constitute an offer to sell securities of the fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or qualified for sale, unless such registration or qualification
is not required, or under any circumstances in which such offer or solicitation
would be unlawful.

FUND REFERENCE                FUND CODE         TICKER         NEWSPAPER LISTING
- --------------------------------------------------------------------------------
Veedot Fund
  Investor Class                095               AMVIX          Veedot
- --------------------------------------------------------------------------------
  Institutional Class           405               AVDIX          Veedot
- --------------------------------------------------------------------------------

Investment Company Act File No. 811-0816

AMERICAN CENTURY INVESTMENTS
americancentury.com
                                    Banks and Trust Companies, Broker-Dealers,
Self-Directed Retail Investors      Financial Professionals, Insurance Companies
P.O. Box 419200                     P.O. Box 419786
Kansas City, Missouri 64141-6200    Kansas City, Missouri 64141-6786
1-800-345-2021 or 816-531-5575      1-800-345-6488

0703

SH-PRS-52533














AMERICAN CENTURY INVESTMENTS

Prospectus


March 1, 2007


Capital Value Fund

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

American Century Investment Services, Inc., Distributor

[american century investments logo and text logo]





Table of Contents

AN OVERVIEW OF THE FUND . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

FUND PERFORMANCE HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

FEES AND EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

OBJECTIVES, STRATEGIES AND RISKS . . . . . . . . . . . . . . . . . . . . . . . 7

MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

INVESTING DIRECTLY WITH AMERICAN CENTURY . . . . . . . . . . . . . . . . . . .11

INVESTING THROUGH A FINANCIAL INTERMEDIARY . . . . . . . . . . . . . . . . . .13
ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT . . . . . . . . . . . . . . . . 14

SHARE PRICE AND DISTRIBUTIONS. . . . . . . . . . . . . . . . . . . . . . . . .18

TAXES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

MULTIPLE CLASS INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . .22

FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23


        [graphic of triangle]

        THIS SYMBOL IS USED THROUGHOUT THE BOOK TO HIGHLIGHT DEFINITIONS OF KEY
        INVESTMENT TERMS AND TO PROVIDE OTHER HELPFUL INFORMATION.

American Century Investment Services, Inc., Distributor

©2007 American Century Proprietary Holdings, Inc. All rights reserved.

The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.




AN OVERVIEW OF THE FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

The portfolio managers use a value investment strategy that invests primarily in
stocks of medium to large companies that the portfolio managers believe are
undervalued at the time of purchase. In selecting stocks, the portfolio managers
look for companies that are temporarily out of favor in, or whose value is not
yet recognized by, the market. The portfolio managers also attempt to minimize
taxable distributions to fund shareholders.

The fund's principal risks include

*  VALUE INVESTING - If the market does not consider the individual stocks
   purchased by the fund to be undervalued, the value of the fund's shares may
   decline, even if stock prices generally are rising.

*  FOREIGN SECURITIES - The fund may invest in foreign securities, which can
   be riskier than investing in U.S. securities.

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

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

*  PRINCIPAL LOSS - At any given time your shares may be worth less than the
   price you paid for them. In other words, it is possible to lose money by
   investing in the fund.

A more detailed description of the fund's investment strategies and risks may be
found under the heading OBJECTIVES, STRATEGIES AND RISKS, which begins on page
7.

        [graphic of triangle]

        AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT, AND IT IS NOT INSURED
        OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY
        OTHER GOVERNMENT AGENCY.


- ------
2


FUND PERFORMANCE HISTORY

Annual Total Returns

The following bar chart shows the performance of the fund's Investor Class
shares for each full calendar year in the life of the class. It indicates the
volatility of the fund's historical returns from year to year. Account fees are
not reflected in the chart below. If they had been included, returns would be
lower than those shown. The returns of the fund's other classes will differ from
those shown in the chart, depending on the expenses of those classes.

CAPITAL VALUE FUND - INVESTOR CLASS

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

                              HIGHEST                          LOWEST
- --------------------------------------------------------------------------------
Capital Value                 17.67% (2Q 2003)                 -17.95% (3Q 2002)
- --------------------------------------------------------------------------------

Average Annual Total Returns

The following table shows the average annual total returns of the fund's
Investor Class shares calculated three different ways. Additional tables show
the average annual total returns of the fund's other share classes calculated
before the impact of taxes.

Return Before Taxes shows the actual change in the value of fund shares over the
time periods shown, but does not reflect the impact of taxes on fund
distributions or the sale of fund shares. The two after-tax returns take into
account taxes that may be associated with owning fund shares. Return After Taxes
on Distributions is a fund's actual performance, adjusted by the effect of taxes
on distributions made by the fund during the periods shown. Return After Taxes
on Distributions and Sale of Fund Shares is further adjusted to reflect the tax
impact on any change in the value of fund shares as if they had been sold on the
last day of the period.

After-tax returns are calculated using the historical highest federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-tax returns shown are not relevant to investors who hold fund
shares through tax-deferred arrangements such as 401(k) plans or IRAs. After-tax
returns are shown only for Investor Class shares. After-tax returns for other
share classes will vary.


- ------
3


The benchmark is an unmanaged index that has no operating costs and is included
in each table for performance comparison.


INVESTOR CLASS
                                                                      LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR    5 YEARS    CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                              19.71%    9.42%      8.53%
Return After Taxes on Distributions              19.22%    9.08%      8.11%
Return After Taxes on Distributions
   and Sale of Fund Shares                       13.46%    8.10%      7.29%
Russell 1000® Value Index                        22.25%    10.86%     7.81%
   (reflects no deduction
   for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE INVESTOR CLASS IS MARCH 31, 1999.


INSTITUTIONAL CLASS
                                                                       LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006          1 YEAR          CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                    19.95%          9.70%
Russell 1000® Value Index                              22.25%          11.40%(2)
   (reflects no deduction
   for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE INSTITUTIONAL CLASS IS MARCH 1, 2002.

(2)  SINCE FEBRUARY 28, 2002, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.


ADVISOR CLASS
                                                                       LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006          1 YEAR          CLASS(1)
- --------------------------------------------------------------------------------
Return Before Taxes                                    19.41%          16.00%
Russell 1000® Value Index                              22.25%          19.39%(2)
   (reflects no deduction
   for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  THE INCEPTION DATE FOR THE ADVISOR CLASS IS MAY 14, 2003.

(2)  SINCE APRIL 30, 2003, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.

Performance information is designed to help you see how fund returns can vary.
Keep in mind that past performance (before and after taxes) does not predict how
a fund will perform in the future.

For current performance information, please call us or visit
americancentury.com.


- ------
4


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 same class of shares of other American Century funds

*  to redeem your shares, other than a $10 fee to redeem by wire

The following tables describe the fees and expenses you may pay if you buy and
hold shares of the fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
- --------------------------------------------------------------------------------
Investor Class
  Maximum Account Maintenance Fee                                      $25(1)
- --------------------------------------------------------------------------------

(1)  APPLIES ONLY TO INVESTORS WHOSE TOTAL ELIGIBLE INVESTMENTS WITH
     AMERICAN CENTURY ARE LESS THAN $10,000. SEE Account Maintenance Fee UNDER
     Investing Directly with American Century FOR MORE DETAILS.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
                               DISTRIBUTION                  TOTAL ANNUAL
                 MANAGEMENT    AND SERVICE      OTHER        FUND OPERATING
                 FEE(1)        (12B-1) FEES(2)  EXPENSES(3)  EXPENSES
- --------------------------------------------------------------------------------
Investor         1.10%         None             0.00%        1.10%
Class
- --------------------------------------------------------------------------------
Institutional    0.90%         None             0.00%        0.90%
Class
- --------------------------------------------------------------------------------
Advisor          0.85%         0.50%            0.00%        1.35%
Class
- --------------------------------------------------------------------------------

(1)  THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR
     ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. THE FEE SHOWN IS
     BASED ON ASSETS DURING THE FUND'S MOST RECENT FISCAL YEAR. THE FUND HAS A
     STEPPED FEE SCHEDULE. AS A RESULT, THE FUND'S UNIFIED MANAGEMENT FEE RATE
     GENERALLY DECREASES AS STRATEGY ASSETS INCREASE AND INCREASES AS STRATEGY
     ASSETS DECREASE. FOR MORE INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE,
     INCLUDING AN EXPLANATION OF STRATEGY ASSETS, SEE The Investment Advisor
     UNDER Management.

(2)  THE 12B-1 FEE IS DESIGNED TO PERMIT INVESTORS TO PURCHASE SHARES
     THROUGH BROKER-DEALERS, BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL
     INTERMEDIARIES. THE FEE MAY BE USED TO COMPENSATE SUCH FINANCIAL
     INTERMEDIARIES FOR DISTRIBUTION AND OTHER SHAREHOLDER SERVICES. IN
     ADDITION, HALF OF THE ADVISOR CLASS 12B-1 FEE (0.25%) IS FOR ONGOING
     RECORDKEEPING AND ADMINISTRATIVE SERVICES PROVIDED BY FINANCIAL
     INTERMEDIARIES, WHICH WOULD OTHERWISE BE PAID BY THE ADVISOR OUT OF THE
     UNIFIED MANAGEMENT FEE. THE ADVISOR HAS REDUCED ITS UNIFIED MANAGEMENT FEE
     BY 0.25% FOR ADVISOR CLASS SHARES, BUT THE FEE FOR CORE INVESTMENT ADVISORY
     SERVICES IS THE SAME FOR ALL CLASSES. FOR MORE INFORMATION, SEE Multiple
     Class Information AND Service, Distribution and Administrative Fees, PAGE
     22.

(3)  OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
     INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, INTEREST, AND FEES AND
     EXPENSES INCURRED INDIRECTLY BY THE FUND AS A RESULT OF INVESTMENT IN
     SHARES OF ONE OR MORE MUTUAL FUNDS, HEDGE FUNDS, PRIVATE EQUITY FUNDS OR
     OTHER POOLED INVESTMENT VEHICLES, WERE LESS THAN 0.005% FOR THE MOST RECENT
     FISCAL YEAR.



- ------
5


EXAMPLE

The examples in the table below are intended to help you compare the costs of
investing in the fund with the costs of investing in other mutual funds. Of
course, your actual costs may be higher or lower. Assuming you . . .

*  invest $10,000 in the fund

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

*  earn a 5% return each year

*  incur the same operating expenses as shown above

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

                           1 YEAR        3 YEARS        5 YEARS        10 YEARS
- --------------------------------------------------------------------------------
Investor Class             $112          $349           $604           $1,334
- --------------------------------------------------------------------------------
Institutional Class        $92           $286           $497           $1,104
- --------------------------------------------------------------------------------
Advisor Class              $137          $426           $736           $1,614
- --------------------------------------------------------------------------------


- ------
6


OBJECTIVES, STRATEGIES AND RISKS

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

The portfolio managers seek to achieve the fund's objective by investing
primarily in common stocks. The portfolio managers also will attempt to minimize
the impact of federal income taxes on shareholder returns by attempting to
minimize taxable distributions to shareholders.

The portfolio managers use a value investment strategy to look for stocks of
medium to large companies the portfolio managers believe are undervalued at the
time of purchase. The portfolio managers attempt to purchase the stocks of these
undervalued companies and hold them until they have returned to favor in the
market and their stock prices have 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 other investors. To identify these companies, the
portfolio managers look for companies with earnings, cash flows and/or assets
that may not be reflected accurately in the companies' stock prices.

To minimize taxable distributions, the portfolio managers employ the following
tax-sensitive techniques that may, from time to time, be inconsistent with the
fund's objective of long-term capital growth:

*  The portfolio managers seek to minimize realized capital gains by keeping
   portfolio turnover relatively low and generally holding portfolio
   investments for longer periods.

*  The portfolio managers seek to minimize realized capital gains when
   selling the shares of a specific company by analyzing the fund's holdings of
   that company to determine which shares were purchased at what price and
   typically selling those shares bought at the highest price.

*  The portfolio managers may seek to minimize realized capital gains by
   selling securities to realize capital losses. Realized capital losses can
   offset realized capital gains, thereby reducing capital gains distributions
   to the fund's shareholders.

*  The portfolio managers may seek to minimize taxable dividend income where
   appropriate by investing in stocks with lower dividend yields.

While the fund seeks to minimize taxable distributions to shareholders, it may
realize taxable gains and earn some dividends. For example, the portfolio
managers may elect to sell a security, even if the sale results in a taxable
gain, if they determine that the tax impact of the sale is outweighed by other
factors. Such factors include the investment risk of holding the security or the
availability of a replacement security that has a better potential return.
Because the fund is managed to provide high after-tax returns, it may not
provide as high a pre-tax return as other funds. For more information regarding
applicable taxes, see TAXES, page 20.

Although the portfolio managers intend to invest the fund's assets primarily in
U. S. stocks, the fund may invest in securities of foreign companies. The fund
will usually purchase common stocks, but it can purchase other types of
securities as well, such as debt securities, preferred stock and
equity-equivalent securities, such as convertible securities, stock futures
contracts or stock index futures. The fund generally limits its purchase of debt
securities to investment-grade obligations, except for convertible securities,
which may be rated below investment grade.


- ------
7



In the event of exceptional market or economic conditions, the fund may, as a
temporary defensive measure, invest all or a substantial portion of its assets
in cash, cash-equivalent securities or short-term debt securities. To the extent
the fund assumes a temporary defensive position it will not be pursuing its
objective of long-term capital growth.

A description of the policies and procedures with respect to the disclosure of
the fund's portfolio securities is available in the statement of additional
information.

WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?

If the market does not consider the individual stocks purchased by the fund 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 generally are increasing.

While the fund seeks to minimize taxable distributions to shareholders, it
nonetheless may realize capital gains on the sale of investment securities and
earn dividend income. For example, the portfolio managers may elect to sell a
security even if it results in a taxable gain if the managers determine the tax
impact of the sale is outweighed by other factors (such as the investment risk
of the security). Federal tax laws require the fund to make distributions of
such gains and income to its shareholders on at least an annual basis.
Distributions may be taxable as ordinary income, capital gains, or a combination
of the two.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies. To the
extent the fund invests in foreign securities, the overall risk of the fund
could be affected. Foreign investment involves additional risks, including
fluctuations in currency exchange rates, less stable political and economic
structures, reduced availability of public information, and lack of uniform
financial reporting and regulatory practices similar to those that apply in the
United States. These factors make investing in foreign securities generally
riskier than investing in U.S. stocks.

Market performance tends to be cyclical, and, in the various cycles, certain
investment styles may fall in and out of favor. If the market is not favoring
the fund's style, the fund's gains may not be as big as, or its losses may be
bigger than, other equity funds using different investment styles.

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 the fund owns will go
up and down depending on the performance of the companies that issued them,
general market and economic conditions, and investor confidence.

At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the fund.


- ------
8


MANAGEMENT

WHO MANAGES THE FUND?

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

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than three-fourths of the directors are independent of the fund's advisor;
that is, they have never been employed by and have no financial interest in the
advisor or any of its affiliated companies (other than as shareholders of
American Century funds).

THE INVESTMENT ADVISOR

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

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

For the services it provides to the fund, the advisor receives a unified
management fee based on a percentage of the daily net assets of each class of
shares of the fund. The amount of the fee is calculated daily and paid monthly
in arrears. Out of that fee, the advisor pays all expenses of managing and
operating the fund except brokerage expenses, taxes, interest, fees and expenses
of the independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the fund's management fee may be paid by the fund's
advisor to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of the
advisor.

The rate of the fee is determined by applying a formula that takes into account
all of the advisor's assets under management in the fund's investment strategy
(strategy assets). Strategy assets include the assets of the fund as well as
certain assets of other clients of the advisor outside the American Century fund
family (such as subadvised funds and separate accounts) that use very similar
investment teams and strategies. The use of strategy assets, rather than fund
assets, in calculating the fund's fee rate could allow the fund to realize
scheduled cost savings more quickly. However, the fund's strategy assets
currently do not include assets of other client accounts. In addition, if such
assets are acquired in the future, they may not be sufficient to result in a
lower fee rate.

MANAGEMENT FEES PAID
BY THE FUND TO THE
ADVISOR AS A PERCENTAGE
OF AVERAGE NET ASSETS FOR
THE FISCAL YEAR                  INVESTOR        INSTITUTIONAL        ADVISOR
ENDED OCTOBER 31, 2006           CLASS           CLASS                CLASS
- --------------------------------------------------------------------------------
Capital Value                    1.10%           0.90%                0.85%
- --------------------------------------------------------------------------------

A discussion regarding the basis for the Board of Directors' approval of the
fund's investment advisory contract with the advisor is available in the fund's
report to shareholders dated October 31, 2006.



- ------
9


THE FUND MANAGEMENT TEAM

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

The portfolio managers on the investment team who are jointly and primarily
responsible for the day-to-day management of the fund are identified below.

CHARLES RITTER

Mr. Ritter, Vice President and Senior Portfolio Manager, has been a member of
the team that manages the fund since its inception in March 1999. He joined
American Century in December 1998. Before joining American Century, he spent 15
years with Federated Investors, most recently serving as a vice president and
portfolio manager for the company. He has a bachelor's degree in mathematics and
a master's degree in economics from Carnegie Mellon University. He also has an
MBA from the University of Chicago. He is a CFA charterholder.

BRENDAN HEALY

Mr. Healy, Vice President and Portfolio Manager, has been a member of the team
that manages the fund since April 2000. He joined American Century in April 2000
and became a portfolio manager in February 2004. He has a bachelor's degree in
mechanical engineering from the University of Arizona and an MBA from the
University of Texas - Austin. He is a CFA charterholder.

The statement of additional information provides additional information about
the other accounts managed by the portfolio managers, if any, the structure of
their compensation, and their ownership of fund securities.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the statement of additional
information and the investment objectives of the fund may not be changed without
shareholder approval. The Board of Directors and/or the advisor may change any
other policies and investment strategies.


- ------
10


INVESTING DIRECTLY WITH AMERICAN CENTURY

SERVICES AUTOMATICALLY AVAILABLE TO YOU

Most accounts automatically will have access to the services listed under WAYS
TO MANAGE YOUR ACCOUNT when the account is opened. If you do not want these
services, see CONDUCTING BUSINESS IN WRITING. If you have questions about the
services that apply to your account type, please call us.

CONDUCTING BUSINESS IN WRITING

If you prefer to conduct business in writing only, you can indicate this on the
account application. If you choose this option, you must provide written
instructions to invest, exchange and redeem. All account owners must sign
transaction instructions (with signatures guaranteed for redemptions in excess
of $100,000). By choosing this option, you are not eligible to enroll for
exclusive online account management to waive the account maintenance fee. See
ACCOUNT MAINTENANCE FEE in this section. If you want to add online and telephone
services later, you can complete an Investor Service Options form.

ACCOUNT MAINTENANCE FEE

If you hold Investor Class shares of any American Century fund, or Institutional
Class shares of the American Century Diversified Bond fund, in an American
Century account (i.e., not a financial intermediary or retirement plan account),
we may charge you a $12.50 semiannual account maintenance fee if the value of
those shares is less than $10,000. We will determine the amount of your total
eligible investments twice per year, generally the last Friday in October and
April. If the value of those investments is less than $10,000 at that time, we
will automatically redeem shares in one of your accounts to pay the $12.50 fee.
Please note that you may incur tax liability as a result of the redemption. In
determining your total eligible investment amount, we will include your
investments in all PERSONAL ACCOUNTS (including American Century Brokerage
accounts) registered under your Social Security number. We will not charge the
fee as long as you choose to manage your accounts exclusively online. You may
enroll for exclusive online account management on our Web site. To find out more
about exclusive online account management, visit americancentury.com/info/demo.

        [graphic of triangle]

        PERSONAL ACCOUNTS INCLUDE INDIVIDUAL ACCOUNTS, JOINT ACCOUNTS, UGMA/UTMA
        ACCOUNTS, PERSONAL TRUSTS, COVERDELL EDUCATION SAVINGS ACCOUNTS, IRAS
        (INCLUDING TRADITIONAL, ROTH, ROLLOVER, SEP-, SARSEP- AND SIMPLE-IRAS),
        AND CERTAIN OTHER RETIREMENT ACCOUNTS. IF YOU HAVE ONLY BUSINESS,
        BUSINESS RETIREMENT, EMPLOYER-SPONSORED OR AMERICAN CENTURY BROKERAGE
        ACCOUNTS, YOU ARE CURRENTLY NOT SUBJECT TO THIS FEE, BUT YOU MAY BE
        SUBJECT TO OTHER FEES.

WIRE PURCHASES

CURRENT INVESTORS: If you would like to make a wire purchase into an existing
account, your bank will need the following information. (To invest in a new
fund, please call us first to set up the new account.)

*  American Century's bank information: Commerce Bank N.A., Routing No.
   101000019, Account No. 2804918

*  Your American Century account number and fund name

*  Your name

*  The contribution year (for IRAs only)

NEW INVESTORS: To make a wire purchase into a new account, please complete an
application prior to wiring money.



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11


WAYS TO MANAGE YOUR ACCOUNT

ONLINE
- --------------------------------------------------------------------------------
americancentury.com

OPEN AN ACCOUNT: If you are a current or new investor, you can open an account
by completing and submitting our online application. Current investors also can
open an account by exchanging shares from another American Century account.

EXCHANGE SHARES: Exchange shares from another American Century account.

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

SELL SHARES*: Redeem shares and proceeds will be electronically transferred to
your authorized bank account.

* ONLINE REDEMPTIONS UP TO $25,000 PER DAY.

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

* 4500 Main Street, Kansas City, Missouri - 8 a.m. to 5 p.m., Monday - Friday

* 4917 Town Center Drive, Leawood, Kansas - 8 a.m. to 5 p.m., Monday - Friday,
  8 a.m. to noon, Saturday

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

BY TELEPHONE
- --------------------------------------------------------------------------------
INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021

INSTITUTIONAL SERVICE REPRESENTATIVE: 1-800-345-3533

BUSINESS, NOT-FOR-PROFIT AND EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533

AUTOMATED INFORMATION LINE: 1-800-345-8765

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

EXCHANGE SHARES: Call or use our Automated Information Line if you have
authorized us to accept telephone instructions. The Automated Information Line
is available only to Investor Class shareholders.

MAKE ADDITIONAL INVESTMENTS: Call or use our Automated Information Line if you
have authorized us to invest from your bank account. The Automated Information
Line is available only to Investor Class shareholders.

SELL SHARES: Call a Service Representative.

BY MAIL OR FAX
- --------------------------------------------------------------------------------
P.O. Box 419200, Kansas City, MO 64141-6200 - Fax: 816-340-7962

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

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

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

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

AUTOMATICALLY
- --------------------------------------------------------------------------------
OPEN AN ACCOUNT: Not available.

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

MAKE ADDITIONAL INVESTMENTS: With the automatic investment service, you can
purchase shares on a regular basis. You must invest at least $50 per month per
account.

SELL SHARES: You may sell shares automatically by establishing Check-A-Month or
Automatic Redemption plans.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


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12


INVESTING THROUGH A FINANCIAL INTERMEDIARY

The fund's Advisor Class is intended for purchase by participants in
employer-sponsored retirement plans and for persons purchasing shares through
FINANCIAL INTERMEDIARIES that provide various administrative and distribution
services. For more information regarding employer-sponsored retirement plan
types, please see BUYING AND SELLING FUND SHARES in the statement of additional
information.

        [graphic of triangle]

        FINANCIAL INTERMEDIARIES INCLUDE BANKS, BROKER-DEALERS,
        INSURANCE COMPANIES, PLAN SPONSORS AND FINANCIAL PROFESSIONALS.

Your ability to purchase, exchange, redeem and transfer shares will be affected
by the policies of the financial intermediary through which you do business.
Some policy differences may include

*  minimum investment requirements

*  exchange policies

*  fund choices

*  cutoff time for investments

*  trading restrictions

In addition, your financial intermediary may charge a transaction fee for the
purchase or sale of fund shares. Those charges are retained by the financial
intermediary and are not shared with American Century or the fund. Please
contact your financial intermediary or plan sponsor for a complete description
of its policies. Copies of the fund's annual report, semiannual report and
statement of additional information are available from your financial
intermediary or plan sponsor.

The fund has authorized certain financial intermediaries to accept orders on the
fund's behalf. American Century has selling agreements with these financial
intermediaries requiring them to track the time investment orders are received
and to comply with procedures relating to the transmission of orders. Orders
must be received by the financial intermediary on the fund's behalf before the
time the net asset value is determined in order to receive that day's share
price. If those orders are transmitted to American Century and paid for in
accordance with the selling agreement, they will be priced at the net asset
value next determined after your request is received in the form required by the
financial intermediary.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


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13


ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT

MINIMUM INITIAL INVESTMENT AMOUNTS (OTHER THAN INSTITUTIONAL CLASS)

Unless otherwise specified below, the minimum initial investment amount to open
an account is $2,500. Financial intermediaries may open an account with $250,
but may require their clients to meet different investment minimums. See
INVESTING THROUGH A FINANCIAL INTERMEDIARY for more information.

- --------------------------------------------------------------------------------
Broker-dealer sponsored wrap program accounts
and/or fee-based accounts                                             No minimum
- --------------------------------------------------------------------------------
Coverdell Education Savings Account (CESA)                            $2,000(1)
- --------------------------------------------------------------------------------
Employer-sponsored retirement plans                                   No minimum
- --------------------------------------------------------------------------------

(1)  THE MINIMUM INITIAL INVESTMENT FOR FINANCIAL INTERMEDIARIES IS $250.
     FINANCIAL INTERMEDIARIES MAY HAVE DIFFERENT MINIMUMS FOR THEIR CLIENTS.

SUBSEQUENT PURCHASES

There is a $50 minimum for subsequent purchases. See WAYS TO MANAGE YOUR ACCOUNT
for more information about making additional investments directly with American
Century. However, there is no subsequent purchase minimum for financial
intermediaries or employer-sponsored retirement plans, but financial
intermediaries may require their clients to meet different subsequent purchase
requirements.

ELIGIBILITY FOR INSTITUTIONAL CLASS SHARES

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

MINIMUM INITIAL INVESTMENT AMOUNTS (INSTITUTIONAL CLASS)

The minimum initial investment amount is $5 million ($3 million for endowments
and foundations) per fund. If you invest with us through a financial
intermediary, this requirement may be met if your financial intermediary
aggregates your investments with those of other clients into a single group, or
omnibus, account that meets the minimum. The minimum investment requirement may
be waived if you, or your financial intermediary if you invest through an
omnibus account, have an aggregate investment in our family of funds of $10
million or more ($5 million for endowments and foundations). In addition,
financial intermediaries or plan recordkeepers may require retirement plans to
meet certain other conditions, such as plan size or a minimum level of assets
per participant, in order to be eligible to purchase Institutional Class shares.

REDEMPTIONS

Your redemption proceeds will be calculated using the NET ASSET VALUE (NAV) next
determined after we receive your transaction request in good order.

        [graphic of triangle]

        A FUND'S NET ASSET VALUE, OR NAV, IS THE PRICE OF THE FUND'S SHARES.

However, we reserve the right to delay delivery of redemption proceeds up to
seven days. For example, each time you make an investment with American Century,
there is a seven-day holding period before we will release redemption proceeds
from those shares, unless you provide us with satisfactory proof that your
purchase funds have


- ------
14


cleared. Investments by wire generally require only a one-day holding period. If
you change your address, we may require that any redemption request made within
15 days be submitted in writing and be signed by all authorized signers with
their signatures guaranteed. If you change your bank information, we may impose
a 15-day holding period before we will transfer or wire redemption proceeds to
your bank. Please remember, if you request redemptions by wire, $10 will be
deducted from the amount redeemed. Your bank also may charge a fee.

In addition, we reserve the right to honor certain redemptions with securities,
rather than cash, as described in the next section.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the value of a fund's assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. The portfolio
managers would select these securities from the fund's portfolio.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, you may have to pay
brokerage or other transaction costs to convert the securities to cash.

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

REDEMPTION OF SHARES IN ACCOUNTS BELOW MINIMUM

If your account balance falls below the minimum initial investment amount for
any reason other than as a result of market fluctuation, American Century
reserves the right to redeem the shares in the account and send the proceeds to
your address of record. Prior to doing so, we will notify you and give you 90
days to meet the minimum. Please note that you may incur tax liability as a
result of the redemption. For Institutional Class shares, we reserve the right
to convert your shares to Investor Class shares of the same fund. The Investor
Class shares have a unified management fee that is 0.20% higher than the
Institutional Class.

SIGNATURE GUARANTEES

A signature guarantee - which is different from a notarized signature - is a
warranty that the signature presented is genuine. We may require a signature
guarantee for the following transactions.

*  You have chosen to conduct business in writing only and would like to
   redeem over $100,000.

*  Your redemption or distribution check, Check-A-Month or automatic
   redemption is made payable to someone other than the account owners.

*  Your redemption proceeds or distribution amount is sent by EFT (ACH or
   wire) to a destination other than your personal bank account.

*  You are transferring ownership of an account over $100,000.

*  You change your address and request a redemption over $100,000 within 15
   days.

*  You change your bank information and request a redemption within 15 days.

We reserve the right to require a signature guarantee for other transactions, at
our discretion.


- ------
15


MODIFYING OR CANCELING AN INVESTMENT

Investment instructions are irrevocable. That means that once you have mailed or
otherwise transmitted your investment instruction, you may not modify or cancel
it. The fund reserves the right to suspend the offering of shares for a period
of time and to reject any specific investment (including a purchase by
exchange). Additionally, we may refuse a purchase if, in our judgment, it is of
a size that would disrupt the management of a fund.

ABUSIVE TRADING PRACTICES

Short-term trading and other so-called market timing practices are not defined
or explicitly prohibited by any federal or state law. However, short-term
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of short-term
trading activity is significant relative to a fund's net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund's performance could be negatively impacted by the increased trading costs
created by short-term trading if the additional trading costs are significant.

Because of the potentially harmful effects of abusive trading practices, the
fund's Board of Directors has approved American Century's abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
imposing redemption fees on certain funds, and using fair value pricing when
current market prices are not readily available. Although these efforts are
designed to discourage abusive trading practices, they cannot eliminate the
possibility that such activity will occur. American Century seeks to exercise
its judgment in implementing these tools to the best of its ability in a manner
that it believes is consistent with shareholder interests.

American Century uses a variety of techniques to monitor for and detect abusive
trading practices. These techniques may vary depending on the type of fund, the
class of shares or whether the shares are held directly or indirectly with
American Century. They may change from time to time as determined by American
Century in its sole discretion. To minimize harm to the funds and their
shareholders, we reserve the right to reject any purchase order (including
exchanges) from any shareholder we believe has a history of abusive trading or
whose trading, in our judgment, has been or may be disruptive to the funds. In
making this judgment, we may consider trading done in multiple accounts under
common ownership or control.

Currently, for shares held directly with American Century, we may deem the sale
of all or a substantial portion of a shareholder's purchase of fund shares to be
abusive if the sale is made

*  within seven days of the purchase, or

*  within 30 days of the purchase, if it happens more than once per year.

To the extent practicable, we try to use the same approach for defining abusive
trading for shares held through financial intermediaries. American Century
reserves the right, in its sole discretion, to identify other trading practices
as abusive and to modify its monitoring and other practices as necessary to deal
with novel or unique abusive trading practices.

In addition, American Century reserves the right to accept purchases and
exchanges in excess of the trading restrictions discussed above if it believes
that such transactions would not be inconsistent with the best interests of fund
shareholders or this policy.

American Century's policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American


- ------
16


Century handles, there can be no assurance that American Century's efforts will
identify all trades or trading practices that may be considered abusive. In
addition, American Century's ability to monitor trades that are placed by
individual shareholders within group, or omnibus, accounts maintained by
financial intermediaries is severely limited because American Century generally
does not have access to the underlying shareholder account information. However,
American Century monitors aggregate trades placed in omnibus accounts and seeks
to work with financial intermediaries to discourage shareholders from engaging
in abusive trading practices and to impose restrictions on excessive trades.
There may be limitations on the ability of financial intermediaries to impose
restrictions on the trading practices of their clients. As a result, American
Century's ability to monitor and discourage abusive trading practices in omnibus
accounts may be limited.

YOUR RESPONSIBILITY FOR UNAUTHORIZED TRANSACTIONS

American Century and its affiliated companies use procedures reasonably designed
to confirm that telephone, electronic and other instructions are genuine. These
procedures include recording telephone calls, requesting personalized security
codes or other information, and sending confirmation of transactions. If we
follow these procedures, we are not responsible for any losses that may occur
due to unauthorized instructions. For transactions conducted over the Internet,
we recommend the use of a secure Internet browser. In addition, you should
verify the accuracy of your confirmation statements immediately after you
receive them.

A NOTE ABOUT MAILINGS TO SHAREHOLDERS

To reduce the amount of mail you receive from us, we may deliver a single copy
of certain investor documents (such as shareholder reports and prospectuses) to
investors who share an address, even if accounts are registered under different
names. If you prefer to receive multiple copies of these documents individually
addressed, please call us or your financial professional. For American Century
Brokerage accounts, please call 1-888-345-2071.

RIGHT TO CHANGE POLICIES

We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups. In addition, from time to time we may
waive a policy on a case-by-case basis, as the advisor deems appropriate.


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17


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century will price the fund shares you purchase, exchange or redeem at
the net asset value (NAV) next determined after your order is received and
accepted by the fund's transfer agent, or other financial intermediary with the
authority to accept orders on the fund's behalf. We determine the NAV of the
fund as of the close of regular trading (usually 4 p.m. Eastern time) on the New
York Stock Exchange (NYSE) on each day the NYSE is open. On days when the NYSE
is closed (including certain U.S. national holidays), we do not calculate the
NAV. The fund's NAV is the current value of the fund's assets, minus any
liabilities, divided by the number of shares outstanding.

The fund values portfolio securities for which market quotations are readily
available at their market price. As a general rule, equity securities listed on
a U.S. exchange are valued at the last current reported sale price as of the
time of valuation. Securities listed on the NASDAQ National Market System
(Nasdaq) are valued at the Nasdaq Official Closing Price (NOCP), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the
time of valuation. The fund may use pricing services to assist in the
determination of market value. Unlisted securities for which market quotations
are readily available are valued at the last quoted sale price or the last
quoted ask price, as applicable, except that debt obligations with 60 days or
less remaining until maturity may be valued at amortized cost. Exchange-traded
options, futures and options on futures are valued at the settlement price as
determined by the appropriate clearing corporation.

If the fund determines that the market price for a portfolio security is not
readily available or that the valuation methods mentioned above do not reflect
the security's fair value, such security is valued at its fair value as
determined in good faith by, or in accordance with procedures adopted by, the
fund's board or its designee (a process referred to as "fair valuing" the
security). Circumstances that may cause the fund to fair value a security
include, but are not limited to:

*  if, after the close of the foreign exchange on which a portfolio security
   is principally traded, but before the close of the NYSE, an event occurs that
   may materially affect the value of the security;

*  a debt security has been declared in default; or

*  trading in a security has been halted during the trading day.

If such circumstances occur, the fund will fair value the security if the fair
valuation would materially impact the fund's NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with procedures adopted by
the fund's board.

The effect of using fair value determinations is that the fund's NAV will be
based, to some degree, on security valuations that the board or its designee
believes are fair rather than being solely determined by the market.

With respect to any portion of the fund's assets that are invested in one or
more open-end management investment companies that are registered with the SEC
(known as registered investment companies, or RICs), the fund's NAV will be
calculated based upon the NAVs of such RICs. These RICs are required by law to
explain the circumstances under which they will use fair value pricing and the
effects of using fair value pricing in their prospectuses.

Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based on the prevailing exchange rates on that day.


- ------
18


Trading of securities in foreign markets may not take place every day the NYSE
is open. Also, trading in some foreign markets and on some electronic trading
networks may take place on weekends or holidays when the fund's NAV is not
calculated. So, the value of the fund's portfolio may be affected on days when
you will not be able to purchase, exchange or redeem fund shares.

DISTRIBUTIONS

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

        [graphic of triangle]

        CAPITAL GAINS ARE INCREASES IN THE VALUES OF CAPITAL ASSETS,
        SUCH AS STOCK, FROM THE TIME THE ASSETS ARE PURCHASED.

The fund generally pays distributions from net income and capital gains, if any,
once a year in December. The fund may make more frequent distributions, if
necessary, to comply with Internal Revenue Code provisions.

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

Participants in tax-deferred retirement plans must reinvest all distributions.
For investors investing through taxable accounts, we will reinvest distributions
unless you elect to have dividends and/or capital gains sent to another American
Century account, to your bank electronically, or to your home address or to
another person or address by check.


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19


TAXES

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

Tax-Deferred Accounts

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

Taxable Accounts

If you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund shares.

Taxability of Distributions

Although the fund seeks to maximize long-term capital growth while minimizing
taxable distributions, the fund nonetheless may make distributions to its
shareholders. For example, the fund's portfolio managers may elect to sell a
security even if it results in a taxable gain if they determine the tax impact
is outweighed by the investment risk of the security or by the availability of
replacement securities that are a better value after considering the tax effect
of the sale.

Fund distributions may consist of income, such as dividends and interest earned
by a fund from its investments, or capital gains generated by a fund from the
sale of investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as QUALIFIED DIVIDEND INCOME and you meet a
minimum required holding period with respect to your shares of the fund, in
which case distributions of income are taxed as long-term capital gains.

        [graphic of triangle]

        QUALIFIED DIVIDEND INCOME IS A DIVIDEND RECEIVED BY A FUND FROM THE
        STOCK OF A DOMESTIC OR QUALIFYING FOREIGN CORPORATION, PROVIDED THAT THE
        FUND HAS HELD THE STOCK FOR A REQUIRED HOLDING PERIOD.

For capital gains and for income distributions designated as qualified dividend
income, the following rates apply:

                                        TAX RATE FOR 10%      TAX RATE FOR
TYPE OF DISTRIBUTION                    AND 15% BRACKETS      ALL OTHER BRACKETS
- --------------------------------------------------------------------------------
Short-term capital gains                Ordinary Income       Ordinary Income
- --------------------------------------------------------------------------------
Long-term capital gains (> 1 year)
and Qualified Dividend Income           5%                    15%
- --------------------------------------------------------------------------------


- ------
20


If the fund's distributions exceed its taxable income and capital gains realized
during the tax year, all or a portion of the distributions made by the fund in
that tax year will be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.

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

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

Taxes on Transactions

Your redemptions-including exchanges to other American Century funds-are subject
to capital gains tax. The table above can provide a general guide for your
potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss. However, you should note that loss realized upon the
sale or exchange of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain to you with respect to those shares. If a loss is realized on the
redemption of fund shares, the reinvestment in additional fund shares within 30
days before or after the redemption may be subject to the wash sale rules of the
Internal Revenue Code. This may result in a postponement of the recognition of
such loss for federal income tax purposes.

If you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.

Buying a Dividend

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

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

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


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21


MULTIPLE CLASS INFORMATION

American Century offers three classes of shares of the fund: Investor Class,
Institutional Class and Advisor Class.

The classes have different fees, expenses and/or minimum investment
requirements. The difference in the fee structures between the classes is the
result of their separate arrangements for shareholder and distribution services.
It is not the result of any difference in advisory or custodial fees or other
expenses related to the management of the fund's assets, which do not vary by
class. Different fees and expenses will affect performance.

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

Service, Distribution and Administrative Fees

Investment Company Act Rule 12b-1 permits mutual funds that adopt a written plan
to pay certain expenses associated with the distribution of their shares out of
fund assets. The fund's Advisor Class shares have a 12b-1 plan. Under the
Advisor Class Plan, the fund's Advisor Class pays the distributor an annual fee
of 0.50% of Advisor Class average net assets, half for certain ongoing
shareholder and administrative services and half for distribution services,
including past distribution services. The distributor pays all or a portion of
such fees to the financial intermediaries that make Advisor Class shares
available. Because these fees are used to pay for services that are not related
to prospective sales of the fund, the Advisor Class will continue to make
payments under its plan even if it is closed to new investors. Because these
fees are paid out of the fund's assets on an ongoing basis, over time these fees
will increase the cost of your investment and may cost you more than paying
other types of sales charges. For additional information about the plan and its
terms, see MULTIPLE CLASS STRUCTURE in the statement of additional information.

Certain financial intermediaries perform recordkeeping and administrative
services for their clients that would otherwise be performed by American
Century's transfer agent. In some circumstances, the advisor will pay such
service providers a fee for performing those services. Also, the advisor and the
fund's distributor may make payments for various additional services or other
expenses out of their profits or other available sources. Such payments may be
made for one or more of the following: (1) distribution services, which include
expenses incurred by intermediaries for their sales activities with respect to
the fund, such as preparing, printing and distributing sales literature and
advertising materials and compensating registered representatives or other
employees of such financial intermediary for their sales activities, (2)
shareholder services, such as providing individual and custom investment
advisory services to clients of the financial intermediary; and (3) marketing
and promotional services, including business planning assistance, educating
personnel about the fund, and sponsorship of sales meetings, which may include
covering costs of providing speakers, meals and other entertainment. The
distributor may sponsor seminars and conferences designed to educate
intermediaries about the fund and may cover the expenses associated with
attendance at such meetings, including travel costs. These payments and
activities are intended to provide an incentive to intermediaries to sell the
fund by ensuring that they are educated about the fund, and to help such
intermediaries defray costs associated with offering the fund. The amount of any
payments described by this paragraph is determined by the advisor or the
distributor, and all such amounts are paid out of the available assets of the
advisor and distributor, and not by you or the fund. As a result, the total
expense ratio of the fund will not be affected by any such payments.


- ------
22


FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The tables on the next few pages itemize what contributed to the changes in
share price during the most recently ended fiscal year. They also show the
changes in share price for this period in comparison to changes over the last
five fiscal years (or a shorter period if the share class is not five years
old).

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

*  share price at the beginning of the period

*  investment income and capital gains or losses

*  distributions of income and capital gains paid to investors

*  share price at the end of the period

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

*  TOTAL RETURN - the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO - the operating expenses of the fund as a percentage of
   average net assets

*  NET INCOME RATIO - the net investment income of the fund as a percentage
   of average net assets

*  PORTFOLIO TURNOVER - the percentage of the fund's investment portfolio
   that is replaced during the period

The Financial Highlights that follow have been audited by Deloitte & Touche LLP.
The fund's Report of Independent Registered Public Accounting Firm and the
financial statements are included in the fund's annual report, which is
available upon request.



- ------
23


CAPITAL VALUE FUND

Investor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31
- ----------------------------------------------------------------------------------------
                                         2006      2005       2004       2003     2002
- ----------------------------------------------------------------------------------------
PER-SHARE DATA
- ----------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period    $7.15      $6.61      $5.86     $4.88    $5.39
- ----------------------------------------------------------------------------------------
Income From Investment Operations
- ------------------------------------
   Net Investment Income (Loss)(1)       0.12       0.10       0.09      0.08     0.07
- ------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                1.14       0.51       0.72      0.97    (0.52)
- ----------------------------------------------------------------------------------------
   Total From Investment Operations      1.26       0.61       0.81      1.05    (0.45)
- ----------------------------------------------------------------------------------------
Distributions
- ------------------------------------
   From Net Investment Income           (0.10)     (0.07)     (0.06)    (0.07)   (0.06)
- ------------------------------------
   From Net Realized Gains              (0.08)       -          -         -        -
- ----------------------------------------------------------------------------------------
   Total Distributions                  (0.18)     (0.07)     (0.06)    (0.07)   (0.06)
- ----------------------------------------------------------------------------------------
Net Asset Value, End of Period          $8.23      $7.15      $6.61     $5.86    $4.88
========================================================================================
   TOTAL RETURN(2)                      18.03%      9.29%     13.94%    21.67%   (8.49)%

RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                    1.10%      1.10%      1.10%     1.10%     1.10%
- ------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets             1.55%      1.42%      1.44%     1.54%     1.32%
- ------------------------------------
Portfolio Turnover Rate                    16%        28%        15%       22%       42%
- ------------------------------------
Net Assets, End of Period
(in thousands)                        $466,803   $458,354   $255,504   $91,960   $50,425
- ----------------------------------------------------------------------------------------

(1)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. THE TOTAL RETURN OF THE CLASSES MAY NOT
     PRECISELY REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF
     CALCULATING THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET
     VALUES WERE CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN
     DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES.
     THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL PLACES IS MADE IN
     ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY GAIN OR LOSS OF
     VALUE BETWEEN ONE CLASS AND ANOTHER.


- ------
24


CAPITAL VALUE FUND

Institutional Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)
- -----------------------------------------------------------------------------------------
                                           2006      2005      2004      2003    2002(1)
- -----------------------------------------------------------------------------------------
PER-SHARE DATA
- -----------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period      $7.16     $6.62     $5.87     $4.88     $5.87
- -----------------------------------------------------------------------------------------
Income From Investment Operations
- --------------------------------------
   Net Investment Income (Loss)(2)         0.13      0.12      0.10      0.09      0.06
- --------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                  1.15      0.51      0.72      0.97     (1.05)
- -----------------------------------------------------------------------------------------
   Total From Investment Operations        1.28      0.63      0.82      1.06     (0.99)
- -----------------------------------------------------------------------------------------
Distributions
- --------------------------------------
   From Net Investment Income             (0.12)    (0.09)    (0.07)    (0.07)      -
- --------------------------------------
   From Net Realized Gains                (0.08)      -         -         -         -
- -----------------------------------------------------------------------------------------
   Total Distributions                    (0.20)    (0.09)    (0.07)    (0.07)      -
- -----------------------------------------------------------------------------------------
Net Asset Value, End of Period            $8.24     $7.16     $6.62     $5.87     $4.88
=========================================================================================
   TOTAL RETURN(3)                        18.24%     9.50%    14.15%    22.07%   (16.87)%

RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                      0.90%     0.90%     0.90%     0.90%   0.90%(4)
- --------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets               1.75%     1.62%     1.64%     1.74%   1.56%(4)
- --------------------------------------
Portfolio Turnover Rate                      16%       28%       15%       22%     42%(5)
- --------------------------------------
Net Assets, End of Period
(in thousands)                           $31,141   $37,523   $23,449   $11,244     $3,779
- -----------------------------------------------------------------------------------------

(1)  MARCH 1, 2002 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2002.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY
     REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING
     THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE
     CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE
     CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET
     VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND
     DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE
     INDICATED WAS CALCULATED FOR THE YEAR ENDED OCTOBER 31, 2002.


- ------
25


CAPITAL VALUE FUND

Advisor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31 (EXCEPT AS NOTED)
- --------------------------------------------------------------------------------
                                           2006      2005      2004      2003(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period      $7.14     $6.60     $5.86       $5.19
- --------------------------------------------------------------------------------
Income From Investment Operations
- --------------------------------------
   Net Investment Income (Loss)(2)         0.10      0.08      0.08        0.03
- --------------------------------------
   Net Realized and
   Unrealized Gain (Loss)                  1.13      0.52      0.71        0.64
- --------------------------------------------------------------------------------
   Total From Investment Operations        1.23      0.60      0.79        0.67
- --------------------------------------------------------------------------------
Distributions
- --------------------------------------
   From Net Investment Income             (0.08)    (0.06)    (0.05)        -
- --------------------------------------
   From Net Realized Gains                (0.08)      -         -           -
- --------------------------------------------------------------------------------
   Total Distributions                    (0.16)    (0.06)    (0.05)        -
- --------------------------------------------------------------------------------
Net Asset Value, End of Period            $8.21     $7.14     $6.60       $5.86
================================================================================
   TOTAL RETURN(3)                        17.62%     9.04%    13.60%      12.91%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                      1.35%     1.35%     1.35%    1.35%(4)
- --------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets               1.30%     1.17%     1.19%    1.03%(4)
- --------------------------------------
Portfolio Turnover Rate                      16%       28%       15%      22%(5)
- --------------------------------------
Net Assets, End of Period
(in thousands)                           $16,973   $14,744    $8,023        $201
- --------------------------------------------------------------------------------

(1)  MAY 14, 2003 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2003.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY
     REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING
     THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE
     CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE
     CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET
     VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND
     DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  PORTFOLIO TURNOVER IS CALCULATED AT THE FUND LEVEL. PERCENTAGE
     INDICATED WAS CALCULATED FOR THE YEAR ENDED OCTOBER 31, 2003.


- ------
26


NOTES


- ------
27


NOTES


- ------
28


NOTES


- ------
29


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

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

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

IN PERSON           SEC Public Reference Room
                    Washington, D.C.
                    Call 202-942-8090 for location and hours.

ON THE INTERNET     * EDGAR database at sec.gov
                    * By email request at publicinfo@sec.gov

BY MAIL             SEC Public Reference Section
                    Washington, D.C. 20549-0102

This prospectus shall not constitute an offer to sell securities of the fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or qualified for sale, unless such registration or qualification
is not required, or under any circumstances in which such offer or solicitation
would be unlawful.

                                                                     NEWSPAPER
FUND REFERENCE                  FUND CODE           TICKER           LISTING
- --------------------------------------------------------------------------------
Capital Value Fund
  Investor Class                  103                 ACTIX            CapVal
- --------------------------------------------------------------------------------
  Institutional Class             403                 ACPIX            CapVal
- --------------------------------------------------------------------------------
  Advisor Class                   803                 ACCVX            CapVal
- --------------------------------------------------------------------------------

Investment Company Act File No. 811-0816

AMERICAN CENTURY INVESTMENTS
americancentury.com

                                    Banks and Trust Companies, Broker-Dealers,
Self-Directed Retail Investors      Financial Professionals, Insurance Companies
P.O. Box 419200                     P.O. Box 419786
Kansas City, Missouri 64141-6200    Kansas City, Missouri 64141-6786
1-800-345-2021 or 816-531-5575      1-800-345-6488

0703
SH-PRS-52520













AMERICAN CENTURY INVESTMENTS

Prospectus


March 1, 2007


American Century-Mason Street Mid Cap Growth


The fund is available for purchase only through financial intermediaries by
investors who seek advice from them. The fund is closed to other investors.


The Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the adequacy of this prospectus. Any representation to
the contrary is a criminal offense.

American Century Investment
Services, Inc., Distributor

[american century investments logo and text logo]





Table of Contents

AN OVERVIEW OF THE FUND . . . . . . . . . . . . . . . . . .2

FUND PERFORMANCE HISTORY . . . . . . . . . . . . . . . . . 3

FEES AND EXPENSES . . . . . . . . . . . . . . . . . . . . .5

OBJECTIVES, STRATEGIES AND RISKS . . . . . . . . . . . . . 7

MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . 9

INVESTING DIRECTLY WITH AMERICAN CENTURY . . . . . . . . .11

INVESTING THROUGH A FINANCIAL INTERMEDIARY . . . . . . . .13

ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT . . . . . . 18

SHARE PRICE AND DISTRIBUTIONS . . . . . . . . . . . . . . 22

TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . 24

MULTIPLE CLASS INFORMATION . . . . . . . . . . . . . . . .26

FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . .27


    [GRAPHIC OF TRIANGLE]

    THIS SYMBOL IS USED THROUGHOUT THE BOOK TO HIGHLIGHT DEFINITIONS OF KEY
    INVESTMENT TERMS AND TO PROVIDE OTHER HELPFUL INFORMATION.

American Century Investment Services, Inc., Distributor

©2007 American Century Proprietary Holdings, Inc. All rights reserved.

The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.




AN OVERVIEW OF THE FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

The fund will normally invest at least 80% of the value of its net assets (plus
any borrowings for investment purposes) in stocks of U.S. companies with market
capitalizations in the range represented by the S&P MidCap 400 Index. The fund
invests primarily in stocks of mid-sized companies selected for their
above-average growth potential giving consideration to factors such as company
management, growth rate of revenues and earnings, opportunities for margin
expansion and strong financial characteristics.

The fund's principal risks include

*  MID CAP STOCKS - The mid-sized companies in which the fund invests may
   present greater opportunities for capital growth than larger companies, but
   also may present greater risks.

*  GROWTH STOCKS - Investments in growth stocks may involve special risks and
   their prices may fluctuate more dramatically than the overall stock market.

*  FOREIGN SECURITIES - The fund may invest in foreign securities, which can
   be riskier than investing in U.S. securities.

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

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

*  PRINCIPAL LOSS - At any given time your shares may be worth less than the
   price you paid for them. In other words, it is possible to lose money by
   investing in the fund.

A more detailed description of the fund's investment strategies and risks may be
found under the heading OBJECTIVES, STRATEGIES AND RISKS, which begins on page
7.

    [GRAPHIC OF TRIANGLE]

    AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT, AND IT IS NOT INSURED OR
    GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER
    GOVERNMENT AGENCY.


- ------
2


FUND PERFORMANCE HISTORY

Annual Total Returns

The following bar chart shows the performance of the fund's A Class shares for
each full calendar year in the life of the class. It indicates the volatility of
the fund's historical returns from year to year. Account fees and sales charges,
if applicable, are not reflected in the chart below. If they had been included,
returns would have been lower than those shown. The returns of the fund's other
classes of shares will differ from those shown in the chart, depending on the
expenses of those classes.

MID CAP GROWTH - A CLASS(1)

(1)  MID CAP GROWTH ACQUIRED ALL THE NET ASSETS OF THE MASON STREET
     AGGRESSIVE GROWTH FUND ON MARCH 31, 2006, PURSUANT TO A PLAN OF
     REORGANIZATION APPROVED BY THE ACQUIRED FUND'S SHAREHOLDERS ON MARCH 15,
     2006. PERFORMANCE INFORMATION PRIOR TO APRIL 1, 2006, IS THAT OF THE MASON
     STREET AGGRESSIVE GROWTH FUND.

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

                              HIGHEST                         LOWEST
- --------------------------------------------------------------------------------
Mid Cap Growth                34.81% (4Q 1999)                -23.14% (3Q 2001)
- --------------------------------------------------------------------------------

Average Annual Total Returns

The following table shows the average annual total returns of the fund's A Class
shares calculated three different ways. Additional tables show the average
annual total returns of the fund's other share classes calculated before the
impact of taxes. Returns assume the deduction of all sales loads, charges and
other fees associated with a particular class. Your actual returns may vary
depending on the circumstances of your investment. Because the Investor,
Institutional, C and R Classes (which commenced operations April 3, 2006) do not
have investment results for a full calendar year, they are not included.


Return Before Taxes shows the actual change in the value of fund shares over the
time periods shown, but does not reflect the impact of taxes on fund
distributions or the sale of fund shares. The two after-tax returns take into
account taxes that may be associated with owning fund shares. Return After Taxes
on Distributions is a fund's actual performance, adjusted by the effect of taxes
on distributions made by the fund during the periods shown. Return After Taxes
on Distributions and Sale of Fund Shares is further adjusted to reflect the tax
impact on any change in the value of fund shares as if they had been sold on the
last day of the period.


- ------
3


After-tax returns are calculated using the historical highest federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-tax returns shown are not relevant to investors who hold fund
shares through tax-deferred arrangements such as 401(k) plans or IRAs. After-tax
returns are shown only for A Class shares. After-tax returns for other share
classes will vary.

The benchmarks are unmanaged indices that have no operating costs and are
included in each table for performance comparison. The S&P MidCap 400 Index
measures the performance of the mid-range sector of the U.S. stock market. The
Russell Midcap® Growth Index measures the performance of those Russell
Midcap® Index companies (the 800 smallest of the 1,000 largest publicly traded
U.S. companies, based on total market capitalization) with higher price-to-book
ratios and higher forecasted growth values.



A CLASS(1)
                                                                  LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006    1 YEAR  5 YEARS  CLASS(2)
- --------------------------------------------------------------------------------
Return Before Taxes                              -2.52%  2.59%    8.74%
Return After Taxes on Distributions              -3.35%  2.15%    7.26%
Return After Taxes on Distributions              -0.64%  2.20%    7.13%
and Sale of Fund Shares
S&P MidCap 400 Index                             10.32%  10.89%   14.02%
   (reflects no deduction for
   fees, expenses or taxes)
Russell Midcap® Growth Index                     10.66%  8.22%    9.26%
   (reflects no deduction
   for fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  MID CAP GROWTH ACQUIRED ALL THE NET ASSETS OF THE MASON STREET
     AGGRESSIVE GROWTH FUND ON MARCH 31, 2006, PURSUANT TO A PLAN OF
     REORGANIZATION APPROVED BY THE ACQUIRED FUND'S SHAREHOLDERS ON MARCH 15,
     2006. PERFORMANCE INFORMATION PRIOR TO APRIL 1, 2006, IS THAT OF THE MASON
     STREET AGGRESSIVE GROWTH FUND.

(2)  THE INCEPTION DATE FOR THE A CLASS WAS MARCH 31, 1997.

B CLASS(1)
                                                                      LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006   1 YEAR      5 YEARS   CLASS(2)
- --------------------------------------------------------------------------------
Return Before Taxes                             -1.33%(3)   2.93%     8.69%
S&P MidCap 400 Index                            10.32%      10.89%    14.02%
   (reflects no deduction for
   fees, expenses or taxes)
Russell Midcap® Growth Index                    10.66%      8.22%     9.26%
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  MID CAP GROWTH ACQUIRED ALL THE NET ASSETS OF THE MASON STREET
     AGGRESSIVE GROWTH FUND ON MARCH 31, 2006, PURSUANT TO A PLAN OF
     REORGANIZATION APPROVED BY THE ACQUIRED FUND'S SHAREHOLDERS ON MARCH 15,
     2006. PERFORMANCE INFORMATION PRIOR TO APRIL 1, 2006, IS THAT OF THE MASON
     STREET AGGRESSIVE GROWTH FUND.

(2)  THE INCEPTION DATE FOR THE B CLASS WAS MARCH 31, 1997.

(3)  RETURN WOULD HAVE BEEN LOWER IF SERVICE AND DISTRIBUTION FEES HAD NOT
     BEEN WAIVED FROM APRIL 1, 2006 TO
     DECEMBER 31, 2006.


Performance information is designed to help you see how fund returns can vary.
Keep in mind that past performance (before and after taxes) does not predict how
a fund will perform in the future.

For current performance information, please call us or visit
americancentury.com.


- ------
4


FEES AND EXPENSES

The following tables describe the fees and expenses you may pay if you buy and
hold shares of the fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

                           INVESTOR   INSTITUTIONAL   A        B         C        R
                           CLASS      CLASS           CLASS    CLASS     CLASS    CLASS
- ---------------------------------------------------------------------------------------
Maximum Sales              None       None            5.75%    None      None     None
Charge (Load)
Imposed on
Purchases
  (as a percentage
   of offering price)
- ---------------------------------------------------------------------------------------
Maximum Deferred           None       None            None(1)  5.00%(2)  1.00%(3) None
Sales Charge (Load)
  (as a percentage of
   the original offering
   price for B Class
   shares or the lower
   of the original
   offering price or
   redemption
   proceeds for A
   and C Class
   shares)
- ---------------------------------------------------------------------------------------
Maximum Account
Maintenance Fee            $25(4)     None            None     None      None     None
- ---------------------------------------------------------------------------------------

(1)  INVESTMENTS OF $1 MILLION OR MORE IN A CLASS SHARES MAY BE SUBJECT TO
     A CONTINGENT DEFERRED SALES CHARGE OF 1.00% IF THE SHARES ARE REDEEMED
     WITHIN ONE YEAR OF THE DATE OF PURCHASE.

(2)  THIS CHARGE IS 5.00% DURING THE FIRST YEAR AFTER PURCHASE, DECLINES
     OVER THE NEXT FIVE YEARS AS SHOWN ON PAGE 15, AND IS ELIMINATED AFTER SIX
     YEARS.

(3)  THE CHARGE IS 1.00% DURING THE FIRST YEAR AFTER PURCHASE AND IS
     ELIMINATED THEREAFTER.

(4)  APPLIES ONLY TO INVESTORS WHOSE TOTAL ELIGIBLE INVESTMENTS WITH
     AMERICAN CENTURY ARE LESS THAN $10,000. SEE Account Maintenance Fee UNDER
     Investing Directly with American Century FOR MORE DETAILS.


ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
                                DISTRIBUTION                    TOTAL ANNUAL
                  MANAGEMENT    AND SERVICE       OTHER         FUND OPERATING
                  FEE(1)        (12B-1) FEES(2)   EXPENSES(3)   EXPENSES
- --------------------------------------------------------------------------------
Investor          1.05%         None              0.00%         1.05%
Class
- --------------------------------------------------------------------------------
Institutional     0.85%         None              0.00%         0.85%
Class
- --------------------------------------------------------------------------------
A Class           1.05%         0.25%             0.00%         1.30%
- --------------------------------------------------------------------------------
B Class           1.05%         0.90%(4)          0.00%         1.95%
- --------------------------------------------------------------------------------
C Class           1.05%         1.00%             0.00%         2.05%
- --------------------------------------------------------------------------------
R Class           1.05%         0.50%             0.00%         1.55%
- --------------------------------------------------------------------------------

(1)  THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR
     ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. THE FEE SHOWN IS
     BASED ON ASSETS DURING THE FUND'S MOST RECENT FISCAL YEAR. THE FUND HAS A
     STEPPED FEE SCHEDULE. AS A RESULT, THE FUND'S UNIFIED MANAGEMENT FEE RATE
     GENERALLY DECREASES AS STRATEGY ASSETS INCREASE AND INCREASES AS STRATEGY
     ASSETS DECREASE. FOR MORE INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE,
     INCLUDING AN EXPLANATION OF STRATEGY ASSETS, SEE The Investment Advisor
     UNDER Management.

(2)  THE 12B-1 FEE IS DESIGNED TO PERMIT INVESTORS TO PURCHASE SHARES
     THROUGH BROKER-DEALERS, BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL
     INTERMEDIARIES. THE FEE MAY BE USED TO COMPENSATE SUCH FINANCIAL
     INTERMEDIARIES FOR DISTRIBUTION AND OTHER SHAREHOLDER SERVICES. FOR MORE
     INFORMATION, SEE Multiple Class Information AND Service, Distribution and
     Administrative Fees, PAGE 26.

(3)  OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
     INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST, WERE
     LESS THAN 0.005% FOR THE MOST RECENT FISCAL YEAR.

(4)  EFFECTIVE APRIL 1, 2006 THROUGH MARCH 31, 2008, AMERICAN CENTURY
     AGREED TO A TWO-YEAR WAIVER OF RULE 12B-1 FEES FOR CERTAIN CLASSES OF THE
     FUND. WITHOUT THE WAIVER, THE DISTRIBUTION AND SERVICE (12B-1) FEES AND
     TOTAL ANNUAL FUND OPERATING EXPENSES WOULD BE 1.00% AND 2.05%,
     RESPECTIVELY.


- ------
5


EXAMPLE

The examples in the tables below are intended to help you compare the costs of
investing in the fund with the costs of investing in other mutual funds. Of
course, your actual costs may be higher or lower. Assuming you . . .

*  invest $10,000 in the fund

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

*  earn a 5% return each year

*  incur the same operating expenses as shown above

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

                      1 YEAR         3 YEARS         5 YEARS         10 YEARS
- --------------------------------------------------------------------------------
Investor              $107           $333            $577            $1,277
Class
- --------------------------------------------------------------------------------
Institutional         $87            $271            $470            $1,045
Class
- --------------------------------------------------------------------------------
A Class               $699           $962            $1,244          $2,044
- --------------------------------------------------------------------------------
B Class               $597           $924            $1,182          $2,156
- --------------------------------------------------------------------------------
C Class               $207           $638            $1,094          $2,356
- --------------------------------------------------------------------------------
R Class               $157           $487            $840            $1,832
- --------------------------------------------------------------------------------


The table above reflects a deduction for charges payable upon redemption. You
would pay the following expenses if you did not redeem your shares and thus did
not incur such charges:


                      1 YEAR         3 YEARS         5 YEARS         10 YEARS
- --------------------------------------------------------------------------------
Investor              $107           $333            $577            $1,277
Class
- --------------------------------------------------------------------------------
Institutional         $87            $271            $470            $1,045
Class
- --------------------------------------------------------------------------------
A Class               $699           $962            $1,244          $2,044
- --------------------------------------------------------------------------------
B Class               $197           $624            $1,082          $2,156
- --------------------------------------------------------------------------------
C Class               $207           $638            $1,094          $2,356
- --------------------------------------------------------------------------------
R Class               $157           $487            $840            $1,832
- --------------------------------------------------------------------------------



- ------
6


OBJECTIVES, STRATEGIES AND RISKS

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

The fund will normally invest at least 80% of the value of its net assets (plus
any borrowings for investment purposes) in stocks of U.S. companies with market
capitalizations in the range represented by the S&P MidCap 400 Index at the time
of purchase. The fund invests primarily in stocks of companies selected for
their above-average growth potential giving consideration to factors such as
company management, growth rate of revenues and earnings, opportunities for
margin expansion and strong financial characteristics.

The fund may sell securities for a variety of reasons such as to secure gains,
limit losses or redeploy assets into more promising opportunities. However, the
fund will not sell a stock just because a mid-sized company in which it invests
has grown into a large-sized company.

Although the fund's equity investments consist primarily of securities of U.S.
issuers, the fund may invest up to 20% of its net assets in the equity
securities of issuers from countries outside the United States , including (i)
foreign securities denominated in a foreign currency and not publicly traded in
the U.S. and (ii) U. S. currency denominated foreign securities, including
depositary receipts and depositary shares issued by U.S. banks (American
Depositary Receipts or ADRs) and U.S. broker-dealers (American Depositary
Shares). The fund's foreign investments may include securities of issuers in
countries with emerging markets or economies. Investments in foreign securities
present some unique risks that are more fully described in the fund's statement
of additional information.

The fund's investments in equity securities may include common stocks, preferred
stocks, warrants, and securities convertible into common or preferred stocks. To
a lesser degree, the fund may invest in other types of securities and use other
investment strategies that may include debt securities, index/structured
securities, high-yield/high-risk bonds, options, futures, forwards, swaps and
other types of derivatives and exchange traded funds, securities purchased on a
when-issued, delayed delivery or forward commitment basis, and pass-through
securities (including mortgage- and asset-backed securities). Futures contracts,
a type of derivative security, can help the fund's cash assets remain liquid
while performing like stocks. The fund has a policy governing futures contracts
and similar derivative securities to help manage the risks of these types of
investments. A complete description of the derivatives policy is included in the
statement of additional information.

In the event of exceptional market or economic conditions, the fund may, as a
temporary defensive measure, invest all or a substantial portion of its assets
in cash or high-quality short-term debt securities, including money market
reserves. To the extent the fund assumes a defensive position, it will not be
pursuing its objective of capital growth.

A description of the policies and procedures with respect to the disclosure of
the fund's portfolio securities is available in the statement of additional
information.


- ------
7


WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?

Mid cap stocks may involve greater risks because the value of securities of
medium size, less well-known issuers can be more volatile than that of
relatively larger issuers and can react differently to issuer, political,
market, and economic developments than the market as a whole and other types of
stocks.

Growth stocks are typically priced higher than other stocks, in relation to
earnings and other measures, because investors believe they have more growth
potential. This potential may or may not be realized and growth stock prices
tend to fluctuate more dramatically than the overall stock market.

Although the portfolio manager intends to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies. Foreign
investment involves additional risks, including fluctuations in currency
exchange rates, less stable political and economic structures, reduced
availability of public information, and lack of uniform financial reporting and
regulatory practices similar to those that apply in the United States. These
factors make investing in foreign securities generally riskier than investing in
U.S. stocks. To the extent the fund invests in foreign securities, the overall
risk of that fund could be affected.

The fund's performance also may be impacted by investments in initial public
offerings (IPOs). IPOs may present greater risks than other investments in
stocks because the issuers have no track record as public companies. The impact
of IPO investments may be substantial and positive for a relatively small fund
during periods when the IPO market is strong. IPOs may have less performance
impact as the fund's assets grow.

Market performance tends to be cyclical, and, in the various cycles, certain
investment styles may fall in and out of favor. If the market is not favoring
the fund's style, the fund's gains may not be as big as, or its losses may be
bigger than, other equity funds using different investment styles.

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 the fund owns will go
up and down depending on the performance of the companies that issued them,
general market and economic conditions, and investor confidence.

At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the fund.


- ------
8


MANAGEMENT

WHO MANAGES THE FUND?

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

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than three-fourths of the directors are independent of the fund's advisor;
that is, they have never been employed by and have no financial interest in the
advisor or any of its affiliated companies (other than as shareholders of
American Century funds).

THE INVESTMENT ADVISOR

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

The advisor is responsible for managing the investment portfolio of the fund and
directing the purchase and sale of its investment securities. The advisor also
arranges for transfer agency, custody and all other services necessary for the
fund to operate. The advisor has hired Mason Street Advisors, LLC (MSA), a
wholly owned company of The Northwestern Mutual Life Insurance Company
(Northwestern Mutual), to make the day-to-day investment decisions for the fund.
MSA performs this function under the supervision of the advisor and the fund's
Board of Directors. MSA and its predecessor, Northwestern Mutual Investment
Services, LLC, have served as investment advisor to the fund and its predecessor
fund since its inception. The personnel and related facilities of Northwestern
Mutual and MSA are utilized by MSA in performing its investment advisory
functions. The address of MSA is 720 East Wisconsin Avenue, Milwaukee, Wisconsin
53202.

For the services it provides to the fund, the advisor receives a unified
management fee based on a percentage of the daily net assets of each class of
shares of the fund. The amount of the fee is calculated daily and paid monthly
in arrears. Out of that fee, the advisor pays all expenses of managing and
operating the fund except brokerage expenses, taxes, interest, fees and expenses
of the independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the management fee may be paid by the fund's advisor to
unaffiliated third parties who provide recordkeeping and administrative services
that would otherwise be performed by an affiliate of the advisor.

The rate of the fee is determined by applying a formula that takes into account
all of the advisor's assets under management in the fund's investment strategy
(strategy assets). Strategy assets include the assets of the fund as well as
certain assets of other clients of the advisor outside the American Century fund
family (such as subadvised funds and separate accounts) that use very similar
investment teams and strategies. The use of strategy assets, rather than fund
assets, in calculating the fund's fee rate could allow the fund to realize
scheduled cost savings more quickly. However, the fund's strategy assets
currently do not include assets of other client accounts. In addition, if such
assets are acquired in the future, they may not be sufficient to result in a
lower fee rate.



- ------
9



MANAGEMENT FEES PAID
BY THE FUND TO THE ADVISOR
AS A PERCENTAGE OF AVERAGE
NET ASSETS FOR THE PERIOD
APRIL 1, 2006 THROUGH       INVESTOR   INSTITUTIONAL
OCTOBER 31, 2006            CLASS      CLASS           A CLASS   B CLASS  C CLASS  R CLASS
- -------------------------------------------------------------------------------------------
Mid Cap Growth(1)           1.05%(2)   0.85%(2)        1.05%(2)  1.05%(2) 1.05%(2) 1.05%(2)
- -------------------------------------------------------------------------------------------

(1)  THE FUND ACQUIRED ALL THE NET ASSETS OF THE MASON STREET AGGRESSIVE GROWTH
     FUND ON MARCH 31, 2006, PURSUANT TO A PLAN OF REORGANIZATION APPROVED BY
     THE ACQUIRED FUND'S SHAREHOLDERS ON MARCH 15, 2006. FOR THE FISCAL YEAR
     ENDED MARCH 31, 2006, THE ACQUIRED FUND PAID ITS ADVISOR, MASON STREET
     ADVISORS, LLC, AN ADVISORY FEE EQUAL TO 0.75% OF THE FUND'S AVERAGE DAILY
     NET ASSETS. THIS ADVISORY FEE IS NOT DIRECTLY COMPARABLE TO AMERICAN
     CENTURY'S UNIFIED FEE, WHICH INCLUDES SUBSTANTIALLY ALL EXPENSES OF
     OPERATING THE FUND.

(2)  ANNUALIZED.

A discussion regarding the basis for the Board of Directors' approval of the
fund's investment advisory contract with the advisor is available in the fund's
report to shareholders dated April 30, 2006.


THE FUND MANAGEMENT TEAM

The advisor provides investment advisory and management services for the fund.
The advisor has, in turn, hired MSA to make the day-to-day investment decisions
for the fund. MSA performs this function under the supervision of the advisor
and the fund's Board of Directors.

The portfolio manager on the investment team who is primarily responsible for
the day-to-day management of the fund is:


WILLIAM R. WALKER

Mr. Walker, Managing Director of MSA, has been a member of the team that manages
the fund and its predecessor fund since its inception in March 1997. He joined
Northwestern Mutual in April 1984. Mr. Walker has a bachelor's degree in
business administration with an emphasis in finance from Marquette University
and an MBA from Miami University of Oxford, Ohio. He is a CFA charterholder.

The statement of additional information provides additional information about
the other accounts managed by the portfolio manager, if any, the structure of
his compensation, and his ownership of fund securities.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the statement of additional
information and the investment objectives of the fund may not be changed without
shareholder approval. The Board of Directors and/or the advisor may change any
other policies and investment strategies.


- ------
10



INVESTING DIRECTLY WITH AMERICAN CENTURY

Although investors may only open new accounts through financial intermediaries,
current fund shareholders may, under certain circumstances, make additional
investments directly with American Century.

SERVICES AUTOMATICALLY AVAILABLE TO YOU

Most accounts automatically will have access to the services listed under WAYS
TO MANAGE YOUR ACCOUNT when the account is opened. If you do not want these
services, see CONDUCTING BUSINESS IN WRITING. If you have questions about the
services that apply to your account type, please call us.

CONDUCTING BUSINESS IN WRITING

If you prefer to conduct business in writing only, you can indicate this on the
account application. If you choose this option, you must provide written
instructions to invest, exchange and redeem. All account owners must sign
transaction instructions (with signatures guaranteed for redemptions in excess
of $100,000). By choosing this option, you are not eligible to enroll for
exclusive online account management to waive the account maintenance fee. See
ACCOUNT MAINTENANCE FEE in this section. If you want to add online and telephone
services later, you can complete an Investor Service Options form.

ACCOUNT MAINTENANCE FEE

If you hold Investor Class shares of any American Century fund, or Institutional
Class shares of the American Century Diversified Bond Fund, in an American
Century account (i.e., not a financial intermediary or retirement plan account),
we may charge you a $12.50 semiannual account maintenance fee if the value of
those shares is less than $10,000. We will determine the amount of your total
eligible investments twice per year, generally the last Friday in October and
April. If the value of those investments is less than $10,000 at that time, we
will automatically redeem shares in one of your accounts to pay the $12.50 fee.
Please note that you may incur tax liability as a result of the redemption. In
determining your total eligible investment amount, we will include your
investments in all PERSONAL ACCOUNTS (including American Century Brokerage
accounts) registered under your Social Security number. We will not charge the
fee as long as you choose to manage your accounts exclusively online. You may
enroll for exclusive online account management on our Web site. To find out more
about exclusive online account management, visit americancentury.com/info/demo.

    [GRAPHIC OF TRIANGLE]

    PERSONAL ACCOUNTS INCLUDE INDIVIDUAL ACCOUNTS, JOINT ACCOUNTS, UGMA/UTMA
    ACCOUNTS, PERSONAL TRUSTS, COVERDELL EDUCATION SAVINGS ACCOUNTS, IRAS
    (INCLUDING TRADITIONAL, ROTH, ROLLOVER, SEP-, SARSEP- AND SIMPLE-IRAS),
    AND CERTAIN OTHER RETIREMENT ACCOUNTS. IF YOU HAVE ONLY BUSINESS, BUSINESS
    RETIREMENT, EMPLOYER-SPONSORED OR AMERICAN CENTURY BROKERAGE ACCOUNTS, YOU
    ARE CURRENTLY NOT SUBJECT TO THIS FEE, BUT YOU MAY BE SUBJECT TO OTHER FEES.

WIRE PURCHASES

CURRENT INVESTORS: If you would like to make a wire purchase into an existing
account, your bank will need the following information. (To invest in a new
fund, please call us first to set up the new account.)

*  American Century's bank information: Commerce Bank N.A., Routing No.
   101000019, Account No. 2804918

*  Your American Century account number and fund name

*  Your name

*  The contribution year (for IRAs only)

NEW INVESTORS: To make a wire purchase into a new account, please complete an
application prior to wiring money.


- ------
11


WAYS TO MANAGE YOUR ACCOUNT

ONLINE
- --------------------------------------------------------------------------------
americancentury.com

OPEN AN ACCOUNT: If you are a current or new investor, you can open an account
by completing and submitting our online application. Current investors also can
open an account by exchanging shares from another American Century account.

EXCHANGE SHARES: Exchange shares from another American Century account.

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

SELL SHARES*: Redeem shares and proceeds will be electronically transferred to
your authorized bank account.

* Online redemptions up to $25,000 per day.

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

* 4500 Main Street, Kansas City, Missouri - 8 a.m. to 5 p.m., Monday - Friday

* 4917 Town Center Drive, Leawood, Kansas - 8 a.m. to 5 p.m., Monday - Friday,
  8 a.m. to noon, Saturday

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

BY TELEPHONE
- --------------------------------------------------------------------------------
INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021

INSTITUTIONAL SERVICE REPRESENTATIVE: 1-800-345-3533

BUSINESS, NOT-FOR-PROFIT AND EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533

AUTOMATED INFORMATION LINE: 1-800-345-8765

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

EXCHANGE SHARES: Call or use our Automated Information Line if you have
authorized us to accept telephone instructions. The Automated Information Line
is available only to Investor Class shareholders.

MAKE ADDITIONAL INVESTMENTS: Call or use our Automated Information Line if you
have authorized us to invest from your bank account. The Automated Information
Line is available only to Investor Class shareholders.

SELL SHARES: Call a Service Representative.

BY MAIL OR FAX
- --------------------------------------------------------------------------------
P.O. Box 419200, Kansas City, MO 64141-6200 - Fax: 816-340-7962

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

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

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

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

AUTOMATICALLY
- --------------------------------------------------------------------------------
OPEN AN ACCOUNT: Not available.

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

MAKE ADDITIONAL INVESTMENTS: With the automatic investment service, you can
purchase shares on a regular basis. You must invest at least $50 per month per
account.

SELL SHARES: You may sell shares automatically by establishing Check-A-Month or
Automatic Redemption plans.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
12


INVESTING THROUGH A FINANCIAL INTERMEDIARY

The fund's A, C and R Classes are intended for purchase by participants in
employer-sponsored retirement plans. Additionally, the fund's A, B and C Classes
are intended for persons purchasing shares through FINANCIAL INTERMEDIARIES that
provide various administrative and distribution services. For more information
regarding employer-sponsored retirement plan types, please see BUYING AND
SELLING FUND SHARES in the statement of additional information.

    [GRAPHIC OF TRIANGLE]

    FINANCIAL INTERMEDIARIES INCLUDE BANKS, BROKER-DEALERS, INSURANCE COMPANIES,
    PLAN SPONSORS AND FINANCIAL PROFESSIONALS.

Although each class of shares represents an interest in the same fund, each has
a different cost structure, as described below. Which class is right for you
depends on many factors, including how long you plan to hold the shares, how
much you plan to invest, the fee structure of each class, and how you wish to
compensate your financial professional for the services provided to you. Your
financial professional can help you choose the option that is most appropriate.

The following chart provides a summary description of these classes.


A CLASS                                 B CLASS
- --------------------------------------------------------------------------------
Initial sales charge(1)                 No initial sales charge
- --------------------------------------------------------------------------------
Generally no contingent                 Contingent deferred sales charge
deferred sales charge(2)                on redemptions within six years
- --------------------------------------------------------------------------------
12b-1 fee of 0.25%                      12b-1 fee of 1.00%(3)
- --------------------------------------------------------------------------------
No conversion feature                   Convert to A Class shares eight
                                        years after purchase
- --------------------------------------------------------------------------------
Generally more appropriate              Aggregate purchases limited to amounts
for long-term investors                 less than $100,000; generally offered
                                        through financial intermediaries(4)
- --------------------------------------------------------------------------------

C CLASS                                    R CLASS
- --------------------------------------------------------------------------------
No initial sales charge                    No initial sales charge
- --------------------------------------------------------------------------------
Contingent deferred sales charge           No contingent deferred
on redemptions within 12 months            sales charge
- --------------------------------------------------------------------------------
12b-1 fee of 1.00%                         12b-1 fee of 0.50%
- --------------------------------------------------------------------------------
No conversion feature                      No conversion feature
- --------------------------------------------------------------------------------
Aggregate purchases limited to amounts     Generally offered through
less than $1,000,000; generally more       employer-sponsored retirement
appropriate for short-term investors       plans and other fee-based
                                           arrangements(5)
- --------------------------------------------------------------------------------

(1)  THE SALES CHARGE FOR A CLASS SHARES DECREASES DEPENDING ON THE SIZE OF
     YOUR INVESTMENT, AND MAY BE WAIVED FOR SOME PURCHASES. THERE IS NO SALES
     CHARGE FOR PURCHASES OF $1,000,000 OR MORE.

(2)  A CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 1.00% WILL BE CHARGED ON
     CERTAIN PURCHASES OF $1,000,000 OR MORE THAT ARE REDEEMED WITHIN ONE YEAR
     OF PURCHASE.

(3)  EFFECTIVE APRIL 1, 2006 THROUGH MARCH 31, 2008, AMERICAN CENTURY
     AGREED TO A TWO-YEAR WAIVER OF RULE 12B-1 FEES FOR CERTAIN CLASSES OF THE
     FUND. TAKING INTO ACCOUNT THE WAIVER, THE 12B-1 FEE IS 0.90%.

(4)  INVESTORS IN SIMPLE IRA PLANS, SEP IRA PLANS AND SARSEP PLANS
     ESTABLISHED PRIOR TO AUGUST 1, 2006, MAY MAKE
     ADDITIONAL PURCHASES. THIS CLASS IS NOT AVAILABLE FOR NEW
     EMPLOYER-SPONSORED RETIREMENT PLAN ACCOUNTS.

(5)  IRA ACCOUNTS IN R CLASS SHARES ESTABLISHED THROUGH FINANCIAL
     INTERMEDIARIES PRIOR TO AUGUST 1, 2006, MAY MAKE
     ADDITIONAL PURCHASES.



- ------
13


CALCULATION OF SALES CHARGES

The information regarding sales charges provided herein is included free of
charge and in a clear and prominent format at americancentury.com in the
INVESTORS USING ADVISORS and INVESTMENT PROFESSIONALS portions of the Web site.
From the description of A, B or C Class shares, a hyperlink will take you
directly to this disclosure.

A Class

A Class shares are sold at their offering price, which is net asset value plus
an initial sales charge. This sales charge varies depending on the amount of
your investment, and is deducted from your purchase before it is invested. The
sales charges and the amounts paid to your financial professional are:

                                                             AMOUNT PAID TO
                          SALES CHARGE     SALES CHARGE      FINANCIAL ADVISOR
                          AS A % OF        AS A % OF NET     AS A % OF
PURCHASE AMOUNT           OFFERING PRICE   AMOUNT INVESTED   OFFERING PRICE
- --------------------------------------------------------------------------------
Less than $50,000         5.75%            6.10%             5.00%
- --------------------------------------------------------------------------------
$50,000 - $99,999         4.75%            4.99%             4.00%
- --------------------------------------------------------------------------------
$100,000 - $249,999       3.75%            3.90%             3.25%
- --------------------------------------------------------------------------------
$250,000 - $499,999       2.50%            2.56%             2.00%
- --------------------------------------------------------------------------------
$500,000 - $999,999       2.00%            2.04%             1.75%
- --------------------------------------------------------------------------------
$1,000,000 - $3,999,999   0.00%            0.00%             1.00%(1)
- --------------------------------------------------------------------------------
$4,000,000 - $9,999,999   0.00%            0.00%             0.50%(1)
- --------------------------------------------------------------------------------
$10,000,000 or more       0.00%            0.00%             0.25%(1)
- --------------------------------------------------------------------------------

(1)  FOR PURCHASES OVER $1,000,000 BY EMPLOYER-SPONSORED RETIREMENT PLANS,
     NO UPFRONT AMOUNT WILL BE PAID TO
     FINANCIAL PROFESSIONALS.

There is no front-end sales charge for purchases of $1,000,000 or more, but if
you redeem your shares within one year of purchase you will pay a 1.00% deferred
sales charge, subject to the exceptions listed below. No sales charge applies to
reinvested dividends.

Reductions and Waivers of Sales Charges for A Class

You may qualify for a reduction or waiver of certain sales charges, but you or
your financial professional must provide certain information, including the
account numbers of any accounts to be aggregated, to American Century at the
time of purchase in order to take advantage of such reduction or waiver.

You and your immediate family (your spouse and your children under the age of
21) may combine investments to reduce your A Class sales charge in the following
ways:

ACCOUNT AGGREGATION. Investments made by you and your immediate family may be
aggregated at each account's current market value if made for your own
account(s) and/or certain other accounts, such as:

*  Certain trust accounts

*  Solely controlled business accounts

*  Single-participant retirement plans

*  Endowments or foundations established and controlled by you or an
   immediate family member

For purposes of aggregation, only investments made through individual-level
accounts, rather than accounts aggregated at the intermediary level, may be
included.

CONCURRENT PURCHASES. You may combine simultaneous purchases in A, B or C Class
shares of any two or more American Century Advisor Funds (funds that offer A, B
and C Class shares) to qualify for a reduced A Class sales charge.


- ------
14


RIGHTS OF ACCUMULATION. You may take into account the current value of your
existing holdings in A, B or C Class shares of any American Century Advisor Fund
to determine your A Class sales charge.

LETTER OF INTENT. A Letter of Intent allows you to combine all non-money market
fund purchases of all A, B and C Class shares you intend to make over a 13-month
period to determine the applicable sales charge. At your request, existing
holdings may be combined with new purchases and sales charge amounts may be
adjusted for purchases made within 90 days prior to our receipt of the Letter of
Intent. Capital appreciation, capital gains and reinvested dividends earned
during the Letter of Intent period do not apply toward its completion. A portion
of your account will be held in escrow to cover additional A Class sales charges
that will be due if your total investments over the 13-month period do not
qualify for the applicable sales charge reduction.

WAIVERS FOR CERTAIN INVESTORS. The sales charge on A Class shares may be waived
for:

*  Purchases by registered representatives and other employees of certain
   financial intermediaries (and their immediate family members) having selling
   agreements with the advisor or distributor

*  Broker-dealer sponsored wrap program accounts and/or fee-based accounts
   maintained for clients of certain financial intermediaries who have entered
   into selling agreements with American Century

*  Present or former officers, directors and employees (and their families)
   of American Century

*  Employer-sponsored retirement plan purchases. For plans under $1 million
   in assets, purchases with sales charges are allowed, but may be subject to
   the retirement plan recordkeeper's policies. Refer to BUYING AND SELLING FUND
   SHARES in the statement of additional information.

*  IRA Rollovers from any American Century Advisor Fund held in an
   employer-sponsored retirement plan

*  Certain other investors as deemed appropriate by American Century

B Class

B Class shares are sold at their net asset value without an initial sales
charge. For sales of B Class shares, the amount paid to your financial
professional is 4.00% of the amount invested. If you redeem your shares within
six years of the purchase date, you will pay a contingent deferred sales charge
(CDSC) as set forth below. The purpose of the CDSC is to permit the fund's
distributor to recoup all or a portion of the up-front payment made to your
financial professional. There is no CDSC on shares acquired through reinvestment
of dividends or capital gains.

REDEMPTION DURING                         CDSC AS A % OF ORIGINAL PURCHASE PRICE
- --------------------------------------------------------------------------------
1st year                                  5.00%
- --------------------------------------------------------------------------------
2nd year                                  4.00%
- --------------------------------------------------------------------------------
3rd year                                  3.00%
- --------------------------------------------------------------------------------
4th year                                  3.00%
- --------------------------------------------------------------------------------
5th year                                  2.00%
- --------------------------------------------------------------------------------
6th year                                  1.00%
- --------------------------------------------------------------------------------
After 6th year                            None
- --------------------------------------------------------------------------------

B Class shares (which carry a 1.00% 12b-1 fee) will automatically convert to A
Class shares (which carry a 0.25% 12b-1 fee) within 31 days after the eight-year
anniversary of the purchase date.


- ------
15


C Class

C Class shares are sold at their net asset value without an initial sales
charge. For sales of C Class shares, the amount paid to your financial
professional is 1.00% of the amount invested. If you redeem your shares within
12 months of purchase, you will pay a CDSC of 1.00% of the original purchase
price or the current market value at redemption, whichever is less. The purpose
of the CDSC is to permit the fund's distributor to recoup all or a portion of
the up-front payment made to your financial professional.

The CDSC will not be charged on shares acquired through reinvestment of
dividends or distributions or increases in the net asset value of shares.

CALCULATION OF CONTINGENT DEFERRED SALES CHARGE (CDSC)

To minimize the amount of the CDSC you may pay when you redeem shares, the fund
will first redeem shares acquired through reinvested dividends and capital gain
distributions, which are not subject to a CDSC. Shares that have been in your
account long enough that they are not subject to a CDSC are redeemed next. For
any remaining redemption amount, shares will be sold in the order they were
purchased (earliest to latest).

CDSC WAIVERS

Any applicable CDSC may be waived in the following cases:

*  redemptions through systematic withdrawal plans not exceeding annually:

   *  2% of the lesser of the original purchase cost or current market value
      for A Class shares

   *  12% of the original purchase cost for B Class shares

   *  12% of the lesser of the original purchase cost or current market value
      for C Class shares

*  distributions from IRAs due to attainment of age 59-1/2 for A Class shares
   and for C Class shares

*  required minimum distributions from retirement accounts upon reaching age
   70-1/2

*  tax-free returns of excess contributions to IRAs

*  redemptions due to death or post-purchase disability

*  exchanges, unless the shares acquired by exchange are redeemed within the
   original CDSC period

*  IRA Rollovers from any American Century Advisor Fund held in an
   employer-sponsored retirement plan, for A Class shares only

*  if no broker was compensated for the sale

REINSTATEMENT PRIVILEGE

Within 90 days of a redemption of any A or B Class shares, you may reinvest all
of the redemption proceeds in A Class shares of any American Century Advisor
Fund at the then-current net asset value without paying an initial sales charge.
At your request, any CDSC you paid on an A Class redemption that you are
reinvesting will be credited to your account. You or your financial professional
must notify the fund's transfer agent in writing at the time of the reinvestment
to take advantage of this privilege, and you may use it only once per account.
This privilege applies only if the new account is owned by the original account
owner.


- ------
16


EXCHANGING SHARES

You may exchange shares of the fund for shares of the same class of another
American Century Advisor Fund without a sales charge if you meet the following
criteria:

*  The exchange is for a minimum of $100

*  For an exchange that opens a new account, the amount of the exchange must
   meet or exceed the minimum account size requirement for the fund receiving
   the exchange

For purposes of computing any applicable CDSC on shares that have been
exchanged, the holding period will begin as of the date of purchase of the
original fund owned. Exchanges from a money market fund are subject to a sales
charge on the fund being purchased, unless the money market fund shares were
acquired by exchange from a fund with a sales charge or by reinvestment of
dividends or capital gains distributions.

EXCHANGES BETWEEN FUNDS (C CLASS)

You may exchange C Class shares of the fund for C Class shares of any other
American Century fund. You may not exchange from the C Class to any other class.
We will not charge a CDSC on the shares you exchange, regardless of the length
of time you have owned them. When you do redeem shares that have been exchanged,
the CDSC will be based on the date you purchased the original shares.

BUYING AND SELLING SHARES

Your ability to purchase, exchange, redeem and transfer shares will be affected
by the policies of the financial intermediary through which you do business.
Some policy differences may include

*  minimum investment requirements

*  exchange policies

*  fund choices

*  cutoff time for investments

*  trading restrictions

In addition, your financial intermediary may charge a transaction fee for the
purchase or sale of fund shares. Those charges are retained by the financial
intermediary and are not shared with American Century or the fund. Please
contact your financial intermediary or plan sponsor for a complete description
of its policies. Copies of the fund's annual report, semiannual report and
statement of additional information are available from your financial
intermediary or plan sponsor.

The fund has authorized certain financial intermediaries to accept orders on the
fund's behalf. American Century has selling agreements with these financial
intermediaries requiring them to track the time investment orders are received
and to comply with procedures relating to the transmission of orders. Orders
must be received by the financial intermediary on the fund's behalf before the
time the net asset value is determined in order to receive that day's share
price. If those orders are transmitted to American Century and paid for in
accordance with the selling agreement, they will be priced at the net asset
value next determined after your request is received in the form required by the
financial intermediary.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


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17


ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT

MINIMUM INITIAL INVESTMENT AMOUNTS (OTHER THAN INSTITUTIONAL CLASS)

Unless otherwise specified below, the minimum initial investment amount to open
an account is $2,500. Financial intermediaries may open an account with $250,
but may require their clients to meet different investment minimums. See
INVESTING THROUGH A FINANCIAL INTERMEDIARY for more information.

- --------------------------------------------------------------------------------
Broker-dealer sponsored wrap program accounts                         No minimum
and/or fee-based accounts
- --------------------------------------------------------------------------------
Coverdell Education Savings Account (CESA)                            $2,000(1)
- --------------------------------------------------------------------------------
Employer-sponsored retirement plans                                   No minimum
- --------------------------------------------------------------------------------

(1)  THE MINIMUM INITIAL INVESTMENT FOR FINANCIAL INTERMEDIARIES IS $250.
     FINANCIAL INTERMEDIARIES MAY HAVE DIFFERENT MINIMUMS FOR THEIR CLIENTS.

SUBSEQUENT PURCHASES

There is a $50 minimum for subsequent purchases. See WAYS TO MANAGE YOUR ACCOUNT
for more information about making additional investments directly with American
Century. However, there is no subsequent purchase minimum for financial
intermediaries or employer-sponsored retirement plans, but financial
intermediaries may require their clients to meet different subsequent purchase
requirements.

ELIGIBILITY FOR INSTITUTIONAL CLASS SHARES

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

MINIMUM INITIAL INVESTMENT AMOUNTS (INSTITUTIONAL CLASS)

The minimum initial investment amount is $5 million ($3 million for endowments
and foundations) per fund. If you invest with us through a financial
intermediary, this requirement may be met if your financial intermediary
aggregates your investments with those of other clients into a single group, or
omnibus, account that meets the minimum. The minimum investment requirement may
be waived if you, or your financial intermediary if you invest through an
omnibus account, have an aggregate investment in our family of funds of $10
million or more ($5 million for endowments and foundations). In addition,
financial intermediaries or plan recordkeepers may require retirement plans to
meet certain other conditions, such as plan size or a minimum level of assets
per participant, in order to be eligible to purchase Institutional Class shares.


- ------
18


REDEMPTIONS

If you sell your B or C Class or, in certain cases, A Class shares within a
certain time after their purchase, you will pay a sales charge the amount of
which is contingent upon the amount of time you have held your shares, as
described above. Your redemption proceeds will be calculated using the NET ASSET
VALUE (NAV) next determined after we receive your transaction request in good
order.

    [GRAPHIC OF TRIANGLE]

    A FUND'S NET ASSET VALUE, OR NAV, IS THE PRICE OF THE FUND'S SHARES.

However, we reserve the right to delay delivery of redemption proceeds up to
seven days. For example, each time you make an investment with American Century,
there is a seven-day holding period before we will release redemption proceeds
from those shares, unless you provide us with satisfactory proof that your
purchase funds have cleared. Investments by wire generally require only a
one-day holding period. If you change your address, we may require that any
redemption request made within 15 days be submitted in writing and be signed by
all authorized signers with their signatures guaranteed. If you change your bank
information, we may impose a 15-day holding period before we will transfer or
wire redemption proceeds to your bank. Please remember, if you request
redemptions by wire, $10 will be deducted from the amount redeemed. Your bank
also may charge a fee.

In addition, we reserve the right to honor certain redemptions with securities,
rather than cash, as described in the next section.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the value of a fund's assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. The portfolio
managers would select these securities from the fund's portfolio.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, you may have to pay
brokerage or other transaction costs to convert the securities to cash.

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

REDEMPTION OF SHARES IN ACCOUNTS BELOW MINIMUM

If your account balance falls below the minimum initial investment amount for
any reason other than as a result of market fluctuation, American Century
reserves the right to redeem the shares in the account and send the proceeds to
your address of record. Prior to doing so, we will notify you and give you 90
days to meet the minimum. Please note that shares redeemed in this manner may be
subject to a sales charge if held less than the applicable time period. You also
may incur tax liability as a result of the redemption. For Institutional Class
shares, we reserve the right to convert your shares to Investor Class shares of
the same fund. The Investor Class shares have a unified management fee that is
0.20% higher than the Institutional Class.



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19


SIGNATURE GUARANTEES

A signature guarantee - which is different from a notarized signature - is a
warranty that the signature presented is genuine. We may require a signature
guarantee for the following transactions.

*  You have chosen to conduct business in writing only and would like to
   redeem over $100,000.

*  Your redemption or distribution check, Check-A-Month or automatic
   redemption is made payable to someone other than the account owners.

*  Your redemption proceeds or distribution amount is sent by EFT (ACH or
   wire) to a destination other than your personal bank account.

*  You are transferring ownership of an account over $100,000.

*  You change your address and request a redemption over $100,000 within 15
   days.

*  You change your bank information and request a redemption within 15 days.

We reserve the right to require a signature guarantee for other transactions, at
our discretion.

MODIFYING OR CANCELING AN INVESTMENT

Investment instructions are irrevocable. That means that once you have mailed or
otherwise transmitted your investment instruction, you may not modify or cancel
it. The fund reserves the right to suspend the offering of shares for a period
of time and to reject any specific investment (including a purchase by
exchange). Additionally, we may refuse a purchase if, in our judgment, it is of
a size that would disrupt the management of the fund.

ABUSIVE TRADING PRACTICES

Short-term trading and other so-called market timing practices are not defined
or explicitly prohibited by any federal or state law. However, short-term
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of short-term
trading activity is significant relative to the fund's net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund's performance could be negatively impacted by the increased trading costs
created by short-term trading if the additional trading costs are significant.

Because of the potentially harmful effects of abusive trading practices, the
fund's Board of Directors has approved American Century's abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
imposing redemption fees on certain funds, and using fair value pricing when
current market prices are not readily available. Although these efforts are
designed to discourage abusive trading practices, they cannot eliminate the
possibility that such activity will occur. American Century seeks to exercise
its judgment in implementing these tools to the best of its ability in a manner
that it believes is consistent with shareholder interests.

American Century uses a variety of techniques to monitor for and detect abusive
trading practices. These techniques may vary depending on the type of fund, the
class of shares or whether the shares are held directly or indirectly with
American Century. They may change from time to time as determined by American
Century in its sole discretion. To minimize harm to the funds and their
shareholders, we reserve the right to reject any purchase order (including
exchanges) from any shareholder we believe has a history of abusive trading or
whose trading, in our judgment, has been or may be disruptive to the funds. In
making this judgment, we may consider trading done in multiple accounts under
common ownership or control.


- ------
20


Currently, for shares held directly with American Century, we may deem the sale
of all or a substantial portion of a shareholder's purchase of fund shares to be
abusive if the sale is made

*  within seven days of the purchase, or

*  within 30 days of the purchase, if it happens more than once per year.

To the extent practicable, we try to use the same approach for defining abusive
trading for shares held through financial intermediaries. American Century
reserves the right, in its sole discretion, to identify other trading practices
as abusive and to modify its monitoring and other practices as necessary to deal
with novel or unique abusive trading practices.

In addition, American Century reserves the right to accept purchases and
exchanges in excess of the trading restrictions discussed above if it believes
that such transactions would not be inconsistent with the best interests of fund
shareholders or this policy.

American Century's policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American Century handles, there can be no assurance that American
Century's efforts will identify all trades or trading practices that may be
considered abusive. In addition, American Century's ability to monitor trades
that are placed by individual shareholders within group, or omnibus, accounts
maintained by financial intermediaries is severely limited because American
Century generally does not have access to the underlying shareholder account
information. However, American Century monitors aggregate trades placed in
omnibus accounts and seeks to work with financial intermediaries to discourage
shareholders from engaging in abusive trading practices and to impose
restrictions on excessive trades. There may be limitations on the ability of
financial intermediaries to impose restrictions on the trading practices of
their clients. As a result, American Century's ability to monitor and discourage
abusive trading practices in omnibus accounts may be limited.

YOUR RESPONSIBILITY FOR UNAUTHORIZED TRANSACTIONS

American Century and its affiliated companies use procedures reasonably designed
to confirm that telephone, electronic and other instructions are genuine. These
procedures include recording telephone calls, requesting personalized security
codes or other information, and sending confirmation of transactions. If we
follow these procedures, we are not responsible for any losses that may occur
due to unauthorized instructions. For transactions conducted over the Internet,
we recommend the use of a secure Internet browser. In addition, you should
verify the accuracy of your confirmation statements immediately after you
receive them.

A NOTE ABOUT MAILINGS TO SHAREHOLDERS

To reduce the amount of mail you receive from us, we may deliver a single copy
of certain investor documents (such as shareholder reports and prospectuses) to
investors who share an address, even if accounts are registered under different
names. If you prefer to receive multiple copies of these documents individually
addressed, please call us or your financial professional. For American Century
Brokerage accounts, please call 1-888-345-2071.

RIGHT TO CHANGE POLICIES

We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups. In addition, from time to time we may
waive a policy on a case-by-case basis, as the advisor deems appropriate.


- ------
21


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century will price the fund shares you purchase, exchange or redeem at
the net asset value (NAV) next determined after your order is received and
accepted by the fund's transfer agent, or other financial intermediary with the
authority to accept orders on the fund's behalf. We determine the NAV of the
fund as of the close of regular trading (usually 4 p.m. Eastern time) on the New
York Stock Exchange (NYSE) on each day the NYSE is open. On days when the NYSE
is closed (including certain U.S. national holidays), we do not calculate the
NAV. The fund's NAV is the current value of the fund's assets, minus any
liabilities, divided by the number of shares outstanding.

The fund values portfolio securities for which market quotations are readily
available at their market price. As a general rule, equity securities listed on
a U.S. exchange are valued at the last current reported sale price as of the
time of valuation. Securities listed on the NASDAQ National Market System
(Nasdaq) are valued at the Nasdaq Official Closing Price (NOCP), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the
time of valuation. The fund may use pricing services to assist in the
determination of market value. Unlisted securities for which market quotations
are readily available are valued at the last quoted sale price or the last
quoted ask price, as applicable, except that debt obligations with 60 days or
less remaining until maturity may be valued at amortized cost. Exchange-traded
options, futures and options on futures are valued at the settlement price as
determined by the appropriate clearing corporation.

If the fund determines that the market price for a portfolio security is not
readily available or that the valuation methods mentioned above do not reflect
the security's fair value, such security is valued at its fair value as
determined in good faith by, or in accordance with procedures adopted by, the
fund's board or its designee (a process referred to as "fair valuing" the
security). Circumstances that may cause the fund to fair value a security
include, but are not limited to:

*  if, after the close of the foreign exchange on which a portfolio security
   is principally traded, but before the close of the NYSE, an event occurs that
   may materially affect the value of the security;

*  a debt security has been declared in default; or

*  trading in a security has been halted during the trading day.

If such circumstances occur, the fund will fair value the security if the fair
valuation would materially impact the fund's NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with procedures adopted by
the fund's board.

The effect of using fair value determinations is that the fund's NAV will be
based, to some degree, on security valuations that the board or its designee
believes are fair rather than being solely determined by the market.

With respect to any portion of the fund's assets that are invested in one or
more open-end management investment companies that are registered with the SEC
(known as registered investment companies, or RICs), the fund's NAV will be
calculated based upon the NAVs of such RICs. These RICs are required by law to
explain the circumstances under which they will use fair value pricing and the
effects of using fair value pricing in their prospectuses.


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22


Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based on the prevailing exchange rates on that day.

Trading of securities in foreign markets may not take place every day the NYSE
is open. Also, trading in some foreign markets and on some electronic trading
networks may take place on weekends or holidays when the fund's NAV is not
calculated. So, the value of the fund's portfolio may be affected on days when
you will not be able to purchase, exchange or redeem fund shares.

DISTRIBUTIONS

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

    [GRAPHIC OF TRIANGLE]

    CAPITAL GAINS ARE INCREASES IN THE VALUES OF CAPITAL ASSETS, SUCH AS STOCK,
    FROM THE TIME THE ASSETS ARE PURCHASED.

The fund generally pays distributions from net income and capital gains, if any,
once a year in December. It may make more frequent distributions, if necessary,
to comply with Internal Revenue Code provisions.

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

Participants in tax-deferred retirement plans must reinvest all distributions.
For investors investing through taxable accounts, we will reinvest distributions
unless you elect to have dividends and/or capital gains sent to another American
Century account, to your bank electronically, or to your home address or to
another person or address by check.


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23


TAXES

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

Tax-Deferred Accounts

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

Taxable Accounts

If you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund shares.

Taxability of Distributions

Fund distributions may consist of income, such as dividends and interest earned
by the fund from its investments, or capital gains generated by the fund from
the sale of investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as QUALIFIED DIVIDEND INCOME and you meet a
minimum required holding period with respect to your shares of the fund, in
which case distributions of income are taxed as long-term capital gains.

   [GRAPHIC OF TRIANGLE]

   QUALIFIED DIVIDEND INCOME IS A DIVIDEND RECEIVED BY A FUND FROM THE STOCK OF
   A DOMESTIC OR QUALIFYING FOREIGN CORPORATION, PROVIDED THAT THE FUND HAS HELD
   THE STOCK FOR A REQUIRED HOLDING PERIOD.

For capital gains and for income distributions designated as qualified dividend
income, the following rates apply:

                                       TAX RATE FOR 10%      TAX RATE FOR
TYPE OF DISTRIBUTION                   AND 15% BRACKETS      ALL OTHER BRACKETS
- --------------------------------------------------------------------------------
Short-term capital gains               Ordinary Income       Ordinary Income
- --------------------------------------------------------------------------------
Long-term capital gains (>1 year)
and Qualified Dividend Income          5%                    15%
- --------------------------------------------------------------------------------

If the fund's distributions exceed its taxable income and capital gains realized
during the tax year, all or a portion of the distributions made by the fund in
that tax year will be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.


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24


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

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

Taxes on Transactions

Your redemptions - including exchanges to other American Century funds - are
subject to capital gains tax. The table above can provide a general guide for
your potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss. However, you should note that loss realized upon the
sale or exchange of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain to you with respect to those shares. If a loss is realized on the
redemption of fund shares, the reinvestment in additional fund shares within 30
days before or after the redemption may be subject to the wash sale rules of the
Internal Revenue Code. This may result in a postponement of the recognition of
such loss for federal income tax purposes.

If you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.

Buying a Dividend

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

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

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


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25


MULTIPLE CLASS INFORMATION

American Century offers six classes of shares of the fund: Investor Class,
Institutional Class, A Class, B Class, C Class and R Class.

The classes have different fees, expenses and/or minimum investment
requirements. The difference in the fee structures between the classes is the
result of their separate arrangements for shareholder and distribution services.
It is not the result of any difference in advisory or custodial fees or other
expenses related to the management of the fund's assets, which do not vary by
class. Different fees and expenses will affect performance.

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

Service, Distribution and Administrative Fees

Investment Company Act Rule 12b-1 permits mutual funds that adopt a written plan
to pay certain expenses associated with the distribution of their shares out of
fund assets. Each class, except Investor Class and Institutional Class, offered
by this prospectus has a 12b-1 plan. The plans provide for the fund to pay
annual fees of 0.25% for A Class, 1.00% for B and C Classes, and 0.50% for R
Class to the distributor for certain ongoing shareholder and administrative
services and for distribution services, including past distribution services.
The distributor pays all or a portion of such fees to the financial
intermediaries that make the classes available. Because these fees are used to
pay for services that are not related to prospective sales of the fund, each
class will continue to make payments under its plan even if it is closed to new
investors. Because these fees are paid out of the fund's assets on an ongoing
basis, over time these fees will increase the cost of your investment and may
cost you more than other types of sales charges. The higher fees for B and C
Class shares may cost you more over time than paying the initial sales charge
for A Class shares. For additional information about the plans and their terms,
see MULTIPLE CLASS STRUCTURE in the statement of additional information.

Certain financial intermediaries perform recordkeeping and administrative
services for their clients that would otherwise be performed by American
Century's transfer agent. In some circumstances, the advisor will pay such
service providers a fee for performing those services. Also, the advisor and the
fund's distributor may make payments for various additional services or other
expenses out of their profits or other available sources. Such payments may be
made for one or more of the following: (1) distribution services, which include
expenses incurred by intermediaries for their sales activities with respect to
the fund, such as preparing, printing and distributing sales literature and
advertising materials and compensating registered representatives or other
employees of such financial intermediary for their sales activities; (2)
shareholder services, such as providing individual and custom investment
advisory services to clients of the financial intermediary; and (3) marketing
and promotional services, including business planning assistance, educating
personnel about the fund, and sponsorship of sales meetings, which may include
covering costs of providing speakers, meals and other entertainment. The
distributor may sponsor seminars and conferences designed to educate
intermediaries about the fund and may cover the expenses associated with
attendance at such meetings, including travel costs. These payments and
activities are intended to provide an incentive to intermediaries to sell the
fund by ensuring that they are educated about the fund, and to help such
intermediaries defray costs associated with offering the fund. The amount of any
payments described by this paragraph is determined by the advisor or the
distributor, and all such amounts are paid out of the available assets of the
advisor and distributor, and not by you or the fund. As a result, the total
expense ratio of the fund will not be affected by any such payments.


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26


FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The tables on the next few pages itemize what contributed to the changes in
share price during the most recently ended fiscal year. They also show the
changes in share price for this period in comparison to changes over the last
five fiscal years (or a shorter period if the share class is not five years
old).

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

*  share price at the beginning of the period

*  investment income and capital gains or losses

*  distributions of income and capital gains paid to investors

*  share price at the end of the period

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

*  TOTAL RETURN - the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO - the operating expenses of the fund as a percentage of
   average net assets

*  NET INCOME RATIO - the net investment income of the fund as a percentage
   of average net assets

*  PORTFOLIO TURNOVER - the percentage of the fund's investment portfolio
   that is replaced during the period

The Financial Highlights, for the year ended March 31, 2006 and prior, that
follow have been audited by PricewaterhouseCoopers LLP, independent registered
public accounting firm. The Financial Highlights for the periods ended October
31, 2006 have been audited by Deloitte & Touche LLP. The Report of Independent
Registered Public Accounting Firm and the financial statements are included in
the fund's annual report, which is available upon request.



- ------
27


MID CAP GROWTH
Investor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED
- --------------------------------------------------------------------------------
                                                                      2006(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                                  $14.78
- --------------------------------------------------------------------------------
Income From Investment Operations
- ------------------------------------------------------------
   Net Investment Income (Loss)(2)                                    (0.01)
- ------------------------------------------------------------
   Net Realized and Unrealized Gain (Loss)                            (1.01)
- --------------------------------------------------------------------------------
   Total From Investment Operations                                   (1.02)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                                        $13.76
================================================================================
   TOTAL RETURN(3)                                                    (6.90)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses to Average Net Assets                     1.05%(4)
- ------------------------------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                                          (0.19)%(4)
- ------------------------------------------------------------
Portfolio Turnover Rate                                               52%
- ------------------------------------------------------------
Net Assets, End of Period (in thousands)                              $311
- --------------------------------------------------------------------------------

(1)  APRIL 3, 2006 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2006.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY
     REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING
     THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE
     CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE
     CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET
     VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND
     DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.


- ------
28


MID CAP GROWTH
Institutional Class

FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED
- --------------------------------------------------------------------------------
                                                                        2006(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                                    $14.78
- --------------------------------------------------------------------------------
Income From Investment Operations
- ------------------------------------------------------------
   Net Investment Income (Loss)(2)                                      -(3)
- ------------------------------------------------------------
   Net Realized and Unrealized Gain (Loss)                              (1.00)
- --------------------------------------------------------------------------------
   Total From Investment Operations                                     (1.00)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                                          $13.78
================================================================================
   TOTAL RETURN(4)                                                      (6.77)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses to Average Net Assets                       0.85%(5)
- ------------------------------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                                            0.01%(5)
- ------------------------------------------------------------
Portfolio Turnover Rate                                                 52%
- ------------------------------------------------------------
Net Assets, End of Period (in thousands)                                $138,986
- --------------------------------------------------------------------------------

(1)  APRIL 3, 2006 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2006.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  PER-SHARE AMOUNT WAS LESS THAN $0.005.

(4)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY
     REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING
     THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE
     CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE
     CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET
     VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND
     DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(5)  ANNUALIZED.


- ------
29


MID CAP GROWTH
A Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED MARCH 31 (EXCEPT AS NOTED)
- ------------------------------------------------------------------------------------------------------------
                                       2006(1)     2006       2005        2004        2003        2002
- ------------------------------------------------------------------------------------------------------------
PER-SHARE DATA
- ------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period   $14.83      $13.50     $12.78      $9.83       $12.93      $13.70
- ------------------------------------------------------------------------------------------------------------
Income From Investment Operations
- -------------------------------------
   Net Investment Income (Loss)        (0.04)(2)   (0.01)(2)  (0.10)(2)   (0.09)(2)   (0.09)(2)   (0.09)
- -------------------------------------
   Net Realized and
   Unrealized Gain (Loss)               (1.05)     2.65       0.82        3.04        (3.01)      0.43
- ------------------------------------------------------------------------------------------------------------
   Total From Investment Operations     (1.09)     2.64       0.72        2.95        (3.10)      0.34
- ------------------------------------------------------------------------------------------------------------
Distributions
- -------------------------------------
   From Net Realized Gains             -          (1.31)      -           -           -          (1.11)
- ------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period         $13.74      $14.83     $13.50      $12.78      $9.83       $12.93
============================================================================================================
   TOTAL RETURN(3)                     (7.35)%     20.28%     5.63%       30.01%      (23.98)%    2.54%

RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets                  1.30%(4)    1.29%      1.30%(5)    1.30%(5)    1.30%(5)    1.30%(5)
- -------------------------------------
Ratio of Operating Expenses
to Average Net Assets
(Before Expense Waiver)                1.30%(4)    1.29%      1.36%       1.40%       1.55%       1.55%
- -------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets           (0.44)%(4)  (0.08)%    (0.79)%(5)  (0.74)%(5)  (0.86)%(5)  (0.61)%(5)
- -------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets
(Before Expense Waiver)                (0.44)%(4)  (0.08)%    (0.85)%     (0.84)%     (1.11)%     (0.86)%
- -------------------------------------
Portfolio Turnover Rate                52%         89%        70%         72%         35%         68%
- -------------------------------------
Net Assets, End of Period
(in thousands)                         $36,675     $193,019   $163,069    $148,862    $105,728    $66,062
- ------------------------------------------------------------------------------------------------------------

(1)  APRIL 1, 2006 THROUGH OCTOBER 31, 2006. THE FUND'S FISCAL YEAR WAS
     CHANGED FROM MARCH 31 TO OCTOBER 31, RESULTING IN A
     SEVEN-MONTH ANNUAL REPORTING PERIOD.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL
     RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO WAIVE FEES AND ABSORB
     CERTAIN OPERATING EXPENSES.


- ------
30


MID CAP GROWTH
B Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED MARCH 31 (EXCEPT AS NOTED)
- -----------------------------------------------------------------------------------------------------------
                                  2006(1)        2006        2005        2004        2003        2002
- -----------------------------------------------------------------------------------------------------------
PER-SHARE DATA
- -----------------------------------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period               $13.96         $12.86      $12.25      $9.49       $12.55      $13.43
- -----------------------------------------------------------------------------------------------------------
Income From Investment
Operations
- --------------------------------
   Net Investment Income (Loss)   (0.08)(2)      (0.10)(2)   (0.18)(2)   (0.16)(2)   (0.16)(2)   (0.09)
- --------------------------------
   Net Realized and
   Unrealized Gain (Loss)         (0.99)         2.51        0.79        2.92        (2.90)      0.32
- -----------------------------------------------------------------------------------------------------------
   Total From Investment
   Operations                     (1.07)         2.41        0.61        2.76        (3.06)      0.23
- -----------------------------------------------------------------------------------------------------------
Distributions
- --------------------------------
   From Net Realized Gains        -             (1.31)       -           -           -          (1.11)
- -----------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period    $12.89         $13.96      $12.86      $12.25      $9.49       $12.55
===========================================================================================================
   TOTAL RETURN(3)                (7.66)%        19.48%      4.98%       29.08%      (24.38)%    1.75%

RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets             1.95%(4)(5)    1.95%(6)    1.95%(6)    1.95%(6)    1.95%(6)    1.95%(6)
- --------------------------------
Ratio of Operating Expenses
to Average Net Assets
(Before Expense Waiver)           2.05%(4)       2.02%       2.04%       2.05%       2.20%       2.20%
- --------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets      (1.09)%(4)(5)  (0.78)%(6)  (1.44)%(6)  (1.40)%(6)  (1.52)%(6)  (1.26)%(6)
- --------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets
(Before Expense Waiver)           (1.19)%(4)     (0.85)%     (1.53)%     (1.50)%     (1.77)%     (1.51)%
- --------------------------------
Portfolio Turnover Rate           52%            89%         70%         72%         35%         68%
- --------------------------------
Net Assets, End of Period
(in thousands)                    $6,626         $9,032      $9,839      $10,128     $7,978      $10,302
- -----------------------------------------------------------------------------------------------------------

(1)  APRIL 1, 2006 THROUGH OCTOBER 31, 2006. THE FUND'S FISCAL YEAR WAS
     CHANGED FROM MARCH 31 TO OCTOBER 31, RESULTING IN A
     SEVEN-MONTH ANNUAL REPORTING PERIOD.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL
     RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  DURING THE SEVEN MONTHS ENDED OCTOBER 31, 2006, THE DISTRIBUTOR
     VOLUNTARILY WAIVED A PORTION OF ITS DISTRIBUTION AND SERVICE FEES.

(6)  THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO WAIVE FEES AND ABSORB
     CERTAIN OPERATING EXPENSES.


- ------
31


MID CAP GROWTH
C Class

FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED
- --------------------------------------------------------------------------------
                                                                      2006(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                                  $14.78
- --------------------------------------------------------------------------------
Income From Investment Operations
- ------------------------------------------------------------
   Net Investment Income (Loss)(2)                                    (0.10)
- ------------------------------------------------------------
   Net Realized and Unrealized Gain (Loss)                            (1.00)
- --------------------------------------------------------------------------------
   Total From Investment Operations                                   (1.10)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                                        $13.68
================================================================================
   TOTAL RETURN(3)                                                    (7.44)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses to Average Net Assets                     2.05%(4)
- ------------------------------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                                          (1.19)%(4)
- ------------------------------------------------------------
Portfolio Turnover Rate                                               52%
- ------------------------------------------------------------
Net Assets, End of Period (in thousands)                              $100
- --------------------------------------------------------------------------------

(1)  APRIL 3, 2006 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2006.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL
     RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.


- ------
32


MID CAP GROWTH
R Class

FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED
- --------------------------------------------------------------------------------
                                                                      2006(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                                  $14.78
- --------------------------------------------------------------------------------
Income From Investment Operations
- ------------------------------------------------------------
   Net Investment Income (Loss)(2)                                    (0.06)
- ------------------------------------------------------------
   Net Realized and Unrealized Gain (Loss)                            (1.00)
- --------------------------------------------------------------------------------
   Total From Investment Operations                                   (1.06)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                                        $13.72
================================================================================
   TOTAL RETURN(3)                                                    (7.17)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses to Average Net Assets                     1.55%(4)
- ------------------------------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                                          (0.69)%(4)
- ------------------------------------------------------------
Portfolio Turnover Rate                                               52%
- ------------------------------------------------------------
Net Assets, End of Period (in thousands)                              $23
- --------------------------------------------------------------------------------

(1)  APRIL 3, 2006 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2006.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY
     REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING
     THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE
     CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE
     CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET
     VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND
     DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.


- ------
33


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

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

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

IN PERSON              SEC Public Reference Room
                       Washington, D.C.
                       Call 202-942-8090 for location and hours.

ON THE INTERNET        * EDGAR database at sec.gov
                       * By email request at publicinfo@sec.gov

BY MAIL                SEC Public Reference Section
                       Washington, D.C. 20549-0102

This prospectus shall not constitute an offer to sell securities of the fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or qualified for sale, unless such registration or qualification
is not required, or under any circumstances in which such offer or solicitation
would be unlawful.

FUND REFERENCE                            FUND CODE                      TICKER
- --------------------------------------------------------------------------------
Mid Cap Growth Fund
  Investor Class                           904                            ACOVX
- --------------------------------------------------------------------------------
  Institutional Class                      326                            ACMIX
- --------------------------------------------------------------------------------
  A Class                                  126                            MAGAX
- --------------------------------------------------------------------------------
  B Class                                  386                            MAGHX
- --------------------------------------------------------------------------------
  C Class                                  426                            ACMLX
- --------------------------------------------------------------------------------
  R Class                                  296                            ACMRX
- --------------------------------------------------------------------------------

Investment Company Act File No. 811-0816

AMERICAN CENTURY INVESTMENTS
americancentury.com
                                   Banks and Trust Companies, Broker-Dealers,
Self-Directed Retail Investors     Financial Professionals, Insurance Companies
P.O. Box 419200                    P.O. Box 419786
Kansas City, Missouri 64141-6200   Kansas City, Missouri 64141-6786
1-800-345-2021 or 816-531-5575     1-800-345-6488

0703
SH-PRS-52527













AMERICAN CENTURY INVESTMENTS

Prospectus


March 1, 2007


American Century-Mason Street Small Cap Growth


The fund is available for purchase only through financial intermediaries by
investors who seek advice from them. The fund is closed to other investors.

The Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the adequacy of this prospectus. Any representation to
the contrary is a criminal offense.

American Century Investment
Services, Inc., Distributor

[american century investments logo and text logo]





Table of Contents

AN OVERVIEW OF THE FUND . . . . . . . . . . . . . . . . . . .2

FUND PERFORMANCE HISTORY . . . . . . . . . . . . . . . . . . 3

FEES AND EXPENSES . . . . . . . . . . . . . . . . . . . . . .5

OBJECTIVES, STRATEGIES AND RISKS . . . . . . . . . . . . . . 7

MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . 9

INVESTING DIRECTLY WITH AMERICAN CENTURY . . . . . . . . . . 11

INVESTING THROUGH A FINANCIAL INTERMEDIARY . . . . . . . . . 13

ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT . . . . . . . .18

SHARE PRICE AND DISTRIBUTIONS . . . . . . . . . . . . . . . .22

TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . .24

MULTIPLE CLASS INFORMATION . . . . . . . . . . . . . . . . . 26

FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . 27


    [GRAPHIC OF TRIANGLE]

    THIS SYMBOL IS USED THROUGHOUT THE BOOK TO HIGHLIGHT DEFINITIONS OF KEY
    INVESTMENT TERMS AND TO PROVIDE OTHER HELPFUL INFORMATION.


American Century Investment Services, Inc., Distributor

©2007 American Century Proprietary Holdings, Inc. All rights reserved.

The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.




AN OVERVIEW OF THE FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

The fund will normally invest at least 80% of the value of its net assets (plus
any borrowings for investment purposes) in common stocks of U.S. companies with
market capitalizations that do not exceed the maximum market capitalization of
any security in the S&P SmallCap 600 Index. Securities are selected for their
above-average growth potential giving consideration to factors such as company
management, growth rate of revenues and earnings, opportunities for margin
expansion and strong financial characteristics.

The fund's principal risks include

*  SMALL CAP STOCKS - The smaller companies in which the fund invests may
   present greater opportunities for capital growth than larger companies, but
   also may present greater risks.

*  GROWTH STOCKS - Investments in growth stocks may involve special risks and
   their prices may fluctuate more dramatically than the overall stock market.

*  FOREIGN SECURITIES - The fund may invest in foreign securities, which can
   be riskier than investing in U.S. securities.

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

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

*  PRINCIPAL LOSS - At any given time your shares may be worth less than the
   price you paid for them. In other words, it is possible to lose money by
   investing in the fund.

A more detailed description of the fund's investment strategies and risks may be
found under the heading OBJECTIVES, STRATEGIES AND RISKS, which begins on page
7.

    [GRAPHIC OF TRIANGLE]

    AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT, AND IT IS NOT INSURED OR
    GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER
    GOVERNMENT AGENCY.


- ------
2


FUND PERFORMANCE HISTORY

Annual Total Returns

The following bar chart shows the performance of the fund's A Class shares for
each full calendar year in the life of the class. It indicates the volatility of
the fund's historical returns from year to year. Account fees and sales charges,
if applicable, are not reflected in the chart below. If they had been included,
returns would have been lower than those shown. The returns of the fund's other
classes of shares will differ from those shown in the chart, depending on the
expenses of those classes.

SMALL CAP GROWTH - A CLASS(1)

(1)  SMALL CAP GROWTH ACQUIRED ALL THE NET ASSETS OF THE MASON STREET SMALL
     CAP GROWTH FUND ON MARCH 31, 2006, PURSUANT TO A PLAN OF REORGANIZATION
     APPROVED BY THE ACQUIRED FUND'S SHAREHOLDERS ON MARCH 23, 2006. PERFORMANCE
     INFORMATION PRIOR TO APRIL 1, 2006, IS THAT OF THE MASON STREET SMALL CAP
     GROWTH FUND.

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

                               HIGHEST                        LOWEST
- --------------------------------------------------------------------------------
Small Cap Growth               22.02% (4Q 2001)               -22.46% (3Q 2001)
- --------------------------------------------------------------------------------

Average Annual Total Returns

The following table shows the average annual total returns of the fund's A Class
shares calculated three different ways. Additional tables show the average
annual total returns of the fund's other share classes calculated before the
impact of taxes. Returns assume the deduction of all sales loads, charges and
other fees associated with a particular class. Your actual returns may vary
depending on the circumstances of your investment. Because the Investor,
Institutional, C and R Classes (which commenced operations April 3, 2006) do not
have investment results for a full calendar year, they are not included.

Return Before Taxes shows the actual change in the value of fund shares over the
time periods shown, but does not reflect the impact of taxes on fund
distributions or the sale of fund shares. The two after-tax returns take into
account taxes that may be associated with owning fund shares. Return After Taxes
on Distributions is a fund's actual performance, adjusted by the effect of taxes
on distributions made by the fund during the periods shown. Return After Taxes
on Distributions and Sale of Fund Shares is further adjusted to reflect the tax
impact on any change in the value of fund shares as if they had been sold on the
last day of the period.


- ------
3


After-tax returns are calculated using the historical highest federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-tax returns shown are not relevant to investors who hold fund
shares through tax-deferred arrangements such as 401(k) plans or IRAs. After-tax
returns are shown only for A Class shares. After-tax returns for other share
classes will vary.

The benchmarks are unmanaged indices that have no operating costs and are
included in each table for performance comparison. The S&P SmallCap 600 Index
consists of 600 domestic stocks chosen for market size, liquidity and industry
group representation. The Russell 2000® measures the performance of the 2,000
smallest companies in the Russell 3000® Index. The Russell 2000® Growth
Index measures the performance of those Russell 2000® Index companies (the
2,000 smallest of the 3,000 largest publicly traded U.S. companies, based on
total market capitalization) with higher price-to-book ratios and higher
forecasted growth rates.


A CLASS (1)
                                                                      LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006   1 YEAR      5 YEARS   CLASS(2)
- --------------------------------------------------------------------------------
Return Before Taxes                             -0.75%(3)   6.54%     11.19%
Return After Taxes on Distributions             -1.61%(3)   5.86%     9.56%
Return After Taxes on Distributions             0.66%(3)    5.57%     9.00%
   and Sale of Fund Shares
S&P SmallCap 600 Index                          15.12%      12.49%    11.46%(4)
   (reflects no deduction for
   fees, expenses or taxes)
Russell 2000® Growth Index                      13.35%      6.93%     2.63%(4)
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  SMALL CAP GROWTH ACQUIRED ALL THE NET ASSETS OF THE MASON STREET SMALL
     CAP GROWTH FUND ON MARCH 31, 2006, PURSUANT TO A PLAN OF REORGANIZATION
     APPROVED BY THE ACQUIRED FUND'S SHAREHOLDERS ON MARCH 23, 2006. PERFORMANCE
     INFORMATION PRIOR TO APRIL 1, 2006, IS THAT OF THE MASON STREET SMALL CAP
     GROWTH FUND.

(2)  THE INCEPTION DATE FOR THE A CLASS WAS JULY 12, 1999.

(3)  RETURN WOULD HAVE BEEN LOWER IF SERVICE AND DISTRIBUTION FEES HAD NOT
     BEEN WAIVED FROM APRIL 1, 2006 TO DECEMBER 31, 2006.

(4)  SINCE JULY 15, 1999, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.


B CLASS(1)
                                                                      LIFE OF
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2006   1 YEAR     5 YEARS    CLASS(2)
- --------------------------------------------------------------------------------
Return Before Taxes                             0.57%(3)   6.96%(3)   11.36%(3)
S&P SmallCap 600 Index                          15.12%     12.49%     11.46%(4)
   (reflects no deduction for
   fees, expenses or taxes)
Russell 2000® Growth Index                      13.35%     6.93%      2.63%(4)
   (reflects no deduction for
   fees, expenses or taxes)
- --------------------------------------------------------------------------------

(1)  SMALL CAP GROWTH ACQUIRED ALL THE NET ASSETS OF THE MASON STREET SMALL
     CAP GROWTH FUND ON MARCH 31, 2006, PURSUANT TO A PLAN OF REORGANIZATION
     APPROVED BY THE ACQUIRED FUND'S SHAREHOLDERS ON MARCH 23, 2006. PERFORMANCE
     INFORMATION PRIOR TO APRIL 1, 2006, IS THAT OF THE MASON STREET SMALL CAP
     GROWTH FUND.

(2)  THE INCEPTION DATE FOR THE B CLASS WAS JULY 12, 1999.

(3)  RETURN WOULD HAVE BEEN LOWER IF SERVICE AND DISTRIBUTION FEES HAD NOT
     BEEN WAIVED FROM APRIL 1, 2006 TO DECEMBER 31, 2006.

(4)  SINCE JULY 15, 1999, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR
     WHICH DATA IS AVAILABLE.

Performance information is designed to help you see how fund returns can vary.
Keep in mind that past performance (before and after taxes) does not predict how
a fund will perform in the future.

For current performance information, please call us or visit
americancentury.com.


- ------
4


FEES AND EXPENSES

The following tables describe the fees and expenses you may pay if you buy and
hold shares of the fund.

SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

                       INVESTOR   INSTITUTIONAL   A        B         C          R
                       CLASS      CLASS           CLASS    CLASS     CLASS      CLASS
- -------------------------------------------------------------------------------------
Maximum Sales          None       None            5.75%    None      None       None
Charge (Load)
Imposed on
Purchases
   (as a
   percentage
   of offering
   price)
- -------------------------------------------------------------------------------------
Maximum                None       None            None(1)  5.00%(2)  1.00%(3)   None
Deferred
Sales Charge
(Load)
   (as a percentage
   of the original
   offering price for
   B Class shares
   or the lower of
   the original
   offering price or
   redemption
   proceeds for A
   and C Class
   shares)
- -------------------------------------------------------------------------------------
Maximum Account        $25(4)     None            None     None      None       None
Maintenance Fee
- -------------------------------------------------------------------------------------

(1)  INVESTMENTS OF $1 MILLION OR MORE IN A CLASS SHARES MAY BE SUBJECT TO
     A CONTINGENT DEFERRED SALES CHARGE OF 1.00% IF THE SHARES ARE REDEEMED
     WITHIN ONE YEAR OF THE DATE OF PURCHASE.

(2)  THIS CHARGE IS 5.00% DURING THE FIRST YEAR AFTER PURCHASE, DECLINES
     OVER THE NEXT FIVE YEARS AS SHOWN ON PAGE 15, AND IS ELIMINATED AFTER SIX
     YEARS.

(3)  THE CHARGE IS 1.00% DURING THE FIRST YEAR AFTER PURCHASE AND IS
     ELIMINATED THEREAFTER.

(4)  APPLIES ONLY TO INVESTORS WHOSE TOTAL ELIGIBLE INVESTMENTS WITH
     AMERICAN CENTURY ARE LESS THAN $10,000. SEE Account Maintenance Fee UNDER
     Investing Directly with American Century FOR MORE DETAILS.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
                                DISTRIBUTION                    TOTAL ANNUAL
                  MANAGEMENT    AND SERVICE       OTHER         FUND OPERATING
                  FEE(1)        (12B-1) FEES(2)   EXPENSES(3)   EXPENSES
- --------------------------------------------------------------------------------
Investor          1.30%         None              0.00%         1.30%
Class
- --------------------------------------------------------------------------------
Institutional     1.10%         None              0.00%         1.10%
Class
- --------------------------------------------------------------------------------
A Class           1.30%         0.10%(4)          0.00%         1.40%
- --------------------------------------------------------------------------------
B Class           1.30%         0.75%(5)          0.00%         2.05%
- --------------------------------------------------------------------------------
C Class           1.30%         1.00%             0.00%         2.30%
- --------------------------------------------------------------------------------
R Class           1.30%         0.50%             0.00%         1.80%
- --------------------------------------------------------------------------------

(1)  THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR
     ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. THE FEE SHOWN IS
     BASED ON ASSETS DURING THE FUND'S MOST RECENT FISCAL YEAR. THE FUND HAS A
     STEPPED FEE SCHEDULE. AS A RESULT, THE FUND'S UNIFIED MANAGEMENT FEE RATE
     GENERALLY DECREASES AS STRATEGY ASSETS INCREASE AND INCREASES AS STRATEGY
     ASSETS DECREASE. FOR MORE INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE,
     INCLUDING AN EXPLANATION OF STRATEGY ASSETS, SEE The Investment Advisor
     UNDER Management.

(2)  THE 12B-1 FEE IS DESIGNED TO PERMIT INVESTORS TO PURCHASE SHARES
     THROUGH BROKER-DEALERS, BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL
     INTERMEDIARIES. THE FEE MAY BE USED TO COMPENSATE SUCH FINANCIAL
     INTERMEDIARIES FOR DISTRIBUTION AND OTHER SHAREHOLDER SERVICES. FOR MORE
     INFORMATION, SEE Multiple Class Information AND Service, Distribution and
     Administrative Fees, PAGE 26.

(3)  OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
     INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST, WERE
     LESS THAN 0.005% FOR THE MOST RECENT FISCAL YEAR.

(4)  EFFECTIVE APRIL 1, 2006, THROUGH MARCH 31, 2008, AMERICAN CENTURY
     AGREED TO A TWO-YEAR WAIVER OF RULE 12B-1 FEES FOR CERTAIN CLASSES OF THE
     FUND. WITHOUT THE WAIVER, THE DISTRIBUTION AND SERVICE (12B-1) FEES AND
     TOTAL ANNUAL FUND OPERATING EXPENSES WOULD BE 0.25% AND 1.55%,
     RESPECTIVELY.

(5)  EFFECTIVE APRIL 1, 2006, THROUGH MARCH 31, 2008, AMERICAN CENTURY
     AGREED TO A TWO-YEAR WAIVER OF RULE 12B-1 FEES FOR CERTAIN CLASSES OF THE
     FUND. WITHOUT THE WAIVER, THE DISTRIBUTION AND SERVICE (12B-1) FEES AND
     TOTAL ANNUAL FUND OPERATING EXPENSES WOULD BE 1.00% AND 2.30%,
      RESPECTIVELY.


- ------
5


EXAMPLE

The examples in the tables below are intended to help you compare the costs of
investing in the fund with the costs of investing in other mutual funds. Of
course, your actual costs may be higher or lower. Assuming you . . .

*  invest $10,000 in the fund

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

*  earn a 5% return each year

*  incur the same operating expenses as shown above

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


                      1 YEAR         3 YEARS         5 YEARS         10 YEARS
- --------------------------------------------------------------------------------
Investor              $132           $410            $710            $1,558
Class
- --------------------------------------------------------------------------------
Institutional         $112           $349            $604            $1,334
Class
- --------------------------------------------------------------------------------
A Class               $709           $1,014          $1,348          $2,285
- --------------------------------------------------------------------------------
B Class               $607           $979            $1,287          $2,396
- --------------------------------------------------------------------------------
C Class               $231           $712            $1,219          $2,607
- --------------------------------------------------------------------------------
R Class               $182           $563            $968            $2,098
- --------------------------------------------------------------------------------


The table above reflects a deduction for charges payable upon redemption. You
would pay the following expenses if you did not redeem your shares and thus did
not incur such charges:


                      1 YEAR         3 YEARS         5 YEARS         10 YEARS
- --------------------------------------------------------------------------------
Investor              $132           $410            $710            $1,558
Class
- --------------------------------------------------------------------------------
Institutional         $112           $349            $604            $1,334
Class
- --------------------------------------------------------------------------------
A Class               $709           $1,014          $1,348          $2,285
- --------------------------------------------------------------------------------
B Class               $207           $679            $1,187          $2,396
- --------------------------------------------------------------------------------
C Class               $231           $712            $1,219          $2,607
- --------------------------------------------------------------------------------
R Class               $182           $563            $968            $2,098
- --------------------------------------------------------------------------------



- ------
6


OBJECTIVES, STRATEGIES AND RISKS

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

The fund will normally invest at least 80% of the value of its net assets (plus
any borrowings for investment purposes) in common stocks of U.S. companies with
market capitalizations that do not exceed the maximum market capitalization of
any security in the S&P SmallCap 600 Index at the time of purchase. The fund
also may invest in equity securities of companies with stock market
capitalizations less than $500 million at the time of investment (microcap
companies). Securities are selected for their above-average growth potential
giving consideration to factors such as company management, growth rate of
revenues and earnings, opportunities for margin expansion and strong financial
characteristics.

On occasion, the fund may purchase companies with a market capitalization of
more than the largest company in the Index. Additionally, the market cap of
companies in the fund and the Index will change over time due to market forces
and periodic rebalancing of the Index. The fund will not sell a stock just
because the company has grown to a market capitalization of more than the
largest company in the S&P SmallCap 600 Index.

The fund may sell securities for a variety of reasons such as to secure gains,
limit losses or redeploy assets into more promising opportunities.

Although the fund's equity investments consist primarily of securities of U.S.
issuers, the fund may invest up to 20% of its net assets in the equity
securities of issuers from countries outside the United States , including (i)
foreign securities denominated in a foreign currency and not publicly traded in
the U.S. and (ii) U. S. currency denominated foreign securities, including
depositary receipts and depositary shares issued by U.S. banks (American
Depositary Receipts or ADRs) and U.S. broker-dealers (American Depositary
Shares). The fund's foreign investments may include securities of issuers in
countries with emerging markets or economies. Investments in foreign securities
present some unique risks that are more fully described in the fund's statement
of additional information.

The fund's investments in equity securities may include common stocks, preferred
stocks, warrants, and securities convertible into common or preferred stocks. To
a lesser degree, the fund may invest in other types of securities and use other
investment strategies that may include debt securities, index/structured
securities, high-yield/high-risk bonds, options, futures, forwards, swaps and
other types of derivatives and exchange traded funds, securities purchased on a
when-issued, delayed delivery or forward commitment basis, and pass-through
securities (including mortgage- and asset-backed securities). Futures contracts,
a type of derivative security, can help the fund's cash assets remain liquid
while performing like stocks. The fund has a policy governing futures contracts
and similar derivative securities to help manage the risks of these types of
investments. A complete description of the derivatives policy is included in the
statement of additional information.

In the event of exceptional market or economic conditions, the fund may, as a
temporary defensive measure, invest all or a substantial portion of its assets
in cash or high-quality short-term debt securities, including money market
reserves. To the extent the fund assumes a defensive position, it will not be
pursuing its objective of capital growth.

A description of the policies and procedures with respect to the disclosure of
the fund's portfolio securities is available in the statement of additional
information.


- ------
7


WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?

Small cap stocks may involve greater risks because smaller companies often have
a limited track record, narrower markets and more limited managerial and
financial resources than larger, more established companies. The prices of these
stocks tend to be more volatile and the issuers face greater risk of business
failure.

Microcap stocks may involve greater risks because the prices of microcap
securities are generally even more volatile and their markets are even less
liquid relative to both small cap and large cap securities.

Growth stocks are typically priced higher than other stocks, in relation to
earnings and other measures, because investors believe they have more growth
potential. This potential may or may not be realized and growth stock prices
tend to fluctuate more dramatically than the overall stock market.

Although the portfolio manager intends to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies. Foreign
investment involves additional risks, including fluctuations in currency
exchange rates, less stable political and economic structures, reduced
availability of public information, and lack of uniform financial reporting and
regulatory practices similar to those that apply in the United States. These
factors make investing in foreign securities generally riskier than investing in
U.S. stocks. To the extent the fund invests in foreign securities, the overall
risk of that fund could be affected.

The fund's performance also may be impacted by investments in initial public
offerings (IPOs). IPOs may present greater risks than other investments in
stocks because the issuers have no track record as public companies. The impact
of IPO investments may be substantial and positive for a relatively small fund
during periods when the IPO market is strong. IPOs may have less performance
impact as the fund's assets grow.

Market performance tends to be cyclical, and, in the various cycles, certain
investment styles may fall in and out of favor. If the market is not favoring
the fund's style, the fund's gains may not be as big as, or its losses may be
bigger than, other equity funds using different investment styles.

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 the fund owns will go
up and down depending on the performance of the companies that issued them,
general market and economic conditions, and investor confidence.

At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the fund.


- ------
8


MANAGEMENT

WHO MANAGES THE FUND?

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

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than three-fourths of the directors are independent of the fund's advisor;
that is, they have never been employed by and have no financial interest in the
advisor or any of its affiliated companies (other than as shareholders of
American Century funds).

THE INVESTMENT ADVISOR

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

The advisor is responsible for managing the investment portfolio of the fund and
directing the purchase and sale of its investment securities. The advisor also
arranges for transfer agency, custody and all other services necessary for the
fund to operate. The advisor has hired Mason Street Advisors, LLC (MSA), a
wholly owned company of The Northwestern Mutual Life Insurance Company
(Northwestern Mutual), to make the day-to-day investment decisions for the fund.
MSA performs this function under the supervision of the advisor and the fund's
Board of Directors. MSA and its predecessor, Northwestern Mutual Investment
Services, LLC, have served as investment advisor to the fund and its predecessor
fund since its inception. The personnel and related facilities of Northwestern
Mutual and MSA are utilized by MSA in performing its investment advisory
functions. The address of MSA is 720 East Wisconsin Avenue, Milwaukee, Wisconsin
53202.

For the services it provides to the fund, the advisor receives a unified
management fee based on a percentage of the daily net assets of each class of
shares of the fund. The amount of the fee is calculated daily and paid monthly
in arrears. Out of that fee, the advisor pays all expenses of managing and
operating the fund except brokerage expenses, taxes, interest, fees and expenses
of the independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the management fee may be paid by the fund's advisor to
unaffiliated third parties who provide recordkeeping and administrative services
that would otherwise be performed by an affiliate of the advisor.

The rate of the fee is determined by applying a formula that takes into account
all of the advisor's assets under management in the fund's investment strategy
(strategy assets). Strategy assets include the assets of the fund as well as
certain assets of other clients of the advisor outside the American Century fund
family (such as subadvised funds and separate accounts) that use very similar
investment teams and strategies. The use of strategy assets, rather than fund
assets, in calculating the fund's fee rate could allow the fund to realize
scheduled cost savings more quickly. However, the fund's strategy assets
currently do not include assets of other client accounts. In addition, if such
assets are acquired in the future, they may not be sufficient to result in a
lower fee rate.



- ------
9



MANAGEMENT FEES
PAID BY THE FUND
TO THE ADVISOR AS
A PERCENTAGE OF
AVERAGE NET ASSETS
FOR THE PERIOD
APRIL 1, 2006 THROUGH   INVESTOR   INSTITUTIONAL   A         B         C         R
OCTOBER 31, 2006        CLASS      CLASS           CLASS     CLASS     CLASS     CLASS
- -----------------------------------------------------------------------------------------
Small Cap Growth(1)     1.30%(2)   1.10%(2)        1.30%(2)  1.30%(2)  1.30%(2)  1.30%(2)
- -----------------------------------------------------------------------------------------

(1)  THE FUND ACQUIRED ALL THE NET ASSETS OF THE MASON STREET SMALL CAP
     GROWTH FUND ON MARCH 31, 2006, PURSUANT TO A PLAN OF REORGANIZATION
     APPROVED BY THE ACQUIRED FUND'S SHAREHOLDERS ON MARCH 23, 2006. FOR THE
     FISCAL YEAR ENDED MARCH 31, 2006, THE ACQUIRED FUND PAID ITS ADVISOR, MASON
     STREET ADVISORS, LLC, AN ADVISORY FEE EQUAL TO 0.85% OF THE FUND'S AVERAGE
     DAILY NET ASSETS. THIS ADVISORY FEE IS NOT DIRECTLY COMPARABLE TO AMERICAN
     CENTURY'S UNIFIED FEE, WHICH INCLUDES SUBSTANTIALLY ALL EXPENSES OF
     OPERATING THE FUND.

(2)  ANNUALIZED.

A discussion regarding the basis for the Board of Directors' approval of the
fund's investment advisory contract with the advisor is available in the fund's
report to shareholders dated April 30, 2006.

THE FUND MANAGEMENT TEAM

The advisor provides investment advisory and management services for the fund.
The advisor has, in turn, hired MSA to make the day-to-day investment decisions
for the fund. MSA performs this function under the supervision of the advisor
and the fund's Board of Directors.

The portfolio manager on the investment team who is primarily responsible for
the day-to-day management of the fund is:

WILLIAM R. WALKER

Mr. Walker, Managing Director of MSA, has been a member of the team that manages
the fund and its predecessor fund since its inception in July 1999. He joined
Northwestern Mutual in April 1984. Mr. Walker has a bachelor's degree in
business administration with an emphasis in finance from Marquette University
and an MBA from Miami University of Oxford, Ohio. He is a CFA charterholder.

The statement of additional information provides additional information about
the other accounts managed by the portfolio manager, if any, the structure of
his compensation, and his ownership of fund securities.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the statement of additional
information and the investment objectives of the fund may not be changed without
shareholder approval. The Board of Directors and/or the advisor may change any
other policies and investment strategies.


- ------
10



INVESTING DIRECTLY WITH AMERICAN CENTURY

Although investors may only open new accounts through financial intermediaries,
current fund shareholders may, under certain circumstances, make additional
investments directly with American Century.

SERVICES AUTOMATICALLY AVAILABLE TO YOU

Most accounts automatically will have access to the services listed under WAYS
TO MANAGE YOUR ACCOUNT when the account is opened. If you do not want these
services, see CONDUCTING BUSINESS IN WRITING. If you have questions about the
services that apply to your account type, please call us.

CONDUCTING BUSINESS IN WRITING

If you prefer to conduct business in writing only, you can indicate this on the
account application. If you choose this option, you must provide written
instructions to invest, exchange and redeem. All account owners must sign
transaction instructions (with signatures guaranteed for redemptions in excess
of $100,000). By choosing this option, you are not eligible to enroll for
exclusive online account management to waive the account maintenance fee. See
ACCOUNT MAINTENANCE FEE in this section. If you want to add online and telephone
services later, you can complete an Investor Service Options form.

ACCOUNT MAINTENANCE FEE

If you hold Investor Class shares of any American Century fund, or Institutional
Class shares of the American Century Diversified Bond fund, in an American
Century account (i.e., not a financial intermediary or retirement plan account),
we may charge you a $12.50 semiannual account maintenance fee if the value of
those shares is less than $10,000. We will determine the amount of your total
eligible investments twice per year, generally the last Friday in October and
April. If the value of those investments is less than $10,000 at that time, we
will automatically redeem shares in one of your accounts to pay the $12.50 fee.
Please note that you may incur tax liability as a result of the redemption. In
determining your total eligible investment amount, we will include your
investments in all PERSONAL ACCOUNTS (including American Century Brokerage
accounts) registered under your Social Security number. We will not charge the
fee as long as you choose to manage your accounts exclusively online. You may
enroll for exclusive online account management on our Web site. To find out more
about exclusive online account management, visit americancentury.com/info/demo.

    [GRAPHIC OF TRIANGLE]

    PERSONAL ACCOUNTS INCLUDE INDIVIDUAL ACCOUNTS, JOINT ACCOUNTS, UGMA/UTMA
    ACCOUNTS, PERSONAL TRUSTS, COVERDELL EDUCATION SAVINGS ACCOUNTS, IRAS
    (INCLUDING TRADITIONAL, ROTH, ROLLOVER, SEP-, SARSEP- AND SIMPLE-IRAS), AND
    CERTAIN OTHER RETIREMENT ACCOUNTS. IF YOU HAVE ONLY BUSINESS, BUSINESS
    RETIREMENT, EMPLOYER-SPONSORED OR AMERICAN CENTURY BROKERAGE ACCOUNTS, YOU
    ARE CURRENTLY NOT SUBJECT TO THIS FEE, BUT YOU MAY BE SUBJECT TO OTHER FEES.

WIRE PURCHASES

CURRENT INVESTORS: If you would like to make a wire purchase into an existing
account, your bank will need the following information. (To invest in a new
fund, please call us first to set up the new account.)

*  American Century's bank information: Commerce Bank N.A., Routing No.
   101000019, Account No. 2804918

*  Your American Century account number and fund name

*  Your name

*  The contribution year (for IRAs only)

NEW INVESTORS: To make a wire purchase into a new account, please complete an
application prior to wiring money.


- ------
11


WAYS TO MANAGE YOUR ACCOUNT

ONLINE
- --------------------------------------------------------------------------------
americancentury.com

OPEN AN ACCOUNT: If you are a current or new investor, you can open an account
by completing and submitting our online application. Current investors also can
open an account by exchanging shares from another American Century account.

EXCHANGE SHARES: Exchange shares from another American Century account.

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

SELL SHARES*: Redeem shares and proceeds will be electronically transferred to
your authorized bank account.

* Online redemptions up to $25,000 per day.

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

* 4500 Main Street, Kansas City, Missouri - 8 a.m. to 5 p.m., Monday - Friday

* 4917 Town Center Drive, Leawood, Kansas - 8 a.m. to 5 p.m., Monday - Friday,
  8 a.m. to noon, Saturday

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

BY TELEPHONE
- --------------------------------------------------------------------------------
INVESTOR SERVICES REPRESENTATIVE: 1-800-345-2021

INSTITUTIONAL SERVICE REPRESENTATIVE: 1-800-345-3533

BUSINESS, NOT-FOR-PROFIT AND EMPLOYER-SPONSORED RETIREMENT PLANS: 1-800-345-3533

AUTOMATED INFORMATION LINE: 1-800-345-8765

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

EXCHANGE SHARES: Call or use our Automated Information Line if you have
authorized us to accept telephone instructions. The Automated Information Line
is available only to Investor Class shareholders.

MAKE ADDITIONAL INVESTMENTS: Call or use our Automated Information Line if you
have authorized us to invest from your bank account. The Automated Information
Line is available only to Investor Class shareholders.

SELL SHARES: Call a Service Representative.

BY MAIL OR FAX
- --------------------------------------------------------------------------------
P.O. Box 419200, Kansas City, MO 64141-6200 - Fax: 816-340-7962

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

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

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

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

AUTOMATICALLY
- --------------------------------------------------------------------------------
OPEN AN ACCOUNT: Not available.

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

MAKE ADDITIONAL INVESTMENTS: With the automatic investment service, you can
purchase shares on a regular basis. You must invest at least $50 per month per
account.

SELL SHARES: You may sell shares automatically by establishing Check-A-Month or
Automatic Redemption plans.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
12


INVESTING THROUGH A FINANCIAL INTERMEDIARY

The fund's A, C and R Classes are intended for purchase by participants in
employer-sponsored retirement plans. Additionally, the fund's A, B and C Classes
are intended for persons purchasing shares through FINANCIAL INTERMEDIARIES that
provide various administrative and distribution services. For more information
regarding employer-sponsored retirement plan types, please see BUYING AND
SELLING FUND SHARES in the statement of additional information.

    [GRAPHIC OF TRIANGLE]

    FINANCIAL INTERMEDIARIES INCLUDE BANKS, BROKER-DEALERS, INSURANCE
    COMPANIES, PLAN SPONSORS AND FINANCIAL PROFESSIONALS.

Although each class of shares represents an interest in the same fund, each has
a different cost structure, as described below. Which class is right for you
depends on many factors, including how long you plan to hold the shares, how
much you plan to invest, the fee structure of each class, and how you wish to
compensate your financial professional for the services provided to you. Your
financial professional can help you choose the option that is most appropriate.

The following chart provides a summary description of these classes.


A CLASS                                       B CLASS
- --------------------------------------------------------------------------------
Initial sales charge(1)                       No initial sales charge
- --------------------------------------------------------------------------------
Generally no contingent                       Contingent deferred sales charge
deferred sales charge(2)                      on redemptions within six years
- --------------------------------------------------------------------------------
12b-1 fee of 0.25%(3)                         12b-1 fee of 1.00%(4)
- --------------------------------------------------------------------------------
No conversion feature                         Convert to A Class shares
                                              eight years after purchase
- --------------------------------------------------------------------------------
Generally more appropriate                    Aggregate purchases limited to
for long-term investors                       amounts less than $100,000;
                                              generally offered through
                                              financial intermediaries(5)
- --------------------------------------------------------------------------------

C CLASS                                    R CLASS
- --------------------------------------------------------------------------------
No initial sales charge                    No initial sales charge
- --------------------------------------------------------------------------------
Contingent deferred sales charge           No contingent deferred
on redemptions within 12 months            sales charge
- --------------------------------------------------------------------------------
12b-1 fee of 1.00%                         12b-1 fee of 0.50%
- --------------------------------------------------------------------------------
No conversion feature                      No conversion feature
- --------------------------------------------------------------------------------
Aggregate purchases limited                Generally offered through
to amounts less than $1,000,000;           employer-sponsored retirement plans
generally more appropriate for             and other fee-based arrangements(6)
short-term investors
- --------------------------------------------------------------------------------

(1)  THE SALES CHARGE FOR A CLASS SHARES DECREASES DEPENDING ON THE SIZE OF
     YOUR INVESTMENT, AND MAY BE WAIVED FOR SOME PURCHASES. THERE IS NO SALES
     CHARGE FOR PURCHASES OF $1,000,000 OR MORE.

(2)  A CONTINGENT DEFERRED SALES CHARGE (CDSC) OF 1.00% WILL BE CHARGED ON
     CERTAIN PURCHASES OF $1,000,000 OR MORE THAT ARE REDEEMED WITHIN ONE YEAR
     OF PURCHASE.

(3)  EFFECTIVE APRIL 1, 2006 THROUGH MARCH 31, 2008, AMERICAN CENTURY
     AGREED TO A TWO-YEAR WAIVER OF RULE 12B-1 FEES FOR CERTAIN CLASSES OF THE
     FUND. TAKING INTO ACCOUNT THE WAIVER, THE 12B-1 FEE IS 0.10%.

(4)  EFFECTIVE APRIL 1, 2006 THROUGH MARCH 31, 2008, AMERICAN CENTURY
     AGREED TO A TWO-YEAR WAIVER OF RULE 12B-1 FEES FOR CERTAIN CLASSES OF THE
     FUND. TAKING INTO ACCOUNT THE WAIVER, THE 12B-1 FEE IS 0.75%.

(5)  INVESTORS IN SIMPLE IRA PLANS, SEP IRA PLANS AND SARSEP PLANS
     ESTABLISHED PRIOR TO AUGUST 1, 2006, MAY MAKE ADDITIONAL PURCHASES. THIS
     CLASS IS NOT AVAILABLE FOR NEW EMPLOYER-SPONSORED RETIREMENT PLAN ACCOUNTS.

(6)  IRA ACCOUNTS IN R CLASS SHARES ESTABLISHED THROUGH FINANCIAL
     INTERMEDIARIES PRIOR TO AUGUST 1, 2006, MAY MAKE ADDITIONAL PURCHASES.



- ------
13


CALCULATION OF SALES CHARGES

The information regarding sales charges provided herein is included free of
charge and in a clear and prominent format at americancentury.com in the
INVESTORS USING ADVISORS and INVESTMENT PROFESSIONALS portions of the Web site.
From the description of A, B or C Class shares, a hyperlink will take you
directly to this disclosure.

A Class

A Class shares are sold at their offering price, which is net asset value plus
an initial sales charge. This sales charge varies depending on the amount of
your investment, and is deducted from your purchase before it is invested. The
sales charges and the amounts paid to your financial professional are:

                                                             AMOUNT PAID TO
                          SALES CHARGE     SALES CHARGE      FINANCIAL ADVISOR
                          AS A % OF        AS A % OF NET     AS A % OF
PURCHASE AMOUNT           OFFERING PRICE   AMOUNT INVESTED   OFFERING PRICE
- --------------------------------------------------------------------------------
Less than $50,000         5.75%            6.10%             5.00%
- --------------------------------------------------------------------------------
$50,000 - $99,999         4.75%            4.99%             4.00%
- --------------------------------------------------------------------------------
$100,000 - $249,999       3.75%            3.90%             3.25%
- --------------------------------------------------------------------------------
$250,000 - $499,999       2.50%            2.56%             2.00%
- --------------------------------------------------------------------------------
$500,000 - $999,999       2.00%            2.04%             1.75%
- --------------------------------------------------------------------------------
$1,000,000 - $3,999,999   0.00%            0.00%             1.00%(1)
- --------------------------------------------------------------------------------
$4,000,000 - $9,999,999   0.00%            0.00%             0.50%(1)
- --------------------------------------------------------------------------------
$10,000,000 or more       0.00%            0.00%             0.25%(1)
- --------------------------------------------------------------------------------

(1)  FOR PURCHASES OVER $1,000,000 BY EMPLOYER-SPONSORED RETIREMENT PLANS,
     NO UPFRONT AMOUNT WILL BE PAID TO FINANCIAL PROFESSIONALS.

There is no front-end sales charge for purchases of $1,000,000 or more, but if
you redeem your shares within one year of purchase you will pay a 1.00% deferred
sales charge, subject to the exceptions listed below. No sales charge applies to
reinvested dividends.

Reductions and Waivers of Sales Charges for A Class

You may qualify for a reduction or waiver of certain sales charges, but you or
your financial professional must provide certain information, including the
account numbers of any accounts to be aggregated, to American Century at the
time of purchase in order to take advantage of such reduction or waiver.

You and your immediate family (your spouse and your children under the age of
21) may combine investments to reduce your A Class sales charge in the following
ways:

ACCOUNT AGGREGATION. Investments made by you and your immediate family may be
aggregated at each account's current market value if made for your own
account(s) and/or certain other accounts, such as:

*  Certain trust accounts

*  Solely controlled business accounts

*  Single-participant retirement plans

*  Endowments or foundations established and controlled by you or an
   immediate family member

For purposes of aggregation, only investments made through individual-level
accounts, rather than accounts aggregated at the intermediary level, may be
included.

CONCURRENT PURCHASES. You may combine simultaneous purchases in A, B or C Class
shares of any two or more American Century Advisor Funds (funds that offer A, B
and C Class shares) to qualify for a reduced A Class sales charge.


- ------
14


RIGHTS OF ACCUMULATION. You may take into account the current value of your
existing holdings in A, B or C Class shares of any American Century Advisor Fund
to determine your A Class sales charge.

LETTER OF INTENT. A Letter of Intent allows you to combine all non-money market
fund purchases of all A, B and C Class shares you intend to make over a 13-month
period to determine the applicable sales charge. At your request, existing
holdings may be combined with new purchases and sales charge amounts may be
adjusted for purchases made within 90 days prior to our receipt of the Letter of
Intent. Capital appreciation, capital gains and reinvested dividends earned
during the Letter of Intent period do not apply toward its completion. A portion
of your account will be held in escrow to cover additional A Class sales charges
that will be due if your total investments over the 13-month period do not
qualify for the applicable sales charge reduction.

WAIVERS FOR CERTAIN INVESTORS. The sales charge on A Class shares may be waived
for:

*  Purchases by registered representatives and other employees of certain
   financial intermediaries (and their immediate family members) having selling
   agreements with the advisor or distributor

*  Broker-dealer sponsored wrap program accounts and/or fee-based accounts
   maintained for clients of certain financial intermediaries who have entered
   into selling agreements with American Century

*  Present or former officers, directors and employees (and their families)
   of American Century

*  Employer-sponsored retirement plan purchases. For plans under $1 million
   in assets, purchases with sales charges are allowed, but may be subject to
   the retirement plan recordkeeper's policies. Refer to BUYING AND SELLING FUND
   SHARES in the statement of additional information.

*  IRA Rollovers from any American Century Advisor Fund held in an
   employer-sponsored retirement plan

*  Certain other investors as deemed appropriate by American Century

B Class

B Class shares are sold at their net asset value without an initial sales
charge. For sales of B Class shares, the amount paid to your financial
professional is 4.00% of the amount invested. If you redeem your shares within
six years of the purchase date, you will pay a contingent deferred sales charge
(CDSC) as set forth below. The purpose of the CDSC is to permit the fund's
distributor to recoup all or a portion of the up-front payment made to your
financial professional. There is no CDSC on shares acquired through reinvestment
of dividends or capital gains.

REDEMPTION DURING                         CDSC AS A % OF ORIGINAL PURCHASE PRICE
- --------------------------------------------------------------------------------
1st year                                  5.00%
- --------------------------------------------------------------------------------
2nd year                                  4.00%
- --------------------------------------------------------------------------------
3rd year                                  3.00%
- --------------------------------------------------------------------------------
4th year                                  3.00%
- --------------------------------------------------------------------------------
5th year                                  2.00%
- --------------------------------------------------------------------------------
6th year                                  1.00%
- --------------------------------------------------------------------------------
After 6th year                            None
- --------------------------------------------------------------------------------

B Class shares (which carry a 1.00% 12b-1 fee) will automatically convert to A
Class shares (which carry a 0.25% 12b-1 fee) within 31 days after the eight-year
anniversary of the purchase date.


- ------
15


C Class

C Class shares are sold at their net asset value without an initial sales
charge. For sales of C Class shares, the amount paid to your financial
professional is 1.00% of the amount invested. If you redeem your shares within
12 months of purchase, you will pay a CDSC of 1.00% of the original purchase
price or the current market value at redemption, whichever is less. The purpose
of the CDSC is to permit the fund's distributor to recoup all or a portion of
the up-front payment made to your financial professional.

The CDSC will not be charged on shares acquired through reinvestment of
dividends or distributions or increases in the net asset value of shares.

CALCULATION OF CONTINGENT DEFERRED SALES CHARGE (CDSC)

To minimize the amount of the CDSC you may pay when you redeem shares, the fund
will first redeem shares acquired through reinvested dividends and capital gain
distributions, which are not subject to a CDSC. Shares that have been in your
account long enough that they are not subject to a CDSC are redeemed next. For
any remaining redemption amount, shares will be sold in the order they were
purchased (earliest to latest).

CDSC WAIVERS

Any applicable CDSC may be waived in the following cases:

*  redemptions through systematic withdrawal plans not exceeding annually:

   *  12% of the lesser of the original purchase cost or current market
      value for A Class shares

   *  12% of the original purchase cost for B Class shares

   *  12% of the lesser of the original purchase cost or current market
      value for C Class shares

*  distributions from IRAs due to attainment of age 59-1/2 for A Class
   shares and for C Class shares

*  required minimum distributions from retirement accounts upon reaching age
   70-1/2

*  tax-free returns of excess contributions to IRAs

*  redemptions due to death or post-purchase disability

*  exchanges, unless the shares acquired by exchange are redeemed within the
   original CDSC period

*  IRA Rollovers from any American Century Advisor Fund held in an
   employer-sponsored retirement plan, for A Class shares only

*  if no broker was compensated for the sale

REINSTATEMENT PRIVILEGE

Within 90 days of a redemption of any A or B Class shares, you may reinvest all
of the redemption proceeds in A Class shares of any American Century Advisor
Fund at the then-current net asset value without paying an initial sales charge.
At your request, any CDSC you paid on an A Class redemption that you are
reinvesting will be credited to your account. You or your financial professional
must notify the fund's transfer agent in writing at the time of the reinvestment
to take advantage of this privilege, and you may use it only once per account.
This privilege applies only if the new account is owned by the original account
owner.


- ------
16


EXCHANGING SHARES

You may exchange shares of the fund for shares of the same class of another
American Century Advisor Fund without a sales charge if you meet the following
criteria:

*  The exchange is for a minimum of $100

*  For an exchange that opens a new account, the amount of the exchange must
   meet or exceed the minimum account size requirement for the fund receiving
   the exchange

For purposes of computing any applicable CDSC on shares that have been
exchanged, the holding period will begin as of the date of purchase of the
original fund owned. Exchanges from a money market fund are subject to a sales
charge on the fund being purchased, unless the money market fund shares were
acquired by exchange from a fund with a sales charge or by reinvestment of
dividends or capital gains distributions.

EXCHANGES BETWEEN FUNDS (C CLASS)

You may exchange C Class shares of the fund for C Class shares of any other
American Century fund. You may not exchange from the C Class to any other class.
We will not charge a CDSC on the shares you exchange, regardless of the length
of time you have owned them. When you do redeem shares that have been exchanged,
the CDSC will be based on the date you purchased the original shares.

BUYING AND SELLING SHARES

Your ability to purchase, exchange, redeem and transfer shares will be affected
by the policies of the financial intermediary through which you do business.
Some policy differences may include

*  minimum investment requirements

*  exchange policies

*  fund choices

*  cutoff time for investments

*  trading restrictions

In addition, your financial intermediary may charge a transaction fee for the
purchase or sale of fund shares. Those charges are retained by the financial
intermediary and are not shared with American Century or the fund. Please
contact your financial intermediary or plan sponsor for a complete description
of its policies. Copies of the fund's annual report, semiannual report and
statement of additional information are available from your financial
intermediary or plan sponsor.

The fund has authorized certain financial intermediaries to accept orders on the
fund's behalf. American Century has selling agreements with these financial
intermediaries requiring them to track the time investment orders are received
and to comply with procedures relating to the transmission of orders. Orders
must be received by the financial intermediary on the fund's behalf before the
time the net asset value is determined in order to receive that day's share
price. If those orders are transmitted to American Century and paid for in
accordance with the selling agreement, they will be priced at the net asset
value next determined after your request is received in the form required by the
financial intermediary.

SEE ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT FOR MORE INFORMATION ABOUT
INVESTING WITH US.


- ------
17


ADDITIONAL POLICIES AFFECTING YOUR INVESTMENT

MINIMUM INITIAL INVESTMENT AMOUNTS (OTHER THAN INSTITUTIONAL CLASS)

Unless otherwise specified below, the minimum initial investment amount to open
an account is $2,500. Financial intermediaries may open an account with $250,
but may require their clients to meet different investment minimums. See
INVESTING THROUGH A FINANCIAL INTERMEDIARY for more information.

- --------------------------------------------------------------------------------
Broker-dealer sponsored wrap program accounts                         No minimum
and/or fee-based accounts
- --------------------------------------------------------------------------------
Coverdell Education Savings Account (CESA)                            $2,000(1)
- --------------------------------------------------------------------------------
Employer-sponsored retirement plans                                   No minimum
- --------------------------------------------------------------------------------


(1)  THE MINIMUM INITIAL INVESTMENT FOR FINANCIAL INTERMEDIARIES IS $250.
     FINANCIAL INTERMEDIARIES MAY HAVE DIFFERENT MINIMUMS FOR THEIR CLIENTS.

SUBSEQUENT PURCHASES

There is a $50 minimum for subsequent purchases. See WAYS TO MANAGE YOUR ACCOUNT
for more information about making additional investments directly with American
Century. However, there is no subsequent purchase minimum for financial
intermediaries or employer-sponsored retirement plans, but financial
intermediaries may require their clients to meet different subsequent purchase
requirements.

ELIGIBILITY FOR INSTITUTIONAL CLASS SHARES

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

MINIMUM INITIAL INVESTMENT AMOUNTS (INSTITUTIONAL CLASS)

The minimum initial investment amount is $5 million ($3 million for endowments
and foundations) per fund. If you invest with us through a financial
intermediary, this requirement may be met if your financial intermediary
aggregates your investments with those of other clients into a single group, or
omnibus, account that meets the minimum. The minimum investment requirement may
be waived if you, or your financial intermediary if you invest through an
omnibus account, have an aggregate investment in our family of funds of $10
million or more ($5 million for endowments and foundations). In addition,
financial intermediaries or plan recordkeepers may require retirement plans to
meet certain other conditions, such as plan size or a minimum level of assets
per participant, in order to be eligible to purchase Institutional Class shares.


- ------
18


REDEMPTIONS

If you sell your B or C Class or, in certain cases, A Class shares within a
certain time after their purchase, you will pay a sales charge the amount of
which is contingent upon the amount of time you have held your shares, as
described above. Your redemption proceeds will be calculated using the NET ASSET
VALUE (NAV) next determined after we receive your transaction request in good
order.

    [GRAPHIC OF TRIANGLE]

    A FUND'S NET ASSET VALUE, OR NAV, IS THE PRICE OF THE FUND'S SHARES.

However, we reserve the right to delay delivery of redemption proceeds up to
seven days. For example, each time you make an investment with American Century,
there is a seven-day holding period before we will release redemption proceeds
from those shares, unless you provide us with satisfactory proof that your
purchase funds have cleared. Investments by wire generally require only a
one-day holding period. If you change your address, we may require that any
redemption request made within 15 days be submitted in writing and be signed by
all authorized signers with their signatures guaranteed. If you change your bank
information, we may impose a 15-day holding period before we will transfer or
wire redemption proceeds to your bank. Please remember, if you request
redemptions by wire, $10 will be deducted from the amount redeemed. Your bank
also may charge a fee.

In addition, we reserve the right to honor certain redemptions with securities,
rather than cash, as described in the next section.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the value of a fund's assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. The portfolio
managers would select these securities from the fund's portfolio.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, you may have to pay
brokerage or other transaction costs to convert the securities to cash.

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

REDEMPTION OF SHARES IN ACCOUNTS BELOW MINIMUM

If your account balance falls below the minimum initial investment amount for
any reason other than as a result of market fluctuation, American Century
reserves the right to redeem the shares in the account and send the proceeds to
your address of record. Prior to doing so, we will notify you and give you 90
days to meet the minimum. Please note that shares redeemed in this manner may be
subject to a sales charge if held less than the applicable time period. You also
may incur tax liability as a result of the redemption. For Institutional Class
shares, we reserve the right to convert your shares to Investor Class shares of
the same fund. The Investor Class shares have a unified management fee that is
0.20% higher than the Institutional Class.



- ------
19


SIGNATURE GUARANTEES

A signature guarantee - which is different from a notarized signature - is a
warranty that the signature presented is genuine. We may require a signature
guarantee for the following transactions.

*  You have chosen to conduct business in writing only and would like to
   redeem over $100,000.

*  Your redemption or distribution check, Check-A-Month or automatic
   redemption is made payable to someone other than the account owners.

*  Your redemption proceeds or distribution amount is sent by EFT (ACH or
   wire) to a destination other than your personal bank account.

*  You are transferring ownership of an account over $100,000.

*  You change your address and request a redemption over $100,000 within 15
   days.

*  You change your bank information and request a redemption within 15 days.

We reserve the right to require a signature guarantee for other transactions, at
our discretion.

MODIFYING OR CANCELING AN INVESTMENT

Investment instructions are irrevocable. That means that once you have mailed or
otherwise transmitted your investment instruction, you may not modify or cancel
it. The fund reserves the right to suspend the offering of shares for a period
of time and to reject any specific investment (including a purchase by
exchange). Additionally, we may refuse a purchase if, in our judgment, it is of
a size that would disrupt the management of the fund.

ABUSIVE TRADING PRACTICES

Short-term trading and other so-called market timing practices are not defined
or explicitly prohibited by any federal or state law. However, short-term
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of short-term
trading activity is significant relative to the fund's net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund's performance could be negatively impacted by the increased trading costs
created by short-term trading if the additional trading costs are significant.

Because of the potentially harmful effects of abusive trading practices, the
fund's Board of Directors has approved American Century's abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
imposing redemption fees on certain funds, and using fair value pricing when
current market prices are not readily available. Although these efforts are
designed to discourage abusive trading practices, they cannot eliminate the
possibility that such activity will occur. American Century seeks to exercise
its judgment in implementing these tools to the best of its ability in a manner
that it believes is consistent with shareholder interests.

American Century uses a variety of techniques to monitor for and detect abusive
trading practices. These techniques may vary depending on the type of fund, the
class of shares or whether the shares are held directly or indirectly with
American Century. They may change from time to time as determined by American
Century in its sole discretion. To minimize harm to the funds and their
shareholders, we reserve the right to reject any purchase order (including
exchanges) from any shareholder we believe has a history of abusive trading or
whose trading, in our judgment, has been or may be disruptive to the funds. In
making this judgment, we may consider trading done in multiple accounts under
common ownership or control.


- ------
20


Currently, for shares held directly with American Century, we may deem the sale
of all or a substantial portion of a shareholder's purchase of fund shares to be
abusive if the sale is made

*  within seven days of the purchase, or

*  within 30 days of the purchase, if it happens more than once per year.

To the extent practicable, we try to use the same approach for defining abusive
trading for shares held through financial intermediaries. American Century
reserves the right, in its sole discretion, to identify other trading practices
as abusive and to modify its monitoring and other practices as necessary to deal
with novel or unique abusive trading practices.

In addition, American Century reserves the right to accept purchases and
exchanges in excess of the trading restrictions discussed above if it believes
that such transactions would not be inconsistent with the best interests of fund
shareholders or this policy.

American Century's policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American Century handles, there can be no assurance that American
Century's efforts will identify all trades or trading practices that may be
considered abusive. In addition, American Century's ability to monitor trades
that are placed by individual shareholders within group, or omnibus, accounts
maintained by financial intermediaries is severely limited because American
Century generally does not have access to the underlying shareholder account
information. However, American Century monitors aggregate trades placed in
omnibus accounts and seeks to work with financial intermediaries to discourage
shareholders from engaging in abusive trading practices and to impose
restrictions on excessive trades. There may be limitations on the ability of
financial intermediaries to impose restrictions on the trading practices of
their clients. As a result, American Century's ability to monitor and discourage
abusive trading practices in omnibus accounts may be limited.

YOUR RESPONSIBILITY FOR UNAUTHORIZED TRANSACTIONS

American Century and its affiliated companies use procedures reasonably designed
to confirm that telephone, electronic and other instructions are genuine. These
procedures include recording telephone calls, requesting personalized security
codes or other information, and sending confirmation of transactions. If we
follow these procedures, we are not responsible for any losses that may occur
due to unauthorized instructions. For transactions conducted over the Internet,
we recommend the use of a secure Internet browser. In addition, you should
verify the accuracy of your confirmation statements immediately after you
receive them.

A NOTE ABOUT MAILINGS TO SHAREHOLDERS

To reduce the amount of mail you receive from us, we may deliver a single copy
of certain investor documents (such as shareholder reports and prospectuses) to
investors who share an address, even if accounts are registered under different
names. If you prefer to receive multiple copies of these documents individually
addressed, please call us or your financial professional. For American Century
Brokerage accounts, please call 1-888-345-2071.

RIGHT TO CHANGE POLICIES

We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups. In addition, from time to time we may
waive a policy on a case-by-case basis, as the advisor deems appropriate.


- ------
21


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century will price the fund shares you purchase, exchange or redeem at
the net asset value (NAV) next determined after your order is received and
accepted by the fund's transfer agent, or other financial intermediary with the
authority to accept orders on the fund's behalf. We determine the NAV of the
fund as of the close of regular trading (usually 4 p.m. Eastern time) on the New
York Stock Exchange (NYSE) on each day the NYSE is open. On days when the NYSE
is closed (including certain U.S. national holidays), we do not calculate the
NAV. The fund's NAV is the current value of the fund's assets, minus any
liabilities, divided by the number of shares outstanding.

The fund values portfolio securities for which market quotations are readily
available at their market price. As a general rule, equity securities listed on
a U.S. exchange are valued at the last current reported sale price as of the
time of valuation. Securities listed on the NASDAQ National Market System
(Nasdaq) are valued at the Nasdaq Official Closing Price (NOCP), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the
time of valuation. The fund may use pricing services to assist in the
determination of market value. Unlisted securities for which market quotations
are readily available are valued at the last quoted sale price or the last
quoted ask price, as applicable, except that debt obligations with 60 days or
less remaining until maturity may be valued at amortized cost. Exchange-traded
options, futures and options on futures are valued at the settlement price as
determined by the appropriate clearing corporation.

If the fund determines that the market price for a portfolio security is not
readily available or that the valuation methods mentioned above do not reflect
the security's fair value, such security is valued at its fair value as
determined in good faith by, or in accordance with procedures adopted by, the
fund's board or its designee (a process referred to as "fair valuing" the
security). Circumstances that may cause the fund to fair value a security
include, but are not limited to:

*  if, after the close of the foreign exchange on which a portfolio security
   is principally traded, but before the close of the NYSE, an event occurs that
   may materially affect the value of the security;

*  a debt security has been declared in default; or

*  trading in a security has been halted during the trading day.

If such circumstances occur, the fund will fair value the security if the fair
valuation would materially impact the fund's NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with procedures adopted by
the fund's board.

The effect of using fair value determinations is that the fund's NAV will be
based, to some degree, on security valuations that the board or its designee
believes are fair rather than being solely determined by the market.

With respect to any portion of the fund's assets that are invested in one or
more open-end management investment companies that are registered with the SEC
(known as registered investment companies, or RICs), the fund's NAV will be
calculated based upon the NAVs of such RICs. These RICs are required by law to
explain the circumstances under which they will use fair value pricing and the
effects of using fair value pricing in their prospectuses.


- ------
22


Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based on the prevailing exchange rates on that day.

Trading of securities in foreign markets may not take place every day the NYSE
is open. Also, trading in some foreign markets and on some electronic trading
networks may take place on weekends or holidays when the fund's NAV is not
calculated. So, the value of the fund's portfolio may be affected on days when
you will not be able to purchase, exchange or redeem fund shares.

DISTRIBUTIONS

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

    [GRAPHIC OF TRIANGLE]

    CAPITAL GAINS ARE INCREASES IN THE VALUES OF CAPITAL ASSETS, SUCH AS STOCK,
    FROM THE TIME THE ASSETS ARE PURCHASED.

The fund generally pays distributions from net income and capital gains, if any,
once a year in December. It may make more frequent distributions, if necessary,
to comply with Internal Revenue Code provisions.

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

Participants in tax-deferred retirement plans must reinvest all distributions.
For investors investing through taxable accounts, we will reinvest distributions
unless you elect to have dividends and/or capital gains sent to another American
Century account, to your bank electronically, or to your home address or to
another person or address by check.


- ------
23


TAXES

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

Tax-Deferred Accounts

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

Taxable Accounts

If you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund shares.

Taxability of Distributions

Fund distributions may consist of income, such as dividends and interest earned
by the fund from its investments, or capital gains generated by the fund from
the sale of investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as QUALIFIED DIVIDEND INCOME and you meet a
minimum required holding period with respect to your shares of the fund, in
which case distributions of income are taxed as long-term capital gains.

    [GRAPHIC OF TRIANGLE]

    QUALIFIED DIVIDEND INCOME IS A DIVIDEND RECEIVED BY A FUND FROM THE STOCK OF
    A DOMESTIC OR QUALIFYING FOREIGN CORPORATION, PROVIDED THAT THE FUND HAS HELD
    THE STOCK FOR A REQUIRED HOLDING PERIOD.

For capital gains and for income distributions designated as qualified dividend
income, the following rates apply:

                                       TAX RATE FOR 10%      TAX RATE FOR
TYPE OF DISTRIBUTION                   AND 15% BRACKETS      ALL OTHER BRACKETS
- --------------------------------------------------------------------------------
Short-term capital gains               Ordinary Income       Ordinary Income
- --------------------------------------------------------------------------------
Long-term capital gains (>1 year)
and Qualified Dividend Income          5%                    15%
- --------------------------------------------------------------------------------

If the fund's distributions exceed its taxable income and capital gains realized
during the tax year, all or a portion of the distributions made by the fund in
that tax year will be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.


- ------
24


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

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

Taxes on Transactions

Your redemptions - including exchanges to other American Century funds - are
subject to capital gains tax. The table above can provide a general guide for
your potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss. However, you should note that loss realized upon the
sale or exchange of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain to you with respect to those shares. If a loss is realized on the
redemption of fund shares, the reinvestment in additional fund shares within 30
days before or after the redemption may be subject to the wash sale rules of the
Internal Revenue Code. This may result in a postponement of the recognition of
such loss for federal income tax purposes.

If you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.

Buying a Dividend

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

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

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


- ------
25


MULTIPLE CLASS INFORMATION

American Century offers six classes of shares of the fund: Investor Class,
Institutional Class, A Class, B Class, C Class and R Class.

The classes have different fees, expenses and/or minimum investment
requirements. The difference in the fee structures between the classes is the
result of their separate arrangements for shareholder and distribution services.
It is not the result of any difference in advisory or custodial fees or other
expenses related to the management of the fund's assets, which do not vary by
class. Different fees and expenses will affect performance.

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

Service, Distribution and Administrative Fees

Investment Company Act Rule 12b-1 permits mutual funds that adopt a written plan
to pay certain expenses associated with the distribution of their shares out of
fund assets. Each class, except Investor Class and Institutional Class, offered
by this prospectus has a 12b-1 plan. The plans provide for the fund to pay
annual fees of 0.25% for A Class, 1.00% for B and C Classes, and 0.50% for R
Class to the distributor for certain ongoing shareholder and administrative
services and for distribution services, including past distribution services.
The distributor pays all or a portion of such fees to the financial
intermediaries that make the classes available. Because these fees are used to
pay for services that are not related to prospective sales of the fund, each
class will continue to make payments under its plan even if it is closed to new
investors. Because these fees are paid out of the fund's assets on an ongoing
basis, over time these fees will increase the cost of your investment and may
cost you more than other types of sales charges. The higher fees for B and C
Class shares may cost you more over time than paying the initial sales charge
for A Class shares. For additional information about the plans and their terms,
see MULTIPLE CLASS STRUCTURE in the statement of additional information.

Certain financial intermediaries perform recordkeeping and administrative
services for their clients that would otherwise be performed by American
Century's transfer agent. In some circumstances, the advisor will pay such
service providers a fee for performing those services. Also, the advisor and the
fund's distributor may make payments for various additional services or other
expenses out of their profits or other available sources. Such payments may be
made for one or more of the following: (1) distribution services, which include
expenses incurred by intermediaries for their sales activities with respect to
the fund, such as preparing, printing and distributing sales literature and
advertising materials and compensating registered representatives or other
employees of such financial intermediary for their sales activities; (2)
shareholder services, such as providing individual and custom investment
advisory services to clients of the financial intermediary; and (3) marketing
and promotional services, including business planning assistance, educating
personnel about the fund, and sponsorship of sales meetings, which may include
covering costs of providing speakers, meals and other entertainment. The
distributor may sponsor seminars and conferences designed to educate
intermediaries about the fund and may cover the expenses associated with
attendance at such meetings, including travel costs. These payments and
activities are intended to provide an incentive to intermediaries to sell the
fund by ensuring that they are educated about the fund, and to help such
intermediaries defray costs associated with offering the fund. The amount of any
payments described by this paragraph is determined by the advisor or the
distributor, and all such amounts are paid out of the available assets of the
advisor and distributor, and not by you or the fund. As a result, the total
expense ratio of the fund will not be affected by any such payments.


- ------
26


FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The tables on the next few pages itemize what contributed to the changes in
share price during the most recently ended fiscal year. They also show the
changes in share price for this period in comparison to changes over the last
five fiscal years (or a shorter period if the share class is not five years
old).

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

*  share price at the beginning of the period

*  investment income and capital gains or losses

*  distributions of income and capital gains paid to investors

*  share price at the end of the period

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

*  TOTAL RETURN - the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO - the operating expenses of the fund as a percentage of
   average net assets

*  NET INCOME RATIO - the net investment income of the fund as a percentage
   of average net assets

*  PORTFOLIO TURNOVER - the percentage of the fund's investment portfolio
   that is replaced during the period

The Financial Highlights, for the year ended March 31, 2006 and prior, that
follow have been audited by PricewaterhouseCoopers LLP, independent registered
public accounting firm. The Financial Highlights for the periods ended October
31, 2006 have been audited by Deloitte & Touche LLP. The Report of Independent
Registered Public Accounting Firm and the financial statements are included in
the fund's annual report, which is available upon request.



- ------
27


SMALL CAP GROWTH
Investor Class

FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED
- --------------------------------------------------------------------------------
                                                                      2006(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                                  $16.86
- --------------------------------------------------------------------------------
Income From Investment Operations
- ------------------------------------------------------------
   Net Investment Income (Loss)(2)                                    (0.06)
- ------------------------------------------------------------
   Net Realized and Unrealized Gain (Loss)                            (0.77)
- --------------------------------------------------------------------------------
   Total From Investment Operations                                   (0.83)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                                        $16.03
================================================================================
   TOTAL RETURN(3)                                                    (4.92)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses to Average Net Assets                     1.30%(4)
- ------------------------------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                                          (0.80)%(4)
- ------------------------------------------------------------
Portfolio Turnover Rate                                               42%
- ------------------------------------------------------------
Net Assets, End of Period (in thousands)                              $587
- --------------------------------------------------------------------------------

(1)  APRIL 3, 2006 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2006.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY
     REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING
     THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE
     CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE
     CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET
     VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND
     DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.


- ------
28


SMALL CAP GROWTH
Institutional Class

FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED
- --------------------------------------------------------------------------------
                                                                      2006(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                                  $16.86
- --------------------------------------------------------------------------------
Income From Investment Operations
- ------------------------------------------------------------
   Net Investment Income (Loss)(2)                                    (0.05)
- ------------------------------------------------------------
   Net Realized and Unrealized Gain (Loss)                            (0.76)
- --------------------------------------------------------------------------------
   Total From Investment Operations                                   (0.81)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                                        $16.05
================================================================================
   TOTAL RETURN(3)                                                    (4.80)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses to Average Net Assets                     1.10%(4)
- ------------------------------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                                          (0.60)%(4)
- ------------------------------------------------------------
Portfolio Turnover Rate                                               42%
- ------------------------------------------------------------
Net Assets, End of Period (in thousands)                              $1,166
- --------------------------------------------------------------------------------

(1)  APRIL 3, 2006 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2006.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY
     REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING
     THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE
     CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE
     CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET
     VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND
     DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.


- ------
29


SMALL CAP GROWTH
A Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED MARCH 31 (EXCEPT AS NOTED)
- ---------------------------------------------------------------------------------------------------------
                                2006(1)        2006        2005        2004        2003        2002
- ---------------------------------------------------------------------------------------------------------
PER-SHARE DATA
- ---------------------------------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period             $17.02        $15.27       $14.38     $10.11      $13.38      $11.61
- ---------------------------------------------------------------------------------------------------------
Income From Investment
Operations
- -------------------------------
   Net Investment
   Income (Loss)                (0.08)(2)      (0.14)(2)   (0.15)(2)  (0.15)(2)   (0.12)(2)   (0.11)
- -------------------------------
   Net Realized and
   Unrealized Gain (Loss)       (0.92)         3.53        1.75       4.42        (3.15)      1.88
- ---------------------------------------------------------------------------------------------------------
   Total From Investment
   Operations                   (1.00)         3.39        1.60       4.27        (3.27)      1.77
- ---------------------------------------------------------------------------------------------------------
Distributions
- -------------------------------
   From Net Realized Gains      -              (1.64)      (0.71)      -          -           -
- ---------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period  $16.02         $17.02      $15.27     $14.38      $10.11      $13.38
- ---------------------------------------------------------------------------------------------------------
   TOTAL RETURN(3)              (5.88)%        23.08%      10.99%     42.24%      (24.44)%    15.25%

RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets           1.40%(4)(5)    1.40%(6)    1.40%(6)    1.40%(6)    1.40%(6)    1.40%(6)
- -------------------------------
Ratio of Operating Expenses
to Average Net Assets
(Before Expense Waiver)         1.55%(4)       1.86%       2.03%       2.21%       2.29%       2.46%
- -------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets    (0.90)%(4)(5)  (0.82)%(6)  (1.05)%(6)  (1.16)%(6)  (1.10)%(6)  (0.89)%(6)
- -------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets
(Before Expense Waiver)         (1.05)%(4)     (1.28)%     (1.68)%     (1.97)%     (1.99)%     (1.95)%
- -------------------------------
Portfolio Turnover Rate         42%            81%         86%         98%         49%         58%
- -------------------------------
Net Assets, End of Period
(in thousands)                  $41,798        $55,085     $33,791     $23,914     $14,623     $13,997
- ---------------------------------------------------------------------------------------------------------

(1)  APRIL 1, 2006 THROUGH OCTOBER 31, 2006. THE FUND'S FISCAL YEAR WAS
     CHANGED FROM MARCH 31 TO OCTOBER 31, RESULTING IN A SEVEN-MONTH ANNUAL
     REPORTING PERIOD.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL
     RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  DURING THE SEVEN MONTHS ENDED OCTOBER 31, 2006, THE DISTRIBUTOR
     VOLUNTARILY WAIVED A PORTION OF ITS DISTRIBUTION AND SERVICE FEES.

(6)  THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO WAIVE FEES AND ABSORB
     CERTAIN OPERATING EXPENSES.


- ------
30


SMALL CAP GROWTH
B Class

FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED MARCH 31 (EXCEPT AS NOTED)
- -------------------------------------------------------------------------------------------------------
                              2006(1)        2006        2005        2004        2003        2002
- -------------------------------------------------------------------------------------------------------
PER-SHARE DATA
- -------------------------------------------------------------------------------------------------------
Net Asset Value,              $16.34         $14.81      $14.06      $9.95       $13.25      $11.58
Beginning of Period
- -------------------------------------------------------------------------------------------------------
Income From Investment
Operations
- -----------------------------
   Net Investment
   Income (Loss)              (0.14)(2)      (0.24)(2)   (0.24)(2)   (0.23)(2)   (0.19)(2)   (0.11)
- -----------------------------
   Net Realized and
   Unrealized Gain (Loss)     (0.88)         3.41        1.70        4.34        (3.11)      1.78
- -------------------------------------------------------------------------------------------------------
   Total From
   Investment Operations      (1.02)         3.17        1.46        4.11        (3.30)      1.67
- -------------------------------------------------------------------------------------------------------
Distributions
- -----------------------------
   From Net Realized Gains    -              (1.64)      (0.71)      -           -           -
- -------------------------------------------------------------------------------------------------------
Net Asset Value,
End of Period                 $15.32         $16.34      $14.81      $14.06      $9.95       $13.25
=======================================================================================================
   TOTAL RETURN(3)            (6.24)%        22.29%      10.23%      41.31%      (24.91)%    14.42%

RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------
Ratio of Operating Expenses
to Average Net Assets         2.05%(4)(5)    2.05%(6)    2.05%(6)    2.05%(6)    2.05%(6)    2.05%(6)
- -----------------------------
Ratio of Operating Expenses
to Average Net Assets
(Before Expense Waiver)       2.30%(4)       2.51%       2.68%       2.86%       2.94%       3.11%
- -----------------------------
Ratio of Net Investment
Income (Loss) to Average
Net Assets                    (1.55)%(4)(5)  (1.48)%(6)  (1.70)%(6)  (1.81)%(6)  (1.74)%(6)  (1.54)%(6)
- -----------------------------
Ratio of Net Investment
Income (Loss) to
Average Net Assets
(Before Expense Waiver)       (1.80)%(4)     (1.94)%     (2.33)%     (2.62)%     (2.63)%     (2.60)%
- -----------------------------
Portfolio Turnover Rate       42%            81%         86%         98%         49%         58%
- -----------------------------
Net Assets, End of Period
(in thousands)                $6,884         $8,284      $6,986      $6,066      $3,674      $3,525
- -------------------------------------------------------------------------------------------------------

(1)  APRIL 1, 2006 THROUGH OCTOBER 31, 2006. THE FUND'S FISCAL YEAR WAS
     CHANGED FROM MARCH 31 TO OCTOBER 31, RESULTING IN A SEVEN-MONTH ANNUAL
     REPORTING PERIOD.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL
     RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.

(5)  DURING THE SEVEN MONTHS ENDED OCTOBER 31, 2006, THE DISTRIBUTOR
     VOLUNTARILY WAIVED A PORTION OF ITS DISTRIBUTION AND SERVICE FEES.

(6)  THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO WAIVE FEES AND ABSORB
     CERTAIN OPERATING EXPENSES.


- ------
31


SMALL CAP GROWTH
C Class

FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED
- --------------------------------------------------------------------------------
                                                                      2006(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                                  $16.86
- --------------------------------------------------------------------------------
Income From Investment Operations
- ------------------------------------------------------------
   Net Investment Income (Loss)(2)                                    (0.16)
- ------------------------------------------------------------
   Net Realized and Unrealized Gain (Loss)                            (0.76)
- --------------------------------------------------------------------------------
   Total From Investment Operations                                   (0.92)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                                        $15.94
================================================================================
   TOTAL RETURN(3)                                                    (5.46)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses to Average Net Assets                     2.30%(4)
- ------------------------------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                                          (1.80)%(4)
- ------------------------------------------------------------
Portfolio Turnover Rate                                               42%
- ------------------------------------------------------------
Net Assets, End of Period (in thousands)                              $118
- --------------------------------------------------------------------------------

(1)  APRIL 3, 2006 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2006.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY, AND DOES NOT REFLECT APPLICABLE SALES CHARGES.
     TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL
     RETURN OF THE CLASSES MAY NOT PRECISELY REFLECT THE CLASS EXPENSE
     DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING THE NET ASSET VALUES TO
     TWO DECIMAL PLACES. IF NET ASSET VALUES WERE CALCULATED TO THREE DECIMAL
     PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE CLOSELY REFLECT THE CLASS
     EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET VALUES TO TWO DECIMAL
     PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND DOES NOT RESULT IN ANY
     GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.


- ------
32


SMALL CAP GROWTH
R Class

FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED
- --------------------------------------------------------------------------------
                                                                      2006(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                                  $16.86
- --------------------------------------------------------------------------------
Income From Investment Operations
- ------------------------------------------------------------
   Net Investment Income (Loss)(2)                                    (0.12)
- ------------------------------------------------------------
   Net Realized and Unrealized Gain (Loss)                            (0.76)
- --------------------------------------------------------------------------------
   Total From Investment Operations                                   (0.88)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                                        $15.98
================================================================================
   TOTAL RETURN(3)                                                    (5.22)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses to Average Net Assets                     1.80%(4)
- ------------------------------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets                                          (1.30)%(4)
- ------------------------------------------------------------
Portfolio Turnover Rate                                               42%
- ------------------------------------------------------------
Net Assets, End of Period (in thousands)                              $24
- --------------------------------------------------------------------------------

(1)  APRIL 3, 2006 (COMMENCEMENT OF SALE) THROUGH OCTOBER 31, 2006.

(2)  COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD.

(3)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED. THE TOTAL RETURN OF THE CLASSES MAY NOT PRECISELY
     REFLECT THE CLASS EXPENSE DIFFERENCES BECAUSE OF THE IMPACT OF CALCULATING
     THE NET ASSET VALUES TO TWO DECIMAL PLACES. IF NET ASSET VALUES WERE
     CALCULATED TO THREE DECIMAL PLACES, THE TOTAL RETURN DIFFERENCES WOULD MORE
     CLOSELY REFLECT THE CLASS EXPENSE DIFFERENCES. THE CALCULATION OF NET ASSET
     VALUES TO TWO DECIMAL PLACES IS MADE IN ACCORDANCE WITH SEC GUIDELINES AND
     DOES NOT RESULT IN ANY GAIN OR LOSS OF VALUE BETWEEN ONE CLASS AND ANOTHER.

(4)  ANNUALIZED.


- ------
33


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

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

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

IN PERSON             SEC Public Reference Room
                      Washington, D.C.
                      Call 202-942-8090 for location and hours.

ON THE INTERNET       * EDGAR database at sec.gov
                      * By email request at publicinfo@sec.gov

BY MAIL               SEC Public Reference Section
                      Washington, D.C. 20549-0102

This prospectus shall not constitute an offer to sell securities of the fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or qualified for sale, unless such registration or qualification
is not required, or under any circumstances in which such offer or solicitation
would be unlawful.

FUND REFERENCE                             FUND CODE                      TICKER
- --------------------------------------------------------------------------------
Small Cap Growth Fund
  Investor Class                           995                            ACWVX
- --------------------------------------------------------------------------------
  Institutional Class                      395                            ACWIX
- --------------------------------------------------------------------------------
  A Class                                  195                            MSASX
- --------------------------------------------------------------------------------
  B Class                                  305                            MSBSX
- --------------------------------------------------------------------------------
  C Class                                  495                            ACWCX
- --------------------------------------------------------------------------------
  R Class                                  295                            ACWRX
- --------------------------------------------------------------------------------

Investment Company Act File No. 811-0816

AMERICAN CENTURY INVESTMENTS
americancentury.com
                                   Banks and Trust Companies, Broker-Dealers,
Self-Directed Retail Investors     Financial Professionals, Insurance Companies
P.O. Box 419200                    P.O. Box 419786
Kansas City, Missouri 64141-6200   Kansas City, Missouri 64141-6786
1-800-345-2021 or 816-531-5575     1-800-345-6488

0703
SH-PRS-52530













AMERICAN CENTURY INVESTMENTS

Prospectus


March 1, 2007


NT Growth Fund

THE FUND IS AVAILABLE FOR PURCHASE ONLY BY CERTAIN FUNDS OF FUNDS ADVISED BY
AMERICAN CENTURY. THE FUND IS CLOSED TO OTHER INVESTORS.

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

American Century Investment
Services, Inc., Distributor

[american century investments logo and text logo]





Table of Contents

AN OVERVIEW OF THE FUND . . . . . . . . . . . . . . . . . .2

FUND PERFORMANCE HISTORY . . . . . . . . . . . . . . . . . 3

FEES AND EXPENSES . . . . . . . . . . . . . . . . . . . . .4

OBJECTIVES, STRATEGIES AND RISKS . . . . . . . . . . . . . 5

MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . 7

INVESTING WITH AMERICAN CENTURY . . . . . . . . . . . . . .9

SHARE PRICE AND DISTRIBUTIONS . . . . . . . . . . . . . . 11

TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . 13

FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . .15


         [GRAPHIC OF TRIANGLE]

         THIS SYMBOL IS USED THROUGHOUT THE BOOK TO HIGHLIGHT DEFINITIONS OF KEY
         INVESTMENT TERMS AND TO PROVIDE OTHER HELPFUL INFORMATION.

American Century Investment Services, Inc., Distributor


©2007 American Century Proprietary Holdings, Inc. All rights reserved.


The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.




AN OVERVIEW OF THE FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

The portfolio managers look for stocks of companies they believe will increase
in value over time, using an investment strategy developed by American Century.
In implementing this strategy, the portfolio managers make their investment
decisions based primarily on their analysis of individual companies, rather than
on broad economic forecasts. Management of the fund is based on the belief that,
over the long term, stock price movements follow growth in earnings, revenues
and/or cash flow.

The portfolio managers use a variety of analytical research tools and techniques
to identify the stocks of larger-sized companies that meet their investment
criteria. Under normal market conditions, the fund's portfolio will primarily
consist of securities of companies demonstrating business improvement.

The fund is not permitted to invest in securities issued by companies assigned
the Global Industry Classification Standard (GICS) for the tobacco industry.

The fund's principal risks include

*  GROWTH STOCKS - Investments in growth stocks may involve special risks and
   their prices may fluctuate more dramatically than the overall stock market.

*  FOREIGN SECURITIES - The fund may invest in foreign securities, which can
   be riskier than investing in U.S. securities.

*  TOBACCO EXCLUSION - The fund's prohibition on tobacco-related investments
   may cause it to forego profitable investment opportunities.

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

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

*  PRINCIPAL LOSS - At any given time your shares may be worth less than the
   price you paid for them. In other words, it is possible to lose money by
   investing in the fund.


A more detailed description of the fund's investment strategies and risks may be
found under the heading OBJECTIVES, STRATEGIES AND RISKS, which begins on page
5.

        [GRAPHIC OF TRIANGLE]

        AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT, AND IT IS NOT INSURED
        OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY
        OTHER GOVERNMENT AGENCY.


- ------
2


FUND PERFORMANCE HISTORY

The fund's performance history is not available as of the date of this
prospectus. When the fund has investment results for a full calendar year, this
section will feature charts that show annual total returns, highest and lowest
quarterly returns and average annual total returns for the fund. This
information indicates the volatility of the fund's historical returns from year
to year.

Performance information is designed to help you see how fund returns can vary.
Keep in mind that past performance (before and after taxes) does not predict how
the fund will perform in the future.

For current performance information, please visit americancentury.com.


- ------
3


FEES AND EXPENSES

There are no sales loads, fees or other charges

*  to buy fund shares directly from American Century

*  to reinvest dividends in additional shares

*  to exchange into the same class of shares of other American Century funds

*  to redeem your shares (other than a $10 fee to redeem by wire)

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

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
                 MANAGEMENT   DISTRIBUTION AND       OTHER       TOTAL ANNUAL FUND
                 FEE(1)       SERVICE (12B-1) FEES   EXPENSES(2) OPERATING EXPENSES
- -----------------------------------------------------------------------------------
Institutional
Class            0.80%        None                   0.00%       0.80%
- -----------------------------------------------------------------------------------

(1)  THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR
     ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. THE FUND HAS A
     STEPPED FEE SCHEDULE. AS A RESULT, THE FUND'S UNIFIED MANAGEMENT FEE RATE
     GENERALLY DECREASES AS STRATEGY ASSETS INCREASE AND INCREASES AS STRATEGY
     ASSETS DECREASE. FOR MORE INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE,
     INCLUDING AN EXPLANATION OF STRATEGY ASSETS, SEE The Investment Advisor
     UNDER Management.

(2)  OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
     INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, INTEREST, AND FEES AND
     EXPENSES INCURRED INDIRECTLY BY THE FUND AS A RESULT OF INVESTMENT IN
     SHARES OF ONE OR MORE MUTUAL FUNDS, HEDGE FUNDS, PRIVATE EQUITY FUNDS OR
     OTHER POOLED INVESTMENT VEHICLES, WERE LESS THAN 0.005% FOR THE MOST RECENT
     FISCAL YEAR.

EXAMPLE

The examples in the table below are intended to help you compare the costs of
investing in a fund with the costs of investing in other mutual funds. Of
course, your actual costs may be higher or lower. Assuming you . . .

*  invest $10,000 in the fund

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

*  earn a 5% return each year

*  incur the same operating expenses as shown above

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


                         1 YEAR        3 YEARS        5 YEARS        10 YEARS
- --------------------------------------------------------------------------------
Institutional Class      $82           $255           $443           $987
- --------------------------------------------------------------------------------



- ------
4


OBJECTIVES, STRATEGIES AND RISKS

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

The portfolio managers look for stocks of larger-sized companies they believe
will increase in value over time, using an investment strategy developed by
American Century. In implementing this strategy, the portfolio managers use a
bottom-up approach to stock selection. This means that the portfolio managers
make their investment decisions based primarily on their analysis of individual
companies, rather than on broad economic forecasts. Management of the fund is
based on the belief that, over the long term, stock price movements follow
growth in earnings, revenues and/or cash flow.

Using American Century's extensive computer database, as well as other primary
analytical research tools, the portfolio managers track financial information
for individual companies to identify and evaluate trends in earnings, revenues
and other business fundamentals. Under normal market conditions, the fund's
portfolio will primarily consist of securities of companies demonstrating
business improvement. Analytical indicators helping to identify signs of
business improvement could include accelerating earnings or revenue growth
rates, increasing cash flows, or other indications of the relative strength of a
company's business. These techniques help the portfolio managers buy or hold the
stocks of companies they believe have favorable growth prospects and sell the
stocks of companies whose characteristics no longer meet their criteria.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies, including
companies located in emerging markets. Investments in foreign securities present
some unique risks that are more fully described in the fund's statement of
additional information.

The portfolio managers do not attempt to time the market. Instead, under normal
market conditions, they intend to keep the fund essentially fully invested in
stocks regardless of the movement of stock prices generally. When the managers
believe it is prudent, the fund may invest a portion of its assets in debt
securities, options, preferred stock and equity-equivalent securities, such as
convertible securities, stock futures contracts or stock index futures
contracts. The fund generally limits its purchase of debt securities to
investment-grade obligations. Futures contracts, a type of derivative security,
can help the fund's cash assets remain liquid while performing more like stocks.
The fund has a policy governing futures contracts and similar derivative
securities to help manage the risk of these types of investments. A complete
description of the derivatives policy is included in the statement of additional
information.

The fund is not permitted to invest in securities issued by companies assigned
the Global Industry Classification Standard (GICS) for the tobacco industry. If
the issuer of a security purchased by the fund is subsequently found to be
classified in the tobacco industry (due to acquisition, merger or otherwise),
the fund will sell the security as soon as reasonably possible.


- ------
5



In the event of exceptional market or economic conditions, the fund may, as a
temporary defensive measure, invest all or a substantial portion of its assets
in cash, cash-equivalent securities or short-term debt securities. To the extent
the fund assumes a defensive position it will not be pursuing its objective of
long-term capital growth.

A description of the policies and procedures with respect to the disclosure of
the fund's portfolio securities is available in the statement of additional
information.

WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?

Growth stocks are typically priced higher than other stocks, in relation to
earnings and other measures, because investors believe they have more growth
potential. This potential may or may not be realized and growth stock prices
tend to fluctuate more dramatically than the overall stock market.

The portfolio managers may buy a large amount of a company's stock quickly, and
often will dispose of it quickly if the company's earnings or revenues decline.
While the portfolio managers believe this strategy provides substantial
appreciation potential over the long term, in the short term it can create a
significant amount of share price volatility. This volatility can be greater
than that of the average stock fund.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies. Foreign
investment involves additional risks, including fluctuations in currency
exchange rates, less stable political and economic structures, reduced
availability of public information, and lack of uniform financial reporting and
regulatory practices similar to those that apply in the United States. These
factors make investing in foreign securities generally riskier than investing in
U.S. stocks. To the extent the fund invests in foreign securities, the overall
risk of that fund could be affected.

Market performance tends to be cyclical, and, in the various cycles, certain
investment styles may fall in and out of favor. If the market is not favoring
the fund's style, the fund's gains may not be as big as, or its losses may be
bigger than, other equity funds using different investment styles.

The fund is not permitted to invest in certain tobacco-related securities. As a
result, the fund may forego a profitable investment opportunity or sell a
security when it may be disadvantageous to do so.

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 the fund owns will go
up and down depending on the performance of the companies that issued them,
general market and economic conditions, and investor confidence.

At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the fund.



- ------
6


MANAGEMENT

WHO MANAGES THE FUND?

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

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than three-fourths of the directors are independent of the fund's advisor;
that is, they have never been employed by and have no financial interest in the
advisor or any of its affiliated companies (other than as shareholders of
American Century funds).

THE INVESTMENT ADVISOR

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

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

For the services it provides to the fund, the advisor receives a unified
management fee based on a percentage of the daily net assets of each class of
shares of the fund. The amount of the fee is calculated daily and paid monthly
in arrears. Out of that fee, the advisor pays all expenses of managing and
operating the fund except brokerage expenses, taxes, interest, fees and expenses
of the independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the fund's management fee may be paid by the fund's
advisor to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of the
advisor.

The rate of the fee is determined by applying a formula that takes into account
all of the advisor's assets under management in the fund's investment strategy
(strategy assets). Strategy assets include the assets of the fund and the Growth
fund as well as certain assets of other clients of the advisor outside the
American Century fund family (such as subadvised funds and separate accounts)
that use very similar investment teams and strategies. The use of strategy
assets, rather than fund assets, in calculating the fund's fee rate could allow
the fund to realize scheduled cost savings more quickly. However, it is possible
that the fund's strategy assets will not include assets of other client accounts
or that any such assets may not be sufficient to result in a lower fee rate.

MANAGEMENT FEES PAID BY THE FUND
TO THE ADVISOR AS A PERCENTAGE
OF AVERAGE NET ASSETS FOR THE FISCAL
YEAR ENDED OCTOBER 31, 2006                         INSTITUTIONAL  CLASS
- ------------------------------------------------------------------------
NT Growth                                           0.80%(1)
- ------------------------------------------------------------------------

(1)  ANNUALIZED



- ------
7


THE FUND MANAGEMENT TEAM

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

The portfolio managers on the investment team who are jointly and primarily
responsible for the day-to-day management of the fund are identified below.

GREGORY J. WOODHAMS

Mr. Woodhams, Vice President and Senior Portfolio Manager, has been a member of
the team that manages the fund since the fund's inception. He joined American
Century in September 1997 and became a portfolio manager in May 1998. He has a
bachelor's degree in economics from Rice University and an M.A. in economics
from the University of Wisconsin. He is a CFA charterholder.

E. A. PRESCOTT LEGARD

Mr. LeGard, Vice President and Portfolio Manager, has been a member of the team
that manages the fund since the fund's inception. He joined American Century in
March 1999 and became a portfolio manager in April 2000. He has a bachelor's
degree in economics from DePauw University. He is a CFA charterholder.

The statement of additional information provides additional information about
the other accounts managed by the portfolio managers, if any, the structure of
their compensation, and their ownership of fund securities.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the statement of additional
information and the investment objectives of the fund may not be changed without
shareholder approval. The Board of Directors and/or the advisor may change any
other policies and investment strategies.


- ------
8


INVESTING WITH AMERICAN CENTURY

PURCHASE OF FUND SHARES

The fund is available for purchase only by certain funds of funds advised by
American Century. Transactions involving fund shares are effected using systems
and procedures internal to American Century.

REDEMPTIONS

Your redemption proceeds will be calculated using the NET ASSET VALUE (NAV) next
determined after we receive your transaction request in good order.

         [GRAPHIC OF TRIANGLE]

         A FUND'S NET ASSET VALUE, OR NAV, IS THE PRICE OF THE FUND'S SHARES.

However, we reserve the right to delay delivery of redemption proceeds up to
seven days. In addition, we reserve the right to honor certain redemptions with
securities, rather than cash, as described in the next section.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the value of a fund's assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. The portfolio
managers would select these securities from the fund's portfolio.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, you may have to pay
brokerage or other transaction costs to convert the securities to cash.

ABUSIVE TRADING PRACTICES

Short-term trading and other so-called market timing practices are not defined
or explicitly prohibited by any federal or state law. However, short-term
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of short-term
trading activity is significant relative to a fund's net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund's performance could be negatively impacted by the increased trading costs
created by short-term trading if the additional trading costs are significant.

Because of the potentially harmful effects of abusive trading practices, the
fund's Board of Directors has approved American Century's abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
imposing redemption fees on certain funds, and using fair value pricing when
current market prices are not readily available. Although these efforts are
designed to discourage abusive trading practices, they cannot eliminate the
possibility that such activity will occur. American Century seeks to exercise
its judgment in implementing these tools to the best of its ability in a manner
that it believes is consistent with shareholder interests.


- ------
9


American Century uses a variety of techniques to monitor for and detect abusive
trading practices. These techniques may vary depending on the type of fund, the
class of shares or whether the shares are held directly or indirectly with
American Century. They may change from time to time as determined by American
Century in its sole discretion. To minimize harm to the funds and their
shareholders, we reserve the right to reject any purchase order (including
exchanges) from any shareholder we believe has a history of abusive trading or
whose trading, in our judgment, has been or may be disruptive to the funds. In
making this judgment, we may consider trading done in multiple accounts under
common ownership or control.

Currently, for shares held directly with American Century, we may deem the sale
of all or a substantial portion of a shareholder's purchase of fund shares to be
abusive if the sale is made

* within seven days of the purchase, or

* within 30 days of the purchase, if it happens more than once per year.

To the extent practicable, we try to use the same approach for defining abusive
trading for shares held through financial intermediaries. American Century
reserves the right, in its sole discretion, to identify other trading practices
as abusive and to modify its monitoring and other practices as necessary to deal
with novel or unique abusive trading practices.

In addition, American Century reserves the right to accept purchases and
exchanges in excess of the trading restrictions discussed above if it believes
that such transactions would not be inconsistent with the best interests of fund
shareholders or this policy.

American Century's policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American Century handles, there can be no assurance that American
Century's efforts will identify all trades or trading practices that may be
considered abusive. In addition, American Century's ability to monitor trades
that are placed by individual shareholders within group, or omnibus, accounts
maintained by financial intermediaries is severely limited because American
Century generally does not have access to the underlying shareholder account
information. However, American Century monitors aggregate trades placed in
omnibus accounts and seeks to work with financial intermediaries to discourage
shareholders from engaging in abusive trading practices and to impose
restrictions on excessive trades. There may be limitations on the ability of
financial intermediaries to impose restrictions on the trading practices of
their clients. As a result, American Century's ability to monitor and discourage
abusive trading practices in omnibus accounts may be limited.

RIGHT TO CHANGE POLICIES

We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups. In addition, from time to time we may
waive a policy on a case-by-case basis, as the advisor deems appropriate.


- ------
10


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century will price the fund shares you purchase, exchange or redeem at
the net asset value (NAV) next determined after your order is received and
accepted by the fund's transfer agent, or other financial intermediary with the
authority to accept orders on the fund's behalf. We determine the NAV of each
fund as of the close of regular trading (usually 4 p.m. Eastern time) on the New
York Stock Exchange (NYSE) on each day the NYSE is open. On days when the NYSE
is closed (including certain U.S. national holidays), we do not calculate the
NAV. A fund's NAV is the current value of the fund's assets, minus any
liabilities, divided by the number of shares outstanding.

The fund values portfolio securities for which market quotations are readily
available at their market price. As a general rule, equity securities listed on
a U.S. exchange are valued at the last current reported sale price as of the
time of valuation. Securities listed on the NASDAQ National Market System
(Nasdaq) are valued at the Nasdaq Official Closing Price (NOCP), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the
time of valuation. The fund may use pricing services to assist in the
determination of market value. Unlisted securities for which market quotations
are readily available are valued at the last quoted sale price or the last
quoted ask price, as applicable, except that debt obligations with 60 days or
less remaining until maturity may be valued at amortized cost. Exchange-traded
options, futures and options on futures are valued at the settlement price as
determined by the appropriate clearing corporation.

If the fund determines that the market price for a portfolio security is not
readily available or that the valuation methods mentioned above do not reflect
the security's fair value, such security is valued at its fair value as
determined in good faith by, or in accordance with procedures adopted by, the
fund's board or its designee (a process referred to as "fair valuing" the
security). Circumstances that may cause the fund to fair value a security
include, but are not limited to:

*  if, after the close of the foreign exchange on which a portfolio security
   is principally traded, but before the close of the NYSE, an event occurs that
   may materially affect the value of the security;

*  a debt security has been declared in default; or

*  trading in a security has been halted during the trading day.

If such circumstances occur, the fund will fair value the security if the fair
valuation would materially impact the fund's NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with procedures adopted by
the fund's board.

The effect of using fair value determinations is that the fund's NAV will be
based, to some degree, on security valuations that the board or its designee
believes are fair rather than being solely determined by the market.

With respect to any portion of the fund's assets that are invested in one or
more open-end management investment companies that are registered with the SEC
(known as registered investment companies, or RICs), the fund's NAV will be
calculated based upon the NAVs of such RICs. These RICs are required by law to
explain the circumstances under which they will use fair value pricing and the
effects of using fair value pricing in their prospectuses.


- ------
11


Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based on the prevailing exchange rates on that day.

Trading of securities in foreign markets may not take place every day the NYSE
is open. Also, trading in some foreign markets and on some electronic trading
networks may take place on weekends or holidays when the fund's NAV is not
calculated. So, the value of the fund's portfolio may be affected on days when
you will not be able to purchase, exchange or redeem fund shares.

DISTRIBUTIONS

Federal tax laws require each fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means the fund should not be subject to state or
federal income tax on amounts distributed. The distributions generally consist
of dividends and interest received by a fund, as well as CAPITAL GAINS realized
by a fund on the sale of its investment securities. The fund generally pays
distributions from net income and capital gains, if any, once a year in
December. The fund may make more frequent distributions, if necessary, to comply
with Internal Revenue Code provisions.

         [GRAPHIC OF TRIANGLE]

         CAPITAL GAINS ARE INCREASES IN THE VALUES OF CAPITAL ASSETS, SUCH AS
         STOCK, FROM THE TIME THE ASSETS ARE PURCHASED.

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

Participants in tax-deferred retirement plans must reinvest all distributions.
For investors investing through taxable accounts, we will reinvest distributions
unless you elect to have dividends and/or capital gains sent to another American
Century account, to your bank electronically, or to your home address or to
another person or address by check.


- ------
12


TAXES

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

Tax-Deferred Accounts

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

Taxable Accounts

If you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund shares.

Taxability of Distributions

Fund distributions may consist of income, such as dividends and interest earned
by a fund from its investments, or capital gains generated by a fund from the
sale of investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as QUALIFIED DIVIDEND INCOME and you meet a
minimum required holding period with respect to your shares of the fund, in
which case distributions of income are taxed as long-term capital gains.

         [GRAPHIC OF TRIANGLE]

         QUALIFIED DIVIDEND INCOME IS A DIVIDEND RECEIVED BY THE FUND FROM THE
         STOCK OF A DOMESTIC OR QUALIFYING FOREIGN CORPORATION, PROVIDED THAT
         THE FUND HAS HELD THE STOCK FOR A REQUIRED HOLDING PERIOD.

For capital gains and for income distributions designated as qualified dividend
income, the following rates apply:

                                        TAX RATE FOR 10%      TAX RATE FOR
TYPE OF DISTRIBUTION                    AND 15% BRACKETS      ALL OTHER BRACKETS
- --------------------------------------------------------------------------------
Short-term capital gains                Ordinary Income       Ordinary Income
- --------------------------------------------------------------------------------
Long-term capital gains (> 1 year)
and Qualified Dividend Income           5%                    15%
- --------------------------------------------------------------------------------

If the fund's distributions exceed its taxable income and capital gains realized
during the tax year, all or a portion of the distributions made by the fund in
that tax year will be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.


- ------
13


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

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

Taxes on Transactions

Your redemptions-including exchanges to other American Century funds-are subject
to capital gains tax. The table above can provide a general guide for your
potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss. However, you should note that loss realized upon the
sale or exchange of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain to you with respect to those shares. If a loss is realized on the
redemption of fund shares, the reinvestment in additional fund shares within 30
days before or after the redemption may be subject to the wash sale rules of the
Internal Revenue Code. This may result in a postponement of the recognition of
such loss for federal income tax purposes.


If you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.

Buying a Dividend

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

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

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


- ------
14



FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The table on the next page itemizes what contributed to the changes in share
price during the most recently ended fiscal year. It also shows the changes in
share price for this period in comparison to changes over the last five fiscal
years (or a shorter period if the share class is not five years old).

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

*  share price at the beginning of the period

*  investment income and capital gains or losses

*  distributions of income and capital gains paid to investors

*  share price at the end of the period

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

*  TOTAL RETURN - the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO - the operating expenses of the fund as a percentage of
   average net assets

*  NET INCOME RATIO - the net investment income of the fund as a percentage
   of average net assets

*  PORTFOLIO TURNOVER - the percentage of the fund's investment portfolio
   that is replaced during the period

The Financial Highlights that follow have been audited by Deloitte & Touche LLP.
The fund's Report of Independent Registered Public Accounting Firm and the
financial statements are included in the fund's annual report, which is
available upon request.



- ------
15


NT GROWTH FUND
Institutional Class

FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED
- --------------------------------------------------------------------------------
                                                                        2006(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                                    $10.00
- --------------------------------------------------------------------------------
Income From Investment Operations
- ------------------------------------------------------------
   Net Investment Income (Loss)                                         0.01
- ------------------------------------------------------------
   Net Realized and Unrealized Gain (Loss)                              0.56
- --------------------------------------------------------------------------------
   Total From Investment Operations                                     0.57
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                                          $10.57
================================================================================
   TOTAL RETURN(2)                                                      5.70%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses to Average Net Assets                       0.80%(3)
- ------------------------------------------------------------
Ratio of Net Investment Income (Loss) to Average Net Assets             0.36%(3)
- ------------------------------------------------------------
Portfolio Turnover Rate                                                 57%
- ------------------------------------------------------------
Net Assets, End of Period (in thousands)                                $58,983
- --------------------------------------------------------------------------------

(1)  MAY 12, 2006 (FUND INCEPTION) THROUGH OCTOBER 31, 2006.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED.

(3)  ANNUALIZED.


- ------
16


NOTES


- ------
17


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

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

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

IN PERSON           SEC Public Reference Room, Washington, D.C.
                    Call 202-942-8090 for location and hours.

ON THE INTERNET     * EDGAR database at sec.gov
                    * By email request at publicinfo@sec.gov

BY MAIL             SEC Public Reference Section
                    Washington, D.C. 20549-0102

This prospectus shall not constitute an offer to sell securities of the fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or qualified for sale, unless such registration or qualification
is not required, or under any circumstances in which such offer or solicitation
would be unlawful.

FUND REFERENCE                                                       FUND CODE
- --------------------------------------------------------------------------------
NT Growth Fund
  Institutional Class                                                 432
- --------------------------------------------------------------------------------

Investment Company Act File No. 811-0816

AMERICAN CENTURY INVESTMENTS
americancentury.com

Institutional Class
P.O. Box 419385
Kansas City, Missouri 64141-6385
1-800-345-3533 or 816-531-5575

0703
SH-PRS-52525













AMERICAN CENTURY INVESTMENTS

Prospectus


March 1, 2007


NT Vista(SM) Fund

THE FUND IS AVAILABLE FOR PURCHASE ONLY BY CERTAIN FUNDS OF FUNDS ADVISED BY
AMERICAN CENTURY. THE FUND IS CLOSED TO OTHER INVESTORS.

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

American Century Investment
Services, Inc., Distributor

[american century investments logo and text logo]





Table of Contents

AN OVERVIEW OF THE FUND . . . . . . . . . . . . . . . . . . . .2

FUND PERFORMANCE HISTORY . . . . . . . . . . . . . . . . . . . 3

FEES AND EXPENSES . . . . . . . . . . . . . . . . . . . . . . .4

OBJECTIVES, STRATEGIES AND RISKS . . . . . . . . . . . . . . . 5

MANAGEMENT  . . . . . . . . . . . . . . . . . . . . . . . . . .7

INVESTING WITH AMERICAN CENTURY . . . . . . . . . . . . . . . .9

SHARE PRICE AND DISTRIBUTIONS . . . . . . . . . . . . . . . . 11

TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . .15


        [graphic of triangle]

        THIS SYMBOL IS USED THROUGHOUT THE BOOK TO HIGHLIGHT DEFINITIONS OF KEY
        INVESTMENT TERMS AND TO PROVIDE OTHER HELPFUL INFORMATION.





American Century Investment Services, Inc., Distributor


©2007 American Century Proprietary Holdings, Inc. All rights reserved.


The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.




AN OVERVIEW OF THE FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?

The portfolio managers primarily look for stocks of medium-sized and smaller
companies they believe will increase in value over time, using an investment
strategy developed by American Century. In implementing this strategy, the
portfolio managers make their investment decisions based primarily on their
analysis of individual companies, rather than on broad economic forecasts.
Management of the fund is based on the belief that, over the long term, stock
price movements follow growth in earnings and revenues. The portfolio managers'
principal analytical technique involves the identification of companies with
earnings and revenues that are not only growing, but growing at an accelerating
pace.

The fund is not permitted to invest in securities issued by companies assigned
the Global Industry Classification Standard (GICS) for the tobacco industry.

The fund's principal risks include

*  GROWTH STOCKS - Investments in growth stocks may involve special risks and
   their prices may fluctuate more dramatically than the overall stock market.

*  MID CAP STOCKS - The fund invests in mid-sized and smaller companies which
   may present greater opportunities for capital growth than larger companies,
   but may be more volatile and subject to greater risk.

*  FOREIGN SECURITIES - The fund may invest in foreign securities, which can
   be riskier than investing in U.S. securities.

*  TOBACCO EXCLUSION - The fund's prohibition on tobacco-related investments
   may cause it to forego profitable investment opportunities.

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

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

*  HIGH TURNOVER - The fund's PORTFOLIO TURNOVER may be unusually high. This
   could result in relatively high commission costs, which could hurt the fund's
   performance, and capital gains tax liabilities for the fund's shareholders.


        [graphic of triangle]

        PORTFOLIO TURNOVER IS A MEASURE OF HOW FREQUENTLY A FUND BUYS AND SELLS
        PORTFOLIO SECURITIES.

*  PRINCIPAL LOSS - At any given time your shares may be worth less than the
   price you paid for them. In other words, it is possible to lose money by
   investing in the fund.

A more detailed description of the fund's investment strategies and risks may be
found under the heading OBJECTIVES, STRATEGIES AND RISKS, which begins on page
5.

        [graphic of triangle]

        AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT, AND IT IS NOT INSURED OR
        GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER
        GOVERNMENT AGENCY.


- ------
2


FUND PERFORMANCE HISTORY

The fund's performance history is not available as of the date of this
prospectus. When the fund has investment results for a full calendar year, this
section will feature charts that show annual total returns, highest and lowest
quarterly returns and average annual total returns for the fund. This
information indicates the volatility of the fund's historical returns from year
to year.

Performance information is designed to help you see how fund returns can vary.
Keep in mind that past performance (before and after taxes) does not predict how
the fund will perform in the future.

For current performance information, please visit americancentury.com.


- ------
3


FEES AND EXPENSES

There are no sales loads, fees or other charges

*  to buy fund shares directly from American Century

*  to reinvest dividends in additional shares

*  to exchange into the same class of shares of other American Century funds

*  to redeem your shares (other than a $10 fee to redeem by wire)

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

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
                                  DISTRIBUTION                   TOTAL ANNUAL
                    MANAGEMENT    AND SERVICE      OTHER         FUND OPERATING
                    FEE(1)        (12B-1) FEES     EXPENSES(2)   EXPENSES
- -------------------------------------------------------------------------------
Institutional       0.80%         None             0.00%         0.80%
Class
- -------------------------------------------------------------------------------

(1)  THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR
     ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. FOR MORE
     INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE, SEE The Investment Advisor
     UNDER Management.

(2)  OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S
     INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST, WERE
     LESS THAN 0.005% FOR THE MOST RECENT FISCAL YEAR.


EXAMPLE

The examples in the table below are intended to help you compare the costs of
investing in the fund with the costs of investing in other mutual funds. Of
course, your actual costs may be higher or lower. Assuming you . . .

*  invest $10,000 in the fund

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

*  earn a 5% return each year

*  incur the same operating expenses as shown above

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


                         1 YEAR        3 YEARS        5 YEARS        10 YEARS
- --------------------------------------------------------------------------------
Institutional Class      $82           $255           $443           $987
- --------------------------------------------------------------------------------



- ------
4


OBJECTIVES, STRATEGIES AND RISKS

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks long-term capital growth.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

The portfolio managers primarily look for stocks of medium-sized and smaller
companies they believe will increase in value over time, using an investment
strategy developed by American Century. In implementing this strategy, the
portfolio managers use a bottom-up approach to stock selection. This means that
the managers make their investment decisions based primarily on their analysis
of individual companies, rather than on broad economic forecasts. Management of
the fund is based on the belief that, over the long term, stock price movements
follow growth in earnings and revenues.

Using American Century's extensive computer database, as well as other primary
analytical research tools, the portfolio managers track financial information
for thousands of individual companies to identify and evaluate trends in
earnings, revenues and other business fundamentals. The portfolio managers'
principal analytical technique involves the identification of companies with
earnings and revenues that are not only growing, but growing at an accelerating
pace. This includes companies whose growth rates, although still negative, are
less negative than prior periods, and companies whose growth rates are expected
to accelerate. In addition to accelerating growth, the fund also considers
companies demonstrating price strength relative to their peers. These techniques
help the portfolio managers buy or hold the stocks of companies they believe
have favorable growth prospects and sell the stocks of companies whose
characteristics no longer meet their criteria.

The fund will usually purchase common stocks of companies that are medium-sized
and smaller at the time of purchase, but it can purchase other types of
securities as well. When determining the size of a company, the portfolio
managers will consider, among other factors, the capitalization of the company
and the amount of revenues as well as other information they obtain about the
company.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies, including
companies located in emerging markets. Investments in foreign securities present
some unique risks that are more fully described in the fund's statement of
additional information.

The portfolio managers do not attempt to time the market. Instead, under normal
market conditions, they intend to keep the fund essentially fully invested in
stocks regardless of the movement of stock prices generally. When the portfolio
managers believe it is prudent, the fund may invest a portion of its assets in
debt securities, options, preferred stock and equity-equivalent securities, such
as convertible securities, stock futures contracts or stock index futures
contracts. The fund generally limits its purchase of debt securities to
investment-grade obligations. Futures contracts, a type of derivative security,
can help the fund's cash assets remain liquid while performing more like stocks.
The fund has a policy governing futures contracts and similar derivative
securities to help manage the risk of these types of investments. A complete
description of the derivatives policy is included in the statement of additional
information.

The fund is not permitted to invest in securities issued by companies assigned
the Global Industry Classification Standard (GICS) for the tobacco industry. If
the issuer of a security purchased by the fund is subsequently found to be
classified in the tobacco industry (due to acquisition, merger or otherwise),
the fund will sell the security as soon as reasonably possible.


- ------
5



In the event of exceptional market or economic conditions, the fund may, as a
temporary defensive measure, invest all or a substantial portion of its assets
in cash, cash-equivalent securities or short-term debt securities. To the extent
the fund assumes a defensive position it will not be pursuing its objective of
long-term capital growth.

A description of the policies and procedures with respect to the disclosure of
the fund's portfolio securities is available in the statement of additional
information.

WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?

Growth stocks are typically priced higher than other stocks, in relation to
earnings and other measures, because investors believe they have more growth
potential. This potential may or may not be realized and growth stock prices
tend to fluctuate more dramatically than the overall stock market.

The fund generally invests in mid-size and smaller companies, which may be more
volatile and subject to greater short-term risk. Smaller companies may have
limited financial resources, product lines and markets, and their securities may
trade less frequently and in more limited volumes than securities of larger
companies. In addition, smaller companies may have less publicly available
information.

The portfolio managers may buy a large amount of a company's stock quickly, and
often will dispose of it quickly if the company's earnings or revenues decline.
While the portfolio managers believe this strategy provides substantial
appreciation potential over the long term, in the short term it can create a
significant amount of share price volatility. This volatility can be greater
than that of the average stock fund.

The fund's portfolio turnover may be unusually high. This could result in
relatively high commission costs, which could hurt the fund's performance, and
capital gains tax liabilities for the fund's shareholders.

Although the portfolio managers intend to invest the fund's assets primarily in
U.S. stocks, the fund may invest in securities of foreign companies. Foreign
investment involves additional risks, including fluctuations in currency
exchange rates, less stable political and economic structures, reduced
availability of public information, and lack of uniform financial reporting and
regulatory practices similar to those that apply in the United States. These
factors make investing in foreign securities generally riskier than investing in
U.S. stocks. To the extent the fund invests in foreign securities, the overall
risk of that fund could be affected.

Market performance tends to be cyclical, and, in the various cycles, certain
investment styles may fall in and out of favor. If the market is not favoring
the fund's style, the fund's gains may not be as big as, or its losses may be
bigger than, other equity funds using different investment styles.

The fund is not permitted to invest in certain tobacco-related securities. As a
result, the fund may forego a profitable investment opportunity or sell a
security when it may be disadvantageous to do so.

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 the fund owns will go
up and down depending on the performance of the companies that issued them,
general market and economic conditions, and investor confidence.

At any given time your shares may be worth less than the price you paid for
them. In other words, it is possible to lose money by investing in the fund.



- ------
6


MANAGEMENT

WHO MANAGES THE FUND?

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

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than three-fourths of the directors are independent of the fund's advisor;
that is, they have never been employed by and have no financial interest in the
advisor or any of its affiliated companies (other than as shareholders of
American Century funds).

THE INVESTMENT ADVISOR

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

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

For the services it provides to the fund, the advisor receives a unified
management fee based on a percentage of the daily net assets of each class of
shares of the fund. The amount of the fee is calculated daily and paid monthly
in arrears. Out of that fee, the advisor pays all expenses of managing and
operating the fund except brokerage expenses, taxes, interest, fees and expenses
of the independent directors (including legal counsel fees), and extraordinary
expenses. A portion of the fund's management fee may be paid by the fund's
advisor to unaffiliated third parties who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of the
advisor.

MANAGEMENT FEES PAID BY THE FUND TO THE ADVISOR
AS A PERCENTAGE OF AVERAGE NET ASSETS
FOR THE FISCAL YEAR ENDED OCTOBER 31, 2006                   INSTITUTIONAL CLASS
- --------------------------------------------------------------------------------
NT Vista                                                     0.80%(1)
- --------------------------------------------------------------------------------

(1)  ANNUALIZED



- ------
7


THE FUND MANAGEMENT TEAM

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

The portfolio managers on the investment team who are jointly and primarily
responsible for the day-to-day management of the fund are identified below.

GLENN A. FOGLE

Mr. Fogle, Senior Vice President and Senior Portfolio Manager, has been a member
of the team that manages the fund since its inception. He joined American
Century in September 1990 and became a portfolio manager in June 1993. He has a
bachelor's degree in business administration (management) and an MBA in finance
from Texas Christian University. He is a CFA charterholder.

DAVID M. HOLLOND

Mr. Hollond, Vice President and Portfolio Manager, has been a member of the team
that manages the fund since its inception. He joined American Century in 1998
and became a portfolio manager in March 2004. He has a bachelor's degree in
Russian and economics from Grinnell College, a master's degree in economics from
the University of Wisconsin, a master's degree in international studies from the
University of Pennsylvania and an MBA in finance from The Wharton School at the
University of Pennsylvania.

BRADLEY J. EIXMANN

Mr. Eixmann, Portfolio Manager, has been a member of the team that manages the
fund since joining American Century in July 2002 as an investment analyst. He
became a Portfolio Manager in February 2007. He has a bachelor's degree in
managerial studies and economics from Rice University and an MBA in finance from
the University of Texas. He is a CFA charterholder.

The statement of additional information provides additional information about
the other accounts managed by the portfolio managers, if any, the structure of
their compensation, and their ownership of fund securities.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the statement of additional
information and the investment objectives of the fund may not be changed without
shareholder approval. The Board of Directors and/or the advisor may change any
other policies and investment strategies.


- ------
8


INVESTING WITH AMERICAN CENTURY

PURCHASE OF FUND SHARES

The fund is available for purchase only by certain funds of funds advised by
American Century. Transactions involving fund shares are effected using systems
and procedures internal to American Century.

REDEMPTIONS

Your redemption proceeds will be calculated using the NET ASSET VALUE (NAV) next
determined after we receive your transaction request in good order.


        [graphic of triangle]

        A FUND'S NET ASSET VALUE, OR NAV, IS THE PRICE OF THE FUND'S SHARES.

However, we reserve the right to delay delivery of redemption proceeds up to
seven days. In addition, we reserve the right to honor certain redemptions with
securities, rather than cash, as described in the next section.

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the value of a fund's assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. The portfolio
managers would select these securities from the fund's portfolio.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, you may have to pay
brokerage or other transaction costs to convert the securities to cash.

ABUSIVE TRADING PRACTICES

Short-term trading and other so-called market timing practices are not defined
or explicitly prohibited by any federal or state law. However, short-term
trading and other abusive trading practices may disrupt portfolio management
strategies and harm fund performance. If the cumulative amount of short-term
trading activity is significant relative to a fund's net assets, the fund may
incur trading costs that are higher than necessary as securities are first
purchased then quickly sold to meet the redemption request. In such case, the
fund's performance could be negatively impacted by the increased trading costs
created by short-term trading if the additional trading costs are significant.

Because of the potentially harmful effects of abusive trading practices, the
fund's Board of Directors has approved American Century's abusive trading
policies and procedures, which are designed to reduce the frequency and effect
of these activities in our funds. These policies and procedures include
monitoring trading activity, imposing trading restrictions on certain accounts,
imposing redemption fees on certain funds, and using fair value pricing when
current market prices are not readily available. Although these efforts are
designed to discourage abusive trading practices, they cannot eliminate the
possibility that such activity will occur. American Century seeks to exercise
its judgment in implementing these tools to the best of its ability in a manner
that it believes is consistent with shareholder interests.


- ------
9


American Century uses a variety of techniques to monitor for and detect abusive
trading practices. These techniques may vary depending on the type of fund, the
class of shares or whether the shares are held directly or indirectly with
American Century. They may change from time to time as determined by American
Century in its sole discretion. To minimize harm to the funds and their
shareholders, we reserve the right to reject any purchase order (including
exchanges) from any shareholder we believe has a history of abusive trading or
whose trading, in our judgment, has been or may be disruptive to the funds. In
making this judgment, we may consider trading done in multiple accounts under
common ownership or control.

Currently, for shares held directly with American Century, we may deem the sale
of all or a substantial portion of a shareholder's purchase of fund shares to be
abusive if the sale is made

* within seven days of the purchase, or

* within 30 days of the purchase, if it happens more than once per year.

To the extent practicable, we try to use the same approach for defining abusive
trading for shares held through financial intermediaries. American Century
reserves the right, in its sole discretion, to identify other trading practices
as abusive and to modify its monitoring and other practices as necessary to deal
with novel or unique abusive trading practices.

In addition, American Century reserves the right to accept purchases and
exchanges in excess of the trading restrictions discussed above if it believes
that such transactions would not be inconsistent with the best interests of fund
shareholders or this policy.

American Century's policies do not permit us to enter into arrangements with
fund shareholders that permit such shareholders to engage in frequent purchases
and redemptions of fund shares. Due to the complexity and subjectivity involved
in identifying abusive trading activity and the volume of shareholder
transactions American Century handles, there can be no assurance that American
Century's efforts will identify all trades or trading practices that may be
considered abusive. In addition, American Century's ability to monitor trades
that are placed by individual shareholders within group, or omnibus, accounts
maintained by financial intermediaries is severely limited because American
Century generally does not have access to the underlying shareholder account
information. However, American Century monitors aggregate trades placed in
omnibus accounts and seeks to work with financial intermediaries to discourage
shareholders from engaging in abusive trading practices and to impose
restrictions on excessive trades. There may be limitations on the ability of
financial intermediaries to impose restrictions on the trading practices of
their clients. As a result, American Century's ability to monitor and discourage
abusive trading practices in omnibus accounts may be limited.

RIGHT TO CHANGE POLICIES

We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups. In addition, from time to time we may
waive a policy on a case-by-case basis, as the advisor deems appropriate.


- ------
10


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century will price the fund shares you purchase, exchange or redeem at
the net asset value (NAV) next determined after your order is received and
accepted by the fund's transfer agent, or other financial intermediary with the
authority to accept orders on the fund's behalf. We determine the NAV of each
fund as of the close of regular trading (usually 4 p.m. Eastern time) on the New
York Stock Exchange (NYSE) on each day the NYSE is open. On days when the NYSE
is closed (including certain U.S. national holidays), we do not calculate the
NAV. A fund's NAV is the current value of the fund's assets, minus any
liabilities, divided by the number of shares outstanding.

The fund values portfolio securities for which market quotations are readily
available at their market price. As a general rule, equity securities listed on
a U.S. exchange are valued at the last current reported sale price as of the
time of valuation. Securities listed on the NASDAQ National Market System
(Nasdaq) are valued at the Nasdaq Official Closing Price (NOCP), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the
time of valuation. The fund may use pricing services to assist in the
determination of market value. Unlisted securities for which market quotations
are readily available are valued at the last quoted sale price or the last
quoted ask price, as applicable, except that debt obligations with 60 days or
less remaining until maturity may be valued at amortized cost. Exchange-traded
options, futures and options on futures are valued at the settlement price as
determined by the appropriate clearing corporation.

If the fund determines that the market price for a portfolio security is not
readily available or that the valuation methods mentioned above do not reflect
the security's fair value, such security is valued at its fair value as
determined in good faith by, or in accordance with procedures adopted by, the
fund's board or its designee (a process referred to as "fair valuing" the
security). Circumstances that may cause the fund to fair value a security
include, but are not limited to:

*  if, after the close of the foreign exchange on which a portfolio security
   is principally traded, but before the close of the NYSE, an event occurs that
   may materially affect the value of the security;

*  a debt security has been declared in default; or

*  trading in a security has been halted during the trading day.

If such circumstances occur, the fund will fair value the security if the fair
valuation would materially impact the fund's NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with procedures adopted by
the fund's board.

The effect of using fair value determinations is that the fund's NAV will be
based, to some degree, on security valuations that the board or its designee
believes are fair rather than being solely determined by the market.

With respect to any portion of the fund's assets that are invested in one or
more open-end management investment companies that are registered with the SEC
(known as registered investment companies, or RICs), the fund's NAV will be
calculated based upon the NAVs of such RICs. These RICs are required by law to
explain the circumstances under which they will use fair value pricing and the
effects of using fair value pricing in their prospectuses.


- ------
11


Securities and other assets quoted in foreign currencies are valued in U.S.
dollars based on the prevailing exchange rates on that day.

Trading of securities in foreign markets may not take place every day the NYSE
is open. Also, trading in some foreign markets and on some electronic trading
networks may take place on weekends or holidays when the fund's NAV is not
calculated. So, the value of the fund's portfolio may be affected on days when
you will not be able to purchase, exchange or redeem fund shares.

DISTRIBUTIONS

Federal tax laws require each fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means the fund should not be subject to state or
federal income tax on amounts distributed. The distributions generally consist
of dividends and interest received by a fund, as well as CAPITAL GAINS realized
by a fund on the sale of its investment securities. The fund generally pays
distributions from net income and capital gains, if any, once a year in
December. The fund may make more frequent distributions, if necessary, to comply
with Internal Revenue Code provisions.


        [graphic of triangle]

        CAPITAL GAINS ARE INCREASES IN THE VALUES OF CAPITAL ASSETS, SUCH AS
        STOCK, FROM THE TIME THE ASSETS ARE PURCHASED.

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

Participants in tax-deferred retirement plans must reinvest all distributions.
For investors investing through taxable accounts, we will reinvest distributions
unless you elect to have dividends and/or capital gains sent to another American
Century account, to your bank electronically, to your home address or to another
person or address by check.


- ------
12


TAXES

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

Tax-Deferred Accounts

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

Taxable Accounts

If you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund shares.

Taxability of Distributions

Fund distributions may consist of income, such as dividends and interest earned
by a fund from its investments, or capital gains generated by a fund from the
sale of investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as QUALIFIED DIVIDEND INCOME and you meet a
minimum required holding period with respect to your shares of the fund, in
which case distributions of income are taxed as long-term capital gains.


        [GRAPHIC OF TRIANGLE]

        QUALIFIED DIVIDEND INCOME IS A DIVIDEND RECEIVED BY THE FUND FROM THE
        STOCK OF A DOMESTIC OR QUALIFYING FOREIGN CORPORATION, PROVIDED THAT
        THE FUND HAS HELD THE STOCK FOR A REQUIRED HOLDING PERIOD.

For capital gains and for income distributions designated as qualified dividend
income, the following rates apply:

                                        TAX RATE FOR 10%      TAX RATE FOR
TYPE OF DISTRIBUTION                    AND 15% BRACKETS      ALL OTHER BRACKETS
- --------------------------------------------------------------------------------
Short-term capital gains                Ordinary Income       Ordinary Income
- --------------------------------------------------------------------------------
Long-term capital gains (> 1 year)
and Qualified Dividend Income           5%                    15%
- --------------------------------------------------------------------------------

If the fund's distributions exceed its taxable income and capital gains realized
during the tax year, all or a portion of the distributions made by the fund in
that tax year will be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.


- ------
13


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

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

Taxes on Transactions

Your redemptions - including exchanges to other American Century funds - are
subject to capital gains tax. The table above can provide a general guide for
your potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss. However, you should note that loss realized upon the
sale or exchange of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain to you with respect to those shares. If a loss is realized on the
redemption of fund shares, the reinvestment in additional fund shares within 30
days before or after the redemption may be subject to the wash sale rules of the
Internal Revenue Code. This may result in a postponement of the recognition of
such loss for federal income tax purposes.

If you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.

Buying a Dividend

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

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

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


- ------
14



FINANCIAL HIGHLIGHTS

UNDERSTANDING THE FINANCIAL HIGHLIGHTS

The table on the next page itemizes what contributed to the changes in share
price during the most recently ended fiscal year. It also shows the changes in
share price for this period in comparison to changes over the last five fiscal
years (or a shorter period if the share class is not five years old).

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

*  share price at the beginning of the period

*  investment income and capital gains or losses

*  distributions of income and capital gains paid to investors

*  share price at the end of the period

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

*  TOTAL RETURN - the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO - the operating expenses of the fund as a percentage of
   average net assets

*  NET INCOME RATIO - the net investment income of the fund as a percentage
   of average net assets

*  PORTFOLIO TURNOVER - the percentage of the fund's investment portfolio
   that is replaced during the period

The Financial Highlights that follow have been audited by Deloitte & Touche LLP.
The fund's Report of Independent Registered Public Accounting Firm and the
financial statements are included in the fund's annual report, which is
available upon request.



- ------
15


NT VISTA FUND
Institutional Class

FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED
- --------------------------------------------------------------------------------
                                                                      2006(1)
- --------------------------------------------------------------------------------
PER-SHARE DATA
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period                                  $10.00
- --------------------------------------------------------------------------------
Income From Investment Operations
- ------------------------------------------------------------
   Net Investment Income (Loss)                                       (0.01)
- ------------------------------------------------------------
   Net Realized and Unrealized Gain (Loss)                            (0.99)
- --------------------------------------------------------------------------------
   Total From Investment Operations                                   (1.00)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period                                        $9.00
================================================================================
   TOTAL RETURN(2)                                                    (10.00)%

RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Ratio of Operating Expenses to Average Net Assets                     0.80%(3)
- ------------------------------------------------------------
Ratio of Net Investment Income (Loss) to Average Net Assets           (0.27)%(3)
- ------------------------------------------------------------
Portfolio Turnover Rate                                               109%
- ------------------------------------------------------------
Net Assets, End of Period (in thousands)                              $25,678
- --------------------------------------------------------------------------------

(1)  MAY 12, 2006 (FUND INCEPTION) THROUGH OCTOBER 31, 2006.

(2)  TOTAL RETURN ASSUMES REINVESTMENT OF NET INVESTMENT INCOME AND CAPITAL
     GAINS DISTRIBUTIONS, IF ANY. TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR
     ARE NOT ANNUALIZED.

(3)  ANNUALIZED.


- ------
16


NOTES


- ------
17


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

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

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

IN PERSON           SEC Public Reference Room, Washington, D.C.
                    Call 202-942-8090 for location and hours.

ON THE INTERNET     * EDGAR database at sec.gov
                    * By email request at publicinfo@sec.gov

BY MAIL             SEC Public Reference Section
                    Washington, D.C. 20549-0102

This prospectus shall not constitute an offer to sell securities of the fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or qualified for sale, unless such registration or qualification
is not required, or under any circumstances in which such offer or solicitation
would be unlawful.

FUND REFERENCE                FUND CODE         TICKER         NEWSPAPER LISTING
- --------------------------------------------------------------------------------
NT Vista Fund
  Institutional Class           455               ACLWX          NTVista
- --------------------------------------------------------------------------------


Investment Company Act File No. 811-0816

AMERICAN CENTURY INVESTMENTS
americancentury.com

Institutional Class
P.O. Box 419385
Kansas City, Missouri 64141-6385
1-800-345-3533 or 816-531-5575


0703
SH-PRS-52535















March 1, 2007


AMERICAN CENTURY INVESTMENTS
STATEMENT OF ADDITIONAL INFORMATION


American Century Mutual Funds, Inc.
Balanced Fund
Capital Growth Fund
Capital Value Fund
Focused Growth Fund
Fundamental Equity Fund
Giftrust® Fund
Growth Fund
Heritage Fund
American Century-Mason Street Mid Cap Growth Fund
New Opportunities Fund
New Opportunities II Fund
NT Growth Fund
NT Vista(SM) Fund
Select Fund
American Century-Mason Street Small Cap Growth Fund
Ultra® Fund
Veedot® Fund
Vista(SM) Fund


THIS  STATEMENT OF ADDITIONAL  INFORMATION  ADDS TO THE DISCUSSION IN THE FUNDS'
PROSPECTUSES  DATED MARCH 1, 2007,  BUT IS NOT A  PROSPECTUS.  THE  STATEMENT OF
ADDITIONAL  INFORMATION  SHOULD BE READ IN  CONJUNCTION  WITH THE FUNDS' CURRENT
PROSPECTUSES. IF YOU WOULD LIKE A COPY OF A PROSPECTUS, PLEASE CONTACT US AT ONE
OF THE ADDRESSES OR TELEPHONE NUMBERS LISTED ON THE BACK COVER OR VISIT AMERICAN
CENTURY'S WEB SITE AT AMERICANCENTURY.COM.

THIS  STATEMENT OF  ADDITIONAL  INFORMATION  INCORPORATES  BY REFERENCE  CERTAIN
INFORMATION THAT APPEARS IN THE FUNDS' ANNUAL AND SEMIANNUAL REPORTS,  WHICH ARE
DELIVERED TO ALL  INVESTORS.  YOU MAY OBTAIN A FREE COPY OF THE FUNDS' ANNUAL OR
SEMIANNUAL REPORTS BY CALLING 1-800-345-2021.

American Century Investment Services, Inc., Distributor

[american century investments logo and text logo]




American Century Investment Services, Inc., Distributor

©2007 American Century Proprietary Holdings, Inc. All rights reserved.

The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.





Table of Contents

The Funds' History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Fund Investment Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . 4
        Capital Growth, Focused Growth, Fundamental Equity,
        Giftrust, Growth, Heritage, Mid Cap Growth, New Opportunities,
        New Opportunities II, NT Growth, NT Vista, Select,
        Small Cap Growth, Ultra, Veedot, Vista . . . . . . . . . . . . . . . . 4
        Balanced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
        Capital Value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Fund Investments and Risks . . . . . . . . . . . . . . . . . . . . . . . . . . 6
        Investment Strategies and Risks. . . . . . . . . . . . . . . . . . . . 6
        Investment Policies . . . . . . . . . . . . . . . . . . . . . . . . . 26
        Temporary Defensive Measures. . . . . . . . . . . . . . . . . . . . . 29
        Portfolio Turnover . . . . . . . . . . . . . . . . . . . . . . . . . .29

Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
        The Board of Directors . . . . . . . . . . . . . . . . . . . . . . . .34
        Ownership of Fund Shares . . . . . . . . . . . . . . . . . . . . . . .36
        Code of Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
        Proxy Voting Guidelines. . . . . . . . . . . . . . . . . . . . . . . .38
        Disclosure of Portfolio Holdings . . . . . . . . . . . . . . . . . . .39

The Funds' Principal Shareholders. . . . . . . . . . . . . . . . . . . . . . .43

Service Providers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53
        Investment Advisor . . . . . . . . . . . . . . . . . . . . . . . . . .53
        Subadvisor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57
        Portfolio Managers. . . . . . . . . . . . . . . . . . . . . . . . . . 58
        Transfer Agent and Administrator. . . . . . . . . . . . . . . . . . . 68
        Distributor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68
        Custodian Banks. . . . . . . . . . . . . . . . . . . . . . . . . . . .68
        Independent Registered Public Accounting Firm. . . . . . . . . . . . .68

Brokerage Allocationv69
        Capital Growth, Capital Value, Focused Growth,
        Fundamental Equity, Giftrust, Growth, Heritage,
        Mid Cap Growth, New Opportunities,
        New Opportunities II, NT Growth, NT Vista,
        Select, Small Cap Growth, Ultra, Veedot,
        Vista and the Equity Portion of Balanced. . . . . . . . . . . . . . . 69
        The Fixed-Income Portion of Balanced . . . . . . . . . . . . . . . . .71
        Regular Broker-Dealers . . . . . . . . . . . . . . . . . . . . . . . .71

Information about Fund Shares . . . . . . . . . . . . . . . . . . . . . . . . 73
        Multiple Class Structure . . . . . . . . . . . . . . . . . . . . . . .73
        Buying and Selling Fund Shares . . . . . . . . . . . . . . . . . . . .84
        Valuation of a Fund's Securities . . . . . . . . . . . . . . . . . . .86

Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
        Federal Income Tax. . . . . . . . . . . . . . . . . . . . . . . . . . 87
        State and Local Taxes. . . . . . . . . . . . . . . . . . . . . . . . .89

Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

Explanation of Fixed-Income Securities Ratings. . . . . . . . . . . . . . . . 90



- -----
1


THE FUNDS' HISTORY

American Century Mutual Funds, Inc. is a registered open-end management
investment company that was organized in 1957 as a Delaware corporation under
the name Twentieth Century Investors, Inc. On July 2, 1990, the company
reorganized as a Maryland corporation, and in January 1997 it changed its name
to American Century Mutual Funds, Inc. Throughout this statement of additional
information we refer to American Century Mutual Funds, Inc. as the corporation.

For accounting and performance purposes, the Mid Cap Growth Fund is the
post-reorganization successor to the Mason Street Aggressive Growth Fund, and
the Small Cap Growth Fund is the post-reorganization successor to the Mason
Street Small Cap Growth Fund. All references to fees and expenses paid by the
Mid Cap Growth Fund and the Small Cap Growth Fund prior to April 1, 2006, are
for the fiscal year ended March 31, and represent amounts paid by the Mason
Street Aggressive Growth and Mason Street Small Cap Growth Funds.

Each fund described in this statement of additional information is a separate
series of the corporation and operates for many purposes as if it were an
independent company. Each fund has its own investment objective, strategy,
management team, assets, and tax identification and stock registration numbers.

FUND                                 TICKER SYMBOL                INCEPTION DATE
- --------------------------------------------------------------------------------
Balanced
  Investor Class                       TWBIX                        10/20/1988
- --------------------------------------------------------------------------------
  Institutional Class                  ABINX                        05/01/2000
- --------------------------------------------------------------------------------
  Advisor Class                        TWBAX                        01/06/1997
- --------------------------------------------------------------------------------
Capital Growth
  Investor Class                       ACLIX                        07/29/2005
- --------------------------------------------------------------------------------
  Institutional Class                  APLIX                        07/29/2005
- --------------------------------------------------------------------------------
  A Class                              ACCGX                        02/27/2004
- --------------------------------------------------------------------------------
  B Class                              ACGBX                        02/27/2004
- --------------------------------------------------------------------------------
  C Class                              ACPGX                        02/27/2004
- --------------------------------------------------------------------------------
  R Class                              APWRX                        07/29/2005
- --------------------------------------------------------------------------------
Capital Value
  Investor Class                       ACTIX                        03/31/1999
- --------------------------------------------------------------------------------
  Institutional Class                  ACPIX                        03/01/2002
- --------------------------------------------------------------------------------
  Advisor Class                        ACCVX                        05/14/2003
- --------------------------------------------------------------------------------
Focused Growth
  Investor Class                       AFSIX                        02/28/2005
- --------------------------------------------------------------------------------
Fundamental Equity
  Investor Class                       AFDIX                        07/29/2005
- --------------------------------------------------------------------------------
  Institutional Class                  AFEIX                        07/29/2005
- --------------------------------------------------------------------------------
  A Class                              AFDAX                        11/30/2004
- --------------------------------------------------------------------------------
  B Class                              AFDBX                        11/30/2004
- --------------------------------------------------------------------------------
  C Class                              AFDCX                        11/30/2004
- --------------------------------------------------------------------------------
  R Class                              AFDRX                        07/29/2005
- --------------------------------------------------------------------------------
Giftrust
  Investor Class                       TWGTX                        11/25/1983
- --------------------------------------------------------------------------------
Growth
  Investor Class                       TWCGX                        10/31/1958
- --------------------------------------------------------------------------------
  Institutional Class                  TWGIX                        06/16/1997
- --------------------------------------------------------------------------------
  C Class                              TWGCX                        11/28/2001
- --------------------------------------------------------------------------------
  R Class                              AGWRX                        08/29/2003
- --------------------------------------------------------------------------------
  Advisor Class                        TCRAX                        06/04/1997
- --------------------------------------------------------------------------------


- ------
2


FUND                                 TICKER SYMBOL                INCEPTION DATE
- --------------------------------------------------------------------------------
Heritage
  Investor Class                       TWHIX                        11/10/1987
- --------------------------------------------------------------------------------
  Institutional Class                  ATHIX                        06/16/1997
- --------------------------------------------------------------------------------
  C Class                              AHGCX                        06/26/2001
- --------------------------------------------------------------------------------
  Advisor Class                        ATHAX                        07/11/1997
- --------------------------------------------------------------------------------
Mid Cap Growth
  Investor Class                       ACOVX                        04/03/2006
- --------------------------------------------------------------------------------
  Institutional Class                  ACMIX                        04/03/2006
- --------------------------------------------------------------------------------
  A Class                              MAGAX                        03/31/1997
- --------------------------------------------------------------------------------
  B Class                              MAGHX                        03/31/1997
- --------------------------------------------------------------------------------
  C Class                              ACMLX                        04/03/2006
- --------------------------------------------------------------------------------
  R Class                              ACMRX                        04/03/2006
- --------------------------------------------------------------------------------
New Opportunities
  Investor Class                       TWNOX                        12/26/1996
- --------------------------------------------------------------------------------
New Opportunities II
  Investor Class                       ANOIX                        06/01/2001
- --------------------------------------------------------------------------------
  Institutional Class                  N/A                          N/A
- --------------------------------------------------------------------------------
  A Class                              ANOAX                        01/31/2003
- --------------------------------------------------------------------------------
  B Class                              ANOBX                        01/31/2003
- --------------------------------------------------------------------------------
  C Class                              ANOCX                        01/31/2003
- --------------------------------------------------------------------------------
NT Growth
  Institutional Class                  ACLTX                        05/12/2006
- --------------------------------------------------------------------------------
NT Vista
  Institutional Class                  ACLWX                        05/12/2006
- --------------------------------------------------------------------------------
Select
  Investor Class                       TWCIX                        10/31/1958
- --------------------------------------------------------------------------------
  Institutional Class                  TWSIX                        03/13/1997
- --------------------------------------------------------------------------------
  A Class                              AASLX                        01/31/2003
- --------------------------------------------------------------------------------
  B Class                              ABSLX                        01/31/2003
- --------------------------------------------------------------------------------
  C Class                              ACSLX                        01/31/2003
- --------------------------------------------------------------------------------
  R Class                              ASERX                        07/29/2005
- --------------------------------------------------------------------------------
  Advisor Class                        TWCAX                        08/08/1997
- --------------------------------------------------------------------------------
Small Cap Growth
  Investor Class                       ACWVX                        04/03/2006
- --------------------------------------------------------------------------------
  Institutional Class                  ACWIX                        04/03/2006
- --------------------------------------------------------------------------------
  A Class                              MSASX                        07/12/1999
- --------------------------------------------------------------------------------
  B Class                              MSBSX                        07/12/1999
- --------------------------------------------------------------------------------
  C Class                              ACWCX                        04/03/2006
- --------------------------------------------------------------------------------
  R Class                              ACWRX                        04/03/2006
- --------------------------------------------------------------------------------
Ultra
  Investor Class                       TWCUX                        11/02/1981
- --------------------------------------------------------------------------------
  Institutional Class                  TWUIX                        11/14/1996
- --------------------------------------------------------------------------------
  C Class                              TWCCX                        10/29/2001
- --------------------------------------------------------------------------------
  R Class                              AULRX                        08/29/2003
- --------------------------------------------------------------------------------
  Advisor Class                        TWUAX                        10/02/1996
- --------------------------------------------------------------------------------
Veedot
  Investor Class                       AMVIX                        11/30/1999
- --------------------------------------------------------------------------------
  Institutional Class                  AVDIX                        08/01/2000
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Vista
  Investor Class                       TWCVX                        11/25/1983
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  Institutional Class                  TWVIX                        11/14/1996
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  C Class                              TWVCX                        07/18/2001
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  R Class                              AVTRX                        07/29/2005
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  Advisor Class                        TWVAX                        10/02/1996
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3


FUND INVESTMENT GUIDELINES

This section explains the extent to which the funds' advisor, American Century
Investment Management, Inc., can use various investment vehicles and strategies
in managing each fund's assets. Descriptions of the investment techniques and
risks associated with each appear in the section, INVESTMENT STRATEGIES AND
RISKS, which begins on page 6. In the case of the funds' principal investment
strategies, these descriptions elaborate upon discussions contained in the
prospectuses.

Each fund, other than Focused Growth and Veedot, is diversified as defined in
the Investment Company Act of 1940 (the Investment Company Act). Diversified
means that, with respect to 75% of its total assets, each fund will not invest
more than 5% of its total assets in the securities of a single issuer or own
more than 10% of the outstanding voting securities of a single issuer (other
than U.S. government securities and securities of other investment companies).

Focused Growth and Veedot are nondiversified. Nondiversified means that a fund
may invest a greater portion of its assets in a smaller number of securities
than a diversified fund. Although Veedot's portfolio managers expect that it
will ordinarily satisfy the requirements of a diversified fund, its
nondiversified status gives it more flexibility to invest heavily in the most
attractive companies identified by the fund's methodology.

To meet federal tax requirements for qualification as a regulated investment
company, each fund must limit its investments so that at the close of each
quarter of its taxable year

(1)  no more than 25% of its total assets are invested in the securities of
     a single issuer (other than the U.S. government or a regulated investment
     company), and

(2)  with respect to at least 50% of its total assets, no more than 5% of
     its total assets are invested in the securities of a single issuer (other
     than the U.S. government or a regulated investment company) or it does not
     own more than 10% of the outstanding voting securities of a single issuer.

CAPITAL GROWTH, FOCUSED GROWTH, FUNDAMENTAL EQUITY, GIFTRUST, GROWTH, HERITAGE,
MID CAP GROWTH, NEW OPPORTUNITIES, NEW OPPORTUNITIES II, NT GROWTH, NT VISTA,
SELECT, SMALL CAP GROWTH, ULTRA, VEEDOT AND VISTA

In general, within the restrictions outlined here and in the funds'
prospectuses, the portfolio managers have broad powers to decide how to invest
fund assets, including the power to hold them uninvested.

Investments are varied according to what is judged advantageous under changing
economic conditions. It is the advisor's policy to retain maximum flexibility in
management without restrictive provisions as to the proportion of one or another
class of securities that may be held, subject to the investment restrictions
described on the following pages. It is the advisor's intention that each fund
will generally consist of domestic and foreign common stocks, convertible
securities and equity-equivalent securities. However, subject to the specific
limitations applicable to a fund, the funds' management teams may invest the
assets of each fund in varying amounts in other instruments and may use other
techniques, such as those reflected in the FUND INVESTMENTS AND RISKS section,
when such a course is deemed appropriate in order to pursue a fund's investment
objective. Senior securities that, in the opinion of the portfolio managers, are
high-grade issues also may be purchased for defensive purposes.


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4



So long as a sufficient number of acceptable securities are available, the
portfolio managers intend to keep the funds fully invested, regardless of the
movement of stock or bond prices, generally. However, should a fund's investment
methodology fail to identify sufficient acceptable securities, or for any other
reason including the desire to take a temporary defensive position, the funds
may invest their assets in money market and other short-term securities. See
TEMPORARY DEFENSIVE MEASURES, page 29. With regard to Veedot, the portfolio
managers intend to keep the fund fully invested so long as the methodology
identifies sufficient accelerating securities whose share price patterns suggest
their stock prices are likely to increase in value. In most circumstances, each
fund's actual level of cash and cash equivalents will be less than 10%. The
managers may use futures contracts as a way to expose each fund's cash assets to
the market while maintaining liquidity. As mentioned in the prospectuses, the
managers may not leverage a fund's portfolio. See DERIVATIVE SECURITIES, page 9,
FUTURES AND OPTIONS, page 12 and SHORT-TERM SECURITIES, page 23.


BALANCED

In general, within the restrictions outlined here and in the fund's prospectus,
the portfolio managers have broad powers to decide how to invest fund assets,
including the power to hold them uninvested. As a matter of fundamental policy,
the managers will invest approximately 60% of the fund's portfolio in equity
securities and the remainder in bonds and other fixed-income securities. The
equity portion of the fund generally will be invested in equity securities of
companies comprising the 1,500 largest publicly traded companies in the United
States. The fund's investment approach may cause its equity portion to be more
heavily invested in some industries than in others. However, it may not invest
more than 25% of its total assets in companies whose principal business
activities are in the same industry. In addition, as a diversified investment
company, its investments in a single issue are limited, as described above in
FUND INVESTMENT GUIDELINES. The portfolio managers also may purchase foreign
securities, convertible securities, equity-equivalent securities, non-leveraged
futures contracts and similar securities, and short-term securities.

The fixed-income portion of the fund generally will be invested in a diversified
portfolio of high-grade government, corporate, asset-backed and similar
securities. There are no maturity restrictions on the fixed-income securities in
which the fund invests, but under normal conditions the weighted average
maturity for the fixed-income portion of the fund will be in the 3-to-10-year
range. The managers will actively manage the portfolio, adjusting the
portfolio's weighted average maturity in response to expected changes in
interest rates. During periods of rising interest rates, or when rates are
expected to rise, a shorter-weighted average maturity may be adopted in order to
reduce the effect of bond price declines on the fund's net asset value. When
interest rates are falling, or expected to fall, and bond prices rising, or
expected to rise, a longer-weighted average portfolio maturity may be adopted.
The restrictions on the quality of the fixed-income securities the fund may
purchase are described in the prospectus. For a description of the fixed-income
securities rating system, see EXPLANATION OF FIXED-INCOME SECURITIES RATINGS, on
page 90.

CAPITAL VALUE

The portfolio managers will invest primarily in stocks of medium to large
companies that the managers believe are undervalued at the time of purchase. The
portfolio managers will usually purchase common stocks of U.S. and foreign
companies, but they can purchase other types of securities as well, such as
domestic and foreign preferred stocks, convertible securities, equity-equivalent
securities, notes, bonds and other debt securities.


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5


FUND INVESTMENTS AND RISKS

INVESTMENT STRATEGIES AND RISKS

This section describes investment vehicles and techniques the portfolio managers
can use in managing a fund's assets. It also details the risks associated with
each, because each investment vehicle and technique contributes to a fund's
overall risk profile.

Adjustable-Rate Mortgage Loans (ARMs)

ARMs eligible for inclusion in a mortgage pool generally will provide for a
fixed initial mortgage interest rate for a specified period of time, generally
for either the first three, six, 12, 24, 36, 60 or 84 scheduled monthly
payments. Thereafter, the interest rates are subject to periodic adjustment
based on changes in an index.

ARMs have minimum and maximum rates beyond which the mortgage interest rate may
not vary over the lifetime of the loan. Certain ARMs provide for additional
limitations on the maximum amount by which the mortgage interest rate may adjust
for any single adjustment period. Negatively amortizing ARMs may provide
limitations on changes in the required monthly payment. Limitations on monthly
payments can result in monthly payments that are greater or less than the amount
necessary to amortize a negatively amortizing ARM by its maturity at the
interest rate in effect during any particular month.

There are two types of indices that provide the basis for ARM rate adjustments:
those based on market rates and those based on a calculated measure, such as a
cost-of-funds index or a moving average of mortgage rates. Commonly utilized
indices include the one-year, three-year and five-year constant maturity U.S.
Treasury rates (as reported by the Federal Reserve Board); the three-month
Treasury bill rate; the 180-day Treasury bill rate; rates on longer-term
Treasury securities; the Eleventh District Federal Home Loan Bank Cost of Funds
Index (EDCOFI); the National Median Cost of Funds Index; the one-month,
three-month, six-month or one-year London Interbank Offered Rate (LIBOR); or
six-month CD rates. Some indices, such as the one-year constant maturity
Treasury rate or three-month LIBOR, are highly correlated with changes in market
interest rates. Other indices, such as the EDCOFI, tend to lag behind changes in
market rates and be somewhat less volatile over short periods of time.

The EDCOFI reflects the monthly weighted average cost of funds of savings and
loan associations and savings banks whose home offices are located in Arizona,
California and Nevada (the Federal Home Loan Bank Eleventh District) and who are
member institutions of the Federal Home Loan Bank of San Francisco (the FHLB of
San Francisco), as computed from statistics tabulated and published by the FHLB
of San Francisco. The FHLB of San Francisco normally announces the Cost of Funds
Index on the last working day of the month following the month in which the cost
of funds was incurred.

One-year and three-year Constant Maturity Treasury (CMT) rates are calculated by
the Federal Reserve Bank of New York, based on daily closing bid yields on
actively traded Treasury securities submitted by five leading broker-dealers.
The median bid yields are used to construct a daily yield curve.

The National Median Cost of Funds Index, similar to the EDCOFI, is calculated
monthly by the Federal Home Loan Bank Board (FHLBB) and represents the average
monthly interest expenses on liabilities of member institutions. A median,
rather than an arithmetic mean, is used to reduce the effect of extreme numbers.

LIBOR is the rate at which banks in London offer Eurodollars in trades between
banks. LIBOR has become a key rate in the U.S. domestic money market because it
is perceived to reflect the true global cost of money.

The portfolio managers may invest in ARMs whose periodic interest rate
adjustments are based on new indices as these indices become available.


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6


Asset-Backed Securities (ABS)

ABS are structured like mortgage-backed securities, but instead of mortgage
loans or interest in mortgage loans, the underlying assets may include, for
example, such items as motor vehicle installment sales or installment loan
contracts, leases of various types of real and personal property, home equity
loans, student loans, small business loans, and receivables from credit card
agreements. The ability of an issuer of asset-backed securities to enforce its
security interest in the underlying assets may be limited. The value of an ABS
is affected by changes in the market's perception of the assets backing the
security, the creditworthiness of the servicing agent for the loan pool, the
originator of the loans, or the financial institution providing any credit
enhancement.

Payments of principal and interest passed through to holders of ABS are
typically supported by some form of credit enhancement, such as a letter of
credit, surety bond, limited guarantee by another entity or a priority to
certain of the borrower's other securities. The degree of credit enhancement
varies, and generally applies to only a fraction of the asset-backed security's
par value until exhausted. If the credit enhancement of an ABS held by the fund
has been exhausted, and if any required payments of principal and interest are
not made with respect to the underlying loans, the fund may experience losses or
delays in receiving payment.

Some types of ABS may be less effective than other types of securities as a
means of "locking in" attractive long-term interest rates. One reason is the
need to reinvest prepayments of principal; another is the possibility of
significant unscheduled prepayments resulting from declines in interest rates.
These prepayments would have to be reinvested at lower rates. As a result, these
securities may have less potential for capital appreciation during periods of
declining interest rates than other securities of comparable maturities,
although they may have a similar risk of decline in market value during periods
of rising interest rates. Prepayments may also significantly shorten the
effective maturities of these securities, especially during periods of declining
interest rates. Conversely, during periods of rising interest rates, a reduction
in prepayments may increase the effective maturities of these securities,
subjecting them to a greater risk of decline in market value in response to
rising interest rates than traditional debt securities, and, therefore,
potentially increasing the volatility of the fund.

The risks of investing in ABS are ultimately dependent upon the repayment of
loans by the individual or corporate borrowers. Although the fund would
generally have no recourse against the entity that originated the loans in the
event of default by a borrower, ABS typically are structured to mitigate this
risk of default.

Asset-backed securities are generally issued in more than one class, each with
different payment terms. Multiple class asset-backed securities may be used as a
method of providing credit support through creation of one or more classes whose
right to payments is made subordinate to the right to such payments of the
remaining class or classes. Multiple classes also may permit the issuance of
securities with payment terms, interest rates or other characteristics differing
both from those of each other and from those of the underlying assets. Examples
include so-called strips (asset-backed securities entitling the holder to
disproportionate interests with respect to the allocation of interest and
principal of the assets backing the security), and securities with classes
having characteristics such as floating interest rates or scheduled amortization
of principal.

Convertible Securities

A convertible security is a bond, debenture, note, preferred stock or other
security that may be converted into or exchanged for a prescribed amount of
common stock of the same or a different issuer within a particular time period
at a specified price or formula. A convertible security entitles the holder to
receive the interest paid or accrued on debt or the dividend paid on preferred
stock until the convertible security matures or is redeemed, converted or
exchanged. Before conversion or exchange, such securities ordinarily provide a
stream of income with generally higher yields than common stocks of the same or
similar issuers, but lower than the yield on non-convertible debt. Of course,


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7


there can be no assurance of current income because issuers of convertible
securities may default on their obligations. In addition, there can be no
assurance of capital appreciation because the value of the underlying common
stock will fluctuate. Because of the conversion feature, the managers consider
some convertible securities to be equity equivalents.

The price of a convertible security will normally fluctuate in some proportion
to changes in the price of the underlying asset. A convertible security is
subject to risks relating to the activities of the issuer and/or general market
and economic conditions. The stream of income typically paid on a convertible
security may tend to cushion the security against declines in the price of the
underlying asset. However, the stream of income causes fluctuations based upon
changes in interest rates and the credit quality of the issuer. In general, the
value of a convertible security is a function of (1) its yield in comparison
with yields of other securities of comparable maturity and quality that do not
have a conversion privilege and (2) its worth, at market value, if converted or
exchanged into the underlying common stock. The price of a convertible security
often reflects such variations in the price of the underlying common stock in a
way that a non-convertible security does not. At any given time, investment
value generally depends upon such factors as the general level of interest
rates, the yield of similar nonconvertible securities, the financial strength of
the issuer and the seniority of the security in the issuer's capital structure.

A convertible security may be subject to redemption at the option of the issuer
at a predetermined price. If a convertible security held by a fund is called for
redemption, the fund would be required to permit the issuer to redeem the
security and convert it to underlying common stock or to cash, or would sell the
convertible security to a third party, which may have an adverse effect on the
fund. A convertible security may feature a put option that permits the holder of
the convertible security to sell that security back to the issuer at a
predetermined price. A fund generally invests in convertible securities for
their favorable price characteristics and total return potential and normally
would not exercise an option to convert unless the security is called or
conversion is forced.

Debt Securities

Each of the funds may invest in debt securities when the portfolio managers
believe such securities represent an attractive investment for the fund. The
funds may invest in debt securities for income, or as a defensive strategy when
the managers believe adverse economic or market conditions exist.

The value of debt securities in which the funds may invest will fluctuate based
upon changes in interest rates and the credit quality of the issuer. Debt
securities generally will be limited to investment-grade obligations.
Investment-grade means that at the time of purchase, such obligations are rated
within the four highest categories by a nationally recognized statistical rating
organization (for example, at least Baa by Moody's Investors Service, Inc. or
BBB by Standard & Poor's Corporation), or, if not rated, are of equivalent
investment quality as determined by the fund's advisor. According to Moody's,
bonds rated Baa are medium-grade and possess some speculative characteristics. A
BBB rating by S&P indicates S&P's belief that a security exhibits a satisfactory
degree of safety and capacity for repayment, but is more vulnerable to adverse
economic conditions and changing circumstances.

Balanced may invest up to 20% of the fixed-income portion of the fund in
securities rated in the fourth category, and up to 15% may be invested in
securities rated in the fifth category.

Mid Cap Growth and Small Cap Growth will not invest more than 10% of their
assets in high-yield, high-risk bonds.


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8


A high-yield security is one that has been rated below the four highest
categories used by a nationally recognized statistical rating organization, or
determined by the investment advisor to be of similar quality. Issuers of these
securities often have short financial histories or questionable credit.
High-yield bonds are regarded as predominantly speculative with respect to the
issuer's continuing ability to meet principal and interest payments.

In addition, the value of a fund's investments in fixed-income securities will
change as prevailing interest rates change. In general, the prices of such
securities vary inversely with interest rates. As prevailing interest rates
fall, the prices of bonds and other securities that trade on a yield basis
generally rise. When prevailing interest rates rise, bond prices generally fall.
Depending upon the particular amount and type of fixed-income securities
holdings of a fund, these changes may impact the net asset value of that fund's
shares.

Derivative Securities

To the extent permitted by its investment objectives and policies, each of the
funds may invest in securities that are commonly referred to as derivative
securities. Generally, a derivative security is a financial arrangement the
value of which is based on, or derived from, a traditional security, asset, or
market index. Certain derivative securities are described more accurately as
index/structured securities. Index/structured securities are derivative
securities whose value or performance is linked to other equity securities (such
as depositary receipts), currencies, interest rates, indices or other financial
indicators (reference indices).

Some derivative securities, such as mortgage-related and other asset-backed
securities, are in many respects like any other investment, although they may be
more volatile or less liquid than more traditional debt securities.

There are many different types of derivative securities and many different ways
to use them. Futures and options are commonly used for traditional hedging
purposes to attempt to protect a fund from exposure to changing interest rates,
securities prices, or currency exchange rates and for cash management purposes
as a low-cost method of gaining exposure to a particular securities market
without investing directly in those securities.

No fund may invest in a derivative security unless the reference index or the
instrument to which it relates is an eligible investment for the fund. For
example, a security whose underlying value is linked to the price of oil would
not be a permissible investment because the funds may not invest in oil and gas
leases or futures.

The return on a derivative security may increase or decrease, depending upon
changes in the reference index or instrument to which it relates.

There are risks associated with investing in derivative securities, including:

*  the risk that the underlying security, interest rate, market index or
   other financial asset will not move in the direction the portfolio managers
   anticipate;

*  the possibility that there may be no liquid secondary market, or the
   possibility that price fluctuation limits may be imposed by the exchange,
   either of which may make it difficult or impossible to close out a position
   when desired;

*  the risk that adverse price movements in an instrument can result in a
   loss substantially greater than a fund's initial investment; and

*  the risk that the counterparty will fail to perform its obligations.

The funds' Board of Directors has reviewed the advisor's policy regarding
investments in derivative securities. That policy specifies factors that must be
considered in connection with a purchase of derivative securities and provides
that a fund may not invest in a derivative security if it would be possible for
a fund to lose more money than the notional value of the investment. The policy
also establishes a committee that must review certain proposed purchases before
the purchases can be made. The advisor will report on fund activity in
derivative securities to the Board of Directors as necessary.


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9


Equity Equivalents

In addition to investing in common stocks, the funds may invest in other equity
securities and equity equivalents, including securities that permit a fund to
receive an equity interest in an issuer, the opportunity to acquire an equity
interest in an issuer, or the opportunity to receive a return on its investment
that permits the fund to benefit from the growth over time in the equity of an
issuer. Examples of equity securities and equity equivalents include preferred
stock, convertible preferred stock and convertible securities.

Equity equivalents also may include securities whose value or return is derived
from the value or return of a different security.

Foreign Securities

Mid Cap Growth Fund and Small Cap Growth Fund may invest up to 20% of their
assets in equity securities of foreign issuers. The other funds may invest an
unlimited portion of their total assets in the securities of issuers located in
foreign countries, including foreign governments, when these securities meet its
standards of selection. In determining where a company is located, the portfolio
managers will consider various factors, including where the company is
headquartered, where the company's principal operations are located, where the
company's revenues are derived, where the principal trading market is located
and the country in which the company was legally organized. The weight given to
each of these factors will vary depending on the circumstances in a given case.

The funds consider developed countries to include Australia, Austria, Belgium,
Bermuda, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland,
Italy, Japan, Luxembourg, The Netherlands, New Zealand, Norway, Portugal,
Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States.
Securities of foreign issuers may trade in the U.S. or foreign securities
markets.

Investments in foreign securities may present certain risks, including:

CURRENCY RISK - The value of the foreign investments held by the funds may be
significantly affected by changes in currency exchange rates. The dollar value
of a foreign security generally decreases when the value of the dollar rises
against the foreign currency in which the security is denominated and tends to
increase when the value of the dollar falls against such currency. In addition,
the value of fund assets may be affected by losses and other expenses incurred
in converting between various currencies in order to purchase and sell foreign
securities, and by currency restrictions, exchange control regulation, currency
devaluations and political developments.

POLITICAL AND ECONOMIC RISK - The economies of many of the countries in which
the funds invest are not as developed as the economy of the United States and
may be subject to significantly different forces. Political or social
instability, expropriation, nationalization, confiscatory taxation and
limitations on the removal of funds or other assets also could adversely affect
the value of investments. Further, the funds may find it difficult or be unable
to enforce ownership rights, pursue legal remedies or obtain judgments in
foreign courts.

REGULATORY RISK - Foreign companies generally are not subject to the regulatory
controls imposed on U.S. issuers and, in general, there is less publicly
available information about foreign securities than is available about domestic
securities. Many foreign companies are not subject to uniform accounting,
auditing and financial reporting standards, practices and requirements
comparable to those applicable to domestic companies. Income from foreign
securities owned by the funds may be reduced by a withholding tax at the source,
which would reduce dividend income payable to shareholders.

MARKET AND TRADING RISK - Brokerage commission rates in foreign countries, which
generally are fixed rather than subject to negotiation as in the United States,
are likely to be higher. The securities markets in many of the countries in
which the funds invest will have substantially less trading volume than the
principal U.S. markets. As a result, the securities of some companies in these
countries may be less liquid and more volatile than comparable U.S. securities.
Furthermore, one securities broker may represent all or a significant part of
the trading volume in a particular country, resulting in higher


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10


trading costs and decreased liquidity due to a lack of alternative trading
partners. There generally is less government regulation and supervision of
foreign stock exchanges, brokers and issuers, which may make it difficult to
enforce contractual obligations.

CLEARANCE AND SETTLEMENT RISK - Foreign securities markets also have different
clearance and settlement procedures, and in certain markets there have been
times when settlements have been unable to keep pace with the volume of
securities transactions, making it difficult to conduct such transactions.
Delays in clearance and settlement could result in temporary periods when assets
of the funds are uninvested and no return is earned. The inability of the funds
to make intended security purchases due to clearance and settlement problems
could cause the funds to miss attractive investment opportunities. Inability to
dispose of portfolio securities due to clearance and settlement problems could
result either in losses to the funds due to subsequent declines in the value of
the portfolio security or, if the fund has entered into a contract to sell the
security, liability to the purchaser.

OWNERSHIP RISK - Evidence of securities ownership may be uncertain in many
foreign countries. As a result, there is a risk that a fund's trade details
could be incorrectly or fraudulently entered at the time of the transaction,
resulting in a loss to the fund.

EMERGING MARKETS RISK - Each fund, except Capital Value and Balanced, may invest
its holdings in securities of issuers located in emerging market (developing)
countries. The funds consider "emerging market countries" to include all
countries that are not considered by the advisor to be developed countries,
which are listed on page 10.

Investing in securities of issuers in emerging market countries involves
exposure to significantly higher risk than investing in countries with developed
markets. Emerging market countries may have economic structures that generally
are less diverse and mature, and political systems that can be expected to be
less stable than those of developed countries. Securities prices in emerging
market countries can be significantly more volatile than in developed countries,
reflecting the greater uncertainties of investing in lesser developed markets
and economies. In particular, emerging market countries may have relatively
unstable governments, and may present the risk of nationalization of businesses,
expropriation, confiscatory taxation or in certain instances, reversion to
closed-market, centrally planned economies. Such countries may also have less
protection of property rights than developed countries.

The economies of emerging market countries may be based predominantly on only a
few industries or may be dependent on revenues from particular commodities or on
international aid or developmental assistance, may be highly vulnerable to
changes in local or global trade conditions, and may suffer from extreme and
volatile debt burdens or inflation rates. In addition, securities markets in
emerging market countries may trade a relatively small number of securities and
may be unable to respond effectively to increases in trading volume, potentially
resulting in a lack of liquidity and in volatility in the price of securities
traded on those markets. Also, securities markets in emerging market countries
typically offer less regulatory protection for investors.


Forward Currency Exchange Contracts

Each fund may purchase and sell foreign currency on a spot (i.e., cash) basis
and may engage in forward currency contracts, currency options and futures
transactions for hedging or any other lawful purpose. See DERIVATIVE SECURITIES,
page 9.

The funds expect to use forward currency contracts under two circumstances:

(1)  When the portfolio managers are purchasing or selling a security
     denominated in a foreign currency and wish to lock in the U.S. dollar price
     of that security, the portfolio managers would be able to enter into a
     forward currency contract to do so;

(2)  When the portfolio managers believe that the currency of a particular
     foreign country may suffer a substantial decline against the U.S. dollar, a
     fund would be able to enter into a forward currency contract to sell
     foreign currency for a fixed U.S. dollar amount approximating the value of
     some or all of its portfolio securities either denominated in, or whose
     value is tied to, such foreign currency.


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11


In the first circumstance, when a fund enters into a trade for the purchase or
sale of a security denominated in a foreign currency, it may be desirable to
establish (lock in) the U.S. dollar cost or proceeds. By entering into forward
currency contracts in U.S. dollars for the purchase or sale of a foreign
currency involved in an underlying security transaction, the fund will be able
to protect itself against a possible loss between trade and settlement dates
resulting from the adverse change in the relationship between the U.S. dollar
and the subject foreign currency.

In the second circumstance, when the portfolio managers believe that the
currency of a particular country may suffer a substantial decline relative to
the U.S. dollar, a fund could enter into a forward currency contract to sell for
a fixed dollar amount the amount in foreign currencies approximating the value
of some or all of its portfolio securities either denominated in, or whose value
is tied to, such foreign currency. The fund will cover outstanding forward
contracts by maintaining liquid portfolio securities denominated in, or whose
value is tied to, the currency underlying the forward contract or the currency
being hedged. To the extent that the fund is not able to cover its forward
currency positions with underlying portfolio securities, the fund will segregate
on its records cash or other liquid assets having a value equal to the aggregate
amount of the fund's commitments under the forward currency contact.

The precise matching of forward currency contracts in the amounts and values of
securities involved generally would not be possible because the future values of
such foreign currencies will change as a consequence of market movements in the
values of those securities between the date the forward currency contract is
entered into and the date it matures. Predicting short-term currency market
movements is extremely difficult, and the successful execution of short-term
hedging strategy is highly uncertain. The portfolio managers do not intend to
enter into such contracts on a regular basis. Normally, consideration of the
prospect for currency parities will be incorporated into the long-term
investment decisions made with respect to overall diversification strategies.
However, the portfolio managers believe that it is important to have flexibility
to enter into such forward currency contracts when they determine that a fund's
best interests may be served.

When the forward currency contract matures, the fund may either sell the
portfolio security and make delivery of the foreign currency, or it may retain
the security and terminate the obligation to deliver the foreign currency by
purchasing an offsetting forward currency contract with the same currency trader
that obligates the fund to purchase, on the same maturity date, the same amount
of the foreign currency.

It is impossible to forecast with absolute precision the market value of
portfolio securities at the expiration of the forward currency contract.
Accordingly, it may be necessary for a fund to purchase additional foreign
currency on the spot market (and bear the expense of such purchase) if the
market value of the security is less than the amount of foreign currency the
fund is obligated to deliver and if a decision is made to sell the security to
make delivery of the foreign currency the fund is obligated to deliver.

Futures and Options

Each fund may enter into futures contracts, options or options on futures
contracts. Futures contracts provide for the sale by one party and purchase by
another party of a specific security at a specified future time and price.
Generally, futures transactions will be used to:

*  protect against a decline in market value of the fund's securities (taking
   a short
   futures position),

*  protect against the risk of an increase in market value for securities in
   which the fund generally invests at a time when the fund is not fully
   invested (taking a long futures position), or

*  provide a temporary substitute for the purchase of an individual security
   that may not be purchased in an orderly fashion.


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12


Some futures and options strategies, such as selling futures, buying puts and
writing calls, hedge a fund's investments against price fluctuations. Other
strategies, such as buying futures, writing puts and buying calls, tend to
increase market exposure.

Although other techniques may be used to control a fund's exposure to market
fluctuations, the use of futures contracts may be a more effective means of
hedging this exposure. While a fund pays brokerage commissions in connection
with opening and closing out futures positions, these costs are lower than the
transaction costs incurred in the purchase and sale of the underlying
securities.

For example, the sale of a future by a fund means the fund becomes obligated to
deliver the security (or securities, in the case of an index future) at a
specified price on a specified date. The purchase of a future means the fund
becomes obligated to buy the security (or securities) at a specified price on a
specified date. The portfolio managers may engage in futures and options
transactions based on securities indices, provided that the transactions are
consistent with the fund's investment objectives. Examples of indices that may
be used include the Bond Buyer Index of Municipal Bonds for fixed-income funds,
or the S&P 500® Index for equity funds. The managers also may engage in
futures and options transactions based on specific securities, such as U.S.
Treasury bonds or notes. Futures contracts are traded on national futures
exchanges. Futures exchanges and trading are regulated under the Commodity
Exchange Act by the Commodity Futures Trading Commission (CFTC), a U.S.
government agency.

Index futures contracts differ from traditional futures contracts in that when
delivery takes place, no stocks or bonds change hands. Instead, these contracts
settle in cash at the spot market value of the index. Although other types of
futures contracts by their terms call for actual delivery or acceptance of the
underlying securities, in most cases the contracts are closed out before the
settlement date. A futures position may be closed by taking an opposite position
in an identical contract (i.e., buying a contract that has previously been sold
or selling a contract that has previously been bought).

Unlike when the fund purchases or sells a security, no price is paid or received
by the fund upon the purchase or sale of the future. Initially, the fund will be
required to deposit an amount of cash or securities equal to a varying specified
percentage of the contract amount. This amount is known as initial margin. The
margin deposit is intended to ensure completion of the contract (delivery or
acceptance of the underlying security) if it is not terminated prior to the
specified delivery date. A margin deposit does not constitute a margin
transaction for purposes of the fund's investment restrictions. Minimum initial
margin requirements are established by the futures exchanges and may be revised.

In addition, brokers may establish margin deposit requirements that are higher
than the exchange minimums. Cash held in the margin accounts generally is not
income-producing. However, coupon bearing securities, such as Treasury bills and
bonds, held in margin accounts generally will earn income. Subsequent payments
to and from the broker, called variation margin, will be made on a daily basis
as the price of the underlying security or index fluctuates, making the future
more or less valuable, a process known as marking the contract to market.
Changes in variation margin are recorded by the fund as unrealized gains or
losses. At any time prior to expiration of the future, the fund may elect to
close the position by taking an opposite position. A final determination of
variation margin is then made; additional cash is required to be paid by or
released to the fund and the fund realizes a loss or gain.

Risks Related to Futures and Options Transactions

Futures and options prices can be volatile, and trading in these markets
involves certain risks. If the portfolio managers apply a hedge at an
inappropriate time or judge interest rate or equity market trends incorrectly,
futures and options strategies may lower a fund's return.


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13


A fund could suffer losses if it is unable to close out its position because of
an illiquid secondary market. Futures contracts may be closed out only on an
exchange that provides a secondary market for these contracts, and there is no
assurance that a liquid secondary market will exist for any particular futures
contract at any particular time. Consequently, it may not be possible to close a
futures position when the portfolio managers consider it appropriate or
desirable to do so. In the event of adverse price movements, a fund would be
required to continue making daily cash payments to maintain its required margin.
If the fund had insufficient cash, it might have to sell portfolio securities to
meet daily margin requirements at a time when the portfolio managers would not
otherwise elect to do so. In addition, a fund may be required to deliver or take
delivery of instruments underlying futures contracts it holds. The portfolio
managers will seek to minimize these risks by limiting the futures contracts
entered into on behalf of the funds to those traded on national futures
exchanges and for which there appears to be a liquid secondary market.

A fund could suffer losses if the prices of its futures and options positions
were poorly correlated with its other investments, or if securities underlying
futures contracts purchased by a fund had different maturities than those of the
portfolio securities being hedged. Such imperfect correlation may give rise to
circumstances in which a fund loses money on a futures contract at the same time
that it experiences a decline in the value of its hedged portfolio securities. A
fund also could lose margin payments it has deposited with a margin broker, if,
for example, the broker became bankrupt.

Most futures exchanges limit the amount of fluctuation permitted in futures
contract prices during a single trading day. The daily limit establishes the
maximum amount that the price of a futures contract may vary either up or down
from the previous day's settlement price at the end of the trading session. Once
the daily limit has been reached in a particular type of contract, no trades may
be made on that day at a price beyond the limit. However, the daily limit
governs only price movement during a particular trading day and, therefore, does
not limit potential losses. In addition, the daily limit may prevent liquidation
of unfavorable positions. Futures contract prices have occasionally moved to the
daily limit for several consecutive trading days with little or no trading,
thereby preventing prompt liquidation of futures positions and subjecting some
futures traders to substantial losses.

Options on Futures

By purchasing an option on a futures contract, a fund obtains the right, but not
the obligation, to sell the futures contract (a put option) or to buy the
contract (a call option) at a fixed strike price. A fund can terminate its
position in a put option by allowing it to expire or by exercising the option.
If the option is exercised, the fund completes the sale of the underlying
security at the strike price. Purchasing an option on a futures contract does
not require a fund to make margin payments unless the option is exercised.

Although they do not currently intend to do so, the funds may write (or sell)
call options that obligate them to sell (or deliver) the option's underlying
instrument upon exercise of the option. While the receipt of option premiums
would mitigate the effects of price declines, the funds would give up some
ability to participate in a price increase on the underlying security. If a fund
were to engage in options transactions, it would own the futures contract at the
time a call were written and would keep the contract open until the obligation
to deliver it pursuant to the call expired.

Restrictions on the Use of Futures Contracts and Options

Each fund may enter into futures contracts, options or options on futures
contracts. Under the Commodity Exchange Act, a fund may enter into futures and
options transactions (a) for hedging purposes without regard to the percentage
of assets committed to initial margin and option premiums or (b) for purposes
other than hedging, provided that assets committed to initial margin and option
premiums do not exceed 5% of the fund's total assets. To the extent required by
law, each fund will segregate cash, cash equivalents or other appropriate liquid
securities on its records in an amount sufficient to cover its obligations under
the futures contracts and options.


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14


Inverse Floaters

The funds may hold inverse floaters. An inverse floater is a type of derivative
security that bears an interest rate that moves inversely to market interest
rates. As market interest rates rise, the interest rate on inverse floaters goes
down, and vice versa. Generally, this is accomplished by expressing the interest
rate on the inverse floater as an above-market fixed rate of interest, reduced
by an amount determined by reference to a market-based or bond-specific floating
interest rate (as well as by any fees associated with administering the inverse
floater program).

Inverse floaters may be issued in conjunction with an equal amount of Dutch
Auction floating-rate bonds (floaters), or a market-based index may be used to
set the interest rate on these securities. A Dutch Auction is an auction system
in which the price of the security is gradually lowered until it meets a
responsive bid and is sold. Floaters and inverse floaters may be brought to
market by (1) a broker-dealer who purchases fixed-rate bonds and places them in
a trust, or (2) an issuer seeking to reduce interest expenses by using a
floater/inverse floater structure in lieu of fixed-rate bonds.

In the case of a broker-dealer structured offering (where underlying fixed-rate
bonds have been placed in a trust), distributions from the underlying bonds are
allocated to floater and inverse floater holders in the following manner:

(i)  Floater holders receive interest based on rates set at a six-month
     interval or at a Dutch Auction, which is typically held every 28 to 35
     days. Current and prospective floater holders bid the minimum interest rate
     that they are willing to accept on the floaters, and the interest rate is
     set just high enough to ensure that all of the floaters are sold.

(ii) Inverse floater holders receive all of the interest that remains, if
     any, on the underlying bonds after floater interest and auction fees are
     paid. The interest rates on inverse floaters may be significantly reduced,
     even to zero, if interest rates rise.

Procedures for determining the interest payment on floaters and inverse floaters
brought to market directly by the issuer are comparable, although the interest
paid on the inverse floaters is based on a presumed coupon rate that would have
been required to bring fixed-rate bonds to market at the time the floaters and
inverse floaters were issued.

Where inverse floaters are issued in conjunction with floaters, inverse floater
holders may be given the right to acquire the underlying security (or to create
a fixed-rate bond) by calling an equal amount of corresponding floaters. The
underlying security may then be held or sold. However, typically, there are time
constraints and other limitations associated with any right to combine interests
and claim the underlying security.

Floater holders subject to a Dutch Auction procedure generally do not have the
right to put back their interests to the issuer or to a third party. If a Dutch
Auction fails, the floater holder may be required to hold its position until the
underlying bond matures, during which time interest on the floater is capped at
a predetermined rate.

The secondary market for floaters and inverse floaters may be limited. The
market value of inverse floaters tends to be significantly more volatile than
fixed-rate bonds.

Investment in Issuers with Limited Operating Histories

The funds may invest the following portions of their assets in the equity
securities of issuers with limited operating histories: Balanced, Capital
Growth, Focused Growth, Fundamental Equity, Growth, NT Growth, Select and Ultra
up to 5%; Giftrust, Heritage, Mid Cap Growth, New Opportunities, New
Opportunities II, NT Vista, Small Cap Growth, Veedot and Vista up to 10%.
Capital Value may invest an unlimited portion of its equity securities in
issuers with limited operating histories. The managers consider an issuer to
have a limited operating history if that issuer has a record of less than three
years of continuous operation. The managers will consider periods of capital
formation, incubation, consolidations, and research and development in
determining whether a particular issuer has a record of three years of
continuous operation.


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15


Investments in securities of issuers with limited operating histories may
involve greater risks than investments in securities of more mature issuers. By
their nature, such issuers present limited operating histories and financial
information upon which the managers may base their investment decision on behalf
of the funds. In addition, financial and other information regarding such
issuers, when available, may be incomplete or inaccurate.

For purposes of this limitation, "issuers" refers to operating companies that
issue securities for the purposes of issuing debt or raising capital as a means
of financing their ongoing operations. It does not, however, refer to entities,
corporate or otherwise, that are created for the express purpose of securitizing
obligations or income streams. For example, a fund's investments in a trust
created for the purpose of pooling mortgage obligations would not be subject to
the limitation.

Mortgage-Backed Securities

Background

A mortgage-backed security represents an ownership interest in a pool of
mortgage loans. The loans are made by financial institutions to finance home and
other real estate purchases. As the loans are repaid, investors receive payments
of both interest and principal.

Like fixed-income securities such as U.S. Treasury bonds, mortgage-backed
securities pay a stated rate of interest during the life of the security.
However, unlike a bond, which returns principal to the investor in one lump sum
at maturity, mortgage-backed securities return principal to the investor in
increments during the life of the security.

Because the timing and speed of principal repayments vary, the cash flow on
mortgage-backed securities is irregular. If mortgage holders sell their homes,
refinance their loans, prepay their mortgages or default on their loans, the
principal is distributed pro rata to investors.

As with other fixed-income securities, the prices of mortgage-backed securities
fluctuate in response to changing interest rates; when interest rates fall, the
prices of mortgage-backed securities rise, and vice versa. Changing interest
rates have additional significance for mortgage-backed securities investors,
however, because they influence prepayment rates (the rates at which mortgage
holders prepay their mortgages), which in turn affect the yields on
mortgage-backed securities. When interest rates decline, prepayment rates
generally increase. Mortgage holders take advantage of the opportunity to
refinance their mortgages at lower rates with lower monthly payments. When
interest rates rise, mortgage holders are less inclined to refinance their
mortgages. The effect of prepayment activity on yield depends on whether the
mortgage-backed security was purchased at a premium or at a discount.

A fund may receive principal sooner than it expected because of accelerated
prepayments. Under these circumstances, the fund might have to reinvest returned
principal at rates lower than it would have earned if principal payments were
made on schedule. Conversely, a mortgage-backed security may exceed its
anticipated life if prepayment rates decelerate unexpectedly. Under these
circumstances, a fund might miss an opportunity to earn interest at higher
prevailing rates.

GNMA Certificates

The Government National Mortgage Association (GNMA) is a wholly owned corporate
instrumentality of the United States within the Department of Housing and Urban
Development. The National Housing Act of 1934 (Housing Act), as amended,
authorizes GNMA to guarantee the timely payment of interest and repayment of
principal on certificates that are backed by a pool of mortgage loans insured by
the Federal Housing Administration under the Housing Act, or by Title V of the
Housing Act of 1949 (FHA Loans), or guaranteed by the Department of Veterans
Affairs under the Servicemen's


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16


Readjustment Act of 1944 (VA Loans), as amended, or by pools of other eligible
mortgage loans. The Housing Act provides that the full faith and credit of the
U.S. government is pledged to the payment of all amounts that may be required to
be paid under any guarantee. GNMA has unlimited authority to borrow from the
U.S. Treasury in order to meet its obligations under this guarantee.

GNMA certificates represent a pro rata interest in one or more pools of the
following types of mortgage loans: (a) fixed-rate level payment mortgage loans;
(b) fixed-rate graduated payment mortgage loans (GPMs); (c) fixed-rate growing
equity mortgage loans (GEMs); (d) fixed-rate mortgage loans secured by
manufactured (mobile) homes (MHs); (e) mortgage loans on multifamily residential
properties under construction (CLCs); (f) mortgage loans on completed
multifamily projects (PLCs); (g) fixed-rate mortgage loans that use escrowed
funds to reduce the borrower's monthly payments during the early years of the
mortgage loans (buydown mortgage loans); and (h) mortgage loans that provide for
payment adjustments based on periodic changes in interest rates or in other
payment terms of the mortgage loans.

Fannie Mae Certificates

The Federal National Mortgage Association (FNMA or Fannie Mae) is a federally
chartered and privately owned corporation established under the Federal National
Mortgage Association Charter Act. Fannie Mae was originally established in 1938
as a U.S. government agency designed to provide supplemental liquidity to the
mortgage market and was reorganized as a stockholder-owned and privately managed
corporation by legislation enacted in 1968. Fannie Mae acquires capital from
investors who would not ordinarily invest in mortgage loans directly and thereby
expands the total amount of funds available for housing. This money is used to
buy home mortgage loans from local lenders, replenishing the supply of capital
available for mortgage lending.

Fannie Mae certificates represent a pro rata interest in one or more pools of
FHA Loans, VA Loans, or, most commonly, conventional mortgage loans (i.e.,
mortgage loans that are not insured or guaranteed by a government agency) of the
following types: (a) fixed-rate level payment mortgage loans; (b) fixed-rate
growing equity mortgage loans; (c) fixed-rate graduated payment mortgage loans;
(d) adjustable-rate mortgage loans; and (e) fixed-rate mortgage loans secured by
multifamily projects.

Fannie Mae certificates entitle the registered holder to receive amounts
representing a pro rata interest in scheduled principal and interest payments
(at the certificate's pass-through rate, which is net of any servicing and
guarantee fees on the underlying mortgage loans), any principal prepayments, and
a proportionate interest in the full principal amount of any foreclosed or
otherwise liquidated mortgage loan. The full and timely payment of interest and
repayment of principal on each Fannie Mae certificate is guaranteed by Fannie
Mae; this guarantee is not backed by the full faith and credit of the U.S.
government.

Freddie Mac Certificates

The Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) is a corporate
instrumentality of the United States created pursuant to the Emergency Home
Finance Act of 1970 (FHLMC Act), as amended. Freddie Mac was established
primarily for the purpose of increasing the availability of mortgage credit. Its
principal activity consists of purchasing first-lien conventional residential
mortgage loans (and participation interests in such mortgage loans) and
reselling these loans in the form of mortgage-backed securities, primarily
Freddie Mac certificates.

Freddie Mac certificates represent a pro rata interest in a group of mortgage
loans (a Freddie Mac certificate group) purchased by Freddie Mac. The mortgage
loans underlying Freddie Mac certificates consist of fixed- or adjustable-rate
mortgage loans with original terms to maturity of between 10 and 30 years,
substantially all of which are secured by first-liens on one- to four-family
residential properties or multifamily projects. Each mortgage loan must meet
standards set forth in the FHLMC Act. A Freddie


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17


Mac certificate group may include whole loans, participation interests in whole
loans, undivided interests in whole loans, and participations composing another
Freddie Mac certificate group.

Freddie Mac guarantees to each registered holder of a Freddie Mac certificate
the timely payment of interest at the rate provided for by the certificate.
Freddie Mac also guarantees ultimate collection of all principal on the related
mortgage loans, without any offset or deduction, but generally does not
guarantee the timely repayment of principal. Freddie Mac may remit principal at
any time after default on an underlying mortgage loan, but no later than 30 days
following (a) foreclosure sale, (b) payment of a claim by any mortgage insurer,
or (c) the expiration of any right of redemption, whichever occurs later, and in
any event no later than one year after demand has been made upon the mortgager
for accelerated payment of principal. Obligations guaranteed by Freddie Mac are
not backed by the full faith and credit pledge of the U.S. government.

Collateralized Mortgage Obligations (CMOs)

A CMO is a multiclass bond backed by a pool of mortgage pass-through
certificates or mortgage loans. CMOs may be collateralized by (a) GNMA, Fannie
Mae or Freddie Mac pass-through certificates; (b) unsecured mortgage loans
insured by the Federal Housing Administration or guaranteed by the Department of
Veterans' Affairs; (c) unsecuritized conventional mortgages; or (d) any
combination thereof.

In structuring a CMO, an issuer distributes cash flow from the underlying
collateral over a series of classes called tranches. Each CMO is a set of two or
more tranches, with average lives and cash flow patterns designed to meet
specific investment objectives. The average life expectancies of the different
tranches in a four-part deal, for example, might be two, five, seven and 20
years.

As payments on the underlying mortgage loans are collected, the CMO issuer pays
the coupon rate of interest to the bondholders in each tranche. At the outset,
scheduled and unscheduled principal payments go to investors in the first
tranches. Investors in later tranches do not begin receiving principal payments
until the prior tranches are paid off. This basic type of CMO is known as a
sequential pay or plain vanilla CMO.

Some CMOs are structured so that the prepayment or market risks are transferred
from one tranche to another. Prepayment stability is improved in some tranches
if other tranches absorb more prepayment variability.

The final tranche of a CMO often takes the form of a Z-bond, also known as an
accrual bond or accretion bond. Holders of these securities receive no cash
until the earlier tranches are paid in full. During the period that the other
tranches are outstanding, periodic interest payments are added to the initial
face amount of the Z-bond but are not paid to investors. When the prior tranches
are retired, the Z-bond receives coupon payments on its higher principal balance
plus any principal prepayments from the underlying mortgage loans. The existence
of a Z-bond tranche helps stabilize cash flow patterns in the other tranches. In
a changing interest rate environment, however, the value of the Z-bond tends to
be more volatile.

As CMOs have evolved, some classes of CMO bonds have become more prevalent. The
planned amortization class (PAC) and targeted amortization class (TAC), for
example, were designed to reduce prepayment risk by establishing a sinking-fund
structure. PAC and TAC bonds assure to varying degrees that investors will
receive payments over a predetermined period under various prepayment scenarios.
Although PAC and TAC bonds are similar, PAC bonds are better able to provide
stable cash flows under various prepayment scenarios than TAC bonds because of
the order in which these tranches are paid.

The existence of a PAC or TAC tranche can create higher levels of risk for other
tranches in the CMO because the stability of the PAC or TAC tranche is achieved
by creating at least one other tranche - known as a companion bond, support or
non-PAC bond - that absorbs the variability of principal cash flows. Because
companion bonds have a high degree of average life variability, they generally
pay a higher yield. A TAC bond can have some of the prepayment variability of a
companion bond if there is also a PAC bond in the CMO issue.


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18


Floating-rate CMO tranches (floaters) pay a variable rate of interest that is
usually tied to the LIBOR. Institutional investors with short-term liabilities,
such as commercial banks, often find floating-rate CMOs attractive investments.
Super floaters (which float a certain percentage above LIBOR) and inverse
floaters (which float inversely to LIBOR) are variations on the floater
structure that have highly variable cash flows.

Stripped Mortgage-Backed Securities

Stripped mortgage-backed securities are created by segregating the cash flows
from underlying mortgage loans or mortgage securities to create two or more new
securities, each with a specified percentage of the underlying security's
principal or interest payments. Mortgage-backed securities may be partially
stripped so that each investor class receives some interest and some principal.
When securities are completely stripped, however, all of the interest is
distributed to holders of one type of security, known as an interest-only
security, or IO, and all of the principal is distributed to holders of another
type of security known as a principal-only security, or PO. Strips can be
created in a pass-through structure or as tranches of a CMO.

The market values of IOs and POs are very sensitive to interest rate and
prepayment rate fluctuations. POs, for example, increase (or decrease) in value
as interest rates decline (or rise). The price behavior of these securities also
depends on whether the mortgage collateral was purchased at a premium or
discount to its par value. Prepayments on discount coupon POs generally are much
lower than prepayments on premium coupon POs. IOs may be used to hedge a fund's
other investments because prepayments cause the value of an IO strip to move in
the opposite direction from other mortgage-backed securities.

Commercial Mortgage-Backed Securities (CMBS)

CMBS are securities created from a pool of commercial mortgage loans, such as
loans for hotels, shopping centers, office buildings, apartment buildings, and
the like. Interest and principal payments from these loans are passed on to the
investor according to a particular schedule of payments. They may be issued by
U.S. government agencies or by private issuers. The credit quality of CMBS
depends primarily on the quality of the underlying loans and on the structure of
the particular deal. Generally, deals are structured with senior and subordinate
classes. Multiple classes may permit the issuance of securities with payment
terms, interest rates, or other characteristics differing both from those of
each other and those of the underlying assets. Examples include classes having
characteristics such as floating interest rates or scheduled amortization of
principal. Rating agencies rate the individual classes of the deal based on the
degree of seniority or subordination of a particular class and other factors.
The value of these securities may change because of actual or perceived changes
in the creditworthiness of individual borrowers, their tenants, the servicing
agents, or the general state of commercial real estate and other factors.

Mortgage Dollar Rolls

The Balanced Fund may enter into mortgage dollar rolls in which a fund sells
mortgage-backed securities to financial institutions for delivery in the current
month and simultaneously contracts to repurchase similar securities on a
specified future date. During the period between the sale and repurchase (the
"roll period"), the fund forgoes principal and interest paid on the
mortgage-backed securities. The fund is compensated by the difference between
the current sales price and the lower forward price for the future purchase
(often referred to as the "drop"), as well as by the interest earned on the cash
proceeds of the initial sale. The fund will use the proceeds generated from the
transaction to invest in short-term investments and/or other mortgage-backed
securities, which may enhance the fund's current yield and total return.

For each mortgage dollar roll transaction, a fund will cover the roll by
segregating on its books an offsetting cash position or a position of liquid
securities of equivalent value. The portfolio managers will monitor the value of
such securities to determine that the value equals or exceeds the mortgage
dollar roll contract price.


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19


A fund could suffer a loss if the contracting party fails to perform the future
transaction and the fund is therefore unable to buy back the mortgage-backed
securities it initially sold. The fund also takes the risk that the
mortgage-backed securities that it repurchases at a later date will have less
favorable market characteristics than the securities originally sold.

Municipal Bonds

Municipal bonds, which generally have maturities of more than one year when
issued, are designed to meet longer-term capital needs. These securities have
two principal classifications: general obligation bonds and revenue bonds.

General Obligation (GO) bonds are issued by states, counties, cities, towns and
regional districts to fund a variety of public projects, including construction
of and improvements to schools, highways, and water and sewer systems. GO bonds
are backed by the issuer's full faith and credit based on its ability to levy
taxes for the timely payment of interest and repayment of principal, although
such levies may be constitutionally or statutorily limited as to rate or amount.

Revenue Bonds are not backed by an issuer's taxing authority; rather, interest
and principal are secured by the net revenues from a project or facility.
Revenue bonds are issued to finance a variety of capital projects, including
construction or refurbishment of utility and waste disposal systems, highways,
bridges, tunnels, air and seaport facilities, schools and hospitals. Many
revenue bond issuers provide additional security in the form of a debt-service
reserve fund that may be used to make payments of interest and repayments of
principal on the issuer's obligations. Some revenue bond financings are further
protected by a state's assurance (without obligation) that it will make up
deficiencies in the debt-service reserve fund.

Industrial Development Bonds (IDBs), a type of revenue bond, are issued by or on
behalf of public authorities to finance privately operated facilities. These
bonds are used to finance business, manufacturing, housing, athletic and
pollution control projects, as well as public facilities such as mass transit
systems, air and seaport facilities and parking garages. Payment of interest and
repayment of principal on an IDB depend solely on the ability of the facility's
operator to meet financial obligations, and on the pledge, if any, of the real
or personal property financed. The interest earned on IDBs may be subject to the
federal alternative minimum tax.

Municipal Notes

Municipal notes are issued by state and local governments or government entities
to provide short-term capital or to meet cash flow needs.

Tax Anticipation Notes (TANs) are issued in anticipation of seasonal tax
revenues, such as ad valorem property, income, sales, use and business taxes,
and are payable from these future taxes. TANs usually are general obligations of
the issuer. General obligations are backed by the issuer's full faith and credit
based on its ability to levy taxes for the timely payment of interest and
repayment of principal, although such levies may be constitutionally or
statutorily limited as to rate or amount.

Revenue Anticipation Notes (RANs) are issued with the expectation that receipt
of future revenues, such as federal revenue sharing or state aid payments, will
be used to repay the notes. Typically, these notes also constitute general
obligations of the issuer.

Bond Anticipation Notes (BANs) are issued to provide interim financing until
long-term financing can be arranged. In most cases, the long-term bonds provide
the money for repayment of the notes.


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Obligations with Term Puts Attached

The funds may invest in fixed-rate bonds subject to third-party puts and
participation interests in such bonds that are held by a bank in trust or
otherwise, which have tender options or demand features attached. These tender
options or demand features permit the funds to tender (or put) their bonds to an
institution at periodic intervals and to receive the principal amount thereof.
The portfolio managers expect that the funds will pay more for securities with
puts attached than for securities without these liquidity features.

Because it is difficult to evaluate the likelihood of exercise or the potential
benefit of a put, puts normally will be determined to have a value of zero,
regardless of whether any direct or indirect consideration is paid. Accordingly,
puts as separate securities are not expected to affect the funds' weighted
average maturities. When a fund has paid for a put, the cost will be reflected
as unrealized depreciation on the underlying security for the period the put is
held. Any gain on the sale of the underlying security will be reduced by the
cost of the put.

There is a risk that the seller of an obligation with a put attached will not be
able to repurchase the underlying obligation when (or if) a fund attempts to
exercise the put. To minimize such risks, the funds will purchase obligations
with puts attached only from sellers deemed creditworthy by the portfolio
managers under the direction of the Board of Directors.

Other Investment Companies

Each of the funds may invest in other investment companies, such as mutual
funds, provided that the investment is consistent with the fund's investment
policies and restrictions. Under the Investment Company Act, a fund's investment
in such securities, subject to certain exceptions, currently is limited to

*  3% of the total voting stock of any one investment company;

*  5% of the fund's total assets with respect to any one investment company;
   and

*  10% of a fund's total assets in the aggregate.

A fund's investments in other investment companies may include money market
funds managed by the advisor. Investments in money market funds are not subject
to the percentage limitations set forth above.

Such purchases will be made in the open market where no commission or profit to
a sponsor or dealer results from the purchase other than the customary brokers'
commissions. As a shareholder of another investment company, a fund would bear,
along with other shareholders, its pro rata portion of the other investment
company's expenses, including advisory fees. These expenses would be in addition
to the management fee that each fund bears directly in connection with its own
operations.

Each fund may invest in exchange traded funds (ETFs), such as Standard & Poor's
Depositary Receipts (SPDRs) and the Lehman Aggregate Bond ETF, with the same
percentage limitations as investments in registered investment companies. ETFs
are a type of fund bought and sold on a securities exchange. An ETF trades like
common stock and usually represents a fixed portfolio of securities designed to
track the performance and dividend yield of a particular domestic or foreign
market index. A fund may purchase an ETF to temporarily gain exposure to a
portion of the U.S. or a foreign market while awaiting purchase of underlying
securities. The risks of owning an ETF generally reflect the risks of owning the
underlying securities they are designed to track, although the lack of liquidity
on an ETF could result in it being more volatile. Additionally, ETFs have
management fees, which increase their cost.


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21


Portfolio Lending

In order to realize additional income, a fund may lend its portfolio securities.
Such loans may not exceed one-third of the fund's total assets valued at market
except

*  through the purchase of debt securities in accordance with its investment

   objectives, policies and limitations, or

*  by engaging in repurchase agreements with respect to portfolio securities.

Repurchase Agreements

Each fund may invest in repurchase agreements when they present an attractive
short-term return on cash that is not otherwise committed to the purchase of
securities pursuant to the investment policies of that fund.

A repurchase agreement occurs when, at the time a fund purchases an
interest-bearing obligation, the seller (a bank or a broker-dealer registered
under the Securities Exchange Act of 1934) agrees to purchase it on a specified
date in the future at an agreed-upon price. The repurchase price reflects an
agreed-upon interest rate during the time the fund's money is invested in the
security.

Because the security purchased constitutes collateral for the repurchase
obligation, a repurchase agreement can be considered a loan collateralized by
the security purchased. The fund's risk is the seller's ability to pay the
agreed-upon repurchase price on the repurchase date. If the seller defaults, the
fund may incur costs in disposing of the collateral, which would reduce the
amount realized thereon. If the seller seeks relief under the bankruptcy laws,
the disposition of the collateral may be delayed or limited. To the extent the
value of the security decreases, the fund could experience a loss.

The funds will limit repurchase agreement transactions to securities issued by
the U.S. government and its agencies and instrumentalities, and will enter into
such transactions with those banks and securities dealers who are deemed
creditworthy by the funds' advisor.

Repurchase agreements maturing in more than seven days would count toward a
fund's 15% limit on illiquid securities.

Restricted and Illiquid Securities

The funds may, from time to time, purchase restricted or illiquid securities,
including Rule 144A securities, when they present attractive investment
opportunities that otherwise meet the funds' criteria for selection. Rule 144A
securities are securities that are privately placed with and traded among
qualified institutional investors rather than the general public. Although Rule
144A securities are considered restricted securities, they are not necessarily
illiquid.

With respect to securities eligible for resale under Rule 144A, the staff of the
Securities and Exchange Commission (SEC) has taken the position that the
liquidity of such securities in the portfolio of a fund offering redeemable
securities is a question of fact for the Board of Directors to determine, such
determination to be based upon a consideration of the readily available trading
markets and the review of any contractual restrictions. Accordingly, the Board
of Directors is responsible for developing and establishing the guidelines and
procedures for determining the liquidity of Rule 144A securities. As allowed by
Rule 144A, the Board of Directors has delegated the day-to-day function of
determining the liquidity of Rule 144A securities to the portfolio managers. The
board retains the responsibility to monitor the implementation of the guidelines
and procedures it has adopted.

Because the secondary market for restricted securities is generally limited to
certain qualified institutional investors, the liquidity of such securities may
be limited accordingly and a fund may, from time to time, hold a Rule 144A or
other security that is illiquid. In such an event, the portfolio managers will
consider appropriate remedies to minimize the effect on such fund's liquidity.


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22


Short Sales

A fund may engage in short sales for cash management purposes only if, at the
time of the short sale, the fund owns or has the right to acquire securities
equivalent in kind and amount to the securities being sold short.

In a short sale, the seller does not immediately deliver the securities sold and
is said to have a short position in those securities until delivery occurs. To
make delivery to the purchaser, the executing broker borrows the securities
being sold short on behalf of the seller. While the short position is
maintained, the seller collateralizes its obligation to deliver the securities
sold short in an amount equal to the proceeds of the short sale plus an
additional margin amount established by the Board of Governors of the Federal
Reserve. If a fund engages in a short sale, the fund's custodian will segregate
cash, cash equivalents or other appropriate liquid securities on its records in
an amount sufficient to meet the purchase price. There will be certain
additional transaction costs associated with short sales, but the fund will
endeavor to offset these costs with income from the investment of the cash
proceeds of short sales.

Short-Term Securities

In order to meet anticipated redemptions, anticipated purchases of additional
securities for a fund's portfolio, or, in some cases, for temporary defensive
purposes, these funds may invest a portion of their assets in money market and
other short-term securities.

Examples of those securities include:

*  Securities issued or guaranteed by the U.S. government and its agencies
   and instrumentalities

*  Commercial Paper

*  Certificates of Deposit and Euro Dollar Certificates of Deposit

*  Bankers' Acceptances

*  Short-term notes, bonds, debentures or other debt instruments

*  Repurchase agreements

*  Money market funds


Swap Agreements


Each fund may invest in swap agreements, consistent with its investment
objective and strategies. A fund may enter into a swap agreement in order to,
for example, attempt to obtain or preserve a particular return or spread at a
lower cost than obtaining a return or spread through purchases and/or sales of
instruments in other markets; protect against currency fluctuations; attempt to
manage duration to protect against any increase in the price of securities the
fund anticipates purchasing at a later date; or gain exposure to certain markets
in the most economical way possible.

Swap agreements are two-party contracts entered into primarily by institutional
investors for periods ranging from a few weeks to more than one year. In a
standard "swap" transaction, two parties agree to exchange the returns (or
differentials in rates of return) earned or realized on particular predetermined
investments or instruments, which may be adjusted for an interest factor. The
gross returns to be exchanged or "swapped" between the parties are generally
calculated with respect to a "notional amount," i.e., the return on or increase
in value of a particular dollar amount invested at a particular interest rate,
in a particular foreign currency, or in a "basket" of securities representing a
particular index. Forms of swap agreements include, for example, interest rate
swaps, under which fixed- or floating-rate interest payments on a specific
principal amount are exchanged and total return swaps, under which one party
agrees to pay the other the total return of a defined underlying asset (usually
an index, stock, bond or defined portfolio of loans and mortgages) in exchange
for fee payments, often a variable stream of cashflows based on LIBOR.


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23


The funds may enter into credit default swap agreements to hedge an existing
position by purchasing or selling credit protection. Credit default swaps enable
an investor to buy/sell protection against a credit event of a specific issuer.
The seller of credit protection against a security or basket of securities
receives an up-front or periodic payment to compensate against potential default
event(s). The fund may enhance returns by selling protection or attempt to
mitigate credit risk by buying protection. Market supply and demand factors may
cause distortions between the cash securities market and the credit default swap
market.

Whether a fund's use of swap agreements will be successful depends on the
advisor's ability to predict correctly whether certain types of investments are
likely to produce greater returns than other investments. Interest rate swaps
could result in losses if interest rate changes are not correctly anticipated by
the fund. Total return swaps could result in losses if the reference index,
security, or investments do not perform as anticipated by the fund. Credit
default swaps could result in losses if the fund does not correctly evaluate the
creditworthiness of the issuer on which the credit default swap is based.
Because they are two-party contracts and because they may have terms of greater
than seven days, swap agreements may be considered to be illiquid. Moreover, a
fund bears the risk of loss of the amount expected to be received under a swap
agreement in the event of the default or bankruptcy of a swap agreement
counterparty. The funds will enter into swap agreements only with counterparties
that meet certain standards of creditworthiness. Certain restrictions imposed on
the funds by the Internal Revenue Code may limit the funds' ability to use swap
agreements. The swaps market is a relatively new market and is largely
unregulated. It is possible that developments in the swaps market, including
potential government regulation, could adversely affect a fund's ability to
terminate existing swap agreements or to realize amounts to be received under
such agreements.

Tender Option Bonds

Tender Option Bonds (TOBs) were created to increase the supply of high-quality,
short-term tax-exempt obligations, and thus they are of particular interest to
money market funds. However, Capital Value may purchase these instruments.

TOBs are created by municipal bond dealers who purchase long-term tax-exempt
bonds in the secondary market, place the certificates in trusts, and sell
interests in the trusts with puts or other liquidity guarantees attached. The
credit quality of the resulting synthetic short-term instrument is based on the
put provider's short-term rating and the underlying bond's long-term rating.

There is some risk that a remarketing agent will renege on a tender option
agreement if the underlying bond is downgraded or defaults. Because of this, the
portfolio managers monitor the credit quality of bonds underlying the funds' TOB
holdings and intend to sell or put back any TOB if the rating on the underlying
bond falls below the second-highest rating category designated by a rating
agency.

TRACERS(sm)/TRAINS(sm)

Balanced may invest in TRACERS and TRAINS which represent ownership of a
specified percentage of each security in an underlying pool of securities.
Owners are entitled to receive a pro rata share of distributions from the
underlying securities. In the event an underlying security is downgraded by a
rating agency, that portion of the investment product will be redeemed and the
underlying security will be distributed to the owner pro rata or the owner may
receive cash proceeds. The risk of owning these products are the same as owning
the individual securities, but enable the fund to be more diversified by owning
a single security.


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24


U.S. Government Securities

U.S. Treasury bills, notes, zero-coupon bonds and other bonds are direct
obligations of the U.S. Treasury, which has never failed to pay interest and
repay principal when due. Treasury bills have initial maturities of one year or
less, Treasury notes from two to 10 years, and Treasury bonds more than 10
years. Although U.S. Treasury securities carry little principal risk if held to
maturity, the prices of these securities (like all debt securities) change
between issuance and maturity in response to fluctuating market interest rates.

A number of U.S. government agencies and instrumentalities issue debt
securities. These agencies generally are created by Congress to fulfill a
specific need, such as providing credit to home buyers or farmers. Among these
agencies are the Federal Home Loan Banks, the Federal Farm Credit Banks, the
Student Loan Marketing Association and the Resolution Funding Corporation.

Some agency securities are backed by the full faith and credit of the U.S.
government, and some are guaranteed only by the issuing agency. Agency
securities typically offer somewhat higher yields than U.S. Treasury securities
with similar maturities. However, these securities may involve greater risk of
default than securities backed by the U.S. Treasury.

Interest rates on agency securities may be fixed for the term of the investment
(fixed-rate agency securities) or tied to prevailing interest rates
(floating-rate agency securities). Interest rate resets on floating-rate agency
securities generally occur at intervals of one year or less, based on changes in
a predetermined interest rate index.

Floating-rate agency securities frequently have caps limiting the extent to
which coupon rates can be raised. The price of a floating-rate agency security
may decline if its capped coupon rate is lower than prevailing market interest
rates. Fixed- and floating-rate agency securities may be issued with a call date
(which permits redemption before the maturity date). The exercise of a call may
reduce an obligation's yield to maturity.

Interest Rate Resets on Floating-Rate U.S. Government Agency Securities

Interest rate resets on floating-rate U.S. government agency securities
generally occur at intervals of one year or less in response to changes in a
predetermined interest rate index. There are two main categories of indices:
those based on U.S. Treasury securities and those derived from a calculated
measure, such as a cost-of-funds index. Commonly used indices include the
three-month, six-month and one-year Treasury bill rates; the two-year Treasury
note yield; the Eleventh District Federal Home Loan Bank Cost of Funds Index
(EDCOFI); and the London Interbank Offered Rate (LIBOR). Fluctuations in the
prices of floating-rate U.S. government agency securities are typically
attributed to differences between the coupon rates on these securities and
prevailing market interest rates between interest rate reset dates.

Variable- and Floating-Rate Obligations

Variable- and floating-rate demand obligations (VRDOs and FRDOs) carry rights
that permit holders to demand payment of the unpaid principal plus accrued
interest, from the issuers or from financial intermediaries. Floating-rate
securities, or floaters, have interest rates that change whenever there is a
change in a designated base rate; variable-rate instruments provide for a
specified, periodic adjustment in the interest rate, which typically is based on
an index. These rate formulas are designed to result in a market value for the
VRDO or FRDO that approximates par value.

When-Issued and Forward Commitment Agreements

The funds may sometimes purchase new issues of securities on a when-issued or
forward commitment basis in which the transaction price and yield are each fixed
at the time the commitment is made, but payment and delivery occur at a future
date.


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25


For example, a fund may sell a security and at the same time make a commitment
to purchase the same or a comparable security at a future date and specified
price. Conversely, a fund may purchase a security and at the same time make a
commitment to sell the same or a comparable security at a future date and
specified price. These types of transactions are executed simultaneously in what
are known as dollar-rolls, buy/sell back transactions, cash and carry, or
financing transactions. For example, a broker-dealer may seek to purchase a
particular security that a fund owns. The fund will sell that security to the
broker-dealer and simultaneously enter into a forward commitment agreement to
buy it back at a future date. This type of transaction generates income for the
fund if the dealer is willing to execute the transaction at a favorable price in
order to acquire a specific security.

When purchasing securities on a when-issued or forward commitment basis, a fund
assumes the rights and risks of ownership, including the risks of price and
yield fluctuations. Market rates of interest on debt securities at the time of
delivery may be higher or lower than those contracted for on the when-issued
security. Accordingly, the value of that security may decline prior to delivery,
which could result in a loss to the fund. While the fund will make commitments
to purchase or sell securities with the intention of actually receiving or
delivering them, it may sell the securities before the settlement date if doing
so is deemed advisable as a matter of investment strategy.

In purchasing securities on a when-issued or forward commitment basis, a fund
will segregate cash, cash equivalents or other appropriate liquid securities on
its record in an amount sufficient to meet the purchase price. To the extent a
fund remains fully invested or almost fully invested at the same time it has
purchased securities on a when-issued basis, there will be greater fluctuations
in its net asset value than if it solely set aside cash to pay for when-issued
securities. When the time comes to pay for the when-issued securities, the fund
will meet its obligations with available cash, through the sale of securities,
or, although it would not normally expect to do so, by selling the when-issued
securities themselves (which may have a market value greater or less than the
fund's payment obligation). Selling securities to meet when-issued or forward
commitment obligations may generate taxable capital gains or losses.

Zero-Coupon and Step-Coupon Securities

The funds may purchase zero-coupon debt securities. Zero-coupon securities do
not make regular cash interest payments, and are sold at a deep discount to
their face value.

The fund may also purchase step-coupon or step-rate debt securities. Instead of
having a fixed coupon for the life of the security, coupon or interest payments
may increase to predetermined rates at future dates. The issuer generally
retains the right to call the security. Some step-coupon securities are issued
with no coupon payments at all during an initial period, and only become
interest-bearing at a future date; these securities are sold at a deep discount
to their face value.

Although zero-coupon and certain step-coupon securities may not pay current cash
income, federal income tax law requires the holder to include in income each
year the portion of any original issue discount and other noncash income on such
securities accrued during that year. In order to continue to qualify for
treatment as a regulated investment company under the Internal Revenue Code and
avoid certain excise tax, the funds are required to make distributions of any
original issue discount and other noncash income accrued for each year.
Accordingly, the funds may be required to dispose of other portfolio securities,
which may occur in periods of adverse market prices, in order to generate a case
to meet these distribution requirements.

INVESTMENT POLICIES

Unless otherwise indicated, with the exception of the percentage limitations on
borrowing, the policies described below apply at the time a fund enters into a
transaction. Accordingly, any later increase or decrease beyond the specified
limitation resulting from a change in a fund's assets will not be considered in
determining whether it has complied with its investment policies.


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26


For purposes of a fund's investment policies, the party identified as the
"issuer" of a municipal security depends on the form and conditions of the
security. When the assets and revenues of a political subdivision are separate
from those of the government that created the subdivision and the security is
backed only by the assets and revenues of the subdivision, the subdivision is
deemed the sole issuer. Similarly, in the case of an Industrial Development
Bond, if the bond were backed only by the assets and revenues of a
non-governmental user, the non-governmental user would be deemed the sole
issuer. If, in either case, the creating government or some other entity were to
guarantee the security, the guarantee would be considered a separate security
and treated as an issue of the guaranteeing entity.

Fundamental Investment Policies

The funds' fundamental investment policies are set forth below. These investment
policies and the funds' investment objectives set forth in their prospectuses
may not be changed without approval of a majority of the outstanding votes of
shareholders of a fund, as determined in accordance with the Investment Company
Act.

SUBJECT                POLICY
- --------------------------------------------------------------------------------
Senior                 A fund may not issue senior securities, except as
Securities             permitted under the Investment Company Act.
- --------------------------------------------------------------------------------
Borrowing              A fund may not borrow money, except that a fund
                       may borrow for temporary or emergency purposes
                       (not for leveraging or investment) in an amount not
                       exceeding 33-1/3% of the fund's total assets (including
                       the amount borrowed) less liabilities (other than
                       borrowings).
- --------------------------------------------------------------------------------
Lending                A fund may not lend any security or make any
                       other loan if, as a result, more than 33-1/3% of the
                       fund's total assets would be lent to other parties,
                       except (i) through the purchase of debt securities
                       in accordance with its investment objective, policies
                       and limitations or (ii) by engaging in repurchase
                       agreements with respect to portfolio securities.
- --------------------------------------------------------------------------------
Real Estate            A fund may not purchase or sell real estate unless
                       acquired as a result of ownership of securities or
                       other instruments. This policy shall not prevent a
                       fund from investing in securities or other instruments
                       backed by real estate or securities of companies that
                       deal in real estate or are engaged in the real estate
                       business.
- --------------------------------------------------------------------------------
Concentration          A fund (except Focused Growth and Veedot) may not
                       concentrate its investments in securities of issuers
                       in a particular industry (other than securities issued
                       or guaranteed by the U.S. government or any of its
                       agencies or instrumentalities).
- --------------------------------------------------------------------------------
Underwriting           A fund may not act as an underwriter of securities
                       issued by others, except to the extent that the fund
                       may be considered an underwriter within the meaning
                       of the Securities Act of 1933 in the disposition of
                       restricted securities.
- --------------------------------------------------------------------------------
Commodities            A fund may not purchase or sell physical commodities
                       unless acquired as a result of ownership of securities
                       or other instruments, provided that this limitation
                       shall not prohibit the fund from purchasing or selling
                       options and futures contracts or from investing in
                       securities or other instruments backed by physical
                       commodities.
- --------------------------------------------------------------------------------
Control                A fund may not invest for purposes of exercising
                       control over management.
- --------------------------------------------------------------------------------

For purposes of the investment policies relating to lending and borrowing, the
funds have received an exemptive order from the SEC regarding an interfund
lending program. Under the terms of the exemptive order, the funds may borrow
money from or lend money to other American Century-advised funds that permit
such transactions. All such transactions will be subject to the limits for
borrowing and lending set forth above. The funds will borrow money through the
program only when the costs are equal to or lower than the costs of short-term
bank loans. Interfund loans and borrowings normally extend only overnight, but
can have a maximum duration of seven days. The funds will lend through the
program only when the returns are higher than those available from other
short-term instruments (such as repurchase agreements). The funds may have to


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27



borrow from a bank at a higher interest rate if an interfund loan is called or
not renewed. Any delay in repayment to a lending fund could result in a lost
investment opportunity or additional borrowing costs. For purposes of the funds'
investment policy relating to borrowing, short positions held by the funds are
not considered borrowings.

For purposes of the investment policy relating to concentration, a fund shall
not purchase any securities that would cause 25% or more of the value of the
fund's total assets at the time of purchase to be invested in the securities of
one or more issuers conducting their principal business activities in the same
industry, provided that

(a)  there is no limitation with respect to obligations issued or
     guaranteed by the U.S. government, any state, territory or possession of
     the United States, the District of Columbia or any of their authorities,
     agencies, instrumentalities or political subdivisions and repurchase
     agreements secured by such obligations,

(b)  wholly owned finance companies will be considered to be in the
     industries of their parents if their activities are primarily related to
     financing the activities of their parents,

(c)  utilities will be divided according to their services, for example,
     gas, gas transmission, electric and gas, electric, and telephone will each
     be considered a separate industry, and

(d)  personal credit and business credit businesses will be considered
     separate industries.

Nonfundamental Investment Policies

In addition, the funds are subject to the following investment policies that are
not fundamental and may be changed by the Board of Directors.

SUBJECT            POLICY
- --------------------------------------------------------------------------------
Leveraging         A fund may not purchase additional investment
                   securities at any time during which outstanding
                   borrowings exceed 5% of the total assets of the fund.
- --------------------------------------------------------------------------------
Liquidity          A fund may not purchase any security or enter into a
                   repurchase agreement if, as a result, more than 15%
                   of its net assets would be invested in illiquid securities.
                   Illiquid securities include repurchase agreements not
                   entitling the holder to payment of principal and interest
                   within seven days, and securities that are illiquid by
                   virtue of legal or contractual restrictions on resale or the
                   absence of a readily available market.
- --------------------------------------------------------------------------------
Short Sales        A fund may not sell securities short, unless it owns or
                   has the right to obtain securities equivalent in kind and
                   amount to the securities sold short, and provided that
                   transactions in futures contracts and options are not
                   deemed to constitute selling securities short.
- --------------------------------------------------------------------------------
Margin             A fund may not purchase securities on margin, except
                   to obtain such short-term credits as are necessary
                   for the clearance of transactions, and provided that
                   margin payments in connection with futures contracts
                   and options on futures contracts shall not constitute
                   purchasing securities on margin.
- --------------------------------------------------------------------------------
Futures            A fund may enter into futures contracts and write and
and Options        buy put and call options relating to futures contracts.
                   A fund may not, however, enter into leveraged futures
                   transactions if it would be possible for the fund to lose
                   more than the notional value of the investment.
- --------------------------------------------------------------------------------
Issuers with       A fund may invest in the equity securities of issuers
Limited            with limited operating histories. See INVESTMENT IN ISSUERS
Operating          WITH LIMITED OPERATING HISTORIES under FUND INVESTMENTS AND
Histories          RISKS. An issuer is considered to have a limited operating
                   history if that issuer has a record of less than three years
                   of continuous operation. Periods of capital formation,
                   incubation, consolidations, and research and development
                   may be considered in determining whether a particular
                   issuer has a record of three years of continuous operation.
- --------------------------------------------------------------------------------

For purposes of the funds' investment policy relating to leveraging, short
positions held by the funds are not considered borrowings.


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28


The Investment Company Act imposes certain additional restrictions upon the
funds' ability to acquire securities issued by insurance companies,
broker-dealers, underwriters or investment advisors, and upon transactions with
affiliated persons as defined by the Act. It also defines and forbids the
creation of cross and circular ownership. Neither the SEC nor any other agency
of the federal or state government participates in or supervises the management
of the funds or their investment practices or policies.

TEMPORARY DEFENSIVE MEASURES

For temporary defensive purposes, each fund (except Balanced) may invest in
securities that may not fit its investment objective or its stated market.
During a temporary defensive period, a fund may invest a portion of its assets
in money market and other short-term securities.

Examples of those securities include:

*  securities issued or guaranteed by the U.S. government and its agencies
   and instrumentalities;

*  commercial paper;

*  interest-bearing bank accounts or certificates of deposit;

*  short-term notes, bonds, or other debt instruments;

*  repurchase agreements; and

*  money market funds.

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

PORTFOLIO TURNOVER

The portfolio turnover rate of each fund is listed in the Financial Highlights
table in that fund's prospectus.

Capital Value Fund

The portfolio managers of Capital Value seek to minimize realized capital gains
by keeping portfolio turnover low and generally holding portfolio investments
for long periods. Because a higher turnover rate may increase taxable capital
gains, the managers carefully weigh the potential benefits of short-term
investing against the tax impact such investing would have on the fund's
shareholders. However, the portfolio managers may sell securities to realize
losses that can be used to offset realized capital gains. They will take such
actions when they believe the tax benefits from realizing losses offset the
near-term investment potential of that security.

Other Funds

With respect to each other fund, the managers may sell securities without regard
to the length of time the security has been held. Accordingly, each fund's
portfolio turnover rate may be substantial.

The portfolio managers intend to purchase a given security whenever they believe
it will contribute to the stated objective of a particular fund. In order to
achieve each fund's investment objective, the managers may sell a given security
regardless of the length of time it has been held in the portfolio, and
regardless of the gain or loss realized on the sale. The managers may sell a
portfolio security if they believe that the security is not fulfilling its
purpose because, among other things, it did not live up to the managers'
expectations, because it may be replaced with another security holding greater
promise, because it has reached its optimum potential, because of a change in
the circumstances of a particular company or industry or in general economic
conditions, or because of some combination of such reasons.


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29


When a general decline in security prices is anticipated, the equity funds may
decrease or eliminate entirely their equity positions and increase their cash
positions, and when a general rise in price levels is anticipated, the equity
funds may increase their equity positions and decrease their cash positions.
However, it should be expected that the funds will, under most circumstances, be
essentially fully invested in equity securities.

Because investment decisions are based on a particular security's anticipated
contribution to a fund's investment objective, the managers believe that the
rate of portfolio turnover is irrelevant when they determine that a change is
required to pursue the fund's investment objective. As a result, a fund's annual
portfolio turnover rate cannot be anticipated and may be higher than that of
other mutual funds with similar investment objectives. Higher turnover would
generate correspondingly greater brokerage commissions, which is a cost the
funds pay directly. Portfolio turnover also may affect the character of capital
gains realized and distributed by the fund, if any, because short-term capital
gains are characterized as ordinary income.

Because the managers do not take portfolio turnover rate into account in making
investment decisions, (1) the managers have no intention of maintaining any
particular rate of portfolio turnover, whether high or low, and (2) the
portfolio turnover rates in the past should not be considered as representative
of the rates that will be attained in the future.

Variations in a fund's portfolio turnover rate from year to year may be due to a
fluctuating volume of shareholder purchase and redemption activity, varying
market conditions, and/or changes in the managers' investment outlook.

MANAGEMENT

The individuals listed below serve as directors or officers of the funds. Each
director serves until his or her successor is duly elected and qualified or
until he or she retires. Mandatory retirement age for independent directors is
72. Those listed as interested directors are "interested" primarily by virtue of
their engagement as directors and/or officers of, or ownership interest in,
American Century Companies, Inc. (ACC) or its wholly owned, direct or indirect,
subsidiaries, including the funds' investment advisor, American Century
Investment Management, Inc. (ACIM or the advisor); the funds' principal
underwriter, American Century Investment Services, Inc. (ACIS); and the funds'
transfer agent, American Century Services, LLC (ACS).

The other directors (more than three-fourths of the total number) are
independent; that is, they have never been employees, directors or officers of,
and have no financial interest in, ACC or any of its wholly owned, direct or
indirect, subsidiaries, including ACIM, ACIS and ACS. The directors serve in
this capacity for seven registered investment companies in the American Century
family of funds.

All persons named as officers of the funds also serve in similar capacities for
the other 14 investment companies advised by ACIM, or American Century Global
Investment Management, Inc. (ACGIM), a wholly owned subsidiary of ACIM, unless
otherwise noted. Only officers with policy-making functions are listed. No
officer is compensated for his or her service as an officer of the funds. The
listed officers are interested persons of the funds and appointed or
re-appointed on an annual basis. The officers serve in similar capacities for
the other 14 registered investment companies advised by ACIM.


- ------
30



Interested Director
- --------------------------------------------------------------------------------
JAMES E. STOWERS, JR., 4500 Main Street, Kansas City, MO 64111

YEAR OF BIRTH: 1924

POSITION(S) HELD WITH FUNDS: Director, Vice Chairman

FIRST YEAR OF SERVICE: 1958

PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Founder, Co-Chairman,  Director and
Controlling  Shareholder,  ACC; Co-Vice Chairman,  ACC (January 2005 to February
2007);  Chairman,  ACC (January 1995 to December 2004);  Director,  ACIM, ACGIM,
ACS, ACIS and other ACC subsidiaries

NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66

OTHER DIRECTORSHIPS HELD BY DIRECTOR: None
- --------------------------------------------------------------------------------



Independent Directors
- --------------------------------------------------------------------------------
THOMAS A. BROWN, 4500 Main Street, Kansas City, MO 64111

YEAR OF BIRTH: 1940

POSITION(S) HELD WITH FUNDS: Director

FIRST YEAR OF SERVICE: 1980

PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Retired, formerly Chief Executive
Officer/ Treasurer, ASSOCIATED BEARINGS COMPANY

NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66

OTHER DIRECTORSHIPS HELD BY DIRECTOR: None
- --------------------------------------------------------------------------------
ANDREA C. HALL, PH.D., 4500 Main Street, Kansas City, MO 64111

YEAR OF BIRTH: 1945

POSITION(S) HELD WITH FUNDS: Director

FIRST YEAR OF SERVICE: 1997

PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Retired, Advisor to the President,
MIDWEST RESEARCH INSTITUTE

NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66

OTHER DIRECTORSHIPS HELD BY DIRECTOR: None
- --------------------------------------------------------------------------------
D.D. (DEL) HOCK, 4500 Main Street, Kansas City, MO 64111

YEAR OF BIRTH: 1935

POSITION(S) HELD WITH FUNDS: Director

FIRST YEAR OF SERVICE: 1996

PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Retired, formerly Chairman, PUBLIC
SERVICE COMPANY OF COLORADO

NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66

OTHER DIRECTORSHIPS HELD BY DIRECTOR: Director, ALLIED MOTION TECHNOLOGIES, INC.
- --------------------------------------------------------------------------------
JAMES A. OLSON, 4500 Main Street, Kansas City, MO 64111

YEAR OF BIRTH: 1942

POSITION(S) HELD WITH FUNDS: Advisory Board Member

FIRST YEAR OF SERVICE: 2006

PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Principal, PLAZA BELMONT LLC, Chief
Financial Officer, PLAZA BELMONT LLC (September 1999 to December 2006)

NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66

OTHER DIRECTORSHIPS HELD BY DIRECTOR: Director, SAIA, INC. and ENTERTAINMENT
PROPERTIES TRUST
- --------------------------------------------------------------------------------
DONALD H. PRATT, 4500 Main Street, Kansas City, MO 64111

YEAR OF BIRTH: 1937

POSITION(S) HELD WITH FUNDS: Director, Chairman of the Board

FIRST YEAR OF SERVICE: 1995

PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chairman, WESTERN INVESTMENTS,
INC.; Retired Chairman of the Board, BUTLER MANUFACTURING COMPANY

NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66

OTHER DIRECTORSHIPS HELD BY DIRECTOR: None
- --------------------------------------------------------------------------------



- ------
31


GALE E. SAYERS, 4500 Main Street, Kansas City, MO 64111

YEAR OF BIRTH: 1943

POSITION(S) HELD WITH FUNDS: Director

FIRST YEAR OF SERVICE: 2000

PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President, Chief Executive Officer
and Founder, SAYERS40, INC., a technology products and services provider

NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66

OTHER DIRECTORSHIPS HELD BY DIRECTOR: Director, TRIAD HOSPITALS, INC.
- --------------------------------------------------------------------------------
M. JEANNINE STRANDJORD, 4500 Main Street, Kansas City, MO 64111

YEAR OF BIRTH: 1945

POSITION(S) HELD WITH FUNDS: Director

FIRST YEAR OF SERVICE: 1994

PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Retired, formerly Senior Vice
President, SPRINT CORPORATION

NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66

OTHER DIRECTORSHIPS HELD BY DIRECTOR: Director, DST SYSTEMS, INC.; Director,
EURONET WORLDWIDE, INC.
- --------------------------------------------------------------------------------
TIMOTHY S. WEBSTER, 4500 Main Street, Kansas City, MO 64111

YEAR OF BIRTH: 1961

POSITION(S) HELD WITH FUNDS: Director

FIRST YEAR OF SERVICE: 2001

PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Managing Director, TDB ACQUISITION
GROUP LLC (September 2006 to present); President and Chief Executive Officer,
AMERICAN ITALIAN PASTA COMPANY (1992 to December 2005)

NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR: 66

OTHER DIRECTORSHIPS HELD BY DIRECTOR: None
- --------------------------------------------------------------------------------

Officers
- --------------------------------------------------------------------------------
JONATHAN THOMAS, 4500 Main Street, Kansas City, MO 64111

YEAR OF BIRTH: 1963

POSITION(S) HELD WITH FUNDS: President

FIRST YEAR OF SERVICE: 2005

PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President and Chief Executive
Officer, ACC (March 2007 to present), Chief Administrative Officer, ACC
(February 2006 to February 2007); Executive Vice President, ACC (November 2005
to February 2007). Also serves as: President, Chief Executive Officer and
Director, ACS; Executive Vice President, ACIM and ACGIM; Director, ACIM, ACGIM,
ACIS and other ACC subsidiaries; Managing Director, MORGAN STANLEY (March 2000
to November 2005)
- --------------------------------------------------------------------------------
MARYANNE ROEPKE, 4500 Main Street, Kansas City, MO 64111

YEAR OF BIRTH: 1956

POSITION(S) HELD WITH FUNDS: Chief Compliance Officer and Senior Vice President

FIRST YEAR OF SERVICE: 2000

PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Compliance Officer, ACIM,
ACGIM AND ACS (August 2006 to present); Assistant Treasurer, ACC (January 1995
to August 2006); and Treasurer and Chief Financial Officer, various American
Century funds (July 2000 to August 2006). Also serves as: Senior Vice President,
ACS
- --------------------------------------------------------------------------------
DAVID C. TUCKER, 4500 Main Street, Kansas City, MO 64111

YEAR OF BIRTH: 1958

POSITION(S) HELD WITH FUNDS: Senior Vice President and General Counsel

FIRST YEAR OF SERVICE: 2000

PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President, ACC (February 2001
to present); General Counsel, ACC (June 1998 to present). Also serves as: Senior
Vice President and General Counsel, ACIM, ACGIM, ACS, ACIS and other ACC
subsidiaries
- --------------------------------------------------------------------------------


- ------
32


ROBERT LEACH, 4500 Main Street, Kansas City, MO 64111

YEAR OF BIRTH: 1966

POSITION(S) HELD WITH FUNDS: Vice President, Treasurer and Chief Financial
Officer

FIRST YEAR OF SERVICE: 1997

PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President, ACS (February 2000
to present); and Controller, various American Century funds (1997 to September
2006)
- --------------------------------------------------------------------------------
C. JEAN WADE, 4500 Main St., Kansas City, MO 64111

YEAR OF BIRTH: 1964

POSITION(S) HELD WITH FUNDS: Controller

FIRST YEAR OF SERVICE: 2006

PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President, ACS (February 2000
to present)
- --------------------------------------------------------------------------------
JON ZINDEL, 4500 Main Street, Kansas City, MO 64111

YEAR OF BIRTH: 1967

POSITION(S) HELD WITH FUNDS: Tax Officer

FIRST YEAR OF SERVICE: 1997

PRINCIPAL  OCCUPATION(S)  DURING PAST 5 YEARS: Chief Financial Officer and Chief
Accounting Officer,  ACC (March 2007 to present);  Vice President,  ACC (October
2001 to present);  Vice  President,  certain ACC  subsidiaries  (October 2001 to
August 2006);  Vice  President,  Corporate Tax, ACS (April 1998 to August 2006).
Also serves as: Chief Financial  Officer,  Chief  Accounting  Officer and Senior
Vice President, ACIM, ACGIM, ACS, ACIS and other ACC subsidiaries
- --------------------------------------------------------------------------------

On December 23, 1999, American Century Services, LLC (ACS) entered into an
agreement with DST Systems, Inc. (DST) under which DST would provide back-office
software and support services for transfer agency services provided by ACS (the
Agreement). ACS pays DST fees based in part on the number of accounts and the
number and type of transactions processed for those accounts. Through December
31, 2006, DST received $22,142,003 in fees from ACS. DST's total revenue for the
calendar year ended December 31, 2006, was approximately $2.24 billion.

Ms. Strandjord is a director of DST and a holder of 35,383 shares and possesses
options to acquire an additional 55,875 shares of DST common stock, the sum of
which is less than one percent (1%) of the shares outstanding. Because of her
official duties as a director of DST, she may be deemed to have an "indirect
interest" in the Agreement. However, the Board of Directors of the funds was not
required to nor did it approve or disapprove the Agreement, since the provision
of the services covered by the Agreement is within the discretion of ACS. DST
was chosen by ACS for its industry-leading role in providing cost-effective
back-office support for mutual fund service providers such as ACS. DST is the
largest mutual fund transfer agent, servicing more than 75 million mutual fund
accounts on its shareholder recordkeeping system. Ms. Strandjord's role as a
director of DST was not considered by ACS; she was not involved in any way with
the negotiations between ACS and DST; and her status as a director of either DST
or the funds was not a factor in the negotiations. The Board of Directors of the
funds and Bryan Cave LLP, counsel to the independent directors of the funds,
have concluded that the existence of this Agreement does not impair Ms.
Strandjord's ability to serve as an independent director under the Investment
Company Act.


- ------
33


THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the funds and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the funds, it has hired the advisor to do so. The
directors, in carrying out their fiduciary duty under the Investment Company
Act, are responsible for approving new and existing management contracts with
the funds' advisor.

The board has the authority to manage the business of the funds on behalf of
their investors, and it has all powers necessary or convenient to carry out that
responsibility. Consequently, the directors may adopt bylaws providing for the
regulation and management of the affairs of the funds and may amend and repeal
them to the extent that such bylaws do not reserve that right to the funds'
investors. They may fill vacancies in or reduce the number of board members, and
may elect and remove such officers and appoint and terminate such agents as they
consider appropriate. They may appoint from their own number and establish and
terminate one or more committees consisting of two or more directors who may
exercise the powers and authority of the board to the extent that the directors
determine. They may, in general, delegate such authority as they consider
desirable to any officer of the funds, to any committee of the board, to any
agent or employee of the funds, or to any custodian, transfer or investor
servicing agent, or principal underwriter. Any determination as to what is in
the interests of the funds made by the directors in good faith shall be
conclusive.

The Advisory Board

The funds also have an Advisory Board. Members of the Advisory Board, if any,
function like fund directors in many respects, but do not possess voting power.
Advisory Board members attend all meetings of the Board of Directors and the
independent directors and receive any materials distributed in connection with
such meetings. Advisory Board members may be considered as candidates to fill
vacancies on the Board of Directors.

Committees

The board has five standing committees to oversee specific functions of the
funds' operations. Information about these committees appears in the table
below. The director first named serves as chairman of the committee.


- --------------------------------------------------------------------------------
COMMITTEE: Executive

MEMBERS: Donald H. Pratt, M. Jeannine Strandjord

FUNCTION: The Executive Committee performs the functions of the Board of
Directors between board meetings, subject to the limitations on its power set
out in the Maryland General Corporation Law, and except for matters required by
the Investment Company Act to be acted upon by the whole board.

NUMBER OF MEETINGS HELD DURING LAST FISCAL YEAR: 0
- --------------------------------------------------------------------------------
COMMITTEE: Compliance and Shareholder Communications

MEMBERS: M. Jeannine Strandjord, Andrea C. Hall, Ph.D., James A. Olson(1)

FUNCTION: The Compliance and Shareholder Communications Committee reviews the
results of the funds' compliance testing program, reviews quarterly reports from
the communications advisor to the board regarding various compliance matters and
monitors the implementation of the funds' Code of Ethics, including any
violations.

NUMBER OF MEETINGS HELD DURING LAST FISCAL YEAR: 4
- --------------------------------------------------------------------------------
COMMITTEE: Audit

MEMBERS: Thomas A. Brown, D.D. (Del) Hock, Donald H. Pratt, Gale E. Sayers

FUNCTION: The Audit Committee approves the engagement of the funds' independent
registered public accounting firm, recommends approval of such engagement to the
independent directors, and oversees the activities of the funds' independent
registered public accounting firm. The committee receives reports from the
advisor's Internal Audit Department, which is accountable to the committee. The
committee also receives reporting about compliance matters affecting the funds.

NUMBER OF MEETINGS HELD DURING LAST FISCAL YEAR: 4
- --------------------------------------------------------------------------------



- ------
34



COMMITTEE: Governance

MEMBERS: Donald H. Pratt, Andrea C. Hall, Ph.D., Gale E. Sayers

FUNCTION: The Governance Committee primarily considers and recommends
individuals for nomination as directors. The names of potential director
candidates are drawn from a number of sources, including recommendations from
members of the board, management (in the case of interested directors only) and
shareholders. See NOMINATIONS OF DIRECTORS below. This committee also reviews
and makes recommendations to the board with respect to the composition of board
committees and other board-related matters, including its organization, size,
composition, responsibilities, functions and compensation.

NUMBER OF MEETINGS HELD DURING LAST FISCAL YEAR: 2
- --------------------------------------------------------------------------------
COMMITTEE: Fund Performance Review

MEMBERS: Timothy S. Webster, Thomas A. Brown, Andrea C. Hall, Ph.D., D.D. (Del)
Hock, James A. Olson(1), Donald H. Pratt, Gale E. Sayers, M. Jeannine
Strandjord

FUNCTION: The Fund Performance Review Committee reviews quarterly the investment
activities and strategies used to manage fund assets. The committee regularly
receives reports from portfolio managers and other investment personnel
concerning the funds' investments.

NUMBER OF MEETINGS HELD DURING LAST FISCAL YEAR: 4
- --------------------------------------------------------------------------------

(1)  ADVISORY BOARD MEMBER.

Nominations of Directors

As indicated in the table above, the Governance Committee is responsible for
identifying, evaluating and recommending qualified candidates for election to
the funds' Board of Directors. While the Governance Committee largely considers
nominees from searches that it conducts, the Committee will consider director
candidates submitted by shareholders. Any shareholder wishing to submit a
candidate for consideration should send the following information to the
Corporate Secretary, American Century Funds, P.O. Box 410141, Kansas City, MO
64141 or by email to corporatesecretary@americancentury.com:

*  Shareholder's name, the fund name and number of fund shares owned and
   length of period held;

*  Name, age and address of the candidate;

*  A detailed resume describing, among other things, the candidate's
   educational background, occupation, employment history, financial knowledge
   and expertise and material outside commitments (e.g., memberships on other
   boards and committees, charitable foundations, etc.);

*  Any other information relating to the candidate that is required to be
   disclosed in solicitations of proxies for election of directors in an
   election contest pursuant to Regulation 14A under the Securities Exchange Act
   of 1934;

*  Number of fund shares owned by the candidate and length of time held;

*  A supporting statement which (i) describes the candidate's reasons for
   seeking election to the Board of Directors and (ii) documents his/her ability
   to satisfy the director qualifications described in the board's policy; and

*  A signed statement from the candidate confirming his/her willingness to
   serve on the Board of Directors.

The Corporate Secretary will promptly forward such materials to the Governance
Committee chairman. The Corporate Secretary also will maintain copies of such
materials for future reference by the Governance Committee when filling board
positions.

Shareholders may submit potential director candidates at any time pursuant to
these procedures. The Governance Committee will consider such candidates if a
vacancy arises or if the board decides to expand its membership, and at such
other times as the Governance Committee deems necessary or appropriate.

Compensation of Directors

The directors serve as directors for seven American Century investment
companies. Each director who is not an interested person as defined in the
Investment Company Act receives compensation for service as a member of the
board of all such companies based on a schedule that takes into account the
number of meetings attended and the assets of


- ------
35


the funds for which the meetings are held. These fees and expenses are divided
among these investment companies based, in part, upon their relative net assets.
Under the terms of the management agreement with the advisor, the funds are
responsible for paying such fees and expenses.

The following table shows the aggregate compensation paid by the funds for the
periods indicated and by the investment companies served by the board to each
director who is not an interested person as defined in the Investment Company
Act.

AGGREGATE DIRECTOR COMPENSATION FOR FISCAL YEAR ENDED OCTOBER 31, 2006
                                                       TOTAL COMPENSATION FROM
                             TOTAL COMPENSATION        THE AMERICAN CENTURY
NAME OF DIRECTOR             FROM THE FUNDS (1)        FAMILY OF FUNDS (2)
- --------------------------------------------------------------------------------
Thomas A. Brown              $49,006                   $97,666
- --------------------------------------------------------------------------------
Andrea C. Hall, Ph.D.        $53,283                   $106,167
- --------------------------------------------------------------------------------
D.D. (Del) Hock              $53,283                   $106,167
- --------------------------------------------------------------------------------
James A. Olson(3)            $21,404                   $43,667
- --------------------------------------------------------------------------------
Donald H. Pratt              $68,875                   $137,167
- --------------------------------------------------------------------------------
Gale E. Sayers               $48,762                   $97,167
- --------------------------------------------------------------------------------
M. Jeannine Strandjord       $49,283                   $98,167
- --------------------------------------------------------------------------------
Timothy S. Webster           $53,542                   $106,667
- --------------------------------------------------------------------------------

(1)  INCLUDES COMPENSATION PAID TO THE DIRECTORS FOR THE FISCAL YEAR ENDED
     OCTOBER 31, 2006, AND ALSO INCLUDES AMOUNTS DEFERRED AT THE ELECTION OF THE
     DIRECTORS UNDER THE AMERICAN CENTURY MUTUAL FUNDS' INDEPENDENT DIRECTORS'
     DEFERRED COMPENSATION PLAN.

(2)  INCLUDES COMPENSATION PAID BY THE INVESTMENT COMPANIES OF THE AMERICAN
     CENTURY FAMILY OF FUNDS SERVED BY THIS BOARD AT THE END OF THE FISCAL YEAR.
     THE TOTAL AMOUNT OF DEFERRED COMPENSATION INCLUDED IN THE PRECEDING TABLE
     IS AS FOLLOWS: MR. BROWN, $17,533; DR. HALL, $96,667; MR. HOCK, $96,667;
     MR. OLSON, $43,667; MR. PRATT, $19,000; MR. SAYERS, $97,167; AND MR.
     WEBSTER, $27,433.

(3)  MR. OLSON WAS PAID AS AN ADVISORY BOARD MEMBER.

The funds have adopted the American Century Mutual Funds' Independent Directors'
Deferred Compensation Plan. Under the plan, the independent directors may defer
receipt of all or any part of the fees to be paid to them for serving as
directors of the funds.

All deferred fees are credited to an account established in the name of the
directors. The amounts credited to the account then increase or decrease, as the
case may be, in accordance with the performance of one or more of the American
Century funds that are selected by the director. The account balance continues
to fluctuate in accordance with the performance of the selected fund or funds
until final payment of all amounts credited to the account. Directors are
allowed to change their designation of mutual funds from time to time.

No deferred fees are payable until such time as a director resigns, retires or
otherwise ceases to be a member of the Board of Directors. Directors may receive
deferred fee account balances either in a lump sum payment or in substantially
equal installment payments to be made over a period not to exceed 10 years. Upon
the death of a director, all remaining deferred fee account balances are paid to
the director's beneficiary or, if none, to the director's estate.

The plan is an unfunded plan and, accordingly, the funds have no obligation to
segregate assets to secure or fund the deferred fees. To date, the funds have
voluntarily funded their obligations. The rights of directors to receive their
deferred fee account balances are the same as the rights of a general unsecured
creditor of the funds. The plan may be terminated at any time by the
administrative committee of the plan. If terminated, all deferred fee account
balances will be paid in a lump sum.

OWNERSHIP OF FUND SHARES

The directors owned shares in the funds as of December 31, 2006, as shown in the
table below.



- ------
36



                                                  NAME OF DIRECTORS
- ----------------------------------------------------------------------------------
                               JAMES E.        THOMAS A.  ANDREA C.    D.D. (DEL)
                               STOWERS, JR.    BROWN      HALL, PH.D.  HOCK
- ----------------------------------------------------------------------------------
Dollar Range of Equity
Securities in the Funds:
   Balanced                    A               C          C            A
- ----------------------------------------------------------------------------------
   Capital Growth              A               A          A            A
- ----------------------------------------------------------------------------------
   Capital Value               A               B          A            A
- ----------------------------------------------------------------------------------
   Focused Growth              A               B          A            A
- ----------------------------------------------------------------------------------
   Fundamental Equity          A               A          A            A
- ----------------------------------------------------------------------------------
   Giftrust                    A               A          A            A
- ----------------------------------------------------------------------------------
   Growth                      A               C          A            D
- ----------------------------------------------------------------------------------
   Heritage                    A               B          A            A
- ----------------------------------------------------------------------------------
Mid Cap Growth                 A               A          A            A
- ----------------------------------------------------------------------------------
   New Opportunities           A               C          C            A
- ----------------------------------------------------------------------------------
   New Opportunities II        A               A          A            A
- ----------------------------------------------------------------------------------
   NT Growth                   A               A          A            A
- ----------------------------------------------------------------------------------
   NT Vista                    A               A          A            A
- ----------------------------------------------------------------------------------
   Select                      A               C          A            D
- ----------------------------------------------------------------------------------
Small Cap Growth               A               A          A            A
- ----------------------------------------------------------------------------------
   Ultra                       A               C          A            D
- ----------------------------------------------------------------------------------
   Veedot                      A               C          A            D
- ----------------------------------------------------------------------------------
   Vista                       A               C          E            E
- ----------------------------------------------------------------------------------
Aggregate Dollar
Range of Equity
Securities in all
Registered Investment
Companies Overseen
by Director in Family
of Investment
Companies                      A              E           E            E
- ----------------------------------------------------------------------------------

RANGES: A-NONE, B-$1-$10,000, C-$10,001-$50,000, D-$50,001-$100,000, E-MORE THAN
$100,000

                                                       NAME OF DIRECTORS
- ------------------------------------------------------------------------------------
                                JAMES A.  DONALD    GALE E.  M. JEANNINE  TIMOTHY S.
                                OLSON(1)  H. PRATT  SAYERS   STRANDJORD   WEBSTER
- ------------------------------------------------------------------------------------
Dollar Range of Equity
Securities in the Funds:
   Balanced                     A         A         C        A            A
- ------------------------------------------------------------------------------------
   Capital Growth               A         A         A        A            A
- ------------------------------------------------------------------------------------
   Capital Value                A         A         A        A            C
- ------------------------------------------------------------------------------------
   Focused Growth               A         A         A        A            A
- ------------------------------------------------------------------------------------
   Fundamental Equity           A         A         A        A            A
- ------------------------------------------------------------------------------------
   Giftrust                     A         A         A        B            A
- ------------------------------------------------------------------------------------
   Growth                       A         A         A        A            A
- ------------------------------------------------------------------------------------
   Heritage                     A         C         A        A            C
- ------------------------------------------------------------------------------------
   Mid Cap Growth               A         A         A        A            A
- ------------------------------------------------------------------------------------
   New Opportunities            A         C         A        A            C
- ------------------------------------------------------------------------------------
   New Opportunities II         A         A         A        A            A
- ------------------------------------------------------------------------------------
   NT Growth                    A         A         A        A            A
- ------------------------------------------------------------------------------------
   NT Vista                     A         A         A        A            A
- ------------------------------------------------------------------------------------
   Select                       A         A         E        A            A
- ------------------------------------------------------------------------------------
   Small Cap Growth             A         A         A        A            A
- ------------------------------------------------------------------------------------
   Ultra                        A         A         A        A            D
- ------------------------------------------------------------------------------------
   Veedot                       A         C         A        A            E
- ------------------------------------------------------------------------------------
   Vista                        C         A         A        A            D
- ------------------------------------------------------------------------------------
Aggregate Dollar
Range of Equity
Securities in all
Registered Investment
Companies Overseen
by Director in Family
of Investment
Companies                       D         E         E        E            E
- ------------------------------------------------------------------------------------

RANGES: A-NONE, B-$1-$10,000, C-$10,001-$50,000, D-$50,001-$100,000, E-MORE THAN
$100,000

(1)  ADVISORY BOARD MEMBER.



- ------
37


CODE OF ETHICS

The funds, their investment advisor, principal underwriter and, if applicable,
subadvisor have adopted codes of ethics under Rule 17j-1 of the Investment
Company Act. They permit personnel subject to the codes to invest in securities,
including securities that may be purchased or held by the funds, provided that
they first obtain approval from the compliance department before making such
investments.

PROXY VOTING GUIDELINES

The advisor is responsible for exercising the voting rights associated with the
securities purchased and/or held by the funds. In exercising its voting
obligations, the advisor is guided by general fiduciary principles. It must act
prudently, solely in the interest of the funds, and for the exclusive purpose of
providing benefits to them. The advisor attempts to consider all factors of its
vote that could affect the value of the investment. The funds' Board of
Directors has approved the advisor's proxy voting guidelines to govern the
advisor's proxy voting activities.

The advisor and the board have agreed on certain significant contributors to
shareholder value with respect to a number of matters that are often the subject
of proxy solicitations for shareholder meetings. The proxy voting guidelines
specifically address these considerations and establish a framework for the
advisor's consideration of the vote that would be appropriate for the funds. In
particular, the proxy voting guidelines outline principles and factors to be
considered in the exercise of voting authority for proposals addressing:

*  Election of Directors

*  Ratification of Selection of Auditors

*  Equity-Based Compensation Plans

*  Anti-Takeover Proposals

   *  Cumulative Voting

   *  Staggered Boards

   *  "Blank Check" Preferred Stock

   *  Elimination of Preemptive Rights

   *  Non-targeted Share Repurchase

   *  Increase in Authorized Common Stock

   *  "Supermajority" Voting Provisions or Super Voting Share Classes

   *  "Fair Price" Amendments

   *  Limiting the Right to Call Special Shareholder Meetings

   *  Poison Pills or Shareholder Rights Plans

   *  Golden Parachutes

   *  Reincorporation

   *  Confidential Voting

   *  Opting In or Out of State Takeover Laws

*  Shareholder Proposals Involving Social, Moral or Ethical Matters

*  Anti-Greenmail Proposals

*  Changes to Indemnification Provisions

*  Non-Stock Incentive Plans

*  Director Tenure

*  Directors' Stock Options Plans

*  Director Share Ownership


- ------
38



Finally, the proxy voting guidelines establish procedures for voting of proxies
in cases in which the advisor may have a potential conflict of interest.
Companies with which the advisor has direct business relationships could
theoretically use these relationships to attempt to unduly influence the manner
in which American Century votes on matters for the funds. To ensure that such a
conflict of interest does not affect proxy votes cast for the funds, all
discretionary (including case-by-case) voting for these companies will be voted
in direct consultation with a committee of the independent directors of the
funds.

In addition, to avoid any potential conflict of interest that may arise when one
American Century fund owns shares of another American Century fund, the advisor
will "echo vote" such shares, if possible. That is, it will vote the shares in
the same proportion as the vote of all other holders of the shares. Shares of
American Century "NT" funds will be voted in the same proportion as the vote of
the shareholders of the corresponding American Century policy portfolio for
proposals common to both funds. For example, NT Growth Fund shares will be echo
voted in accordance with the votes of Growth Fund shareholders. In all other
cases, the shares will be voted in direct consultation with a committee of the
independent directors of the voting fund.

A copy of the advisor's proxy voting guidelines and information regarding how
the advisor voted proxies relating to portfolio securities during the most
recent 12-month period ended June 30 are available on the ABOUT US page at
americancentury.com. The advisor's proxy voting record also is available on the
SEC's website at sec.gov.

DISCLOSURE OF PORTFOLIO HOLDINGS

The advisor (ACIM) has adopted policies and procedures with respect to the
disclosure of fund portfolio holdings and characteristics, which are described
below.

Distribution to the Public

Full portfolio holdings for each fund will be made available for distribution 30
days after the end of each calendar quarter, and will be posted on
americancentury.com at approximately the same time. This disclosure is in
addition to the portfolio disclosure in annual and semi-annual shareholder
reports, and on Form N-Q, which disclosures are filed with the Securities and
Exchange Commission within 60 days of each fiscal quarter end and also posted on
americancentury.com at the time the filings are made.

Top 10 holdings for each fund will be made available for distribution monthly 30
days after the end of each month, and will be posted on americancentury.com at
approximately the same time.

Certain portfolio characteristics determined to be sensitive and confidential
will be made available for distribution monthly 30 days after the end of each
month, and will be posted on americancentury.com at approximately the same time.
Characteristics not deemed confidential will be available for distribution at
any time. The advisor may make determinations of confidentiality on a
fund-by-fund basis, and may add or delete characteristics from those considered
confidential at any time.

So long as portfolio holdings are disclosed in accordance with the above
parameters, the advisor makes no distinction among different categories of
recipients, such as individual investors, institutional investors,
intermediaries that distribute the funds' shares, third-party service providers,
rating and ranking organizations, and fund affiliates. Because this information
is publicly available and widely disseminated, the advisor places no conditions
or restrictions on, and does not monitor, its use. Nor does the advisor require
special authorization for its disclosure.

Accelerated Disclosure

The advisor recognizes that certain parties, in addition to the advisor and its
affiliates, may have legitimate needs for information about portfolio holdings
and characteristics prior to the times prescribed above. Such accelerated
disclosure is permitted under the circumstances described below.


- ------
39


Ongoing Arrangements

Certain parties, such as investment consultants who provide regular analysis of
fund portfolios for their clients and intermediaries who pass through
information to fund shareholders, may have legitimate needs for accelerated
disclosure. These needs may include, for example, the preparation of reports for
customers who invest in the funds, the creation of analyses of fund
characteristics for intermediary or consultant clients, the reformatting of data
for distribution to the intermediary's or consultant's clients, and the review
of fund performance for ERISA fiduciary purposes.

In such cases, accelerated disclosure is permitted if the service provider
enters an appropriate non-disclosure agreement with the funds' distributor in
which it agrees to treat the information confidentially until the public
distribution date and represents that the information will be used only for the
legitimate services provided to its clients (i.e., not for trading).
Non-disclosure agreements require the approval of an attorney in the advisor's
legal department. The advisor's compliance department receives quarterly reports
detailing which clients received accelerated disclosure, what they received,
when they received it and the purposes of such disclosure. Compliance personnel
are required to confirm that an appropriate non-disclosure agreement has been
obtained from each recipient identified in the reports.

Those parties who have entered into non-disclosure agreements as of January 22,
2007, are as follows:

*  Aetna, Inc.

*  American Fidelity Assurance Co.

*  AUL/American United Life Insurance Company

*  Ameritas Life Insurance Corporation

*  Annuity Investors Life Insurance Company

*  Asset Services Company L.L.C.

*  Bell Globemedia Publishing

*  Bellwether Consulting, LLC

*  Bidart & Ross

*  Callan Associates, Inc.

*  Cambridge Financial Services, Inc.

*  Cleary Gull Inc.

*  Commerce Bank, N.A.

*  Connecticut General Life Insurance Company

*  CRA RogersCasey, Inc.

*  Defined Contribution Advisors, Inc.

*  EquiTrust Life Insurance Company

*  Evaluation Associates, LLC

*  Evergreen Investments

*  Farm Bureau Life Insurance Company

*  First MetLife Investors Insurance Company

*  Fund Evaluation Group, LLC

*  The Guardian Life Insurance & Annuity Company, Inc.

*  Hammond Associates, Inc.

*  Hewitt Associates LLC

*  ICMA Retirement Corporation

*  ING Life Insurance Company & Annuity Co.

*  Iron Capital Advisors

*  J.P. Morgan Retirement Plan Services LLC

*  Jefferson National Life Insurance Company


- ------
40


*  Jefferson Pilot Financial

*  Jeffrey Slocum & Associates, Inc.

*  Kansas City Life Insurance Company

*  Kmotion, Inc.

*  Liberty Life Insurance Company

*  The Lincoln National Life Insurance Company

*  Lipper Inc.

*  Manulife Financial

*  Massachusetts Mutual Life Insurance Company

*  Merrill Lynch

*  MetLife Investors Insurance Company

*  MetLife Investors Insurance Company of California

*  Midland National Life Insurance Company

*  Minnesota Life Insurance Company

*  Morgan Keegan & Co., Inc.

*  Morgan Stanley DW, Inc.

*  Morningstar Associates LLC

*  Morningstar Investment Services, Inc.

*  National Life Insurance Company

*  Nationwide Financial

*  New England Pension Consultants

*  Northwestern Mutual Life Insurance Co.

*  NT Global Advisors, Inc.

*  NYLIFE Distributors, LLC

*  Principal Life Insurance Company

*  Prudential Financial

*  Rocaton Investment Advisors, LLC

*  S&P Financial Communications

*  Scudder Distributors, Inc.

*  Security Benefit Life Insurance Co.

*  Smith Barney

*  SunTrust Bank

*  Symetra Life Insurance Company

*  Trusco Capital Management

*  Union Bank of California, N.A.

*  The Union Central Life Insurance Company

*  VALIC Financial Advisors

*  VALIC Retirement Services Company

*  Vestek Systems, Inc.

*  Wachovia Bank, N.A.

*  Wells Fargo Bank, N.A.

Once a party has executed a non-disclosure agreement, it may receive any or all
of the following data for funds in which its clients have investments or are
actively considering investment:

(1)  Full holdings quarterly as soon as reasonably available;

(2)  Full holdings monthly as soon as reasonably available;

(3)  Top 10 holdings monthly as soon as reasonably available; and

(4)  Portfolio characteristics monthly as soon as reasonably available.


- ------
41


The types, frequency and timing of disclosure to such parties vary. In most
situations, the information provided pursuant to a non-disclosure agreement is
limited to certain portfolio characteristics and/or top 10 holdings, which
information is provided on a monthly basis. In limited situations, and when
approved by a member of the legal department and responsible chief investment
officer, full holdings may be provided.

Single Event Requests

In certain circumstances, the advisor may provide fund holding information on an
accelerated basis outside of an ongoing arrangement with manager-level or higher
authorization. For example, from time to time the advisor may receive requests
for proposals (RFPs) from consultants or potential clients that request
information about a fund's holdings on an accelerated basis. As long as such
requests are on a one-time basis, and do not result in continued receipt of
data, such information may be provided in the RFP as of the most recent month
end regardless of lag time. Such information will be provided with a
confidentiality legend and only in cases where the advisor has reason to believe
that the data will be used only for legitimate purposes and not for trading.

In addition, the advisor occasionally may work with a transition manager to move
a large account into or out of a fund. To reduce the impact to the fund, such
transactions may be conducted on an in-kind basis using shares of portfolio
securities rather than cash. The advisor may provide accelerated holdings
disclosure to the transition manager with little or no lag time to facilitate
such transactions, but only if the transition manager enters into an appropriate
non-disclosure agreement.

Service Providers

Various service providers to the funds and the funds' advisor must have access
to some or all of the funds' portfolio holdings information on an accelerated
basis from time to time in the ordinary course of providing services to the
funds. These service providers include the funds' custodian (daily, with no
lag), auditors (as needed) and brokers involved in the execution of fund trades
(as needed). Additional information about these service providers and their
relationships with the funds and the advisor are provided elsewhere in this
statement of additional information.

Additional Safeguards

The advisor's policies and procedures include a number of safeguards designed to
control disclosure of portfolio holdings and characteristics so that such
disclosure is consistent with the best interests of fund shareholders. First,
the frequency with which this information is disclosed to the public, and the
length of time between the date of the information and the date on which the
information is disclosed, are selected to minimize the possibility of a third
party improperly benefiting from fund investment decisions to the detriment of
fund shareholders. Second, distribution of portfolio holdings information,
including compliance with the advisor's policies and the resolution of any
potential conflicts that may arise, is monitored quarterly. Finally, the funds'
Board of Directors exercises oversight of disclosure of the funds' portfolio
securities. The board has received and reviewed a summary of the advisor's
policy and is informed on a quarterly basis of any changes to or violations of
such policy detected during the prior quarter.

Neither the advisor nor the funds receive any compensation from any party for
the distribution of portfolio holdings information.

The advisor reserves the right to change its policies and procedures with
respect to the distribution of portfolio holdings information at any time. There
is no guarantee that these policies and procedures will protect the funds from
the potential misuse of holdings information by individuals or firms in
possession of such information.


- ------
42



THE FUNDS' PRINCIPAL SHAREHOLDERS

As of January 31, 2007, the following shareholders, beneficial or of record,
owned more than 5% of the outstanding shares of any class of a fund.

                                              PERCENTAGE OF      PERCENTAGE OF
                                              OUTSTANDING        OUTSTANDING
FUND/                                         SHARES OWNED       SHARES OWNED
CLASS        SHAREHOLDER                      OF RECORD          BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Balanced
- --------------------------------------------------------------------------------
  Investor Class
             Charles Schwab & Co., Inc.       6%                 0%
             San Francisco, California
- --------------------------------------------------------------------------------
  Institutional Class
             National Financial               67%                0%
             Services LLC
             New York, New York

             Trustees of American Century     33%                0%
             Mutual Funds Indep Directors
             Def Comp Plan
             Kansas City, Missouri
- --------------------------------------------------------------------------------
  Advisor Class
             Charles Schwab & Co., Inc.       11%                0%
             San Francisco, California

             MLPF&S, Inc.                     10%                0%
             Jacksonville, Florida

             Mitra & Co Exp                   9%                 0%
             M&I Trust Company NA
             Milwaukee, Wisconsin

             Delaware Charter                 8%                 0%
             Guarantee & Trust
             Des Moines, Iowa

             National Financial               6%                 0%
             Services LLC
             New York, New York

             Nationwide Trust Company         6%                 0%
             Columbus, Ohio
- --------------------------------------------------------------------------------
Capital Growth
- --------------------------------------------------------------------------------
  Investor Class
             National Financial               48%                0%
             Services Corp
             New York, New York

             American Century Investment      28%                28%
             Management, Inc.
             Kansas City, Missouri

             Charles Schwab & Co., Inc.       10%                0%
             San Francisco, California
- --------------------------------------------------------------------------------
  Institutional Class
             American Century Investment      100%               100%
             Management, Inc.
             Kansas City, Missouri
- --------------------------------------------------------------------------------
  A Class
             American Century Investment      16%                16%
             Management, Inc.
             Kansas City, Missouri

             Charles Schwab & Co., Inc.       13%                0%
             San Francisco, California

             American Enterprise              9%                 0%
             Investment Svcs
             Minneapolis, Minnesota

             American Enterprise              8%                 0%
             Investment Svcs
             Minneapolis, Minnesota
- --------------------------------------------------------------------------------

(1)  IF SHARES ARE REGISTERED IN AN INDIVIDUAL'S NAME OR IN THE NAME OF AN
     INTERMEDIARY FOR THE BENEFIT OF A NAMED PARTY, WE REPORT THOSE SHARES AS
     BEING BENEFICIALLY OWNED. OTHERWISE, AMERICAN CENTURY HAS NO INFORMATION
     CONCERNING BENEFICIAL OWNERSHIP OF FUND SHARES.


- ------
43



                                              PERCENTAGE OF     PERCENTAGE OF
                                              OUTSTANDING       OUTSTANDING
                                              SHARES OWNED      SHARES OWNED
FUND/CLASS   SHAREHOLDER                      OF RECORD         BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Capital Growth
- --------------------------------------------------------------------------------
  B Class
             American Century Investment      41%               41%
             Management, Inc.
             Kansas City, Missouri

             LPL Financial Services           10%               0%
             San Diego, California

             Bear Stearns Securities Corp.    6%                0%
             Brooklyn, New York
- --------------------------------------------------------------------------------
  C Class
             American Century Investment      48%               48%
             Management, Inc.
             Kansas City, Missouri

             AG Edwards & Sons Inc.           21%               0%
             FBO RRF Investments LLC
             St. Louis, Missouri

             MLPF&S Inc                       9%                0%
             Jacksonville, Florida

             First Clearing, LLC              5%                0%
             Annandale, New Jersey
- --------------------------------------------------------------------------------
  R Class
             American Century Investment      100%              100%
             Management, Inc.
             Kansas City, Missouri
- --------------------------------------------------------------------------------
Capital Value
- --------------------------------------------------------------------------------
  Investor Class
             Charles Schwab & Co., Inc.       31%               0%
             San Francisco, California

             Saxon & Co                       10%               0%
             Philadelphia, Pennsylvania
- --------------------------------------------------------------------------------
  Institutional Class
             Charles Schwab & Co., Inc.       50%               0%
             San Francisco, California

             Saxon & Co.                      47%               0%
             Philadelphia, Pennsylvania
- --------------------------------------------------------------------------------
  Advisor Class
             Nationwide Trust Company         70%               0%
             Columbus, Ohio

             Charles Schwab & Co., Inc.       19%               0%
             San Francisco, California

             National Financial               6%                0%
             Services Corp
             New York, New York
- --------------------------------------------------------------------------------
Focused Growth
- --------------------------------------------------------------------------------
  Investor Class
             National Financial               9%                0%
             Services LLC
             New York, New York
- --------------------------------------------------------------------------------
Fundamental Equity
- --------------------------------------------------------------------------------
  Investor Class
             National Financial               54%               0%
             Services Corp
             New York, New York

             MLPF&S                           11%               0%
             Jacksonville, Florida
- --------------------------------------------------------------------------------

(1)  IF SHARES ARE REGISTERED IN AN INDIVIDUAL'S NAME OR IN THE NAME OF AN
     INTERMEDIARY FOR THE BENEFIT OF A NAMED PARTY, WE REPORT THOSE SHARES AS
     BEING BENEFICIALLY OWNED. OTHERWISE, AMERICAN CENTURY HAS NO INFORMATION
     CONCERNING BENEFICIAL OWNERSHIP OF FUND SHARES.


- ------
44



                                             PERCENTAGE OF       PERCENTAGE OF
                                             OUTSTANDING         OUTSTANDING
FUND/                                        SHARES OWNED        SHARES OWNED
CLASS      SHAREHOLDER                       OF RECORD           BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Fundamental Equity
- --------------------------------------------------------------------------------
  Institutional Class
           American Century Investment       100%                100%
           Management, Inc.
           Kansas City, Missouri
- --------------------------------------------------------------------------------
  A Class
           Charles Schwab & Co., Inc.        73%                 0%
           San Francisco, California
- --------------------------------------------------------------------------------
  B Class
           MLPF&S Inc.                       23%                 0%
           Jacksonville, Florida
- --------------------------------------------------------------------------------
  C Class
           MLPF&S Inc.                       34%                 0%
           Jacksonville, Florida
- --------------------------------------------------------------------------------
  R Class
           401(K) RPSA Newark                28%                 28%
           Dental Associates 401(K)
           Kevin F. Roberts
           Kennett Square, Pennsylvania

           American Century Investment       24%                 24%
           Management, Inc.
           Kansas City, Missouri

           401(K) RPSA Newark                20%                 20%
           Dental Associates 401(K)
           Jennifer L. Ely
           Newark, Delaware

           401(K) RPSA Newark                11%                 11%
           Dental Associates 401(K)
           Camilla C. Riley
           Newark, Delaware

           401(K) RPSA Newark                10%                 10%
           Dental Associates 401(K)
           Janice Bates
           Hockessin, Delaware
- --------------------------------------------------------------------------------
Giftrust
- --------------------------------------------------------------------------------
  Investor Class
           None
- --------------------------------------------------------------------------------
Growth
- --------------------------------------------------------------------------------
  Investor Class
           None
- --------------------------------------------------------------------------------
  Institutional Class
           State Street Bank TR              79%                 0%
           Lockheed Martin Co
           Defined Contributions
           Plans Master Trust
           Westwood, Massachusetts

           JP Morgan Chase                   7%                  0%
            Bank TTEE
           Avon Personal Savings
           Account Plan Trust
           New York, New York
- --------------------------------------------------------------------------------
  C Class
           Pershing LLC                      21%                 0%
           Jersey City, New Jersey
- --------------------------------------------------------------------------------
  R Class
           ING Life Insurance                94%                 0%
           and Annuity Co
           Hartford, Connecticut
- --------------------------------------------------------------------------------

(1)  IF SHARES ARE REGISTERED IN AN INDIVIDUAL'S NAME OR IN THE NAME OF AN
     INTERMEDIARY FOR THE BENEFIT OF A NAMED PARTY, WE REPORT THOSE SHARES AS
     BEING BENEFICIALLY OWNED. OTHERWISE, AMERICAN CENTURY HAS NO INFORMATION
     CONCERNING BENEFICIAL OWNERSHIP OF FUND SHARES.


- ------
45



                                             PERCENTAGE OF     PERCENTAGE OF
                                             OUTSTANDING       OUTSTANDING
                                             SHARES OWNED      SHARES OWNED
FUND/CLASS   SHAREHOLDER                     OF RECORD         BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Growth
- --------------------------------------------------------------------------------
  Advisor Class
             Charles Schwab & Co., Inc.      13%               0%
             San Francisco, California

             Nationwide Trust                12%               0%
             Company FSB
             Columbus, Ohio
- --------------------------------------------------------------------------------
Heritage
- --------------------------------------------------------------------------------
  Investor Class
             Charles Schwab & Co., Inc.      6%                0%
             San Francisco, California
- --------------------------------------------------------------------------------
  Institutional Class
             Chase Manhattan                 59%               0%
             Bank Trustee
             The BOC Group Inc. Savings
             Investment Plan Trust
             New York, New York

             Trustees of American Century    20%               0%
             P/S & 401(k) Savings
             Plan & Trust
             Kansas City, Missouri

             State Street Bank               8%                0%
             & Trust Trustee
             AFP Habitat
             North Quincy, Massachusetts

             JP Morgan Chase                 7%                0%
             Bank Trustee
             Fitch Inc. 401K
             Plan and Trust
             Kansas City, Missouri
- --------------------------------------------------------------------------------
  C Class
             None
- --------------------------------------------------------------------------------
  Advisor Class
             Charles Schwab & Co., Inc.      46%               0%
             San Francisco, California
- --------------------------------------------------------------------------------
Mid Cap Growth
- --------------------------------------------------------------------------------
  Investor Class
             Richard E. Thomas               12%               12%
             and Betty N. Thomas Tr
             Thomas Family Trust
             Pasadena, California

             Pershing LLC                    10%               0%
             Jersey City, New Jersey

             George E. Robak                 10%               10%
             Greenfield, Wisconsin

             I.R.A. Robert J. Berdan         7%                7%
             Brown Deer, Wisconsin

             Paulette A. Getschman           5%                5%
             Greenfield, Wisconsin
- --------------------------------------------------------------------------------
  Institutional Class
             Northwestern Mutual Life        58%               0%
             Milwaukee, Wisconsin

             Maroon Inc.                     42%               0%
             Milwaukee, Wisconsin
- --------------------------------------------------------------------------------

(1)  IF SHARES ARE REGISTERED IN AN INDIVIDUAL'S NAME OR IN THE NAME OF AN
     INTERMEDIARY FOR THE BENEFIT OF A NAMED PARTY, WE REPORT THOSE SHARES AS
     BEING BENEFICIALLY OWNED. OTHERWISE, AMERICAN CENTURY HAS NO INFORMATION
     CONCERNING BENEFICIAL OWNERSHIP OF FUND SHARES.


- ------
46



                                              PERCENTAGE OF     PERCENTAGE OF
                                              OUTSTANDING       OUTSTANDING
                                              SHARES OWNED      SHARES OWNED
FUND/CLASS   SHAREHOLDER                      OF RECORD         BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Mid Cap Growth
- --------------------------------------------------------------------------------
  A Class
             None
- --------------------------------------------------------------------------------
  B Class
             None
- --------------------------------------------------------------------------------
  C Class
             Scottrade Inc.                   40%               40%
             FBO Lawrence J. Collen
             St. Louis, Missouri

             Pershing LLC                     40%               0%
             Jersey City, New Jersey

             Scottrade Inc                    10%               10%
             FBO John J. Harrison IRA
             St. Louis, Missouri
- --------------------------------------------------------------------------------
  R Class
             401(K) RPSA Newark               25%               25%
             Dental Associates 401(K)
             Camilla C. Riley
             Newark, Delaware

             401(K) RPSA Newark               25%               25%
             Dental Associates 401(K)
             Esther A. Lane
             Wilmington, Delaware

             American Century Investment      22%               22%
             Management, Inc.
             Kansas City, Missouri

             401(K) RPSA Newark               12%               12%
             Dental Associates 401(K)
             Kevin F. Roberts
             Kennett Square, Pennsylvania

             401(K) RPSA Newark               11%               11%
             Dental Associates 401(K)
             Janice Bates
             Hockessin, Delaware

             401(K) RPSA Newark               5%                5%
             Dental Associates 401(K)
             Jennifer L. Ely
             Newark, Delaware
- --------------------------------------------------------------------------------
New Opportunities
- --------------------------------------------------------------------------------
  Investor Class
             Trustees of American             8%                0%
             Century P/S
             and 401K Savings Plan & Trust
             Kansas City, Missouri
- --------------------------------------------------------------------------------
New Opportunities II
- --------------------------------------------------------------------------------
  Investor Class
             US Bank Trustee                  12%               0%
             Private Asset O/A Platform
             Milwaukee, Wisconsin

             Patterson & Co                   10%               0%
             FBO Omnibus Cash
             Charlotte, North Carolina

             American Century Investment      6%                6%
             Management, Inc.
             Kansas City, Missouri
- --------------------------------------------------------------------------------

(1)  IF SHARES ARE REGISTERED IN AN INDIVIDUAL'S NAME OR IN THE NAME OF AN
     INTERMEDIARY FOR THE BENEFIT OF A NAMED PARTY, WE REPORT THOSE SHARES AS
     BEING BENEFICIALLY OWNED. OTHERWISE, AMERICAN CENTURY HAS NO INFORMATION
     CONCERNING BENEFICIAL OWNERSHIP OF FUND SHARES.



- ------
47



                                             PERCENTAGE OF      PERCENTAGE OF
                                             OUTSTANDING        OUTSTANDING
                                             SHARES OWNED       SHARES OWNED
FUND/CLASS    SHAREHOLDER                    OF RECORD          BENEFICIALLY(1)
- --------------------------------------------------------------------------------
New Opportunities II
- --------------------------------------------------------------------------------
  Institutional Class
              None
- --------------------------------------------------------------------------------
  A Class
              Charles Schwab & Co., Inc.     73%                0%
              San Francisco, California
- --------------------------------------------------------------------------------
  B Class
              None
- --------------------------------------------------------------------------------
  C Class
              MLPF&S Inc.                    29%                0%
              Jacksonville, Florida
- --------------------------------------------------------------------------------
NT Growth
- --------------------------------------------------------------------------------
  Institutional Class
              American Century Serv Port     38%                38%
              LIVESTRONG(TM)
              2025 Portfolio
              NT Growth Omnibus
              Kansas City, Missouri

              American Century Serv Corp     23%                23%
              LIVESTRONG(TM)
              2035 Portfolio
              NT Growth Omnibus
              Kansas City, Missouri

              American Century Serv Corp     19%                19%
              LIVESTRONG(TM)
              2015 Portfolio
              NT Growth Omnibus
              Kansas City, Missouri

              American Century Serv Corp     16%                16%
              LIVESTRONG(TM)
              2045 Portfolio
              NT Growth Omnibus
              Kansas City, Missouri
- --------------------------------------------------------------------------------
NT Vista
- --------------------------------------------------------------------------------
  Institutional Class
              American Century Serv Port     35%                35%
              LIVESTRONG(TM)
              2025 Portfolio
              NT Vista Omnibus
              Kansas City, Missouri

              American Century Serv Corp     25%                25%
              LIVESTRONG(TM)
              2035 Portfolio
              NT Vista Omnibus
              Kansas City, Missouri

              American Century Serv Corp     20%                20%
              LIVESTRONG(TM)
              2015 Portfolio
              NT Vista Omnibus
              Kansas City, Missouri

              American Century Serv Corp     17%                17%
              LIVESTRONG(TM)
              2045 Portfolio
              NT Vista Omnibus
              Kansas City, Missouri
- --------------------------------------------------------------------------------

(1)  IF SHARES ARE REGISTERED IN AN INDIVIDUAL'S NAME OR IN THE NAME OF AN
     INTERMEDIARY FOR THE BENEFIT OF A NAMED PARTY, WE REPORT THOSE SHARES AS
     BEING BENEFICIALLY OWNED. OTHERWISE, AMERICAN CENTURY HAS NO INFORMATION
     CONCERNING BENEFICIAL OWNERSHIP OF FUND SHARES.



- ------
48



                                               PERCENTAGE OF     PERCENTAGE OF
                                               OUTSTANDING       OUTSTANDING
                                               SHARES OWNED      SHARES OWNED
FUND/CLASS   SHAREHOLDER                       OF RECORD         BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Select
- --------------------------------------------------------------------------------
  Investor Class
             None
- --------------------------------------------------------------------------------
  Institutional Class
             Northwestern Mutual Life          57%               0%
             Milwaukee, Wisconsin

             Maroon Inc.                       34%               0%
             Milwaukee, Wisconsin
- --------------------------------------------------------------------------------
  A Class
             Charles Schwab & Co., Inc.        36%               36%
             San Francisco, California
- --------------------------------------------------------------------------------
  B Class
             None
- --------------------------------------------------------------------------------
  C Class
             MLPF&S Inc.                       15%               0%
             Jacksonville, Florida

             Citigroup Global Markets, Inc.    7%                0%
             New York, New York
- --------------------------------------------------------------------------------
  R Class
             American Century Investment       94%               94%
             Management, Inc.
             Kansas City, Missouri
- --------------------------------------------------------------------------------
  Advisor Class
             UMB Bank NA                       50%               0%
             Fiduciary for Various
             Deferred Accounts
             Topeka, Kansas

             MG Trust Company Cust FBO         12%               0%
             Rosen Hotels & Resorts Inc
             Denver, Colorado

             Security Benefit Life             10%               0%
             Insurance Co.
             Topeka, Kansas

             Saxon & Co                        8%                0%
             Philadelphia, Pennsylvania
- --------------------------------------------------------------------------------
Small Cap Growth
- --------------------------------------------------------------------------------
  Investor Class
             Prudential Investment             52%               0%
             MGMT SVC
             Newark, New Jersey

             William A. McIntosh               30%               30%
             Kenilworth, Illinois

             I.R.A. Wayne R. Jakusz            5%                5%
             New Hartford, Connecticut
- --------------------------------------------------------------------------------
  Institutional Class
             Patterson & Co. -                 96%               0%
             Omnibus Cash
             Charlotte, North Carolina
- --------------------------------------------------------------------------------
  A Class
             None
- --------------------------------------------------------------------------------

(1)  IF SHARES ARE REGISTERED IN AN INDIVIDUAL'S NAME OR IN THE NAME OF AN
     INTERMEDIARY FOR THE BENEFIT OF A NAMED PARTY, WE REPORT THOSE SHARES AS
     BEING BENEFICIALLY OWNED. OTHERWISE, AMERICAN CENTURY HAS NO INFORMATION
     CONCERNING BENEFICIAL OWNERSHIP OF FUND SHARES.


- ------
49



                                               PERCENTAGE OF     PERCENTAGE OF
                                               OUTSTANDING       OUTSTANDING
                                               SHARES OWNED      SHARES OWNED
FUND/CLASS   SHAREHOLDER                       OF RECORD         BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Small Cap Growth
- --------------------------------------------------------------------------------
  B Class
             None
- --------------------------------------------------------------------------------
  C Class
             Pershing LLC                      52%               0%
             Jersey City, New Jersey

             MG Trust Company Cust             16%               0%
             FBO E. Miller and
             Associates, Inc.
             Denver, Colorado
- --------------------------------------------------------------------------------
  R Class
             American Century Investment       94%               94%
             Management, Inc.
             Kansas City, Missouri
- --------------------------------------------------------------------------------
Ultra
- --------------------------------------------------------------------------------
  Investor Class
             Charles Schwab & Co., Inc.        6%                0%
             San Francisco, California
- --------------------------------------------------------------------------------
  Institutional Class
             JP Morgan Chase                   18%               0%
             Bank Trustee
             401(k) Savings Plan of
             JP Morgan Chase & Co. Trust
             Brooklyn, New York

             FIIOC c/o Fidelity Investments    14%               0%
             Covington, Kentucky

             JP Morgan Chase                   12%               0%
             Bank Trustee
             Bosch Savings Incentive Plan
             Kansas City, Missouri

             JP Morgan Chase TR                9%                0%
             The Interpublic Group
             of Companies Inc.
             Savings Plan Trust
             New York, New York

             Nationwide Trust Company          6%                0%
             FBO Participating
             Retirement Plans
             TPA-NTC
             Columbus, Ohio

             Northern Trust Co TR              6%                0%
             Goodyear Tire &
             Rubber Company
             401K Plan Trust
             Chicago, Illinois
- --------------------------------------------------------------------------------
  C Class
             Boone County National             7%                0%
             Bank Cust
             FBP MO Bar 457(B) Plan
             Columbia, Missouri
- --------------------------------------------------------------------------------

(1)  IF SHARES ARE REGISTERED IN AN INDIVIDUAL'S NAME OR IN THE NAME OF AN
     INTERMEDIARY FOR THE BENEFIT OF A NAMED PARTY, WE REPORT THOSE SHARES AS
     BEING BENEFICIALLY OWNED. OTHERWISE, AMERICAN CENTURY HAS NO INFORMATION
     CONCERNING BENEFICIAL OWNERSHIP OF FUND SHARES.


- ------
50



                                             PERCENTAGE OF     PERCENTAGE OF
                                             OUTSTANDING       OUTSTANDING
                                             SHARES OWNED      SHARES OWNED
FUND/CLASS   SHAREHOLDER                     OF RECORD         BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Ultra
- --------------------------------------------------------------------------------
  R Class
             ING Life Insurance              33%               0%
             and Annuity Co.
             Hartford, Connecticut

             Massachusetts Mutual            21%               0%
             Life Insurance
             Springfield, Massachusetts

             Hartford Life Ins Co            14%               0%
             Hartford, Connecticut

             Symetra Investment Services     13%               0%
             Seattle, Washington

             ING National Trust              7%                0%
             Hartford, Connecticut

             MLPF&S                          6%                0%
             Jacksonville, Florida
- --------------------------------------------------------------------------------
  Advisor Class
             Nationwide Trust Company        18%               0%
             Columbus, Ohio

             Charles Schwab & Co., Inc.      9%                0%
             San Francisco, California

             ING Life Insurance              6%                0%
             and Annuity Co
             Hartford, Connecticut

             PRIAC as Trustee/Custodian      5%                0%
             FBO Various Retirement Plans
             Kansas City, Missouri
- --------------------------------------------------------------------------------
Veedot
- --------------------------------------------------------------------------------
  Investor Class
             None
- --------------------------------------------------------------------------------
  Institutional Class
             Trustees of American            62%               0%
             Century P/S
             & 401K Savings Plan & Trust
             Kansas City, Missouri

             American Century Investment     28%               28%
             Management, Inc.
             Kansas City, Missouri

             JP Morgan Chase TR              7%                0%
             American Century Executive
             Def Comp Plan Trust
             Kansas City, Missouri
- --------------------------------------------------------------------------------
Vista
- --------------------------------------------------------------------------------
  Investor Class
             John Hancock                    8%                0%
             Life Ins Co. USA
             Boston, Massachusetts
- --------------------------------------------------------------------------------
  Institutional Class
             Delaware Charter                26%               0%
             Guarantee & Trust
             Des Moines, Iowa
- --------------------------------------------------------------------------------

(1)  IF SHARES ARE REGISTERED IN AN INDIVIDUAL'S NAME OR IN THE NAME OF AN
     INTERMEDIARY FOR THE BENEFIT OF A NAMED PARTY, WE REPORT THOSE SHARES AS
     BEING BENEFICIALLY OWNED. OTHERWISE, AMERICAN CENTURY HAS NO INFORMATION
     CONCERNING BENEFICIAL OWNERSHIP OF FUND SHARES.


- ------
51



                                              PERCENTAGE OF     PERCENTAGE OF
                                              OUTSTANDING       OUTSTANDING
                                              SHARES OWNED      SHARES OWNED
FUND/CLASS   SHAREHOLDER                      OF RECORD         BENEFICIALLY(1)
- --------------------------------------------------------------------------------
Vista
- --------------------------------------------------------------------------------
  Institutional Class
             Trustees of American             16%               0%
             Century P/S
             and 401K Savings
             Plan and Trust
             Kansas City, Missouri

             The Chase Manhattan              14%               0%
             Bank NA TR
             Worldspan Retirement
             Savings Plan & Trust
             New York, New York

             JP Morgan Chase                  10%               0%
             Bank Trustee
             Black & Veatch Employee
             Savings Plan
             Kansas City, Missouri

             JP Morgan Chase Bank             10%               0%
             Trustee FBO
             Astellas US Retirement
             and Savings Plan
             Kansas City, Missouri
- --------------------------------------------------------------------------------
  C Class
             Delaware Charter                 8%                0%
             Guarantee & Trust
             FBO Various Qualified Plans
             Des Moines, Iowa

             Delaware Charter                 8%                0%
             Guarantee & Trust
             FBO Principal Financial Group
             Omnibus Qualified
             Des Moines, Iowa
- --------------------------------------------------------------------------------
  R Class
             MG Trust Company Cust            63%               0%
             FBO Eastwood
             Insurance Services
             Denver, Colorado

             MFS Heritage Trust Co            22%               0%
             Boston, Massachusetts

             MG Trust Company                 9%                0%
             As Agent for Frontier
             Trust Co
             As TR Land Dimensions
             Engineering 401K
             Fargo, North Dakota
- --------------------------------------------------------------------------------
  Advisor Class
             Trustar/Delaware Charter         13%               0%
             FBO Principal Financial Group
             Wilmington, Delaware

             Charles Schwab & Co., Inc.       11%               0%
             San Francisco, California

             Oklahoma Public Employees        10%               0%
             Retirement System Board
             of Trustees
             FBO OK State Employees
             Def Comp Plan
             Greenwood Village, Colorado

             Delaware Charter                 7%                0%
             Guarantee & Trust
             FBO Various Qualified Plans
             Des Moines, Iowa

             Transamerica Life                7%                0%
             Insurance Company
             Cedar Rapids, Iowa
- --------------------------------------------------------------------------------

(1)  IF SHARES ARE REGISTERED IN AN INDIVIDUAL'S NAME OR IN THE NAME OF AN
     INTERMEDIARY FOR THE BENEFIT OF A NAMED PARTY, WE REPORT THOSE SHARES AS
     BEING BENEFICIALLY OWNED. OTHERWISE, AMERICAN CENTURY HAS NO INFORMATION
     CONCERNING BENEFICIAL OWNERSHIP OF FUND SHARES.


- ------
52



The funds are unaware of any other shareholders, beneficial or of record, who
own more than 5% of any class of a fund's outstanding shares. The funds are
unaware of any other shareholders, beneficial or of record, who own more than
25% of the voting securities of the corporation. A shareholder owning of record
or beneficially more than 25% of the corporation's outstanding shares may be
considered a controlling person. The vote of any such person could have a more
significant effect on matters presented at a shareholders' meeting than votes of
other shareholders. As of January 31, 2007, the officers and directors of the
funds, as a group, owned 1% of the Investor Class of Veedot and owned less than
1% of all other classes of the other funds' outstanding shares.

SERVICE PROVIDERS

The funds have no employees. To conduct the funds' day-to-day activities, the
corporation has hired a number of service providers. Each service provider has a
specific function to fill on behalf of the funds that is described below.

ACIM, ACS and ACIS are wholly owned, directly or indirectly, by ACC. James E.
Stowers, Jr., controls ACC by virtue of his ownership of a majority of its
voting stock.

INVESTMENT ADVISOR

American Century Investment Management, Inc. (ACIM) serves as the investment
advisor for each of the funds. A description of the responsibilities of the
advisor appears in each prospectus under the heading MANAGEMENT.

For services provided to each fund, the advisor receives a unified management
fee based on a percentage of the net assets of each fund. For more information
about the unified management fee, see THE INVESTMENT ADVISOR under the heading
MANAGEMENT in each fund's prospectus. The amount of the fee is calculated daily
and paid monthly in arrears. For each fund with a stepped fee schedule, the rate
of the fee is determined by applying the formula indicated in the table below.
This formula takes into account all of the advisor's assets under management in
the fund's investment strategy (strategy assets). Strategy assets include assets
of the fund and certain assets of other clients of the advisor outside the
American Century fund family that use very similar investment teams and
strategies. For a fund with a corresponding NT fund, strategy assets for both
funds also include the assets of the other. The use of strategy assets, rather
than fund assets, in calculating the fee rate for a particular fund could allow
the fund to realize scheduled cost savings more quickly. However, it is possible
that a fund's strategy assets will not include assets of other client accounts
or that any such assets may not be sufficient to result in a lower fee rate. The
management fee schedules for the funds appear below.

FUND                 CLASS                        PERCENTAGE OF STRATEGY ASSETS
- --------------------------------------------------------------------------------
Balanced             Investor                     0.900% of first $1 billion
                                                  0.800% over $1 billion
                     -----------------------------------------------------------
                     Institutional                0.700% of first $1 billion
                                                  0.600% over $1 billion
                     -----------------------------------------------------------
                     Advisor                      0.650% of first $1 billion
                                                  0.550% over $1 billion
- --------------------------------------------------------------------------------
Capital              Investor, A, B,              1.000% of first $5 billion
Growth               C and R                      0.980% of the next $5 billion
                                                  0.970% of the next $5 billion
                                                  0.960% of the next $5 billion
                                                  0.950% of the next $5 billion
                                                  0.900% of the next $5 billion
                                                  0.800% over $30 billion
- --------------------------------------------------------------------------------


- ------
53


FUND                   CLASS                      PERCENTAGE OF STRATEGY ASSETS
- --------------------------------------------------------------------------------
Capital                Institutional              0.800% of first $5 billion
Growth                                            0.780% of the next $5 billion
                                                  0.770% of the next $5 billion
                                                  0.760% of the next $5 billion
                                                  0.750% of the next $5 billion
                                                  0.700% of the next $5 billion
                                                  0.600% over $30 billion
- --------------------------------------------------------------------------------
Capital                Investor                   1.10% of first $500 million
Value                                             1.00% of next $500 million
                                                  0.90% over $1 billion
                       ---------------------------------------------------------
                       Institutional              0.90% of first $500 million
                                                  0.80% of next $500 million
                                                  0.70% over $1 billion
                       ---------------------------------------------------------
                       Advisor                    0.85% of first $500 million
                                                  0.75% of next $500 million
                                                  0.65% over $1 billion
- --------------------------------------------------------------------------------
Focused                Investor                   1.00%
Growth
- --------------------------------------------------------------------------------
Fundamental            Investor, A, B,            1.000% of first $5 billion
Equity                 C and R                    0.980% of next $5 billion
                                                  0.970% of next $5 billion
                                                  0.960% of next $5 billion
                                                  0.950% of next $5 billion
                                                  0.900% of next $5 billion
                                                  0.800% over $30 billion
                       ---------------------------------------------------------
                       Institutional              0.800% of first $5 billion
                                                  0.780% of next $5 billion
                                                  0.770% of next $5 billion
                                                  0.760% of next $5 billion
                                                  0.750% of next $5 billion
                                                  0.700% of next $5 billion
                                                  0.600% over $30 billion
- --------------------------------------------------------------------------------
Giftrust               Investor                   1.00%
- --------------------------------------------------------------------------------
Growth                 Investor, C                1.000% of first $5 billion
                       and R                      0.980% of next $5 billion
                                                  0.970% of next $5 billion
                                                  0.960% of next $5 billion
                                                  0.950% of next $5 billion
                                                  0.900% of next $5 billion
                                                  0.800% over $30 billion
                       ---------------------------------------------------------
                       Institutional              0.800% of first $5 billion
                                                  0.780% of next $5 billion
                                                  0.770% of next $5 billion
                                                  0.760% of next $5 billion
                                                  0.750% of next $5 billion
                                                  0.700% of next $5 billion
                                                  0.600% over $30 billion
                       ---------------------------------------------------------
                       Advisor                    0.750% of first $5 billion
                                                  0.730% of next $5 billion
                                                  0.720% of next $5 billion
                                                  0.710% of next $5 billion
                                                  0.700% of next $5 billion
                                                  0.650% of next $5 billion
                                                  0.550% over $30 billion
- --------------------------------------------------------------------------------
Heritage               Investor and C             1.000%
                       Institutional              0.800%
                       Advisor                    0.750%
- --------------------------------------------------------------------------------
Mid Cap                Investor, A, B,            1.050% of first $500 million
Growth                 C and R                    1.000% over $500 million
                       ---------------------------------------------------------
                       Institutional              0.850% of first $500 million
                                                  0.800% over $500 million
- --------------------------------------------------------------------------------


- ------
54


FUND                   CLASS                    PERCENTAGE OF STRATEGY ASSETS
- --------------------------------------------------------------------------------
New                    Investor                 1.50% of the first $250 million
Opportunities                                   1.25% of next $250 million
                                                1.15% of next $250 million
                                                1.10% over $750 million
- --------------------------------------------------------------------------------
New                    Investor, A,             1.50% of the first $250 million
Opportunities          B and C                  1.25% of next $250 million
II                                              1.15% of next $250 million
                                                1.10% over $750 million
                      ----------------------------------------------------------
                      Institutional            1.30% of the first $250 million
                                                1.05% of next $250 million
                                                0.95% of next $250 million
                                                0.90% over $750 million
- --------------------------------------------------------------------------------
NT Growth              Institutional            0.800% of first $5 billion
                                                0.780% of next $5 billion
                                                0.770% of next $5 billion
                                                0.760% of next $5 billion
                                                0.750% of next $5 billion
                                                0.700% of next $5 billion
                                                0.600% over $30 billion
- --------------------------------------------------------------------------------
NT Vista               Institutional            0.800%
- --------------------------------------------------------------------------------
Select                 Investor, A, B,          1.000% of first $5 billion
                       C and R                  0.980% of next $5 billion
                                                0.970% of next $5 billion
                                                0.960% of next $5 billion
                                                0.950% of next $5 billion
                                                0.900% of next $5 billion
                                                0.800% over $30 billion
                      ----------------------------------------------------------
                       Institutional            0.800% of first $5 billion
                                                0.780% of next $5 billion
                                                0.770% of next $5 billion
                                                0.760% of next $5 billion
                                                0.750% of next $5 billion
                                                0.700% of next $5 billion
                                                0.600% over $30 billion
                      ----------------------------------------------------------
                       Advisor                  0.750% of first $5 billion
                                                0.730% of next $5 billion
                                                0.720% of next $5 billion
                                                0.710% of next $5 billion
                                                0.700% of next $5 billion
                                                0.650% of next $5 billion
                                                0.550% over $30 billion
- --------------------------------------------------------------------------------
Small Cap              Investor, A, B,          1.300% of first $1 billion
Growth                 C and R                  1.100% over $1 billion
                      ----------------------------------------------------------
                       Institutional            1.100% of first $1 billion
                                                0.900% over $1 billion
- --------------------------------------------------------------------------------
Ultra                  Investor, C              1.000% of first $5 billion
                       and R                    0.980% of next $5 billion
                                                0.970% of next $5 billion
                                                0.960% of next $5 billion
                                                0.950% of next $5 billion
                                                0.900% of next $5 billion
                                                0.800% over $30 billion
- --------------------------------------------------------------------------------


- ------
55


FUND                  CLASS                        PERCENTAGE OF STRATEGY ASSETS
- --------------------------------------------------------------------------------
Ultra                 Institutional                0.800% of first $5 billion
                                                   0.780% of next $5 billion
                                                   0.770% of next $5 billion
                                                   0.760% of next $5 billion
                                                   0.750% of next $5 billion
                                                   0.700% of next $5 billion
                                                   0.600% over $30 billion
                      ----------------------------------------------------------
                      Advisor                      0.750% of first $5 billion
                                                   0.730% of next $5 billion
                                                   0.720% of next $5 billion
                                                   0.710% of next $5 billion
                                                   0.700% of next $5 billion
                                                   0.650% of next $5 billion
                                                   0.550% over $30 billion
- --------------------------------------------------------------------------------
Veedot                Investor                     1.250% of first $500 million
                                                   1.100% of next $500 million
                                                   1.000% over $1 billion
                      ----------------------------------------------------------
                      Institutional                1.050% of first $500 million
                                                   0.900% of next $500 million
                                                   0.800% over $1 billion
- --------------------------------------------------------------------------------
Vista                 Investor, C                  1.000%
                      and R
                      ----------------------------------------------------------
                      Institutional                0.800%
                      ----------------------------------------------------------
                      Advisor                      0.750%
- --------------------------------------------------------------------------------

On each calendar day, each class of each fund accrues a management fee that is
equal to the class's management fee rate (as calculated pursuant to the above
schedules) times the net assets of the class divided by 365 (366 in leap years).
On the first business day of each month, the funds pay a management fee to the
advisor for the previous month. The management fee is the sum of the daily fee
calculations for each day of the previous month.

The management agreement between the corporation and the advisor shall continue
in effect until the earlier of the expiration of two years from the date of its
execution or until the first meeting of fund shareholders following such
execution and for as long thereafter as its continuance is specifically approved
at least annually by

(1)  the funds' Board of Directors, or a majority of outstanding
     shareholder votes (as defined in the Investment Company Act) and

(2)  the vote of a majority of the directors of the funds who are not
     parties to the agreement or interested persons of the advisor, cast in
     person at a meeting called for the purpose of voting on such approval.

The management agreement states that the funds' Board of Directors or a majority
of outstanding shareholder votes may terminate the management agreement at any
time without payment of any penalty on 60 days' written notice to the advisor.
The management agreement shall be automatically terminated if it is assigned.

The management agreement states the advisor shall not be liable to the funds or
their shareholders for anything other than willful misfeasance, bad faith, gross
negligence or reckless disregard of its obligations and duties.

The management agreement also provides that the advisor and its officers,
directors and employees may engage in other business, render services to others,
and devote time and attention to any other business whether of a similar or
dissimilar nature.

Certain investments may be appropriate for the funds and also for other clients
advised by the advisor. Investment decisions for the funds and other clients are
made with a view to achieving their respective investment objectives after
consideration of such factors as their current holdings, availability of cash
for investment and the size of their investment generally. A particular security
may be bought or sold for only one client or fund, or in different amounts and
at different times for more than one but less than all clients or funds. A
particular security may be bought for one client or fund on the same day it is
sold for another client or fund, and a client or fund may hold a short position
in a particular security at the same time another client or fund holds a long
position. In addition, purchases or sales of the same security may be made for
two or more clients or funds on


- ------
56


the same date. The advisor has adopted procedures designed to ensure such
transactions will be allocated among clients and funds in a manner believed by
the advisor to be equitable to each. In some cases this procedure could have an
adverse effect on the price or amount of the securities purchased or sold by a
fund.

The advisor may aggregate purchase and sale orders of the funds with purchase
and sale orders of its other clients when the advisor believes that such
aggregation provides the best execution for the funds. The Board of Directors
has approved the policy of the advisor with respect to the aggregation of
portfolio transactions. Where portfolio transactions have been aggregated, the
funds participate at the average share price for all transactions in that
security on a given day and allocate transaction costs on a pro rata basis. The
advisor will not aggregate portfolio transactions of the funds unless it
believes such aggregation is consistent with its duty to seek best execution on
behalf of the funds and the terms of the management agreement. The advisor
receives no additional compensation or remuneration as a result of such
aggregation.


Unified management fees incurred by each fund for the fiscal periods ended
October 31, 2006, 2005 and 2004, are indicated in the following tables.

UNIFIED MANAGEMENT FEES
FUND                  2006                    2005                 2004
- --------------------------------------------------------------------------------
Balanced              $5,782,526              $5,715,280           $5,409,000
- --------------------------------------------------------------------------------
Capital               $33,211                 $21,281              $7,454(1)
Growth
- --------------------------------------------------------------------------------
Capital Value         $5,305,197              $4,766,345           $1,927,559
- --------------------------------------------------------------------------------
Focused               $159,456                $40,167(2)           N/A
Growth
- --------------------------------------------------------------------------------
Fundamental           $180,758                $15,524(3)           N/A
Equity
- --------------------------------------------------------------------------------
Giftrust              $10,065,867             $9,173,657           $8,873,785
- --------------------------------------------------------------------------------
Growth                $46,259,000             $47,534,738          $48,430,000
- --------------------------------------------------------------------------------
Heritage              $11,269,954             $10,948,186          $12,821,000
- --------------------------------------------------------------------------------
Mid Cap               $1,382,888(4)(5)        $1,252,131(4)        $1,059,938(4)
Growth
- --------------------------------------------------------------------------------
New                   $3,862,970              $3,839,704           $4,491,558
Opportunities
- --------------------------------------------------------------------------------
New                   $1,686,269              $1,283,128           $664,838
Opportunities
II
- --------------------------------------------------------------------------------
NT Growth             $179,563(6)             N/A                  N/A
- --------------------------------------------------------------------------------
NT Vista              $80,530(6)              N/A                  N/A
- --------------------------------------------------------------------------------
Select                $31,941,131             $37,902,378          $40,572,517
- --------------------------------------------------------------------------------
Small Cap             $460,953(4)(7)          $299,436(4)          $214,449(4)
Growth
- --------------------------------------------------------------------------------
Ultra                 $178,208,765            $216,746,243         $224,856,000
- --------------------------------------------------------------------------------
Veedot                $2,629,600              $3,187,010           $3,620,633
- --------------------------------------------------------------------------------
Vista                 $23,255,266             $19,468,881          $14,415,000
- --------------------------------------------------------------------------------

(1)  FEES ACCRUED FROM FEBRUARY 27, 2004 (INCEPTION) THROUGH OCTOBER 31,
     2004.

(2)  FEES ACCRUED FROM FEBRUARY 28, 2005 (INCEPTION) THROUGH OCTOBER 31,
     2005.

(3)  FEES ACCRUED FROM NOVEMBER 30, 2004 (INCEPTION) THROUGH OCTOBER 31,
     2005.

(4)  REPRESENTS MANAGEMENT FEES PAID BY THE PREDECESSOR FUND TO MASON
     STREET ADVISORS, LLC AS OF THE FISCAL YEARS ENDED MARCH 31, 2006, 2005 AND
     2004.

(5)  FOR THE PERIOD APRIL 1, 2006 THROUGH OCTOBER 31, 2006, THE FUND PAID
     THE ADVISOR $984,825.

(6)  FEES ACCRUED FROM MAY 12, 2006 (INCEPTION) THROUGH OCTOBER 31, 2006.

(7)  FOR THE PERIOD APRIL 1, 2006 THROUGH OCTOBER 31, 2006, THE FUND PAID
     THE ADVISOR $409,517.

SUBADVISOR

The investment management agreement provides that the advisor may delegate
certain responsibilities under the agreement to a subadvisor. Currently, Mason
Street Advisors LLC (MSA) serves as subadvisor to the Small Cap Growth Fund and
Mid Cap Growth Fund under a subadvisory agreement between the advisor and MSA
dated March 30, 2006, and approved by shareholders on March 30, 2006. The
subadvisory agreement continues for an initial period until July 31, 2007, and
thereafter so long as continuance is specifically approved at least annually by
vote of a majority of the fund's outstanding voting securities or by vote of a
majority of the fund's directors, provided that in either


- ------
57


event the continuance is also approved by a majority of those directors who are
neither parties to the agreement nor interested persons of any such party, cast
in person at a meeting called for the purpose of voting on such approval. The
subadvisory agreement is subject to termination without penalty on 60 days'
written notice by the advisor, the Board of Directors, a majority of the fund's
outstanding shares, or MSA, and will terminate automatically in the event of its
assignment or termination of the investment advisory agreement between the fund
and the advisor.

The subadvisory agreement provides that MSA will make investment decisions for
the funds in accordance with the funds' investment objectives, policies, and
restrictions, and whatever additional written guidelines it may receive from the
advisor from time to time. For the services it provides to Mid Cap Growth, the
advisor pays MSA a monthly fee at an annual rate of 0.550% on the first $50
million of the fund's average daily net assets, 0.500% on the next $200 million
of average daily net assets, 0.450% on the next $250 million of average daily
net assets and 0.400% on average daily net assets over $500 million. For the
services it provides to Small Cap Growth, the advisor pays MSA a monthly fee at
an annual rate of 0.700% on the first $35 million of the fund's average daily
net assets, 0.650% on the next $65 million of average daily net assets, 0.600%
on the next $400 million of average daily net assets and 0.550% on average daily
net assets over $500 million.

For the fiscal year ended October 31, 2006, the advisor paid MSA subadvisory
fees as listed in the following table.

- --------------------------------------------------------------------------------
MSA Subadvisory Fees               Mid Cap Growth               Small Cap Growth
- --------------------------------------------------------------------------------
2006                               $476,660(1)                  $183,594(1)
- --------------------------------------------------------------------------------

(1)  FEES PAID FROM APRIL 1, 2006 THROUGH OCTOBER 31, 2006.


PORTFOLIO MANAGERS

All funds except Mid Cap Growth and Small Cap Growth

Other Accounts Managed

The portfolio managers also may be responsible for the day-to-day management of
other accounts, as indicated by the following table. None of these accounts has
an advisory fee based on the performance of the account.


OTHER ACCOUNTS MANAGED (AS OF OCTOBER 31, 2006)
                                REGISTERED                          OTHER ACCOUNTS
                                INVESTMENT                          (E.G., SEPARATE
                                COMPANIES                           ACCOUNTS AND
                                (E.G., OTHER      OTHER POOLED      CORPORATE
                                AMERICAN          INVESTMENT        ACCOUNTS
                                CENTURY FUNDS     VEHICLES (E.G.,   INCLUDING
                                AND AMERICAN      COMMINGLED        INCUBATION
                                CENTURY -         TRUSTS AND        STRATEGIES
                                SUBADVISED        529 EDUCATION     AND CORPORATE
                                FUNDS)            SAVINGS PLANS)    MONEY)
- -----------------------------------------------------------------------------------
Balanced Fund
- -----------------------------------------------------------------------------------
William     Number of Other     14                1                 3
Martin      Accounts Managed
            -----------------------------------------------------------------------
            Assets in Other     $7,143,251,383    $65,722,480       $316,054,137
            Accounts Managed
- -----------------------------------------------------------------------------------
Thomas P.   Number of Other     12                1                 3
Vaiana      Accounts Managed
            -----------------------------------------------------------------------
            Assets in Other     $6,112,892,772    $65,722,480       $316,054,137
            Accounts Managed
- -----------------------------------------------------------------------------------
Fei Zou     Number of Other     5                 1                 2
            Accounts Managed
            -----------------------------------------------------------------------
            Assets in Other     $3,788,363,769    $65,722,480       $19,245,137
            Accounts Managed
- -----------------------------------------------------------------------------------
David       Number of Other     6                 1                 1
MacEwen     Accounts Managed
            -----------------------------------------------------------------------
            Assets in Other     $1,734,997,640    $65,722,480       $28,305,994
            Accounts Managed
- -----------------------------------------------------------------------------------



- ------
58



OTHER ACCOUNTS MANAGED (AS OF OCTOBER 31, 2006)
                                 REGISTERED                           OTHER ACCOUNTS
                                 INVESTMENT                           (E.G., SEPARATE
                                 COMPANIES                            ACCOUNTS AND
                                 (E.G., OTHER      OTHER POOLED       CORPORATE
                                 AMERICAN          INVESTMENT         ACCOUNTS
                                 CENTURY FUNDS     VEHICLES (E.G.,    INCLUDING
                                 AND AMERICAN      COMMINGLED         INCUBATION
                                 CENTURY -         TRUSTS AND         STRATEGIES
                                 SUBADVISED        529 EDUCATION      AND CORPORATE
                                 FUNDS)            SAVINGS PLANS)     MONEY)
- -------------------------------------------------------------------------------------
Balanced Fund
- -------------------------------------------------------------------------------------
Robert       Number of Other     15                2                  2
Gahagan      Accounts Managed
             ------------------------------------------------------------------------
             Assets in Other     $6,801,844,245    $1,815,977,560     $40,226,963
             Accounts Managed
- -------------------------------------------------------------------------------------
James        Number of Other     6                 1                  1
Keegan       Accounts Managed
             ------------------------------------------------------------------------
             Assets in Other     $1,360,222,636    $65,722,480        $28,305,994
             Accounts Managed
- -------------------------------------------------------------------------------------
Jeffrey      Number of Other     5                 1                  1
Houston      Accounts Managed
             ------------------------------------------------------------------------
             Assets in Other     $1,286,838,742    $65,722,480        $28,305,994
             Accounts Managed
- -------------------------------------------------------------------------------------
Alejandro    Number of Other     9                 1                  2
H. Aguilar   Accounts Managed
             ------------------------------------------------------------------------
             Assets in Other     $4,589,715,985    $65,722,480        $40,226,963
             Accounts Managed
- -------------------------------------------------------------------------------------
Brian        Number of Other     7                 1                  2
Howell       Accounts Managed
             ------------------------------------------------------------------------
             Assets in Other     $2,719,679,215    $65,722,480        $40,226,963
             Accounts Managed
- -------------------------------------------------------------------------------------
John F.      Number of Other     5                 1                  1
Walsh        Accounts Managed
             ------------------------------------------------------------------------
             Assets in Other     $1,286,838,742    $65,722,480        $28,305,994
             Accounts Managed
- -------------------------------------------------------------------------------------
Dan          Number of Other     9                 1                  2
Shiffman     Accounts Managed
             ------------------------------------------------------------------------
             Assets in Other     $4,589,715,985    $65,722,480        $40,226,963
             Accounts Managed
- -------------------------------------------------------------------------------------
Capital Growth
- -------------------------------------------------------------------------------------
E. A.        Number of Other     5                 0                  3
Prescott     Accounts Managed
LeGard       ------------------------------------------------------------------------
             Assets in Other     $5,882,621,664    N/A                $140,744,392
             Accounts Managed
- -------------------------------------------------------------------------------------
Gregory J.   Number of Other     6                 0                  4
Woodhams     Accounts Managed
             ------------------------------------------------------------------------
             Assets in Other     $5,898,465,605    N/A                $141,802,183
             Accounts Managed
- -------------------------------------------------------------------------------------
Capital Value Fund
- -------------------------------------------------------------------------------------
Charles      Number of Other     9                 0                  3
Ritter       Accounts Managed
             ------------------------------------------------------------------------
             Assets in Other     $3,540,548,408    N/A                $253,081,985
             Accounts Managed
- -------------------------------------------------------------------------------------
Brendan      Number of Other     9                 0                  3
Healy        Accounts Managed
             ------------------------------------------------------------------------
             Assets in Other     $3,540,548,408    N/A                $253,081,985
             Accounts Managed
- -------------------------------------------------------------------------------------
Focused Growth Fund
- -------------------------------------------------------------------------------------
Gregory J.   Number of Other     6                 0                  4
Woodhams     Accounts Managed
             ------------------------------------------------------------------------
             Assets in Other     $5,886,708,682    N/A                $141,802,183
             Accounts Managed
- -------------------------------------------------------------------------------------
Joseph       Number of Other     0                 0                  1
Reiland      Accounts Managed
             ------------------------------------------------------------------------
             Assets in Other     N/A               N/A                $1,057,792
             Accounts Managed
- -------------------------------------------------------------------------------------



- ------
59



OTHER ACCOUNTS MANAGED (AS OF OCTOBER 31, 2006)
                                  REGISTERED                            OTHER ACCOUNTS
                                  INVESTMENT                            (E.G., SEPARATE
                                  COMPANIES                             ACCOUNTS AND
                                  (E.G., OTHER       OTHER POOLED       CORPORATE
                                  AMERICAN           INVESTMENT         ACCOUNTS
                                  CENTURY FUNDS      VEHICLES (E.G.,    INCLUDING
                                  AND AMERICAN       COMMINGLED         INCUBATION
                                  CENTURY -          TRUSTS AND         STRATEGIES
                                  SUBADVISED         529 EDUCATION      AND CORPORATE
                                  FUNDS)             SAVINGS PLANS)     MONEY)
- ---------------------------------------------------------------------------------------
Fundamental Equity Fund
- ---------------------------------------------------------------------------------------
Jerry         Number of Other     3                  0                  0
Sullivan      Acounts Managed
              -------------------------------------------------------------------------
              Assets in Other     $16,642,387,022    N/A                N/A
              Accounts Managed
- ---------------------------------------------------------------------------------------
Robert        Number of Other     0                  0                  0
Brookby       Accounts Managed
              -------------------------------------------------------------------------
              Assets in Other     N/A                N/A                N/A
              Accounts Managed
- ---------------------------------------------------------------------------------------
Giftrust Fund
- ---------------------------------------------------------------------------------------
Glenn A.      Number of Other     6                  0                  2
Fogle(1)      Accounts Managed
              -------------------------------------------------------------------------
              Assets in Other     $2,910,981,470     N/A                $118,934,533
              Accounts Managed
- ---------------------------------------------------------------------------------------
David M.      Number of Other     6                  0                  2
Hollond(1)    Accounts Managed
              -------------------------------------------------------------------------
              Assets in Other     $2,910,981,470     N/A                $118,934,533
              Accounts Managed
- ---------------------------------------------------------------------------------------
Kurt R.       Number of Other     2                  0                  0
Stalzer       Accounts Managed
              -------------------------------------------------------------------------
              Assets in Other     $1,479,185,292     N/A                N/A
              Accounts Managed
- ---------------------------------------------------------------------------------------
Growth Fund
- ---------------------------------------------------------------------------------------
Gregory J.    Number of Other     6                  0                  4
Woodhams      Accounts Managed
              -------------------------------------------------------------------------
              Assets in Other     $1,108,465,421     N/A                $141,802,183
              Accounts Managed
- ---------------------------------------------------------------------------------------
E. A.         Number of Other     5                  0                  3
Prescott      Accounts Managed
LeGard        -------------------------------------------------------------------------
              Assets in Other     $1,092,621,480     N/A                $140,744,392
              Accounts Managed
- ---------------------------------------------------------------------------------------
Heritage Fund
- ---------------------------------------------------------------------------------------
Glenn A.      Number of Other     6                  0                  2
Fogle(1)      Accounts Managed
              -------------------------------------------------------------------------
              Assets in Other     $2,910,981,470     N/A                $118,934,533
              Accounts Managed
- ---------------------------------------------------------------------------------------
David M.      Number of Other     6                  0                  2
Hollond(1)    Accounts Managed
              -------------------------------------------------------------------------
              Assets in Other     $2,910,981,470     N/A                $118,934,533
              Accounts Managed
- ---------------------------------------------------------------------------------------
Kurt R.       Number of Other     2                  0                  0
Stalzer       Accounts Managed
              -------------------------------------------------------------------------
              Assets in Other     $1,308,101,764     N/A                N/A
              Accounts Managed
- ---------------------------------------------------------------------------------------

(1)  MR. FOGLE AND MR. HOLLOND BECAME PORTFOLIO MANAGERS FOR THE FUNDS
     FEBRUARY 9, 2007.



- ------
60



OTHER ACCOUNTS MANAGED (AS OF OCTOBER 31, 2006)
                                   REGISTERED                          OTHER ACCOUNTS
                                   INVESTMENT                          (E.G., SEPARATE
                                   COMPANIES                           ACCOUNTS AND
                                   (E.G., OTHER     OTHER POOLED       CORPORATE
                                   AMERICAN         INVESTMENT         ACCOUNTS
                                   CENTURY FUNDS    VEHICLES (E.G.,    INCLUDING
                                   AND AMERICAN     COMMINGLED         INCUBATION
                                   CENTURY -        TRUSTS AND         STRATEGIES
                                   SUBADVISED       529 EDUCATION      AND CORPORATE
                                   FUNDS)           SAVINGS PLANS)     MONEY)
- --------------------------------------------------------------------------------------
New Opportunities Fund
- --------------------------------------------------------------------------------------
Matthew         Number of Other    1                0                  0
Ferretti        Accounts Managed
                ----------------------------------------------------------------------
                Assets in Other    $132,320,029     N/A                N/A
                Accounts Managed
- --------------------------------------------------------------------------------------
Stafford        Number of Other    1                0                  0
Southwick       Accounts Managed
                ----------------------------------------------------------------------
                Assets in Other    $132,320,029     N/A                N/A
                Accounts Managed
- --------------------------------------------------------------------------------------
New Opportunities II Fund
- --------------------------------------------------------------------------------------
Matthew         Number of Other    1                0                  0
Ferretti        Accounts Managed
                ----------------------------------------------------------------------
                Assets in Other    $248,124,475     N/A                N/A
                Accounts Managed
- --------------------------------------------------------------------------------------
Stafford        Number of Other    1                0                  0
Southwick       Accounts Managed
                ----------------------------------------------------------------------
                Assets in Other    $248,124,475     N/A                N/A
                Accounts Managed
- --------------------------------------------------------------------------------------
NT Growth Fund
- --------------------------------------------------------------------------------------
Gregory J.      Number of Other    6                0                  4
Woodhams        Accounts Managed
                ----------------------------------------------------------------------
                Assets in Other    $5,843,695,334   N/A                $141,802,183
                Accounts Managed
- --------------------------------------------------------------------------------------
E.A.            Number of Other    5                0                  3
Prescott        Accounts Managed
LeGard          ----------------------------------------------------------------------
                Assets in Other    $5,827,851,393   N/A                $140, 744,392
                Accounts Managed
- --------------------------------------------------------------------------------------
NT Vista Fund
- --------------------------------------------------------------------------------------
Glenn           Number of Other    5                0                  2
Fogle           Accounts Managed
                ----------------------------------------------------------------------
                Assets in Other    $2,885,360,663   N/A                $118,934,533
                Accounts Managed
- --------------------------------------------------------------------------------------
David           Number of Other    5                0                  2
Hollond         Accounts Managed
                ----------------------------------------------------------------------
                Assets in Other    $2,885,360,663   N/A                $118,934,533
                Accounts Managed
- --------------------------------------------------------------------------------------
Bradley J.      Number of Other    5                0                  2
Eixmann(1)      Accounts Managed
                ----------------------------------------------------------------------
                Assets in Other    $3,082,922,256   N/A                $130,540,092
                Accounts Managed
- --------------------------------------------------------------------------------------
Select Fund
- --------------------------------------------------------------------------------------
Keith Lee       Number of Other    1                0                  0
                Accounts Managed
                ----------------------------------------------------------------------
                Assets in Other    $328,637,391     N/A                N/A
                Accounts Managed
- --------------------------------------------------------------------------------------
Michael Li      Number of Other    1                0                  0
                Accounts Managed
                ----------------------------------------------------------------------
                Assets in Other    $328,637,391     N/A                N/A
                Accounts Managed
- --------------------------------------------------------------------------------------

(1)  MR. EIXMANN BECAME A PORTFOLIO MANAGER ON THE FUND FEBRUARY 9, 2007.
     INFORMATION IS PROVIDED AS OF FEBRUARY 14, 2007.



- ------
61



OTHER ACCOUNTS MANAGED (AS OF OCTOBER 31, 2006)
                                 REGISTERED                          OTHER ACCOUNTS
                                 INVESTMENT                          (E.G., SEPARATE
                                 COMPANIES                           ACCOUNTS AND
                                 (E.G., OTHER      OTHER POOLED      CORPORATE
                                 AMERICAN          INVESTMENT        ACCOUNTS
                                 CENTURY FUNDS     VEHICLES (E.G.,   INCLUDING
                                 AND AMERICAN      COMMINGLED        INCUBATION
                                 CENTURY -         TRUSTS AND        STRATEGIES
                                 SUBADVISED        529 EDUCATION     AND CORPORATE
                                 FUNDS)            SAVINGS PLANS)    MONEY)
- ------------------------------------------------------------------------------------
Ultra Fund
- ------------------------------------------------------------------------------------
Wade         Number of Other     2                 0                 0
Slome        Accounts Managed
             -----------------------------------------------------------------------
             Assets in Other     $1,649,726,231    N/A               N/A
             Accounts Managed
- ------------------------------------------------------------------------------------
Tom          Number of Other     3                 0                 0
Telford      Accounts Managed
             -----------------------------------------------------------------------
             Assets in Other     $1,775,857,074    N/A               N/A
             Accounts Managed
- ------------------------------------------------------------------------------------
Veedot Fund
- ------------------------------------------------------------------------------------
John         Number of Other     1                 0                 3
Small, Jr.   Accounts Managed
             -----------------------------------------------------------------------
             Assets in Other     $7,334,673        N/A               $1,481,968
             Accounts Managed
- ------------------------------------------------------------------------------------
Vista Fund
- ------------------------------------------------------------------------------------
Glenn        Number of Other     5                 0                 2
Fogle        Accounts Managed
             -----------------------------------------------------------------------
             Assets in Other     $596,079,368      N/A               $118,934,533
             Accounts Managed
- ------------------------------------------------------------------------------------
David        Number of Other     5                 0                 2
Hollond      Accounts Managed
             -----------------------------------------------------------------------
             Assets in Other     $596,079,368      N/A               $118,934,533
             Accounts Managed
- ------------------------------------------------------------------------------------
Bradley J.   Number of Other     5                 0                 2
Eixmann(1)   Accounts Managed
             -----------------------------------------------------------------------
             Assets in Other     $670,705,708     N/A               $130,540,092
             Accounts Managed
- ------------------------------------------------------------------------------------

(1)  MR. EIXMANN BECAME A PORTFOLIO MANAGER ON THE FUND FEBRUARY 9, 2007.
     INFORMATION IS PROVIDED AS OF FEBRUARY 14, 2007.

Potential Conflicts of Interest

Certain conflicts of interest may arise in connection with the management of
multiple portfolios. Potential conflicts include, for example, conflicts among
investment strategies and conflicts in the allocation of investment
opportunities. American Century has adopted policies and procedures that are
designed to minimize the effects of these conflicts.

Responsibility for managing American Century client portfolios is organized
according to investment discipline. Investment disciplines include, for example,
core equity, small- and mid-cap growth, large-cap growth, value, international,
fixed-income, asset allocation, and sector funds. Within each discipline are one
or more portfolio teams responsible for managing specific client portfolios.
Generally, client portfolios with similar strategies are managed by the same
team using the same objective, approach, and philosophy. Accordingly, portfolio
holdings, position sizes, and industry and sector exposures tend to be similar
across similar portfolios, which minimizes the potential for conflicts of
interest.

For each investment strategy, one portfolio is generally designated as the
"policy portfolio." Other portfolios with similar investment objectives,
guidelines and restrictions, if any, are referred to as "tracking portfolios."
When managing policy and tracking portfolios, a portfolio team typically
purchases and sells securities across all portfolios that the team manages.
American Century's trading systems include various order entry programs that
assist in the management of multiple portfolios, such as the ability to purchase
or sell the same relative amount of one security across several funds. In some
cases a tracking portfolio may have additional restrictions or limitations that
cause it to be managed separately from the policy portfolio. Portfolio managers
make purchase and sale decisions for such portfolios alongside the policy
portfolio to the extent the overlap is appropriate, and separately, if the
overlap is not.


- ------
62


American Century may aggregate orders to purchase or sell the same security for
multiple portfolios when it believes such aggregation is consistent with its
duty to seek best execution on behalf of its clients. Orders of certain client
portfolios may, by investment restriction or otherwise, be determined not
available for aggregation. American Century has adopted policies and procedures
to minimize the risk that a client portfolio could be systematically advantaged
or disadvantaged in connection with the aggregation of orders. To the extent
equity trades are aggregated, shares purchased or sold are generally allocated
to the participating portfolios PRO RATA based on order size. Because initial
public offerings (IPOs) are usually available in limited supply and in amounts
too small to permit across-the-board pro rata allocations, American Century has
adopted special procedures designed to promote a fair and equitable allocation
of IPO securities among clients over time. Fixed-income securities transactions
are not executed through a centralized trading desk. Instead, portfolio teams
are responsible for executing trades with broker/dealers in a predominantly
dealer marketplace. Trade allocation decisions are made by the portfolio manager
at the time of trade execution and orders entered on the fixed-income order
management system.

Finally, investment of American Century's corporate assets in proprietary
accounts may raise additional conflicts of interest. To mitigate these potential
conflicts of interest, American Century has adopted policies and procedures
intended to provide that trading in proprietary accounts is performed in a
manner that does not give improper advantage to American Century to the
detriment of client portfolios.

Compensation

American Century portfolio manager compensation is structured to align the
interests of portfolio managers with those of the shareholders whose assets they
manage. It includes the components described below, each of which is determined
with reference to a number of factors such as overall performance, market
competition, and internal equity. Compensation is not directly tied to the value
of assets held in client portfolios.

Base Salary

Portfolio managers receive base pay in the form of a fixed annual salary.

Bonus

A significant portion of portfolio manager compensation takes the form of an
annual incentive bonus tied to performance. Bonus payments are determined by a
combination of factors. One factor is fund investment performance. For policy
portfolios, such as the funds described in this statement of additional
information (other than NT Growth and NT Vista), investment performance is
measured by a combination of one- and three-year pre-tax performance relative to
a pre-established, internally-customized peer group and/or market benchmark.
Custom peer groups are constructed using all the funds in appropriate Lipper or
Morningstar categories as a starting point. Funds are then eliminated from the
peer group based on a standardized methodology designed to result in a final
peer group that more closely represents the fund's true peers based on internal
investment mandates and that is more stable (i.e., has less peer turnover) over
the long-term. In cases where a portfolio manager has responsibility for more
than one policy portfolio, the performance of each is assigned a percentage
weight commensurate with the portfolio manager's level of responsibility.

With regard to tracking portfolios, such as NT Growth and NT Vista, investment
performance may be measured in a number of ways. The performance of the tracking
portfolio may be measured against a customized peer group and/or market
benchmark as described above for policy portfolios. Alternatively, the tracking
portfolio may be evaluated relative to the performance of its policy portfolio,
with the goal of matching the policy portfolio's performance as closely as
possible. In some cases, the performance of a tracking portfolio is not
separately considered; rather, the performance of the policy portfolio is the
key metric. This is the case for NT Growth and NT Vista.

A portion of portfolio managers' bonuses also is tied to individual performance
goals, such as research projects and the development of new products.


- ------
63


Finally, portfolio manager bonuses may occasionally be affected by
extraordinarily positive or negative financial performance by American Century
Companies, Inc. (ACC), the advisor's privately-held parent company. This feature
has been designed to maintain investment performance as the primary component of
portfolio manager bonuses while also providing a link to the advisor's ability
to pay.

Restricted Stock Plans

Portfolio managers are eligible for grants of restricted stock of ACC. These
grants are discretionary, and eligibility and availability can vary from year to
year. The size of an individual's grant is determined by individual and product
performance as well as other product-specific considerations. Grants can
appreciate/depreciate in value based on the performance of the ACC stock during
the restriction period (generally three years).

Deferred Compensation Plans

Portfolio managers are eligible for grants of deferred compensation. These
grants are used in very limited situations, primarily for retention purposes.
Grants are fixed and can appreciate/depreciate in value based on the performance
of the American Century mutual funds in which the portfolio manager chooses to
invest them.

Ownership of Securities

The following table indicates the dollar range of securities of each fund
beneficially owned by the fund's portfolio managers as of October 31, 2006, the
fund's most recent fiscal year end.

OWNERSHIP OF SECURITIES
                                    AGGREGATE DOLLAR RANGE OF SECURITIES IN FUND
- --------------------------------------------------------------------------------
Balanced
  William Martin(1)                   A
- --------------------------------------------------------------------------------
  Thomas P. Vaiana(1)                 A
- --------------------------------------------------------------------------------
  Fei Zou(1)                          A
- --------------------------------------------------------------------------------
  G. David MacEwen(1)                 A
- --------------------------------------------------------------------------------
  Robert V. Gahagan(1)                A
- --------------------------------------------------------------------------------
  James F. Keegan(1)                  A
- --------------------------------------------------------------------------------
  Jeffrey L. Houston(1)               A
- --------------------------------------------------------------------------------
  Alejandro H. Aguilar(1)             A
- --------------------------------------------------------------------------------
  Brian Howell(1)                     A
- --------------------------------------------------------------------------------
  John F. Walsh(1)                    A
- --------------------------------------------------------------------------------
  Dan Shiffman(1)                     A
- --------------------------------------------------------------------------------
Capital Growth
  E.A. Prescott LeGard(1)             A
- --------------------------------------------------------------------------------
  Gregory J. Woodhams(1)              A
- --------------------------------------------------------------------------------
Capital Value
  Charles Ritter                      E
- --------------------------------------------------------------------------------
  Brendan Healy                       E
- --------------------------------------------------------------------------------
Focused Growth
  Gregory J. Woodhams                 C
- --------------------------------------------------------------------------------
  Joseph Reiland                      C
- --------------------------------------------------------------------------------
Fundamental Equity
  Jerry Sullivan                      E
- --------------------------------------------------------------------------------
  Robert Brookby                      C
- --------------------------------------------------------------------------------

RANGES: A - NONE; B - $1-$10,000; C - $10,001-$50,000; D - $50,001-$100,000; E -
$100,001-$500,000; F - $500,001-$1,000,000; G - MORE THAN $1,000,000.

(1)  AMERICAN CENTURY HAS ADOPTED A POLICY THAT, WITH LIMITED EXCEPTIONS,
     REQUIRES ITS PORTFOLIO MANAGERS TO MAINTAIN INVESTMENTS IN THE POLICY
     PORTFOLIOS THEY OVERSEE. HOWEVER, BECAUSE THIS PORTFOLIO MANAGER SERVES ON
     A TEAM THAT OVERSEES A NUMBER OF FUNDS IN THE SAME BROAD INVESTMENT
     STRATEGY, THE PORTFOLIO MANAGER IS NOT REQUIRED TO INVEST IN EACH SUCH
     FUND.



- ------
64



OWNERSHIP OF SECURITIES
                                    AGGREGATE DOLLAR RANGE OF SECURITIES IN FUND
- --------------------------------------------------------------------------------
Giftrust
  Glenn A. Fogle(1)(2)                A
- --------------------------------------------------------------------------------
  David M. Hollond(1)(2)              A
- --------------------------------------------------------------------------------
  Kurt R. Stalzer(2)                  A
- --------------------------------------------------------------------------------
Growth
  Gregory J. Woodhams                 E
- --------------------------------------------------------------------------------
  E.A. Prescott LeGard                F
- --------------------------------------------------------------------------------
Heritage
  Glenn A. Fogle(1)                   F
- --------------------------------------------------------------------------------
  David M. Hollond(1)                 C
- --------------------------------------------------------------------------------
  Kurt R. Stalzer                     D
- --------------------------------------------------------------------------------
New Opportunities
- --------------------------------------------------------------------------------
  Matthew Ferretti                    C
- --------------------------------------------------------------------------------
  Stafford Southwick                  C
- --------------------------------------------------------------------------------
New Opportunities II
- --------------------------------------------------------------------------------
  Matthew Ferretti(2)                 A
- --------------------------------------------------------------------------------
  Stafford Southwick                  C
- --------------------------------------------------------------------------------
NT Growth
  Gregory J. Woodhams(2)              A
- --------------------------------------------------------------------------------
  E.A. Prescott LeGard(2)             A
- --------------------------------------------------------------------------------
NT Vista
  Glenn A. Fogle(2)                   A
- --------------------------------------------------------------------------------
  David M. Hollond(2)                 A
- --------------------------------------------------------------------------------
  Bradley J. Eixmann(1)(2)            A
- --------------------------------------------------------------------------------
Select
  Keith Lee                           D
- --------------------------------------------------------------------------------
  Michael Li                          C
- --------------------------------------------------------------------------------
Ultra
- --------------------------------------------------------------------------------
  Wade Slome                          E
- --------------------------------------------------------------------------------
  Tom Telford                         E
- --------------------------------------------------------------------------------
Veedot
  John Small, Jr.                     E
- --------------------------------------------------------------------------------
Vista
  Glenn A. Fogle                      E
- --------------------------------------------------------------------------------
  David M. Hollond                    E
- --------------------------------------------------------------------------------
  Bradley J. Eixmann(1)               C
- --------------------------------------------------------------------------------

RANGES: A - NONE; B - $1-$10,000; C - $10,001-$50,000; D - $50,001-$100,000; E -
$100,001-$500,000; F - $500,001-$1,000,000; G - MORE THAN $1,000,000.

(1)  MR. FOGLE, MR. HOLLOND AND MR. EIXMANN BECAME PORTFOLIO MANAGERS ON
     THE FUNDS FEBRUARY 9, 2007. INFORMATION IS PROVIDED AS OF FEBRUARY 14,
     2007.

(2)  AMERICAN CENTURY HAS ADOPTED A POLICY THAT, WITH LIMITED EXCEPTIONS,
     REQUIRES ITS PORTFOLIO MANAGERS TO MAINTAIN INVESTMENTS IN THE POLICY
     PORTFOLIOS THEY OVERSEE. HOWEVER, BECAUSE THIS PORTFOLIO MANAGER SERVES ON
     A TEAM THAT OVERSEES A NUMBER OF FUNDS IN THE SAME BROAD INVESTMENT
     STRATEGY, THE PORTFOLIO MANAGER IS NOT REQUIRED TO INVEST IN EACH SUCH
     FUND.

Mid Cap Growth, Small Cap Growth

The information under this heading has been provided by MSA, the subadvisor for
Mid Cap Growth and Small Cap Growth.

Other Accounts Managed by Portfolio Managers

Certain of the fund's portfolio managers or members of the investment team as
identified in the prospectus may also manage other mutual funds, other pooled
investment vehicles that are not registered mutual funds, and other accounts
managed for organizations


- ------
65


and individuals. The table below identifies for each person the number of
accounts (other than the funds) for which he or she has day-to-day management
responsibilities and the total assets in such accounts, within each of the
following categories: registered investment companies, other pooled investment
vehicles, and other accounts. These categories are collectively referred to as
"accounts." None of the accounts identified below pays advisory fees that are
based on the performance of the account.

OTHER ACCOUNTS MANAGED (AS OF OCTOBER 31, 2006)
                                                                 OTHER ACCOUNTS
                                                                 (E.G., SEPARATE
                                               OTHER POOLED      ACCOUNTS AND
                                               INVESTMENT        CORPORATE
                                               VEHICLES (E.G.,   ACCOUNTS
                                               COMMINGLED        INCLUDING
                                REGISTERED     TRUSTS AND        INCUBATION
                                INVESTMENT     529 EDUCATION     STRATEGIES AND
                                COMPANIES      SAVINGS PLANS)    CORPORATE MONEY
- --------------------------------------------------------------------------------
Mid Cap Growth
- --------------------------------------------------------------------------------
William R.   Number of Other    1              0                 2
Walker       Accounts Managed
             -------------------------------------------------------------------
             Assets in Other    $50,599,518    N/A               $1,694,537,909
             Accounts Managed
- --------------------------------------------------------------------------------
Small Cap Growth
- --------------------------------------------------------------------------------
William R.   Number of Other    1              0                 2
Walker       Accounts Managed
             -------------------------------------------------------------------
             Assets in Other    $182,685,346   N/A               $1,694,537,909
             Accounts Managed
- --------------------------------------------------------------------------------

Compensation of Portfolio Managers

MSA has adopted a system of compensation for portfolio managers that seeks to
attract, motivate and retain high quality investment personnel and align the
financial interests of the portfolio managers with the performance of MSA and
its clients. A portfolio manager's compensation consists primarily of the
following three components: a base salary, annual variable compensation and, for
certain portfolio managers, long-term variable compensation. Eligibility and
participation in the annual and long-term variable compensation programs is
determined on a year-to-year basis. Each portfolio manager is also eligible to
participate in benefit plans and programs available generally to all employees
of MSA.

A portfolio manager's total compensation is determined through a process that
combines both objective and subjective criteria. Initially, at the beginning of
each year, compensation targets are determined for each portfolio manager based
on market factors and the skill, experience and tenure of the portfolio manager.
The compensation target is then allocated among base salary, annual variable
compensation and long-term variable compensation based on a formula for each
portfolio manager.

At the end of the year, the portfolio manager's performance is evaluated using
both objective and subjective criteria. Primary consideration is given to the
historic investment performance of accounts managed by the portfolio manager
over both a one-year and a four-year period, with more weight typically being
given to the longer-term performance. The performance of each account managed by
the portfolio manager is measured against a relevant peer group and/or an
applicable benchmark, as deemed appropriate. If a portfolio manager manages more
than one account, performance is weighted based on a combination of factors,
including the number and type of accounts managed, and the assets in each
account.

The evaluation process also includes a subjective evaluation of competencies or
behaviors deemed important to achieving MSA's overall business objectives.
Subjective criteria may include considerations such as management and
supervisory responsibilities, market factors, complexity of investment
strategies, length of service, team building efforts and successes, risk
management initiatives and leadership contributions. A portfolio manager's
compensation is then determined by applying a multiplier (which can


- ------
66


be greater or less than 1.0) based on the annual evaluation of the objective and
subjective criteria to the targeted compensation. Long-term variable pay grants
are made on an annual basis and are credited to a deferred account that accrues
interest on the balances. Awarded grants vest over a three to five-year vesting
period and are paid upon vesting.

Conflicts of Interest

Conflicts of interest may arise when a portfolio manager is responsible for the
management of more than one account. The principal types of these potential
conflicts may include:

TIME AND ATTENTION. The management of multiple funds and/or accounts may give
rise to potential conflicts of interest as the portfolio manager must allocate
his or her time and investment ideas across multiple funds and accounts. This
could result in a portfolio manager devoting unequal time and attention to the
management of each fund and/or other accounts. The effect of this potential
conflict may be more pronounced where funds and/or accounts overseen by a
particular portfolio manager have different objectives, benchmarks, time
horizons, and fees.

LIMITED INVESTMENT OPPORTUNITIES. If a portfolio manager identifies a limited
investment opportunity that may be suitable for multiple funds and/or accounts,
the opportunity may be allocated among these several funds or accounts, which
may limit a fund's ability to take full advantage of the investment opportunity.
MSA seeks to manage such potential conflicts by using procedures intended to
provide a fair allocation of buy and sell opportunities among funds and other
accounts.

VARIATION IN INCENTIVES. A conflict of interest may arise where the financial or
other benefits available to the portfolio manager differ among the funds and/or
accounts that he or she manages. If the structure of the investment adviser's
management fee and/or the portfolio manager's compensation differs among funds
and/or accounts (such as where certain funds or accounts pay higher management
fees or performance-based management fees), the portfolio manager might be
motivated to help certain funds and/or accounts over others. In addition, the
portfolio manager might be motivated to favor funds and/or accounts in which he
or she has an interest or in which the investment adviser and/or its affiliates
have interests. Similarly, the desire to maintain assets under management or to
enhance the portfolio manager's performance record or to derive other rewards,
financial or otherwise, could influence the portfolio manager in affording
preferential treatment to those funds and/or accounts that could most
significantly benefit the portfolio manager.

PERSONAL ACCOUNTS. Portfolio managers may be permitted to purchase and sell
securities for their own personal accounts or the personal accounts of family
members, which could potentially influence the portfolio manager's decisions
with respect to purchasing or selling the same securities for the fund. To
mitigate this potential conflict of interest, MSA has adopted Codes of Ethics or
other policies and procedures governing the personal securities transactions of
its portfolio managers.

DIFFERING STRATEGIES. At times, a portfolio manager may determine that an
investment opportunity may be appropriate for only some of the funds and/or
accounts for which he or she exercises investment responsibility, or may decide
that certain of the funds and/or accounts should take differing positions with
respect to a particular security. In these cases, the portfolio manager may
place separate transactions for one or more funds or accounts which may affect
the market price of the security or the execution of the transaction, or both,
to the detriment or benefit of one or more other funds and/or accounts.

MSA and the fund have adopted compliance polices and procedures, as applicable,
that are designed to address these, and other, types of conflicts of interest.
There is no guarantee, however, that such policies and procedures will be able
to detect and/or prevent every situation where a conflict arises.

Portfolio Manager Securities Ownership

As of October 31, 2006, the portfolio manager beneficially owned no shares of
the funds.



- ------
67


TRANSFER AGENT AND ADMINISTRATOR

American Century Services, LLC (ACS), 4500 Main Street, Kansas City, Missouri
64111, serves as transfer agent and dividend-paying agent for the funds. It
provides physical facilities, computer hardware and software and personnel for
the day-to-day administration of the funds and the advisor. The advisor pays
ACS's costs for serving as transfer agent and dividend-paying agent for the
funds out of the advisor's unified management fee. For a description of this fee
and the terms of its payment, see the above discussion under the caption
INVESTMENT ADVISOR on page 53.

From time to time, special services may be offered to shareholders who maintain
higher share balances in our family of funds. These services may include the
waiver of minimum investment requirements, expedited confirmation of shareholder
transactions, newsletters and a team of personal representatives. Any expenses
associated with these special services will be paid by the advisor.

DISTRIBUTOR

The funds' shares are distributed by American Century Investment Services, Inc.
(ACIS), a registered broker-dealer. The distributor is a wholly owned subsidiary
of ACC and its principal business address is 4500 Main Street, Kansas City,
Missouri 64111.

The distributor is the principal underwriter of the funds' shares. The
distributor makes a continuous, best-efforts underwriting of the funds' shares.
This means the distributor has no liability for unsold shares. The advisor pays
ACIS's costs for serving as principal underwriter of the funds' shares out of
the advisor's unified management fee. For a description of this fee and the
terms of its payment, see the above discussion under the caption INVESTMENT
ADVISOR on page 53. ACIS does not earn commissions for distributing the funds'
shares.

Certain financial intermediaries unaffiliated with the distributor or the funds
may perform various administrative and shareholder services for their clients
who are invested in the funds. These services may include assisting with fund
purchases, redemptions and exchanges, distributing information about the funds
and their performance, preparing and distributing client account statements, and
other administrative and shareholder services that would otherwise be provided
by the distributor or its affiliates. The distributor may pay fees out of its
own resources to such financial intermediaries for providing these services.

CUSTODIAN BANKS

JPMorgan Chase Bank, 4 Metro Tech Center, Brooklyn, New York 11245, and Commerce
Bank, N.A., 1000 Walnut, Kansas City, Missouri 64105, each serves as custodian
of the funds' assets. State Street Bank and Trust Company, One Lincoln Street,
Boston, Massachusetts 02111, maintains custody accounts for the safekeeping of
futures trading margin for Mid Cap Growth and Small Cap Growth. Goldman, Sachs &
Co., 85 Broad Street, New York, New York 10004, maintains custody accounts for
the safekeeping of futures trading margin for all funds except Mid Cap Growth
and Small Cap Growth. The custodians take no part in determining the investment
policies of the funds or in deciding which securities are purchased or sold by
the funds. The funds, however, may invest in certain obligations of the
custodians and may purchase or sell certain securities from or to the
custodians. JPMorgan Chase Bank is paid based on the monthly average of assets
held in custody plus a transaction fee.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Deloitte & Touche LLP is the independent registered public accounting firm of
the funds. The address of Deloitte & Touche LLP is 1100 Walnut Street, Kansas
City, Missouri 64106. As the independent registered public accounting firm of
the funds, Deloitte & Touche LLP and its affiliates provide services including

(1)  auditing the annual financial statements for each fund,

(2)  assisting and consulting in connection with SEC filings and

(3)  reviewing the annual federal income tax return filed for each fund.


- ------
68


BROKERAGE ALLOCATION

CAPITAL GROWTH, CAPITAL VALUE, FOCUSED GROWTH, FUNDAMENTAL EQUITY, GIFTRUST,
GROWTH, HERITAGE, MID CAP GROWTH, NEW OPPORTUNITIES, NEW OPPORTUNITIES II, NT
GROWTH, NT VISTA, SELECT, SMALL CAP GROWTH, ULTRA, VEEDOT, VISTA, AND THE EQUITY
PORTION OF BALANCED

Under the management agreement between the funds and the advisor, the advisor
has the responsibility of selecting brokers and dealers to execute portfolio
transactions. The funds' policy is to secure the most favorable prices and
execution of orders on its portfolio transactions. So long as that policy is
met, the advisor may take into consideration the factors discussed below when
selecting brokers. For Mid Cap Growth and Small Cap Growth, the advisor has
delegated responsibility for selecting brokers to execute portfolio transactions
to the subadvisor under the terms of the subadvisory agreement.

The advisor, or the subadvisor, as the case may be, receives statistical and
other information and services, including research, without cost from brokers
and dealers. The advisor or subadvisor evaluates such information and services,
together with all other information that it may have, in supervising and
managing the investments of the funds. Because such information and services may
vary in amount, quality and reliability, their influence in selecting brokers
varies from none to very substantial. The advisor or subadvisor intends to
continue to place some of the funds' brokerage business with one or more brokers
who provide information and services. Such information and services will be in
addition to and not in lieu of services required to be performed by the advisor.
The advisor does not utilize brokers that provide such information and services
for the purpose of reducing the expense of providing required services to the
funds. In the fiscal years ended October 31, 2006, 2005 and 2004, the brokerage
commissions of each fund are listed in the following table.

FUND                    2006                   2005                2004
- --------------------------------------------------------------------------------
Balanced                $428,486               $920,605            $1,223,255
- --------------------------------------------------------------------------------
Capital                 $5,152                 $2,281              $1,342(1)
Growth
- --------------------------------------------------------------------------------
Capital                 $83,746                $170,142            $76,585
Value
- --------------------------------------------------------------------------------
Focused                 $29,590                $4,808(2)           N/A
Growth
- --------------------------------------------------------------------------------
Fundamental             $31,045                $1,686(3)           N/A
Equity
- --------------------------------------------------------------------------------
Giftrust                $2,640,353             $2,476,145          $3,433,171
- --------------------------------------------------------------------------------
Growth                  $6,865,524             $4,107,762          $8,405,085
- --------------------------------------------------------------------------------
Heritage                $3,009,195             $3,052,428          $5,217,528
- --------------------------------------------------------------------------------
Mid Cap                 $472,870(4)(5)         $437,184(4)         $245,045(4)
Growth
- --------------------------------------------------------------------------------
New                     $1,193,718             $1,027,283          $1,521,059
Opportunities
- --------------------------------------------------------------------------------
New                     $535,289               $367,669            $231,389
Opportunities
II
- --------------------------------------------------------------------------------
NT Growth               $41,638(6)             N/A                 N/A
- --------------------------------------------------------------------------------
NT Vista                $18,545(6)             N/A                 N/A
- --------------------------------------------------------------------------------
Select                  $6,551,215             $2,279,586          $3,551,910
- --------------------------------------------------------------------------------
Small Cap               $219,083(4)(7)         $167,469(4)         $72,119(4)
Growth
- --------------------------------------------------------------------------------
Ultra                   $10,265,645            $8,078,728          $9,440,731
- --------------------------------------------------------------------------------
Veedot                  $748,463               $1,200,009          $1,597,322
- --------------------------------------------------------------------------------
Vista                   $5,111,559             $5,978,255          $6,049,997
- --------------------------------------------------------------------------------

(1)  FEBRUARY 27, 2004 (INCEPTION) THROUGH OCTOBER 31, 2004.

(2)  FEBRUARY 28, 2005 (INCEPTION) THROUGH OCTOBER 31, 2005.

(3)  NOVEMBER 30, 2004 (INCEPTION) THROUGH OCTOBER 31, 2005.

(4)  REFLECTS COMMISSIONS PAID BY THE PREDECESSOR FUND AS OF THE FISCAL
     YEAR ENDED MARCH 31.

(5)  FOR THE PERIOD APRIL 1, 2006 THROUGH OCTOBER 31, 2006, THE FUND PAID
     $199,909.

(6)  MAY 12, 2006 (INCEPTION) THROUGH OCTOBER 31, 2006.

(7)  FOR THE PERIOD APRIL 1, 2006 THROUGH OCTOBER 31, 2006, THE FUND PAID
     $85,004.

The funds' distributor (ACIS) and investment advisor (ACIM) are wholly owned,
directly or indirectly, by ACC. JPMorgan Chase & Co. (JPM) is an equity investor
in ACC. The funds paid J.P. Morgan Securities Inc. (JPMS), a subsidiary of JPM,
the following brokerage commissions for the fiscal years ended October 31, 2006,
2005 and 2004.



- ------
69



FUND                         2006                   2005                 2004
- --------------------------------------------------------------------------------
Balanced                     $0                     $0                   $108
- --------------------------------------------------------------------------------
Capital                      $0                     $1                   $11(1)
Growth
- --------------------------------------------------------------------------------
Capital                      $0                     $132                 $88
Value
- --------------------------------------------------------------------------------
Focused                      $0                     $0(2)                N/A
Growth
- --------------------------------------------------------------------------------
Fundamental                  $50                    $0(3)                N/A
Equity
- --------------------------------------------------------------------------------
Giftrust                     $22,764                $3,028               $3,989
- --------------------------------------------------------------------------------
Growth                       $0                     $2,036               $60,707
- --------------------------------------------------------------------------------
Heritage                     $27,547                $3,036               $1,104
- --------------------------------------------------------------------------------
Mid Cap                      $6,476(4)              N/A                  N/A
Growth
- --------------------------------------------------------------------------------
New                          $14,106                $0                   $0
Opportunities
- --------------------------------------------------------------------------------
New                          $8,587                 $0                   $0
Opportunities
II
- --------------------------------------------------------------------------------
NT Growth                    $0(5)                  N/A                  N/A
- --------------------------------------------------------------------------------
NT Vista                     $0(5)                  N/A                  N/A
- --------------------------------------------------------------------------------
Select                       $51,195                $3,103               $75,020
- --------------------------------------------------------------------------------
Small Cap                    $2,328(6)              N/A                  N/A
Growth
- --------------------------------------------------------------------------------
Ultra                        $0                     $25,240              $17,936
- --------------------------------------------------------------------------------
Veedot                       $0                     $0                   $657
- --------------------------------------------------------------------------------
Vista                        $32,570                $812                 $14,861
- --------------------------------------------------------------------------------

(1)  FEBRUARY 27, 2004 (INCEPTION) THROUGH OCTOBER 31, 2004.

(2)  FEBRUARY 28, 2005 (INCEPTION) THROUGH OCTOBER 31, 2005.

(3)  NOVEMBER 30, 2004 (INCEPTION) THROUGH OCTOBER 31, 2005.

(4)  APRIL 1, 2006 THROUGH OCTOBER 31, 2006. BROKERAGE COMMISSIONS PAID
     BEFORE APRIL 1, 2006 WERE PAID BY MASON STREET AGGRESSIVE GROWTH FUND,
     WHICH WAS NOT AFFILIATED WITH JPM OR JPMS. MID CAP GROWTH ACQUIRED ALL OF
     THE NET ASSETS OF MASON STREET AGGRESSIVE GROWTH FUND ON MARCH 31, 2006.

(5)  MAY 12, 2006 (INCEPTION) THROUGH OCTOBER 31, 2006.

(6)  APRIL 1, 2006 THROUGH OCTOBER 31, 2006. BROKERAGE COMMISSIONS PAID
     BEFORE APRIL 1, 2006 WERE PAID BY MASON STREET SMALL CAP GROWTH FUND, WHICH
     WAS NOT AFFILIATED WITH JPM OR JPMS. SMALL CAP GROWTH ACQUIRED ALL OF THE
     NET ASSETS OF MASON STREET SMALL CAP GROWTH FUND ON MARCH 31, 2006.

For the fiscal year ended October 31, 2006, the following table shows the
percentage of each fund's aggregate brokerage commissions paid to JPMS and the
percentage of each fund's aggregate dollar amount of portfolio transactions
involving the payment of commissions effected through JPMS.

                                                                 PERCENTAGE OF
                                   PERCENTAGE OF                 DOLLAR AMOUNT
                                   BROKERAGE                     OF PORTFOLIO
FUND                               COMMISSIONS                   TRANSACTIONS
- --------------------------------------------------------------------------------
Balanced                           0.00%                         0.00%
- --------------------------------------------------------------------------------
Capital Growth                     0.00%                         0.00%
- --------------------------------------------------------------------------------
Capital Value                      0.00%                         0.00%
- --------------------------------------------------------------------------------
Focused Growth                     0.00%                         0.00%
- --------------------------------------------------------------------------------
Fundamental Equity                 0.16%                         0.03%
- --------------------------------------------------------------------------------
Giftrust                           0.86%                         0.35%
- --------------------------------------------------------------------------------
Growth                             0.00%                         0.00%
- --------------------------------------------------------------------------------
Heritage                           0.92%                         0.36%
- --------------------------------------------------------------------------------
Mid Cap Growth(1)                  2.78%                         5.71%
- --------------------------------------------------------------------------------
New Opportunities                  1.18%                         0.47%
- --------------------------------------------------------------------------------
New Opportunities II               1.60%                         0.51%
- --------------------------------------------------------------------------------
NT Growth(2)                       0.00%                         0.00%
- --------------------------------------------------------------------------------
NT Vista(2)                        0.00%                         0.00%
- --------------------------------------------------------------------------------
Select                             0.78%                         0.14%
- --------------------------------------------------------------------------------
Small Cap Growth(3)                2.03%                         2.90%
- --------------------------------------------------------------------------------
Ultra                              0.00%                         0.00%
- --------------------------------------------------------------------------------
Veedot                             0.00%                         0.00%
- --------------------------------------------------------------------------------
Vista                              0.64%                         0.27%
- --------------------------------------------------------------------------------

(1)  APRIL 1, 2006 THROUGH OCTOBER 31, 2006. BROKERAGE COMMISSIONS PAID
     BEFORE APRIL 1, 2006 WERE PAID BY MASON STREET AGGRESSIVE GROWTH FUND,
     WHICH WAS NOT AFFILIATED WITH JPM OR JPMS. MID CAP GROWTH ACQUIRED ALL OF
     THE NET ASSETS OF MASON STREET AGGRESSIVE GROWTH FUND ON MARCH 31, 2006.

(2)  MAY 12, 2006 (INCEPTION) THROUGH OCTOBER 31, 2006.

(3)  APRIL 1, 2006 THROUGH OCTOBER 31, 2006. BROKERAGE COMMISSIONS PAID
     BEFORE APRIL 1, 2006 WERE PAID BY MASON STREET SMALL CAP GROWTH FUND, WHICH
     WAS NOT AFFILIATED WITH JPM OR JPMS. SMALL CAP GROWTH ACQUIRED ALL OF THE
     NET ASSETS OF MASON STREET SMALL CAP GROWTH FUND ON MARCH 31, 2006.



- ------
70


Brokerage commissions paid by a fund may vary significantly from year to year as
a result of changing asset levels throughout the year, portfolio turnover,
varying market conditions, and other factors.

The brokerage commissions paid by the funds may exceed those that another broker
might have charged for effecting the same transactions, because of the value of
the brokerage and research services provided by the broker. Research services
furnished by brokers through whom the funds effect securities transactions may
be used by the advisor in servicing all of its accounts, and not all such
services may be used by the advisor in managing the portfolios of the funds.

The staff of the SEC has expressed the view that the best price and execution of
over-the-counter transactions in portfolio securities may be secured by dealing
directly with principal market makers, thereby avoiding the payment of
compensation to another broker. In certain situations, the officers of the funds
and the advisor believe that the facilities, expert personnel and technological
systems of a broker often enable the funds to secure as good a net price by
dealing with a broker instead of a principal market maker, even after payment of
the compensation to the broker. The funds regularly place their over-the-counter
transactions with principal market makers, but also may deal on a brokerage
basis when utilizing electronic trading networks or as circumstances warrant.

THE FIXED-INCOME PORTION OF BALANCED

Under the management agreement between the funds and the advisor, the advisor
has the responsibility of selecting brokers and dealers to execute portfolio
transactions. In many transactions, the selection of the broker or dealer is
determined by the availability of the desired security and its offering price.
In other transactions, the selection of the broker or dealer is a function of
market selection and price negotiation, as well as the broker's general
execution and operational and financial capabilities in the type of transaction
involved. The advisor will seek to obtain prompt execution of orders at the most
favorable prices or yields. The advisor may choose to purchase and sell
portfolio securities from and to dealers who provide statistical and other
information and services, including research, to the funds and to the advisor.
Such information or services will be in addition to, and not in lieu of, the
services required to be performed by the advisor, and the expenses of the
advisor will not necessarily be reduced as a result of the receipt of such
supplemental information.

The funds generally purchase and sell debt securities through principal
transactions, meaning the funds normally purchase securities on a net basis
directly from the issuer or a primary market-maker acting as principal for the
securities. The funds do not pay brokerage commissions on these transactions,
although the purchase price for debt securities usually includes an undisclosed
compensation. Purchases of securities from underwriters typically include a
commission or concession paid by the issuer to the underwriter, and purchases
from dealers serving as market-makers typically include a dealer's mark-up
(i.e., a spread between the bid and asked prices).

REGULAR BROKER-DEALERS

As of the end of its most recently completed fiscal year, each of the funds
listed below owned securities of its regular brokers or dealers (as defined by
Rule 10b-1 under the Investment Company Act of 1940) or of their parent
companies.

                                                           VALUE OF SECURITIES
                                                           OWNED AS OF
FUND              BROKER, DEALER OR PARENT                 OCTOBER 31, 2006
- ------------------------------------------------------------------------------
Balanced          Lehman Brothers Holdings                 $17,051,941
                  ------------------------------------------------------------
                  Citigroup Inc.                           $14,990,892
                  ------------------------------------------------------------
                  Bank of America Corp.                    $11,817,765
                  ------------------------------------------------------------
                  Morgan Stanley                           $9,799,145
                  ------------------------------------------------------------
                  The Goldman Sachs Group, Inc.            $8,447,363
                  ------------------------------------------------------------
                  Merrill Lynch and Company, Inc.          $2,717,071
- ------------------------------------------------------------------------------



- ------
71



                                                            VALUE OF SECURITIES
                                                            OWNED AS OF
FUND                   BROKER, DEALER OR PARENT             OCTOBER 31, 2006
- --------------------------------------------------------------------------------
Capital Growth         Bank of America Corp.                $132,897
                       ---------------------------------------------------------
                       The Goldman Sachs Group, Inc.        $66,427
                       ---------------------------------------------------------
                       Bear Stearns & Co., Inc.             $32,238
- --------------------------------------------------------------------------------
Capital                Citigroup Inc.                       $23,113,728
Value                  ---------------------------------------------------------
                       Bank of America Corp.                $17,567,007
                       ---------------------------------------------------------
                       Merrill Lynch & Co., Inc.            $8,453,514
                       ---------------------------------------------------------
                       Morgan Stanley                       $8,086,294
                       ---------------------------------------------------------
                       Fiserv Inc.                          $2,939,300
- --------------------------------------------------------------------------------
Focused                Bank of America Corp.                $597,742
Growth
- --------------------------------------------------------------------------------
Fundamental            Citigroup Inc.                       $1,391,489
Equity                 ---------------------------------------------------------
                       Bank of America Corp.                $1,287,870
                       ---------------------------------------------------------
                       Merrill Lynch & Co., Inc.            $535,448
                       ---------------------------------------------------------
                       The Goldman Sachs Group, Inc.        $304,993
                       ---------------------------------------------------------
                       Bear Stearns & Co., Inc.             $258,960
                       ---------------------------------------------------------
                       Lehman Brothers Holdings             $162,997
- --------------------------------------------------------------------------------
Giftrust               None
- --------------------------------------------------------------------------------
Growth                 Bank of America Corp.                $157,235,756
                       ---------------------------------------------------------
                       The Goldman Sachs Group, Inc.        $78,554,081
                       ---------------------------------------------------------
                       Bear Stearns & Co., Inc              $38,306,685
- --------------------------------------------------------------------------------
Heritage               None
- --------------------------------------------------------------------------------
Mid Cap                Bank of America Corp.                $1,998,534
Growth                 ---------------------------------------------------------
                       ITG, Inc.                            $1,850,721
                       ---------------------------------------------------------
                       UBS Finance                          $1,300,000
- --------------------------------------------------------------------------------
New                    None
Opportunities
- --------------------------------------------------------------------------------
New                    None
Opportunities
II
- --------------------------------------------------------------------------------
NT Growth              Bank of America Corp.                $1,923,159
                       ---------------------------------------------------------
                       The Goldman Sachs Group, Inc.        $967,929
                       ---------------------------------------------------------
                       Bear Stearns & Co., Inc              $469,185
- --------------------------------------------------------------------------------
NT Vista               None
- --------------------------------------------------------------------------------
Select                 Bank of America Corp.                $72,288,261
                       ---------------------------------------------------------
                       Morgan Stanley                       $53,628,485
                       ---------------------------------------------------------
                       The Goldman Sachs Group, Inc.        $48,554,165
- --------------------------------------------------------------------------------
Small Cap              UBS Finance LLC                      $1,500,000
Growth
- --------------------------------------------------------------------------------
Ultra                  Morgan Stanley                       $241,900,950
                       ---------------------------------------------------------
                       The Goldman Sachs Group, Inc.        $202,885,510
                       ---------------------------------------------------------
                       Fiserv Inc.                          $63,969,097
- --------------------------------------------------------------------------------
Veedot                 Bank of America Corp.                $1,616,100
                       ---------------------------------------------------------
                       Morgan Stanley                       $1,566,815
                       ---------------------------------------------------------
                       Fiserv Inc.                          $1,358,500
- --------------------------------------------------------------------------------
Vista                  None
- --------------------------------------------------------------------------------



- ------
72


INFORMATION ABOUT FUND SHARES

Each of the funds named on the front of this statement of additional information
is a series of shares issued by the corporation, and shares of each fund have
equal voting rights. In addition, each series (or fund) may be divided into
separate classes. See MULTIPLE CLASS STRUCTURE, which follows. Additional funds
and classes may be added without a shareholder vote.

Each fund votes separately on matters affecting that fund exclusively. Voting
rights are not cumulative, so investors holding more than 50% of the
corporation's (all funds') outstanding shares may be able to elect a Board of
Directors. The corporation undertakes dollar-based voting, meaning that the
number of votes a shareholder is entitled to is based upon the dollar amount of
the shareholder's investment. The election of directors is determined by the
votes received from all the corporation's shareholders without regard to whether
a majority of shares of any one fund voted in favor of a particular nominee or
all nominees as a group.

The assets belonging to each series are held separately by the custodian and the
shares of each series represent a beneficial interest in the principal, earnings
and profit (or losses) of investments and other assets held for each series.
Within their respective series, all shares have equal redemption rights. Each
share, when issued, is fully paid and non-assessable.

Each shareholder has rights to dividends and distributions declared by the fund
he or she owns and to the net assets of such fund, upon its liquidation or
dissolution, proportionate to his or her share ownership interest in the fund.

MULTIPLE CLASS STRUCTURE

The corporation's Board of Directors has adopted a multiple class plan pursuant
to Rule 18f-3 adopted by the SEC. The plan is described in the prospectus of any
fund that offers more than one class. Pursuant to such plan, the funds may issue
up to seven classes of shares: Investor Class, Institutional Class, A Class, B
Class, C Class, R Class and Advisor Class. Not all funds offer all seven
classes.

The Investor Class of most funds is made available to investors directly without
any load or commission, for a single unified management fee. It is also
available through some financial intermediaries. The Investor Class of those
funds which have A and B Classes is not available directly at no load. The
Institutional and Advisor Classes are made available to institutional
shareholders or through financial intermediaries that do not require the same
level of shareholder and administrative services from the advisor as Investor
Class shareholders. As a result, the advisor is able to charge these classes a
lower total management fee. In addition to the management fee, however, the
Advisor Class shares are subject to a Master Distribution and Shareholder
Services Plan (the Advisor Class Plan). The A, B and C Classes also are made
available through financial intermediaries, for purchase by individual investors
who receive advisory and personal services from the intermediary. The R Class is
made available through financial intermediaries and is generally used in 401(k)
and other retirement plans. The unified management fee for the A, B, C and R
classes is the same as for Investor Class, but the A, B, C and R Class shares
each are subject to a separate Master Distribution and Individual Shareholder
Services Plan (the A Class Plan, B Class Plan, C Class Plan and R Class Plan,
respectively and collectively with the Advisor Class Plan, the plans) described
below. The plans have been adopted by the funds' Board of Directors in
accordance with Rule 12b-1 adopted by the SEC under the Investment Company Act.


- ------
73


Rule 12b-1

Rule 12b-1 permits an investment company to pay expenses associated with the
distribution of its shares in accordance with a plan adopted by its Board of
Directors and approved by its shareholders. Pursuant to such rule, the Board of
Directors and initial shareholder of the funds' A, B, C, R and Advisor Classes
have approved and entered into the A Class Plan, B Class Plan, C Class Plan, R
Class Plan and Advisor Class Plan, respectively. The plans are described below.

In adopting the plans, the Board of Directors (including a majority of directors
who are not interested persons of the funds [as defined in the Investment
Company Act], hereafter referred to as the independent directors) determined
that there was a reasonable likelihood that the plans would benefit the funds
and the shareholders of the affected class. Some of the anticipated benefits
include improved name recognition of the funds generally; and growing assets in
existing funds, which helps retain and attract investment management talent,
provides a better environment for improving fund performance, and can lower the
total expense ratio for funds with stepped-fee schedules. Pursuant to Rule
12b-1, information about revenues and expenses under the plans is presented to
the Board of Directors quarterly for its consideration in continuing the plans.
Continuance of the plans must be approved by the Board of Directors, including a
majority of the independent directors, annually. The plans may be amended by a
vote of the Board of Directors, including a majority of the independent
directors, except that the plans may not be amended to materially increase the
amount to be spent for distribution without majority approval of the
shareholders of the affected class. The plans terminate automatically in the
event of an assignment and may be terminated upon a vote of a majority of the
independent directors or by vote of a majority of outstanding shareholder votes
of the affected class.

All fees paid under the plans will be made in accordance with Section 26 of the
Conduct Rules of the National Association of Securities Dealers (NASD).

A Class Plan

As described in the prospectuses, the A Class shares of the funds are made
available to participants in employer-sponsored retirement plans and to persons
purchasing through broker-dealers, banks, insurance companies and other
financial intermediaries that provide various administrative, shareholder and
distribution services. The funds' distributor enters into contracts with various
banks, broker-dealers, insurance companies and other financial intermediaries,
with respect to the sale of the funds' shares and/or the use of the funds'
shares in various investment products or in connection with various financial
services.

Certain recordkeeping and administrative services that are provided by the
funds' transfer agent for the Investor Class shareholders may be performed by a
plan sponsor (or its agents) or by a financial intermediary for A Class
investors. In addition to such services, the financial intermediaries provide
various individual shareholder and distribution services.

To enable the funds' shares to be made available through such plans and
financial intermediaries, and to compensate them for such services, the funds'
Board of Directors has adopted the A Class Plan. Pursuant to the A Class Plan,
the A Class pays the funds' distributor 0.25% annually of the average daily net
asset value of the A Class shares. The distributor may use these fees to pay for
certain ongoing shareholder and administrative services (as described below) and
for distribution services, including past distribution services (as described
below). This payment is fixed at 0.25% and is not based on expenses incurred by
the distributor. During the fiscal year ended October 31, 2006, the aggregate
amount of fees paid under the A Class Plan was:


- ------
74



     Capital Growth                $4,135
     Fundamental Equity           $34,530
     Mid Cap Growth               $61,395
     New Opportunities II        $145,495
     Select                       $94,257
     Small Cap Growth             $67,592(1)

(1)  EFFECTIVE APRIL 1, 2006 THROUGH MARCH 31, 2008, AMERICAN CENTURY
     AGREED TO A TWO-YEAR WAIVER OF RULE 12B-1 FEES FOR CERTAIN
     CLASSES OF THE FUND. TAKING IN ACCOUNT THE WAIVER, THE 12B-1 FEE
     IS 0.10%.

The distributor then makes these payments to the financial intermediaries
(including underwriters and broker-dealers, who may use some of the proceeds to
compensate sales personnel) who offer the A Class shares for the services
described below. No portion of these payments is used by the distributor to pay
for advertising, printing costs or interest expenses.

Payments may be made for a variety of individual shareholder services,
including, but not limited to:

(a)  providing individualized and customized investment advisory services,
     including the consideration of shareholder profiles and specific goals;

(b)  creating investment models and asset allocation models for use by
     shareholders in selecting appropriate funds;

(c)  conducting proprietary research about investment choices and the
     market in general;

(d)  periodic rebalancing of shareholder accounts to ensure compliance with
     the selected asset allocation;

(e)  consolidating shareholder accounts in one place; and

(f)  other individual services.

Individual shareholder services do not include those activities and expenses
that are primarily intended to result in the sale of additional shares of the
funds.

Distribution services include any activity undertaken or expense incurred that
is primarily intended to result in the sale of A Class shares, which services
may include but are not limited to:

(a)  paying sales commissions, on-going commissions and other payments to
     brokers, dealers, financial institutions or others who sell A Class shares
     pursuant to selling agreements;

(b)  compensating registered representatives or other employees of the
     distributor who engage in or support distribution of the funds' A Class
     shares;

(c)  paying and compensating expenses (including overhead and telephone
     expenses) of the distributor;

(d)  printing prospectuses, statements of additional information and
     reports for other-than-existing shareholders;

(e)  preparing, printing and distributing sales literature and advertising
     materials provided to the funds' shareholders and prospective shareholders;

(f)  receiving and answering correspondence from prospective shareholders,
     including distributing prospectuses, statements of additional information,
     and shareholder reports;

(g)  providing facilities to answer questions from prospective shareholders
     about fund shares;

(h)  complying with federal and state securities laws pertaining to the
     sale of fund shares;

(i)  assisting shareholders in completing application forms and selecting
     dividend and other account options;

(j)  providing other reasonable assistance in connection with the
     distribution of fund shares;

(k)  organizing and conducting sales seminars and payments in the form of
     transactional and compensation or promotional incentives;


- ------
75


(l)  profit on the foregoing;

(m)  paying service fees for providing personal, continuing services to
     investors, as contemplated by the Conduct Rules of the NASD; and

(n)  such other distribution and services activities as the advisor
     determines may be paid for by the funds pursuant to the terms of the
     agreement between the corporation and the funds' distributor and in
     accordance with Rule 12b-1 of the Investment Company Act.

B Class Plan

As described in the prospectuses, the B Class shares of the funds are made
available to participants in employer-sponsored retirement plans and to persons
purchasing through broker-dealers, banks, insurance companies and other
financial intermediaries that provide various administrative, shareholder and
distribution services. The funds' distributor enters into contracts with various
banks, broker-dealers, insurance companies and other financial intermediaries,
with respect to the sale of the funds' shares and/or the use of the funds'
shares in various investment products or in connection with various financial
services.

Certain recordkeeping and administrative services that are provided by the
funds' transfer agent for the Investor Class shareholders may be performed by a
plan sponsor (or its agents) or by a financial intermediary for B Class
investors. In addition to such services, the financial intermediaries provide
various individual shareholder and distribution services.


To enable the funds' shares to be made available through such plans and
financial intermediaries, and to compensate them for such services, the funds'
Board of Directors has adopted the B Class Plan. Pursuant to the B Class Plan,
the B Class pays the funds' distributor 1.00% annually of the average daily net
asset value of the B Class shares, 0.25% of which is paid for certain ongoing
individual shareholder and administrative services (as described below) and
0.75% of which is paid for distribution services, including past distribution
services (as described below). The payment is fixed at 1.00% and is not based on
expenses incurred by the distributor. During the fiscal year ended October 31,
2006, the aggregate amount of fees paid under the B Class Plan was:

     Capital Growth             $8,719
     Fundamental Equity         $9,585
     Mid Cap Growth            $44,342(1)
     New Opportunities II      $28,820
     Select                    $50,076
     Small Cap Growth          $43,064(2)

(1)  EFFECTIVE APRIL 1, 2006 THROUGH MARCH 31, 2008, AMERICAN CENTURY
     AGREED TO A TWO-YEAR WAIVER OF RULE 12B-1 FEES FOR CERTAIN CLASSES
     OF THE FUND. TAKING IN ACCOUNT THE WAIVER, THE 12B-1 FEE IS 0.90%.

(2)  EFFECTIVE APRIL 1, 2006 THROUGH MARCH 31, 2008, AMERICAN CENTURY
     AGREED TO A TWO-YEAR WAIVER OF RULE 12B-1 FEES FOR CERTAIN CLASSES
     OF THE FUND. TAKING IN ACCOUNT THE WAIVER, THE 12B-1 FEE IS 0.75%.

The distributor then makes these payments to the financial intermediaries
(including underwriters and broker-dealers, who may use some of the proceeds to
compensate sales personnel) who offer the B Class shares for the services
described below. No portion of these payments is used by the distributor to pay
for advertising, printing costs or interest expenses.

Payments may be made for a variety of individual shareholder services,
including, but not limited to:

(a)  providing individualized and customized investment advisory services,
     including the consideration of shareholder profiles and specific goals;

(b)  creating investment models and asset allocation models for use by
     shareholders in selecting appropriate funds;

(c)  conducting proprietary research about investment choices and the
     market in general;

(d)  periodic rebalancing of shareholder accounts to ensure compliance with
     the selected asset allocation;


- ------
76


(e)  consolidating shareholder accounts in one place; and

(f)  other individual services.

Individual shareholder services do not include those activities and expenses
that are primarily intended to result in the sale of additional shares of the
funds.

Distribution services include any activity undertaken or expense incurred that
is primarily intended to result in the sale of B Class shares, which services
may include but are not limited to:

(a)  paying sales commissions, on-going commissions and other payments to
     brokers, dealers, financial institutions or others who sell B Class shares
     pursuant to elling agreements;

(b)  compensating registered representatives or other employees of the
     distributor who engage in or support distribution of the funds' B Class
     shares;

(c)  paying and compensating expenses (including overhead and telephone
     expenses) of the distributor;

(d)  printing prospectuses, statements of additional information and
     reports for other-than-existing shareholders;

(e)  preparing, printing and distributing sales literature and advertising
     materials provided to the funds' shareholders and prospective shareholders;

(f)  receiving and answering correspondence from prospective shareholders,
     including distributing prospectuses, statements of additional information,
     and shareholder reports;

(g)  providing facilities to answer questions from prospective shareholders
     about fund shares;

(h)  complying with federal and state securities laws pertaining to the
     sale of fund shares;

(i)  assisting shareholders in completing application forms and selecting
     dividend and other account options;

(j)  providing other reasonable assistance in connection with the
     distribution of fund shares;

(k)  organizing and conducting sales seminars and payments in the form of
     transactional and compensation or promotional incentives;

(l)  profit on the foregoing;

(m)  paying service fees for providing personal, continuing services to
     investors, as contemplated by the Conduct Rules of the NASD; and

(n)  such other distribution and services activities as the advisor
     determines may be paid for by the funds pursuant to the terms of the
     agreement between the corporation and the funds' distributor and in
     accordance with Rule 12b-1 of the Investment Company Act.

C Class Plan

As described in the prospectuses, the C Class shares of the funds are made
available to participants in employer-sponsored retirement plans and to persons
purchasing through broker-dealers, banks, insurance companies and other
financial intermediaries that provide various administrative, shareholder and
distribution services. The funds' distributor enters into contracts with various
banks, broker-dealers, insurance companies and other financial intermediaries,
with respect to the sale of the funds' shares and/or the use of the funds'
shares in various investment products or in connection with various financial
services.

Certain recordkeeping and administrative services that are provided by the
funds' transfer agent for the Investor Class shareholders may be performed by a
plan sponsor (or its agents) or by a financial intermediary for C Class
investors. In addition to such services, the financial intermediaries provide
various individual shareholder and distribution services.


- ------
77



To enable the funds' shares to be made available through such plans and
financial intermediaries, and to compensate them for such services, the funds'
Board of Directors has adopted the C Class Plan. Pursuant to the C Class Plan,
the C Class pays the funds' distributor 1.00% annually of the average daily net
asset value of the C Class shares, 0.25% of which is paid for certain ongoing
individual shareholder and administrative services (as described below) and
0.75% of which is paid for distribution services, including past distribution
services (as described below). This payment is fixed at 1.00% and is not based
on expenses incurred by the distributor. During the fiscal year ended October
31, 2006, the aggregate amount of fees paid under the C Class Plan was:

     Capital Growth                 $7,053
     Fundamental Equity            $26,957
     Growth                         $9,292
     Heritage                      $19,766
     Mid Cap Growth                   $209
     New Opportunities II          $38,104
     Select                        $26,399
     Small Cap Growth                 $420
     Ultra                         $46,048
     Vista                         $28,521

The distributor then makes these payments to the financial intermediaries
(including underwriters and broker-dealers, who may use some of the proceeds to
compensate sales personnel) who offer the C Class shares for the services
described below. No portion of these payments is used by the distributor to pay
for advertising, printing costs or interest expenses.

Payments may be made for a variety of individual shareholder services,
including, but not limited to:

(a)  providing individualized and customized investment advisory services,
     including the consideration of shareholder profiles and specific goals;

(b)  creating investment models and asset allocation models for use by
     shareholders in selecting appropriate funds;

(c)  conducting proprietary research about investment choices and the
     market in general;

(d)  periodic rebalancing of shareholder accounts to ensure compliance with
     the selected asset allocation;

(e)  consolidating shareholder accounts in one place; and

(f)  other individual services.

Individual shareholder services do not include those activities and expenses
that are primarily intended to result in the sale of additional shares of the
funds.

Distribution services include any activity undertaken or expense incurred that
is primarily intended to result in the sale of C Class shares, which services
may include but are not limited to:

(a)  paying sales commissions, on-going commissions and other payments to
     brokers, dealers, financial institutions or others who sell C Class shares
     pursuant to selling agreements;

(b)  compensating registered representatives or other employees of the
     distributor who engage in or support distribution of the funds' C Class
     shares;

(c)  paying and compensating expenses (including overhead and telephone
     expenses) of the distributor;

(d)  printing prospectuses, statements of additional information and
     reports for other-than-existing shareholders;

(e)  preparing, printing and distributing sales literature and advertising
     materials provided to the funds' shareholders and prospective shareholders;


- ------
78


(f)  receiving and answering correspondence from prospective shareholders,
     including distributing prospectuses, statements of additional information,
     and shareholder reports;

(g)  providing facilities to answer questions from prospective shareholders
     about fund shares;

(h)  complying with federal and state securities laws pertaining to the
     sale of fund shares;

(i)  assisting shareholders in completing application forms and selecting
     dividend and other account options;

(j)  providing other reasonable assistance in connection with the
     distribution of fund shares;

(k)  organizing and conducting of sales seminars and payments in the form
     of transactional and compensation or promotional incentives;

(l)  profit on the foregoing;

(m)  paying service fees for providing personal, continuing services to
     investors, as contemplated by the Conduct Rules of the NASD; and

(n)  such other distribution and services activities as the advisor
     determines may be paid for by the funds pursuant to the terms of the
     agreement between the corporation and the funds' distributor and in
     accordance with Rule 12b-1 of the Investment Company Act.

R Class Plan

As described in the prospectuses, the R Class shares of the funds are made
available to participants in employer-sponsored retirement plans and to persons
purchasing through broker-dealers, banks, insurance companies and other
financial intermediaries that provide various administrative, shareholder and
distribution services. The funds' distributor enters into contracts with various
banks, broker-dealers, insurance companies and other financial intermediaries,
with respect to the sale of the funds' shares and/or the use of the funds'
shares in various investment products or in connection with various financial
services.

Certain recordkeeping and administrative services that are provided by the
funds' transfer agent for the Investor Class shareholders may be performed by a
plan sponsor (or its agents) or by a financial intermediary for R Class
investors. In addition to such services, the financial intermediaries provide
various individual shareholder and distribution services.

To enable the funds' shares to be made available through such plans and
financial intermediaries, and to compensate them for such services, the funds'
Board of Directors has adopted the R Class Plan. Pursuant to the R Class Plan,
the R Class pays the funds' distributor 0.50% annually of the average daily net
asset value of the R Class shares. The distributor may use these fees to pay for
certain ongoing shareholder and administrative services (as described below) and
for distribution services, including past distribution services (as described
below). This payment is fixed at 0.50% and is not based on expenses incurred by
the distributor. During the fiscal year ended October 31, 2006, the aggregate
amount of fees paid under the R Class Plan was:

     Capital Growth                     $129
     Fundamental Equity                 $138
     Growth                             $634
     Mid Cap Growth                      $68
     Select                             $120
     Small Cap Growth                    $68
     Ultra                           $48,040
     Vista                              $809



- ------
79


The distributor then makes these payments to the financial intermediaries
(including underwriters and broker-dealers, who may use some of the proceeds to
compensate sales personnel) who offer the R Class shares for the services, as
described below. No portion of these payments is used by the distributor to pay
for advertising, printing costs or interest expenses.

Payments may be made for a variety of individual shareholder services,
including, but not limited to:

(a)  providing individualized and customized investment advisory services,
     including the consideration of shareholder profiles and specific goals;

(b)  creating investment models and asset allocation models for use by
     shareholders in selecting appropriate funds;

(c)  conducting proprietary research about investment choices and the
     market in general;

(d)  periodic rebalancing of shareholder accounts to ensure compliance with
     the selected asset allocation;

(e)  consolidating shareholder accounts in one place; and

(f)  other individual services.

Individual shareholder services do not include those activities and expenses
that are primarily intended to result in the sale of additional shares of the
funds.

Distribution services include any activity undertaken or expense incurred that
is primarily intended to result in the sale of R Class shares, which services
may include but are not limited to:

(a)  paying sales commissions, on-going commissions and other payments to
     brokers, dealers, financial institutions or others who sell R Class shares
     pursuant to selling agreements;

(b)  compensating registered representatives or other employees of the
     distributor who engage in or support distribution of the funds' R Class
     shares;

(c)  paying and compensating expenses (including overhead and telephone
     expenses) of the distributor;

(d)  printing prospectuses, statements of additional information and
     reports for other-than-existing shareholders;

(e)  preparing, printing and distributing sales literature and advertising
     materials provided to the funds' shareholders and prospective shareholders;

(f)  receiving and answering correspondence from prospective shareholders,
     including distributing prospectuses, statements of additional information,
     and shareholder reports;

(g)  providing facilities to answer questions from prospective shareholders
     about fund shares;

(h)  complying with federal and state securities laws pertaining to the
     sale of fund shares;

(i)  assisting shareholders in completing application forms and selecting
     dividend and other account options;

(j)  providing other reasonable assistance in connection with the
     distribution of fund shares;

(k)  organizing and conducting of sales seminars and payments in the form
     of transactional and compensation or promotional incentives;

(l)  profit on the foregoing;

(m)  paying service fees for providing personal, continuing services to
     investors, as contemplated by the Conduct Rules of the NASD; and

(n)  such other distribution and services activities as the advisor
     determines may be paid for by the funds pursuant to the terms of the
     agreement between the corporation and the funds' distributor and in
     accordance with Rule 12b-1 of the Investment Company Act.


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80


Advisor Class Plan

As described in the prospectuses, the funds' Advisor Class shares are made
available to participants in employer-sponsored retirement plans and to persons
purchasing through broker-dealers, banks, insurance companies, and other
financial intermediaries that provide various administrative, shareholder and
distribution services. The funds' distributor enters into contracts with various
banks, broker-dealers, insurance companies and other financial intermediaries,
with respect to the sale of the funds' shares and/or the use of the funds'
shares in various investment products or in connection with various financial
services.

Certain recordkeeping and administrative services that are provided by the
funds' transfer agent for the Investor Class shareholders may be performed by a
plan sponsor (or its agents) or by a financial intermediary for Advisor Class
investors. In addition to such services, the financial intermediaries provide
various distribution services.

To enable the funds' shares to be made available through such plans and
financial intermediaries, and to compensate them for such services, the funds'
advisor has reduced its management fee by 0.25% per annum with respect to the
Advisor Class shares, and the funds' Board of Directors has adopted the Advisor
Class Plan. Pursuant to the Advisor Class Plan, the Advisor Class pays the
funds' distributor 0.50% annually of the aggregate average daily assets of the
funds' Advisor Class shares, 0.25% of which is paid for certain ongoing
shareholder and administrative services (as described below) and 0.25% of which
is paid for distribution services, including past distribution services (as
described below). This payment is fixed at 0.50% and is not based on expenses
incurred by the distributor. During the fiscal year ended October 31, 2006, the
aggregate amount of fees paid under the Advisor Class Plan was:

     Balanced                $78,178
     Capital Value           $77,994
     Growth                 $412,928
     Heritage               $203,164
     Select                 $130,626
     Ultra                $2,678,076
     Vista                $1,097,050

The distributor then makes these payments to the financial intermediaries
(including underwriters and broker-dealers, who may use some of the proceeds to
compensate sales personnel) who offer the Advisor Class shares for the services,
as described below. No portion of these payments is used by the distributor to
pay for advertising, printing costs or interest expenses.

Payments may be made for a variety of shareholder services, including, but not
limited to:

(a)  receiving, aggregating and processing purchase, exchange and
     redemption requests from beneficial owners (including contract owners of
     insurance products that utilize the funds as underlying investment media)
     of shares and placing purchase, exchange and redemption orders with the
     funds' distributor;

(b)  providing shareholders with a service that invests the assets of their
     accounts in shares pursuant to specific or pre-authorized instructions;

(c)  processing dividend payments from a fund on behalf of shareholders and
     assisting shareholders in changing dividend options, account designations
     and addresses;

(d)  providing and maintaining elective services such as check writing and
     wire transfer services;

(e)  acting as shareholder of record and nominee for beneficial owners;

(f)  maintaining account records for shareholders and/or other beneficial
     owners;

(g)  issuing confirmations of transactions;

(h)  providing subaccounting with respect to shares beneficially owned by
     customers of third parties or providing the information to a fund as
     necessary for such subaccounting;


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81


(i)  preparing and forwarding investor communications from the funds (such
     as proxies, shareholder reports, annual and semi-annual financial
     statements and dividend, distribution and tax notices) to shareholders
     and/or other beneficial owners; and

(j)  providing other similar administrative and sub-transfer agency
     services.

Shareholder services do not include those activities and expenses that are
primarily intended to result in the sale of additional shares of the funds.
During the fiscal year ended October 31, 2006, the amount of fees paid under the
Advisor Class Plan for shareholder services was:

     Balanced               $39,089
     Capital Value          $38,997
     Growth                $206,464
     Heritage              $101,582
     Select                 $65,313
     Ultra               $1,339,038
     Vista                 $548,525

Distribution services include any activity undertaken or expense incurred that
is primarily intended to result in the sale of Advisor Class shares, which
services may include but are not limited to:

(a)  paying sales commissions, on-going commissions and other payments to
     brokers, dealers, financial institutions or others who sell Advisor Class
     shares pursuant to selling agreements;

(b)  compensating registered representatives or other employees of the
     distributor who engage in or support distribution of the funds' Advisor
     Class shares;

(c)  paying and compensating expenses (including overhead and telephone
     expenses) of the distributor;

(d)  printing prospectuses, statements of additional information and
     reports for other-than-existing shareholders;

(e)  preparing, printing and distributing of sales literature and
     advertising materials provided to the funds' shareholders and prospective
     shareholders;

(f)  receiving and answering correspondence from prospective shareholders,
     including distributing prospectuses, statements of additional information,
     and shareholder reports;

(g)  providing facilities to answer questions from prospective shareholders
     about fund shares;

(h)  complying with federal and state securities laws pertaining to the
     sale of fund shares;

(i)  assisting shareholders in completing application forms and selecting
     dividend and other account options;

(j)  providing other reasonable assistance in connection with the
     distribution of fund shares;

(k)  organizing and conducting of sales seminars and payments in the form
     of transactional and compensation or promotional incentives;

(l)  profit on the foregoing;

(m)  paying service fees for the provision of personal, continuing services
     to investors, as contemplated by the Conduct Rules of the NASD; and

(n)  such other distribution and services activities as the advisor
     determines may be paid for by the funds pursuant to the terms of the
     agreement between the corporation and the funds' distributor and in
     accordance with Rule 12b-1 of the Investment Company Act.


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82



During the fiscal year ended October 31, 2006, the amount of fees paid under the
Advisor Class Plan for distribution services was:

     Balanced               $39,089
     Capital Value          $38,997
     Growth                $206,464
     Heritage              $101,582
     Select                 $65,313
     Ultra               $1,339,038
     Vista                 $548,525

Sales Charges

The sales charges applicable to the A, B and C Classes of the funds are
described in the prospectuses for those classes in the section titled INVESTING
THROUGH A FINANCIAL INTERMEDIARY. Shares of the A Class are subject to an
initial sales charge, which declines as the amount of the purchase increases
pursuant to the schedule set forth in the prospectus. This charge may be waived
in the following situations due to sales efficiencies and competitive
considerations:

*  Employer-sponsored retirement plan purchases

*  Certain individual retirement account rollovers

*  Purchases by registered representatives and other employees of certain
   financial intermediaries (and their immediate family members) having sales
   agreements with the advisor or the distributor

*  Wrap accounts maintained for clients of certain financial intermediaries
   who have entered into agreements with American Century

*  Purchases by current and retired employees of American Century and their
   immediate family members (spouses and children under age 21) and trusts or
   employer-sponsored retirement plans established by those persons

*  Purchases by certain other investors that American Century deems
   appropriate, including but not limited to current or retired directors,
   trustees and officers of funds managed by the advisor and trusts and
   employer-sponsored retirement plans established by those persons

There are several ways to reduce the sales charges applicable to a purchase of A
Class shares. These methods are described in the relevant prospectuses. You or
your financial advisor must indicate at the time of purchase that you intend to
take advantage of one of these reductions.

Shares of the A, B and C Classes are subject to a contingent deferred sales
charge (CDSC) upon redemption of the shares in certain circumstances. The
specific charges and when they apply are described in the relevant prospectuses.
The CDSC may be waived for certain redemptions by some shareholders, as
described in the prospectuses.

An investor may terminate his relationship with an intermediary at any time. If
the investor does not establish a relationship with a new intermediary and
transfer any accounts to that new intermediary, such accounts may be exchanged
to the Investor Class of the fund, if such class is available. The investor will
be the shareholder of record of such accounts. In this situation, any applicable
CDSCs will be charged when the exchange is made.

The aggregate CDSCs paid to the distributor for the A Class shares in the fiscal
year ended October 31, 2006, were Mid Cap Growth, $25; New Opportunities II,
$3,250; Select, $4; Small Cap Growth, $20.



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83



The aggregate CDSCs paid to the distributor for the B Class shares in the fiscal
year ended October 31, 2006, were Capital Growth, $2,402; Fundamental Equity,
$14,637; Select, $14,721; Mid Cap Growth, $6,765; Small Cap Growth, $5,201 and
New Opportunities II, $5,125.

The aggregate CDSCs paid to the distributor for the C Class shares in the fiscal
year ended October 31, 2006 were Growth, $752; Select, $726; Vista, $348;
Capital Growth, $1; Fundamental Equity, $431; New Opportunities II, $3,464;
Ultra; $2,586; and Heritage, $1,270.

Payments to Dealers

The funds' distributor expects to pay sales commissions to the financial
intermediaries who sell A, B and/or C Class shares of the funds at the time of
such sales. Payments for A Class shares will be as follows:

PURCHASE AMOUNT                                                DEALER CONCESSION
- --------------------------------------------------------------------------------
LESS THAN $50,000                                              5.00%
- --------------------------------------------------------------------------------
$50,000 - $99,999                                              4.00%
- --------------------------------------------------------------------------------
$100,000 - $249,999                                            3.25%
- --------------------------------------------------------------------------------
$250,000 - $499,999                                            2.00%
- --------------------------------------------------------------------------------
$500,000 - $999,999                                            1.75%
- --------------------------------------------------------------------------------
$1,000,000 - $3,999,999                                        1.00%
- --------------------------------------------------------------------------------
$4,000,000 - $9,999,999                                        0.50%
- --------------------------------------------------------------------------------
> $10,000,000                                                  0.25%
- --------------------------------------------------------------------------------

No concession will be paid on purchases by employer-sponsored retirement plans.
Payments will equal 4.00% of the purchase price of B Class shares and 1.00% of
the purchase price of the C Class shares sold by the intermediary. The
distributor will retain the 12b-1 fee paid by the C Class of funds for the first
12 months after the shares are purchased. This fee is intended in part to permit
the distributor to recoup a portion of on-going sales commissions to dealers
plus financing costs, if any. Beginning with the first day of the 13th month,
the distributor will make the C Class distribution and individual shareholder
services fee payments described above to the financial intermediaries involved
on a quarterly basis. In addition, B and C Class purchases and A Class purchases
greater than $1,000,000 are subject to a CDSC as described in the prospectuses.

From time to time, the distributor may provide additional payments to dealers,
including but not limited to payment assistance for conferences and seminars,
provision of sales or training programs for dealer employees and/or the public
(including, in some cases, payment for travel expenses for registered
representatives and other dealer employees who participate), advertising and
sales campaigns about a fund or funds, and assistance in financing
dealer-sponsored events. Other payments may be offered as well, and all such
payments will be consistent with applicable law, including the then-current
rules of the National Association of Securities Dealers, Inc. Such payments will
not change the price paid by investors for shares of the funds.

BUYING AND SELLING FUND SHARES

Information about buying, selling, exchanging and, if applicable, converting
fund shares is contained in the funds' prospectuses. The prospectuses are
available to investors without charge and may be obtained by calling us.


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84


American Century considers employer-sponsored retirement plans to include the
following:

*  401(a) plans

*  pension plans

*  profit sharing plans

*  401(k) plans

*  money purchase plans

*  target benefit plans

*  Taft-Hartley multi-employer pension plans

*  SERP and "Top Hat" plans

*  ERISA trusts

*  employee benefit trusts

*  457 plans

*  KEOGH plans

*  employer-sponsored 403(b) plans (including self-directed)

*  nonqualified deferred compensation plans

*  nonqualified excess benefit plans

*  nonqualified retirement plans

*  SIMPLE IRAs

*  SEP IRAs

*  SARSEP

Traditional and Roth IRAs are not considered employer-sponsored retirement
plans. The following table indicates the types of shares that may be purchased
through employer-sponsored retirement plans, Traditional IRAs and Roth IRAs.

                                                                   TRADITIONAL
                                             EMPLOYER-SPONSORED    AND
                                             RETIREMENT PLANS      ROTH IRAS
- --------------------------------------------------------------------------------
A Class Shares may be purchased at NAV(1)    Yes                   Yes
- --------------------------------------------------------------------------------
A Class shares may be purchased              Yes, for plans        Yes
with dealer concessions and sales charge     under $1 million
- --------------------------------------------------------------------------------
B Class shares may be purchased(2)           No(3)                 Yes
- --------------------------------------------------------------------------------
C Class shares may be purchased              Yes, for plans        Yes
with dealer concessions and CDSC(2)          under $1 million
- --------------------------------------------------------------------------------
C Class shares may be purchased              Yes                   No
with no dealer concessions and CDSC(1)(2)
- --------------------------------------------------------------------------------
Institutional Class shares may be purchased  Yes                   Yes
- --------------------------------------------------------------------------------
Investor Class shares may be purchased       Yes                   Yes
- --------------------------------------------------------------------------------
Advisor Class shares may be purchased        Yes                   Yes
- --------------------------------------------------------------------------------
R Class shares may be purchased              Yes                   No(4)
- --------------------------------------------------------------------------------

(1)  REFER TO THE PROSPECTUS REGARDING SALES CHARGES AND CDSC WAIVERS.

(2)  REFER TO THE PROSPECTUS FOR MAXIMUM PURCHASE REQUIREMENTS.

(3)  SIMPLE IRA PLANS, SEP IRA PLANS AND SARSEP PLANS ESTABLISHED PRIOR TO
     AUGUST 1, 2006, MAY MAKE ADDITIONAL PURCHASES.

(4)  ACCOUNTS ESTABLISHED PRIOR TO AUGUST 1, 2006, MAY MAKE ADDITIONAL
     PURCHASES.


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85


VALUATION OF A FUND'S SECURITIES

All classes of the funds except the A Class are offered at their net asset
value, as described below. The A Class of the funds are offered at their public
offering price, which is the net asset value plus the appropriate sales charge.
This calculation may be expressed as a formula:

Offering Price = Net Asset Value/(1 - Sales Charge as a % of Offering Price)

For example, if the net asset value of a fund's A Class shares is $5.00, the
public offering price would be $5/(1-5.75%) = $5.31.

Each fund's net asset value per share (NAV) is calculated as of the close of
business of the New York Stock Exchange (the NYSE) each day the NYSE is open for
business. The NYSE usually closes at 4 p.m. Eastern time. The NYSE typically
observes the following holidays: New Year's Day, Martin Luther King Jr. Day,
Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day and Christmas Day. Although the funds expect the same holidays
to be observed in the future, the NYSE may modify its holiday schedule at any
time.

Each fund's NAV is calculated by adding the value of all portfolio securities
and other assets, deducting liabilities and dividing the result by the number of
shares outstanding. Expenses and interest earned on portfolio securities are
accrued daily.

The portfolio securities of each fund that are listed or traded on a domestic
securities exchange are valued at the last sale price on that exchange, except
as otherwise noted. Portfolio securities primarily traded on foreign securities
exchanges generally are valued at the preceding closing values of such
securities on the exchange where primarily traded. If no sale is reported, or if
local convention or regulation so provides, the mean of the latest bid and asked
prices is used. Depending on local convention or regulation, securities traded
over-the-counter are priced at the mean of the latest bid and asked prices, the
last sale price, or the official closing price. When market quotations are not
readily available, securities and other assets are valued at fair value as
determined in accordance with procedures adopted by the Board of Directors.

Debt securities not traded on a principal securities exchange are valued through
valuations obtained from a commercial pricing service or at the most recent mean
of the bid and asked prices provided by investment dealers in accordance with
procedures established by the Board of Directors.

Because there are hundreds of thousands of municipal issues outstanding, and the
majority of them do not trade daily, the prices provided by pricing services for
these types of securities are generally determined without regard to bid or last
sale prices. In valuing securities, the pricing services generally take into
account institutional trading activity, trading in similar groups of securities,
and any developments related to specific securities. The methods used by the
pricing service and the valuations so established are reviewed by the advisor
under the general supervision of the Board of Directors. There are a number of
pricing services available, and the advisor, on the basis of ongoing evaluation
of these services, may use other pricing services or discontinue the use of any
pricing service in whole or in part.

Securities maturing within 60 days of the valuation date may be valued at cost,
plus or minus any amortized discount or premium, unless the directors determine
that this would not result in fair valuation of a given security. Other assets
and securities for which quotations are not readily available are valued in good
faith at their fair value using methods approved by the Board of Directors.


- ------
86



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

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

Trading of these securities in foreign markets may not take place on every day
that the NYSE is open. In addition, trading may take place in various foreign
markets and on some electronic trading networks on Saturdays or on other days
when the NYSE is not open and on which the funds' net asset values are not
calculated. Therefore, such calculations do not take place contemporaneously
with the determination of the prices of many of the portfolio securities used in
such calculation, and the value of the funds' portfolios may be affected on days
when shares of the funds may not be purchased or redeemed.


TAXES

FEDERAL INCOME TAX

Each fund intends to qualify annually as a regulated investment company under
Subchapter M of the Internal Revenue Code of 1986, as amended (the Code). By so
qualifying, a fund should be exempt from federal income taxes to the extent that
it distributes substantially all of its net investment income and net realized
capital gains (if any) to investors. If a fund fails to qualify as a regulated
investment company, it will be liable for taxes, significantly reducing its
distributions to investors and eliminating investors' ability to treat
distributions received from the funds in the same manner in which they were
realized by the funds.

If fund shares are purchased through taxable accounts, distributions of net
investment income and net short-term capital gains are taxable to you as
ordinary income, unless they are designated as qualified dividend income and you
meet a minimum required holding period with respect to your shares of a fund, in
which case such distributions are taxed as long-term capital gains. Qualified
dividend income is a dividend received by a fund from the stock of a domestic or
qualifying foreign corporation, provided that the fund has held the stock for a
required holding period. The required holding period for qualified dividend
income is met if the underlying shares are held more than 60 days in the 121-day
period beginning 60 days prior to the ex-dividend date. Dividends received by
the funds on shares of stock of domestic corporations may qualify for the 70%
dividends-received deduction to the extent that the fund held those shares for
more than 45 days.

Distributions from gains on assets held by the funds longer than 12 months are
taxable as long-term gains regardless of the length of time you have held your
shares in the fund. If you purchase shares in the fund and sell them at a loss
within six months, your loss on the sale of those shares will be treated as a
long-term capital loss to the extent of any long-term capital gains dividend you
received on those shares.

Dividends and interest received by a fund on foreign securities may give rise to
withholding and other taxes imposed by foreign countries. However, tax
conventions between certain countries and the United States may reduce or
eliminate such taxes. Foreign countries generally do not impose taxes on capital
gains with respect to investments by non-resident investors. Any foreign taxes
paid by a fund will reduce its dividend distributions to investors.


- ------
87


If more than 50% of the value of a fund's total assets at the end of its fiscal
year consists of securities of foreign corporations, the fund may qualify for
and make an election with the Internal Revenue Service with respect to such
fiscal year so that fund shareholders may be able to claim a foreign tax credit
in lieu of a deduction for foreign income taxes paid by the fund. If such an
election is made, the foreign taxes paid by the fund will be treated as income
received by you. In order for you to utilize the foreign tax credit, you must
have held your shares for 16 days or more during the 31-day period, beginning 15
days prior to the ex-dividend date for the mutual fund shares. The mutual fund
must meet a similar holding period requirement with respect to foreign
securities to which a dividend is attributable. Any portion of the foreign tax
credit that is ineligible as a result of the fund not meeting the holding period
requirement will be deducted in computing net investment income.

If a fund purchases the securities of certain foreign investment funds or trusts
called passive foreign investment companies (PFIC), capital gains on the sale of
such holdings will be deemed ordinary income regardless of how long the fund
holds the investment. The fund also may be subject to corporate income tax and
an interest charge on certain dividends and capital gains earned from these
investments, regardless of whether such income and gains are distributed to
shareholders. In the alternative, the fund may elect to recognize cumulative
gains on such investments as of the last day of its fiscal year and distribute
them to shareholders. Any distribution attributable to a PFIC is characterized
as ordinary income.

As of October 31, 2006, the funds in the table below had the following capital
loss carryovers. When a fund has a capital loss carryover, it does not make
capital gains distributions until the loss has been offset or expired.

FUND              2009                 2010            2011          2014
- --------------------------------------------------------------------------------
Balanced          -                -               -               -
- --------------------------------------------------------------------------------
Capital           -                -               -               -
Growth
- --------------------------------------------------------------------------------
Capital Value     -                -               -               -
- --------------------------------------------------------------------------------
Focused           -                -               -               -
Growth
- --------------------------------------------------------------------------------
Fundamental       -                -               -               -
Equity
- --------------------------------------------------------------------------------
Giftrust          ($116,339,269)   ($138,461,916)  ($6,240,451)    -
- --------------------------------------------------------------------------------
Growth            -                -               ($777,571,788)  -
- --------------------------------------------------------------------------------
Heritage          -                -               -               -
- --------------------------------------------------------------------------------
Mid Cap           -                -               -               ($1,141,449)
Growth
- --------------------------------------------------------------------------------
New               ($82,591,076)    ($37,698,539)   -               -
Opportunities
- --------------------------------------------------------------------------------
New               -                -               -               -
Opportunities II
- --------------------------------------------------------------------------------
NT Growth         -                -               -               ($965,439)
- --------------------------------------------------------------------------------
NT Vista          -                -               -               ($3,142,236)
- --------------------------------------------------------------------------------
Select            -                -               -               -
- --------------------------------------------------------------------------------
Small Cap         -                -               -               ($1,162,700)
Growth
- --------------------------------------------------------------------------------
Ultra             -                -               -               -
- --------------------------------------------------------------------------------
Veedot            ($37,476,753)    ($32,317,452)   -               -
- --------------------------------------------------------------------------------
Vista             -                -               -               -
- --------------------------------------------------------------------------------



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88


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

A redemption of shares of a fund (including a redemption made in an exchange
transaction) will be a taxable transaction for federal income tax purposes and
you generally will recognize gain or loss in an amount equal to the difference
between the basis of the shares and the amount received. If a loss is realized
on the redemption of fund shares, the reinvestment in additional fund shares
within 30 days before or after the redemption may be subject to the "wash sale"
rules of the Code, resulting in a postponement of the recognition of such loss
for federal income tax purposes.

STATE AND LOCAL TAXES

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

The information above is only a summary of some of the tax considerations
affecting the funds and their shareholders. No attempt has been made to discuss
individual tax consequences. A prospective investor should consult with his or
her tax advisors or state or local tax authorities to determine whether the
funds are suitable investments.

FINANCIAL STATEMENTS

The funds' financial statements for the fiscal periods ended October 31, 2006
have been audited by Deloitte & Touche LLP, independent registered public
accounting firm. The Reports of Independent Registered Public Accounting Firm
and the financial statements included in the annual reports of these funds for
the fiscal period ended October 31, 2006, are incorporated herein by reference.

The financial statements for Mid Cap Growth and Small Cap Growth for the fiscal
years ended March 31, 2006, March 31, 2005, March 31, 2004, March 31, 2003 and
March 31, 2002 have been audited by PricewaterhouseCoopers LLP, independent
registered public accounting firm. This information reflects financial results
of the Mason Street Aggressive Growth Fund, for which Mid Cap Growth is the
post-reorganization successor, and the Mason Street Small Cap Growth Fund for
which Small Cap Growth is the post-reorganization successor. The Reports of
Independent Registered Public Accounting Firm and the financial statements
included in the Mason Street Funds Inc. annual report for the fiscal year ended
March 31, 2006, are incorporated herein by reference.



- ------
89


EXPLANATION OF FIXED-INCOME
SECURITIES RATINGS

As described in the prospectuses, some of the funds will invest in fixed-income
securities. Those investments, however, are subject to certain credit quality
restrictions, as noted in the prospectuses. The following is a summary of the
rating categories referenced in the prospectus.

RATINGS OF CORPORATE DEBT SECURITIES
- --------------------------------------------------------------------------------
Standard & Poor's
- --------------------------------------------------------------------------------
AAA                  This is the highest rating assigned by S&P to a debt
                     obligation. It indicates an extremely strong capacity to
                     pay interest and repay principal.
- --------------------------------------------------------------------------------
AA                   Debt rated in this category is considered to have a very
                     strong capacity to pay interest and repay principal. It
                     differs from the highest-rated obligations only in small
                     degree.
- --------------------------------------------------------------------------------
A                    Debt rated A has a strong capacity to pay interest
                     and repay principal, although it is somewhat more
                     susceptible to the adverse effects of changes in
                     circumstances and economic conditions than debt in
                     higher-rated categories.
- --------------------------------------------------------------------------------
BBB                  Debt rated in this category is regarded as having
                     an adequate capacity to pay interest and repay
                     principal. While it normally exhibits adequate protection
                     parameters, adverse economic conditions or changing
                     circumstances are more likely to lead to a weakened
                     capacity to pay interest and repay principal for debt
                     in this category than in higher-rated categories. Debt
                     rated below BBB is regarded as having significant
                     speculative characteristics.
- --------------------------------------------------------------------------------
BB                   Debt rated in this category has less near-term
                     vulnerability to default than other speculative issues.
                     However, it faces major ongoing uncertainties or
                     exposure to adverse business, financial, or economic
                     conditions that could lead to inadequate capacity to
                     meet timely interest and principal payments. The BB
                     rating also is used for debt subordinated to senior debt
                     that is assigned an actual or implied BBB rating.
- --------------------------------------------------------------------------------
B                    Debt rated in this category is more vulnerable to
                     nonpayment than obligations rated BB, but currently
                     has the capacity to pay interest and repay principal.
                     Adverse business, financial, or economic conditions will
                     likely impair the obligor's capacity or willingness to pay
                     interest and repay principal.
- --------------------------------------------------------------------------------
CCC                  Debt rated in this category is currently vulnerable to
                     nonpayment and is dependent upon favorable business,
                     financial, and economic conditions to meet timely
                     payment of interest and repayment of principal. In
                     the event of adverse business, financial, or economic
                     conditions, it is not likely to have the capacity to pay
                     interest and repay principal. The CCC rating category is
                     also used for debt subordinated to senior debt that is
                     assigned an actual or implied B or B- rating.
- --------------------------------------------------------------------------------
CC                   Debt rated in this category is currently highly vulnerable
                     to nonpayment. This rating category is also applied to
                     debt subordinated to senior debt that is assigned an
                     actual or implied CCC rating.
- --------------------------------------------------------------------------------
C                    The rating C typically is applied to debt subordinated
                     to senior debt, and is currently highly vulnerable to
                     nonpayment of interest and principal. This rating may be
                     used to cover a situation where a bankruptcy petition
                     has been filed or similar action taken, but debt service
                     payments are being continued.
- --------------------------------------------------------------------------------
D                    Debt rated in this category is in default. This rating is
                     used when interest payments or principal repayments
                     are not made on the date due even if the applicable
                     grace period has not expired, unless S&P believes that
                     such payments will be made during such grace period.
                     It also will be used upon the filing of a bankruptcy
                     petition or the taking of a similar action if debt service
                     payments are jeopardized.
- --------------------------------------------------------------------------------


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90


Moody's Investors Service, Inc.
- --------------------------------------------------------------------------------
Aaa               This is the highest rating assigned by Moody's to a debt
                  obligation. It indicates an extremely strong capacity to pay
                  interest and repay principal.
- --------------------------------------------------------------------------------
Aa                Debt rated in this category is considered to have a very
                  strong capacity to pay interest and repay principal and
                  differs from Aaa issues only in a small degree. Together
                  with Aaa debt, it comprises what are generally known as
                  high-grade bonds.
- --------------------------------------------------------------------------------
A                 Debt rated in this category possesses many favorable
                  investment attributes and is to be considered as upper-
                  medium-grade debt. Although capacity to pay interest and
                  repay principal are considered adequate, it is somewhat
                  more susceptible to the adverse effects of changes in
                  circumstances and economic conditions than debt in
                  higher-rated categories.
- --------------------------------------------------------------------------------
Baa               Debt rated in this category is considered as medium-
                  grade debt having an adequate capacity to pay interest
                  and repay principal. While it normally exhibits adequate
                  protection parameters, adverse economic conditions
                  or changing circumstances are more likely to lead to a
                  weakened capacity to pay interest and repay principal
                  for debt in this category than in higher-rated categories.
                  Debt rated below Baa is regarded as having significant
                  speculative characteristics.
- --------------------------------------------------------------------------------
Ba                Debt rated Ba has less near-term vulnerability to default
                  than other speculative issues. However, it faces major
                  ongoing uncertainties or exposure to adverse business,
                  financial or economic conditions that could lead to
                  inadequate capacity to meet timely interest and principal
                  payments. Often the protection of interest and principal
                  payments may be very moderate.
- --------------------------------------------------------------------------------
B                 Debt rated B has a greater vulnerability to default, but
                  currently has the capacity to meet financial commitments.
                  Assurance of interest and principal payments or of
                  maintenance of other terms of the contract over any long
                  period of time may be small. The B rating category is also
                  used for debt subordinated to senior debt that is assigned
                  an actual or implied Ba or Ba3 rating.
- --------------------------------------------------------------------------------
Caa               Debt rated Caa is of poor standing, has a currently
                  identifiable vulnerability to default, and is dependent upon
                  favorable business, financial and economic conditions
                  to meet timely payment of interest and repayment of
                  principal. In the event of adverse business, financial or
                  economic conditions, it is not likely to have the capacity
                  to pay interest and repay principal. Such issues may be in
                  default or there may be present elements of danger with
                  respect to principal or interest. The Caa rating is also used
                  for debt subordinated to senior debt that is assigned an
                  actual or implied B or B3 rating.
- --------------------------------------------------------------------------------
Ca                Debt rated in this category represent obligations that are
                  speculative in a high degree. Such debt is often in default
                  or has other marked shortcomings.
- --------------------------------------------------------------------------------
C                 This is the lowest rating assigned by Moody's, and debt
                  rated C can be regarded as having extremely poor
                  prospects of attaining investment standing.
- --------------------------------------------------------------------------------

Fitch Investors Service, Inc.
- --------------------------------------------------------------------------------
AAA               Debt rated in this category has the lowest expectation
                  of credit risk. Capacity for timely payment of financial
                  commitments is exceptionally strong and highly unlikely to
                  be adversely affected by foreseeable events.
- --------------------------------------------------------------------------------
AA                Debt rated in this category has a very low expectation
                  of credit risk. Capacity for timely payment of financial
                  commitments is very strong and not significantly vulnerable
                  to foreseeable events.
- --------------------------------------------------------------------------------
A                 Debt rated in this category has a low expectation of credit
                  risk. Capacity for timely payment of financial commitments
                  is strong, but may be more vulnerable to changes in
                  circumstances or in economic conditions than debt rated
                  in higher categories.
- --------------------------------------------------------------------------------
BBB               Debt rated in this category currently has a low expectation
                  of credit risk and an adequate capacity for timely payment
                  of financial commitments. However, adverse changes in
                  circumstances and in economic conditions are more likely
                  to impair this capacity. This is the lowest investment-grade
                  category.
- --------------------------------------------------------------------------------
BB                Debt rated in this category has a possibility of developing
                  credit risk, particularly as the result of adverse
                  economic change over time. However, business or
                  financial alternatives may be available to allow financial
                  commitments to be met. Securities rated in this category
                  are not investment-grade.
- --------------------------------------------------------------------------------


- ------
91


Fitch Investors Service, Inc.
- --------------------------------------------------------------------------------
B                       Debt rated in this category has significant credit
                        risk, but a limited margin of safety remains. Financial
                        commitments currently are being met, but capacity
                        for continued debt service payments is contingent
                        upon a sustained, favorable business and economic
                        environment.
- --------------------------------------------------------------------------------
CCC, CC, C              Debt rated in these categories has a real possibility
                        for default. Capacity for meeting financial
                        commitments depends solely upon sustained,
                        favorable business or economic developments. A CC
                        rating indicates that default of some kind appears
                        probable; a C rating signals imminent default.
- --------------------------------------------------------------------------------
DDD, DD, D              The ratings of obligations in these categories are
                        based on their prospects for achieving partial or
                        full recovery in a reorganization or liquidation of
                        the obligor. While expected recovery values are
                        highly speculative and cannot be estimated with any
                        precision, the following serve as general guidelines.
                        DDD obligations have the highest potential for
                        recovery, around 90%-100% of outstanding
                        amounts and accrued interest. DD indicates potential
                        recoveries in the range of 50%-90% and D the
                        lowest recovery potential, i.e., below 50%.

                        Entities rated in these categories have defaulted
                        on some or all of their obligations. Entities rated
                        DDD have the highest prospect for resumption of
                        performance or continued operation with or without a
                        formal reorganization process. Entities rated DD and
                        D are generally undergoing a formal reorganization
                        or liquidation process; those rated DD are likely
                        to satisfy a higher portion of their outstanding
                        obligations, while entities rated D have a poor
                        prospect of repaying all obligations.
- --------------------------------------------------------------------------------

To provide more detailed indications of credit quality, the Standard & Poor's
ratings from AA to CCC may be modified by the addition of a plus or minus sign
to show relative standing within these major rating categories. Similarly,
Moody's adds numerical modifiers (1,2,3) to designate relative standing within
its major bond rating categories. Fitch, Inc. also rates bonds and uses a
ratings system that is substantially similar to that used by Standard & Poor's.

COMMERCIAL PAPER RATINGS
- --------------------------------------------------------------------------------
S&P          MOODY'S            DESCRIPTION
- --------------------------------------------------------------------------------
A-1          Prime-1            This indicates that the degree of safety
             (P-1)              regarding timely payment is strong. Standard
                                & Poor's rates those issues determined
                                to possess extremely strong safety
                                characteristics as A-1+.
- --------------------------------------------------------------------------------
A-2          Prime-2            Capacity for timely payment on commercial
             (P-2)              paper is satisfactory, but the relative
                                degree of safety is not as high as for
                                issues designated A-1. Earnings trends
                                and coverage ratios, while sound, will be
                                more subject to variation. Capitalization
                                characteristics, while still appropriated, may
                                be more affected by external conditions.
                                Ample alternate liquidity is maintained.
- --------------------------------------------------------------------------------
A-3          Prime-3            Satisfactory capacity for timely repayment.
             (P-3)              Issues that carry this rating are somewhat
                                more vulnerable to the adverse changes in
                                circumstances than
                                obligations carrying the higher designations.
- --------------------------------------------------------------------------------

NOTE RATINGS
- --------------------------------------------------------------------------------
S&P            MOODY'S            DESCRIPTION
- --------------------------------------------------------------------------------
SP-1           MIG-1;             Notes are of the highest quality enjoying
               VMIG-1             strong protection from established cash
                                  flows of funds for their servicing or from
                                  established and broad-based access to the
                                  market for refinancing, or both.
- --------------------------------------------------------------------------------
SP-2           MIG-2;             Notes are of high quality, with margins of
               VMIG-2             protection ample, although not so large as in
                                  the preceding group.
- --------------------------------------------------------------------------------
SP-3           MIG-3;             Notes are of favorable quality, with all
               VMIG-3             security elements accounted for, but lacking
                                  the undeniable strength of the preceding
                                  grades. Market access for refinancing,
                                  in particular, is likely to be less well
                                  established.
- --------------------------------------------------------------------------------
SP-4           MIG-4;             Notes are of adequate quality, carrying
               VMIG-4             specific risk but having protection and not
                                  distinctly or predominantly speculative.
- --------------------------------------------------------------------------------


- ------
92


NOTES


- ------
93


MORE INFORMATION ABOUT THE FUNDS IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

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

You can receive a free copy of the annual and semiannual reports, and ask
questions about the funds and your accounts, online at americancentury.com, by
contacting American Century at the addresses or telephone numbers listed below
or by contacting your financial intermediary. You may obtain a free copy of Mid
Cap Growth's predecessor fund, Mason Street Aggressive Growth Fund's and Small
Cap Growth's predecessor fund, Mason Street Small Cap Growth Fund's March 31,
2006 annual report online at masonstreet.com.

If you own or are considering purchasing fund shares through

* an employer-sponsored retirement plan

* a bank

* a broker-dealer

* an insurance company

* another financial intermediary

you can receive the annual and semiannual reports directly from them.

You also can get information about the funds from the Securities and Exchange
Commission (SEC). The SEC charges a duplicating fee to provide copies of this
information.

IN PERSON            SEC Public Reference Room
                     Washington, D.C.
                     Call 202-942-8090 for location and hours.

ON THE INTERNET      * EDGAR database at sec.gov
                     * By email request at publicinfo@sec.gov

BY MAIL              SEC Public Reference Section
                     Washington, D.C. 20549-0102

Investment Company Act File No. 811-0816

AMERICAN CENTURY INVESTMENTS
americancentury.com
                                   Banks and Trust Companies, Broker-Dealers,
Self-Directed Retail Investors     Financial Professionals, Insurance Companies
P.O. Box 419200                    P.O. Box 419786
Kansas City, Missouri 64141-6200   Kansas City, Missouri 64141-6786
1-800-345-2021 or 816-531-5575     1-800-345-6488

SH-SAI-52536 0703











AMERICAN CENTURY MUTUAL FUNDS, INC.

PART C   OTHER INFORMATION

Item 23.  Exhibits

     (a)  (1) Articles of Incorporation of Twentieth  Century  Investors,  Inc.,
dated June 26,  1990  (filed  electronically  as Exhibit  b1a to  Post-Effective
Amendment No. 73 to the Registration Statement of the Registrant on February 29,
1996, File No. 2-14213, and incorporated herein by reference).

          (2) Articles of Amendment of Twentieth Century Investors,  Inc., dated
November  19,  1990  (filed  electronically  as  Exhibit  b1b to  Post-Effective
Amendment No. 73 to the Registration Statement of the Registrant on February 29,
1996, File No. 2-14213, and incorporated herein by reference).

          (3)  Articles  of Merger  of  Twentieth  Century  Investors,  Inc.,  a
Maryland   corporation  and  Twentieth  Century  Investors,   Inc.,  a  Delaware
corporation,  dated  February 22, 1991 (filed  electronically  as Exhibit b1c to
Post-Effective  Amendment No. 73 to the Registration Statement of the Registrant
on February 29, 1996, File No. 2-14213, and incorporated herein by reference).

          (4) Articles of Amendment of Twentieth Century Investors,  Inc., dated
August 10, 1993 (filed electronically as Exhibit b1d to Post-Effective Amendment
No. 73 to the  Registration  Statement of the  Registrant  on February 29, 1996,
File No. 2-14213, and incorporated herein by reference).

          (5) Articles Supplementary of Twentieth Century Investors, Inc., dated
September  2,  1993  (filed  electronically  as  Exhibit  b1e to  Post-Effective
Amendment No. 73 to the Registration Statement of the Registrant on February 29,
1996, File No. 2-14213, and incorporated herein by reference).

          (6) Articles Supplementary of Twentieth Century Investors, Inc., dated
April 24, 1995 (filed electronically as Exhibit b1f to Post-Effective  Amendment
No. 73 to the  Registration  Statement of the  Registrant  on February 29, 1996,
File No. 2-14213, and incorporated herein by reference).

          (7) Articles Supplementary of Twentieth Century Investors, Inc., dated
October  11,  1995  (filed  electronically  as  Exhibit  b1g  to  Post-Effective
Amendment No. 73 to the Registration Statement of the Registrant on February 29,
1996, File No. 2-14213, and incorporated herein by reference).

          (8) Articles Supplementary of Twentieth Century Investors, Inc., dated
January  22,  1996  (filed  electronically  as  Exhibit  b1h  to  Post-Effective
Amendment No. 73 to the Registration Statement of the Registrant on February 29,
1996, File No. 2-14213, and incorporated herein by reference).

          (9) Articles Supplementary of Twentieth Century Investors, Inc., dated
March 11, 1996 (filed electronically as Exhibit b1i to Post-Effective  Amendment
No. 75 to the  Registration  Statement of the Registrant on June 14, 1996,  File
No. 2-14213, and incorporated herein by reference).

          (10) Articles  Supplementary  of Twentieth  Century  Investors,  Inc.,
dated September 9, 1996 (filed  electronically  as Exhibit a10 to Post-Effective
Amendment No. 85 to the Registration Statement of the Registrant on September 1,
1999, File No. 2-14213, and incorporated herein by reference).

          (11) Articles of Amendment of Twentieth Century Investors, Inc., dated
December  2,  1996  (filed  electronically  as  Exhibit  b1j  to  Post-Effective
Amendment No. 76 to the Registration Statement of the Registrant on February 28,
1997, File No. 2-14213, and incorporated herein by reference).

          (12) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated December 2, 1996 (filed  electronically  as Exhibit b1k to  Post-Effective
Amendment No. 76 to the Registration Statement of the Registrant on February 28,
1997, File No. 2-14213, and incorporated herein by reference).

          (13) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated July 28,  1997  (filed  electronically  as Exhibit  b1l to  Post-Effective
Amendment No. 78 to the Registration Statement of the Registrant on February 26,
1998, File No. 2-14213, and incorporated herein by reference).

          (14) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated November 28, 1997 (filed  electronically  as Exhibit a13 to Post-Effective
Amendment No. 83 to the Registration Statement of the Registrant on February 26,
1999, File No. 2-14213, and incorporated herein by reference).

          (15)  Certificate of Correction to Articles  Supplementary of American
Century Mutual Funds,  Inc.,  dated December 18, 1997 (filed  electronically  as
Exhibit a14 to Post-Effective  Amendment No. 83 to the Registration Statement of
the Registrant on February 26, 1999, File No. 2-14213,  and incorporated  herein
by reference).

          (16) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated December 18, 1997 (filed  electronically  as Exhibit b1m to Post-Effective
Amendment No. 78 to the Registration Statement of the Registrant on February 26,
1998, File No. 2-14213, and incorporated herein by reference).

          (17) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated January 25, 1999 (filed  electronically  as Exhibit a16 to  Post-Effective
Amendment No. 83 to the Registration Statement of the Registrant on February 26,
1999, File No. 2-14213, and incorporated herein by reference).

          (18) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated February 16, 1999 (filed  electronically  as Exhibit a17 to Post-Effective
Amendment No. 83 to the Registration Statement of the Registrant on February 26,
1999, File No. 2-14213, and incorporated herein by reference).

          (19) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated  August 2, 1999 (filed  electronically  as Exhibit  a19 to  Post-Effective
Amendment No. 89 to the Registration  Statement of the Registrant on December 1,
2000, File No. 2-14213, and incorporated herein by reference).

          (20) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated November 19, 1999 (filed  electronically  as Exhibit a19 to Post-Effective
Amendment No. 87 to the Registration Statement of the Registrant on November 29,
1999, File No. 2-14213, and incorporated herein by reference).

          (21) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated  March 5, 2001  (filed  electronically  as Exhibit  a21 to  Post-Effective
Amendment No. 93 to the  Registration  Statement of the  Registrant on April 20,
2001, File No. 2-14213, and incorporated herein by reference).

          (22) Certificate of Correction to Articles Supplementary,  dated April
3, 2001 (filed electronically as Exhibit a22 to Post-Effective  Amendment No. 93
to the  Registration  Statement of the  Registrant  on April 20, 2001,  File No.
2-14213, and incorporated herein by reference).

          (23) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated June 14,  2002  (filed  electronically  as Exhibit  a23 to  Post-Effective
Amendment No. 98 to the Registration  Statement of the Registrant on October 10,
2002, File No. 2-14213, and incorporated herein by reference).

          (24)  Certificate of Correction to Articles  Supplementary of American
Century Mutual Funds, Inc., dated June 25, 2002 (filed electronically as Exhibit
a24 to  Post-Effective  Amendment  No. 98 to the  Registration  Statement of the
Registrant on October 10, 2002, File No.  2-14213,  and  incorporated  herein by
reference).

          (25) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated February 12, 2003 (filed  electronically  as Exhibit a25 to Post-Effective
Amendment No. 100 to the  Registration  Statement of the  Registrant on February
28, 2003, File No. 2-14213, and incorporated herein by reference).

          (26)  Certificate of Correction to Articles  Supplementary of American
Century Mutual Funds,  Inc.,  dated February 28, 2003 (filed  electronically  as
Exhibit a26 to Post-Effective Amendment No. 101 to the Registration Statement of
the Registrant on August 28, 2003, File No. 2-14213,  and incorporated herein by
reference).

          (27) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated  August 14, 2003 (filed  electronically  as Exhibit a27 to  Post-Effective
Amendment No. 102 to the Registration  Statement of the Registrant on August 28,
2003, File No. 2-14213, and incorporated herein by reference).

          (28) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated January 14, 2004 (filed  electronically  as Exhibit a28 to  Post-Effective
Amendment No. 104 to the  Registration  Statement of the  Registrant on February
26, 2004, File No. 2-14213, and incorporated herein by reference).

          (29) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated November 17, 2004 (filed  electronically  as Exhibit a29 to Post-Effective
Amendment No. 106 to the  Registration  Statement of the  Registrant on November
29, 2004, File No. 2-14213, and incorporated herein by reference).

          (30) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated January 13, 2005 (filed  electronically  as Exhibit a30 to  Post-Effective
Amendment No. 109 to the  Registration  Statement of the  Registrant on February
25, 2005, File No. 2-14213, and incorporated herein by reference).

          (31) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated June 22,  2005  (filed  electronically  as Exhibit  a31 to  Post-Effective
Amendment No. 111 to the  Registration  Statement of the  Registrant on July 28,
2005, File No. 2-14213, and incorporated herein by reference).

          (32) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated  December  13,  2005  (filed   electronically  as  Exhibit  1(ff)  to  the
Registration Statement on Form N-14 of the Registrant on December 22, 2005, File
No. 2-14213, and incorporated herein by reference).

          (33) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated  March 15,  2006 (filed  electronically  as Exhibit a33 to  Post-Effective
Amendment No. 116 to the  Registration  Statement of the Registrant on March 31,
2006, File No. 2-14213, and incorporated herein by reference).

          (34) Articles  Supplementary of American  Century Mutual Funds,  Inc.,
dated  November  14,  2006  (filed   electronically  as  Exhibit  1(hh)  to  the
Registration Statement on Form N-14 of the Registrant on February 27, 2007, File
No. 2-14213, and incorporated herein by reference).

     (b)  Amended  and  Restated  By-laws,   dated  September  21,  2004  (filed
electronically  as  Exhibit  b  to  Post-Effective  Amendment  No.  106  to  the
Registration Statement of the Registrant on November 29, 2004, File No. 2-14213,
and incorporated herein by reference).

     (c) Registrant hereby incorporates by reference,  as though set forth fully
herein,  Article Fifth,  Article  Seventh,  and Article Eighth,  of Registrant's
Articles of Incorporation,  appearing as Exhibit (a)(1) herein and Article Fifth
of  Registrant's  Articles of Amendment,  appearing as Exhibit (a)(4) herein and
Sections  3, 4, 5, 6, 7, 8, 9, 10,  11, 22, 25, 30, 31, 32, 33, 39, 40 and 51 of
Registrant's  Amended and Restated Bylaws,  incorporated  herein by reference as
Exhibit b hereto.

     (d)  (1) Management Agreement with American Century Investment  Management,
Inc.,  dated  August  1,  2006  (filed  electronically  as  Exhibit  6(a) to the
Registration  Statement on Form N-14 of the Registrant on October 2, 2006,  File
No. 2-14213, and incorporated herein by reference).

          (2) Management Agreement with American Century Investment  Management,
Inc., dated March 30, 2006 (filed electronically as Exhibit d2 to Post-Effective
Amendment No. 116 to the  Registration  Statement of the Registrant on March 31,
2006, File No. 2-14213, and incorporated herein by reference).

          (3) Investment  Subadvisory  Agreement with Mason Street Advisors LLC,
dated  March 30,  2006  (filed  electronically  as Exhibit d3 to  Post-Effective
Amendment No. 116 to the  Registration  Statement of the Registrant on March 31,
2006, File No. 2-14213, and incorporated herein by reference).

          (4) Management Agreement with American Century Investment  Management,
Inc., dated April 28, 2006 (filed electronically as Exhibit d4 to Post-Effective
Amendment No. 119 to the Registration Statement of the Registrant on October 12,
2006, File No. 2-14213, and incorporated herein by reference).

     (e)  (1) Amended and Restated Distribution  Agreement with American Century
Investment  Services,  Inc.,  dated November 29, 2006 (filed  electronically  as
Exhibit e1 to Post-Effective  Amendment No. 45 to the Registration  Statement of
American Century  Quantitative Equity Funds, Inc. on November 29, 2006, File No.
33-19589, and incorporated herein by reference).

          (2) Form of Dealer/Agency  Agreement (filed  electronically as Exhibit
e2 to Pre-Effective  Amendment No. 1 to the  Registration  Statement of American
Century  Growth  Funds,  Inc.,  on  May  30,  2006,  File  No.  333-132114,  and
incorporated herein by reference).

     (f)  Not Applicable.

     (g)  (1) Master  Agreement with Commerce Bank, N.A., dated January 22, 1997
(filed  electronically as Exhibit b8e to Post-Effective  Amendment No. 76 to the
Registration Statement of the Registrant on February 28, 1997, File No. 2-14213,
and incorporated herein by reference).

          (2) Global Custody  Agreement  with The Chase  Manhattan  Bank,  dated
August 9, 1996 (filed  electronically as Exhibit b8 to Post-Effective  Amendment
No. 31 to the Registration Statement of American Century Government Income Trust
on February 7, 1997, File No. 2-99222, and incorporated herein by reference).

          (3) Amendment to the Global Custody Agreement with The Chase Manhattan
Bank,   dated  December  9,  2000  (filed   electronically   as  Exhibit  g2  to
Pre-Effective  Amendment No. 2 to the Registration Statement of American Century
Variable  Portfolios  II,  Inc.  on  January 9, 2001,  File No.  333-46922,  and
incorporated herein by reference).

          (4) Amendment No. 2 to the Global Custody  Agreement  between American
Century  Investments and the JPMorgan Chase Bank, dated as of May 1, 2004 (filed
electronically  as  Exhibit  g4  to  Post-Effective  Amendment  No.  35  to  the
Registration  Statement of American Century  Quantitative  Equity Funds, Inc. on
April 29, 2004, File No. 33-19589, and incorporated herein by reference).

          (5) Chase Manhattan Bank Custody Fee Schedule,  dated October 19, 2000
(filed  electronically as Exhibit g5 to  Post-Effective  Amendment No. 35 to the
Registration  Statement of American Century  Quantitative  Equity Funds, Inc. on
April 29, 2004, File No. 33-19589, and incorporated herein by reference).

          (6) Amendment No. 3 to the Global Custody  Agreement  between American
Century Investments and the JPMorgan Chase Bank, dated as of May 31, 2006 (filed
electronically   as  Exhibit  g6  to  Pre-Effective   Amendment  No.  1  to  the
Registration  Statement of American Century Growth Funds,  Inc. on May 30, 2006,
File No. 333-132114, and incorporated herein by reference).

          (7)  Registered  Investment  Company  Custody  Agreement with Goldman,
Sachs & Co.,  dated  February  6, 2006  (filed  electronically  as Exhibit g6 to
Post-Effective Amendment No. 114 to the Registration Statement of the Registrant
on February 28, 2006, File No. 2-14213, and incorporated herein by reference).

          (8) Amendment to Futures and Options Account  Agreement and Registered
Investment  Company Custody Agreement with Goldman,  Sachs & Co.,  effective May
12, 2006 (filed electronically as Exhibit g7 to Post-Effective Amendment No. 118
to the  Registration  Statement of the  Registrant  on April 28, 2006,  File No.
2-14213, and incorporated herein by reference).

          (9) Custodian and  Investment  Accounting  Agreement with State Street
Bank and Trust Company,  dated May 27, 2005 (filed  electronically as Exhibit g6
to  Post-Effective  Amendment No. 27 to the  Registration  Statement of American
Century  Investment Trust on May 27, 2005, File No.  33-65170,  and incorporated
herein by reference).

          (10) Amendment No. 1 to Custodian and Investment  Accounting Agreement
with State Street Bank and Trust  Company,  effective  September 30, 2005 (filed
electronically  as  Exhibit  g8  to  Post-Effective  Amendment  No.  41  to  the
Registration  Statement of American Century  Quantitative  Equity Funds, Inc. on
September 29, 2005, File No. 33-19589, and incorporated herein by reference).

          (11) Amendment No. 2 to Custodian and Investment  Accounting Agreement
with State  Street  Bank and Trust  Company,  effective  March 31,  2006  (filed
electronically  as  Exhibit  g9  to  Post-Effective  Amendment  No.  32  to  the
Registration  Statement of American Century  Investment Trust on March 31, 2006,
File No. 33-65170, and incorporated herein by reference).

          (12) Third-Party Custodial Agreement with J.P. Morgan Futures Inc. and
State Street Bank and Trust Company,  dated March 31, 2006 (filed electronically
as Exhibit g11 to Post-Effective Amendment No. 118 to the Registration Statement
of the Registrant on April 28, 2006, File No. 2-14213,  and incorporated  herein
by reference).

     (h)  (1) Transfer Agency Agreement with Twentieth Century  Services,  Inc.,
dated  March 1,  1991  (filed  electronically  as  Exhibit  9 to  Post-Effective
Amendment No. 76 to the Registration Statement of the Registrant on February 28,
1997, File No. 2-14213, and incorporated herein by reference).

          (2) Credit  Agreement  with  JPMorgan  Chase Bank,  as  Administrative
Agent,  dated  December  17,  2003  (filed   electronically  as  Exhibit  h9  to
Post-Effective  Amendment  No.  39 to the  Registration  Statement  of  American
Century  Target  Maturities  Trust on January 30, 2004,  File No.  2-94608,  and
incorporated herein by reference).

          (3) Termination,  Replacement and Restatement  Agreement with JPMorgan
Chase Bank N.A.,  as  Administrative  Agent,  dated  December  14,  2005  (filed
electronically  as  Exhibit  h13  to  Post-Effective  Amendment  No.  40 to  the
Registration  Statement of American  Century  California  Tax-Free and Municipal
Funds on  December  29,  2005,  File No.  2-82734,  and  incorporated  herein by
reference).

          (4)  Customer   Identification   Program  Reliance   Agreement  (filed
electronically   as  Exhibit  h2  to  Pre-Effective   Amendment  No.  1  to  the
Registration  Statement of American Century Growth Funds,  Inc. on May 30, 2006,
File No. 333-132114, and incorporated herein by reference).

     (i)  Opinion   and  Consent  of  Counsel,   dated  April  28,  2006  (filed
electronically  as  Exhibit  i  to  Post-Effective  Amendment  No.  118  to  the
Registration  Statement of the Registrant on April 28, 2006,  File No.  2-14213,
and incorporated herein by reference).

     (j)  (1) Consent of Deloitte & Touche LLP,  independent  registered  public
accounting firm, dated February 23, 2007, is included herein.

          (2)  Consent of  PricewaterhouseCoopers  LLP,  independent  registered
public accounting firm, dated February 23, 2007, is included herein.

     (k)  Not applicable.

     (l)  Not applicable.

     (m)  (1) Master Distribution and Shareholder Services Plan (Advisor Class),
dated September 3, 1996 (filed  electronically as Exhibit b15a to Post-Effective
Amendment  No. 9 to the  Registration  Statement  of  American  Century  Capital
Portfolios,  Inc. on February  17, 1998,  File No.  33-64872,  and  incorporated
herein by reference).

          (2)  Amendment  No.  1 to  the  Master  Distribution  and  Shareholder
Services  Plan (Advisor  Class),  dated June 13, 1997 (filed  electronically  as
Exhibit b15b to Post-Effective Amendment No. 77 to the Registration Statement of
the Registrant on July 17, 1997, File No. 2-14213,  and  incorporated  herein by
reference).

          (3)  Amendment  No.  2 to  the  Master  Distribution  and  Shareholder
Services Plan (Advisor Class), dated September 30, 1997 (filed electronically as
Exhibit b15c to Post-Effective Amendment No. 78 to the Registration Statement of
the Registrant on February 26, 1998, File No. 2-14213,  and incorporated  herein
by reference).

          (4)  Amendment  No.  3 to  the  Master  Distribution  and  Shareholder
Services  Plan (Advisor  Class),  dated June 30, 1998 (filed  electronically  as
Exhibit b15e to Post-Effective Amendment No. 11 to the Registration Statement of
American Century Capital  Portfolios,  Inc. on June 26, 1998, File No. 33-64872,
and incorporated herein by reference).

          (5)  Amendment  No.  4 to  the  Master  Distribution  and  Shareholder
Services Plan (Advisor Class), dated November 13, 1998 (filed  electronically as
Exhibit b15e to Post-Effective Amendment No. 12 to the Registration Statement of
American  Century  World  Mutual  Funds,  Inc. on November  13,  1998,  File No.
33-39242, and incorporated herein by reference).

          (6)  Amendment  No.  5 to  the  Master  Distribution  and  Shareholder
Services Plan (Advisor Class), dated February 16, 1999 (filed  electronically as
Exhibit m6 to Post-Effective  Amendment No. 83 to the Registration  Statement of
the Registrant on February 26, 1999, File No. 2-14213,  and incorporated  herein
by reference).

          (7)  Amendment  No.  6 to  the  Master  Distribution  and  Shareholder
Services  Plan (Advisor  Class),  dated July 30, 1999 (filed  electronically  as
Exhibit m7 to Post-Effective  Amendment No. 16 to the Registration  Statement of
American Century Capital  Portfolios,  Inc. on July 29, 1999, File No. 33-64872,
and incorporated herein by reference).

          (8)  Amendment  No.  7 to  the  Master  Distribution  and  Shareholder
Services Plan (Advisor Class), dated November 19, 1999 (filed  electronically as
Exhibit m8 to Post-Effective  Amendment No. 87 to the Registration  Statement of
the Registrant on November 29, 1999, File No. 2-14213,  and incorporated  herein
by reference).

          (9)  Amendment  No.  8 to  the  Master  Distribution  and  Shareholder
Services  Plan  (Advisor  Class),  dated June 1, 2000 (filed  electronically  as
Exhibit m9 to Post-Effective  Amendment No. 19 to the Registration  Statement of
American  Century World Mutual Funds,  Inc. on May 24, 2000, File No.  33-39242,
and incorporated herein by reference).

          (10)  Amendment  No.  9 to the  Master  Distribution  and  Shareholder
Services Plan (Advisor  Class),  dated April 30, 2001 (filed  electronically  as
Exhibit m10 to Post-Effective  Amendment No. 24 to the Registration Statement of
American Century World Mutual Funds,  Inc. on April 19, 2001, File No. 33-39242,
and incorporated herein by reference).

          (11)  Amendment  No. 10 to the  Master  Distribution  and  Shareholder
Services Plan (Advisor Class),  dated December 3, 2001 (filed  electronically as
Exhibit m11 to Post-Effective  Amendment No. 94 to the Registration Statement of
the Registrant on December 13, 2001, File No. 2-14213,  and incorporated  herein
by reference).

          (12)  Amendment  No. 11 to the  Master  Distribution  and  Shareholder
Services Plan (Advisor Class), dated September 3, 2002 (filed  electronically as
Exhibit m12 to Post-Effective  Amendment No. 26 to the Registration Statement of
American Century World Mutual Funds, Inc. on October 1, 2002, File No. 33-39242,
and incorporated herein by reference).

          (13)  Amendment  No. 12 to the  Master  Distribution  and  Shareholder
Services Plan (Advisor  Class),  dated August 1, 2004 (filed  electronically  as
Exhibit m13 to Post-Effective  Amendment No. 32 to the Registration Statement of
American Century Capital  Portfolios,  Inc. on July 29, 2004, File No. 33-64872,
and incorporated herein by reference).

          (14) Master Distribution and Individual  Shareholder  Services Plan (C
Class),   dated  March  1,  2001  (filed   electronically   as  Exhibit  m11  to
Post-Effective  Amendment  No.  24 to the  Registration  Statement  of  American
Century  World Mutual  Funds,  Inc. on April 19, 2001,  File No.  33-39242,  and
incorporated herein by reference).

          (15)  Amendment  No.  1 to  the  Master  Distribution  and  Individual
Shareholder Services Plan (C Class), dated April 30, 2001 (filed  electronically
as Exhibit m12 to Post-Effective  Amendment No. 24 to the Registration Statement
of  American  Century  World  Mutual  Funds,  Inc. on April 19,  2001,  File No.
33-39242, and incorporated herein by reference).

          (16)  Amendment  No.  2 to  the  Master  Distribution  and  Individual
Shareholder   Services   Plan  (C  Class),   dated   September  3,  2002  (filed
electronically  as  Exhibit  m15  to  Post-Effective  Amendment  No.  26 to  the
Registration  Statement of American Century World Mutual Funds,  Inc. on October
1, 2002, File No. 33-39242, and incorporated herein by reference).

          (17)  Amendment  No.  3 to  the  Master  Distribution  and  Individual
Shareholder   Services   Plan  (C  Class),   dated   February  27,  2004  (filed
electronically  as  Exhibit  m16  to  Post-Effective  Amendment  No.  104 to the
Registration Statement of the Registrant on February 26, 2004, File No. 2-14213,
and incorporated herein by reference).

          (18)  Amendment  No.  4 to  the  Master  Distribution  and  Individual
Shareholder   Services  Plan  (C  Class),   dated   September  30,  2004  (filed
electronically  as  Exhibit  m18  to  Post-Effective  Amendment  No.  20 to  the
Registration Statement of American Century Strategic Asset Allocations,  Inc. on
September 29, 2004, File No. 33-79482, and incorporated herein by reference).

          (19)  Amendment  No.  5 to  the  Master  Distribution  and  Individual
Shareholder   Services   Plan  (C  Class),   dated   November  17,  2004  (filed
electronically  as  Exhibit  m19  to  Post-Effective  Amendment  No.  106 to the
Registration Statement of the Registrant on November 29, 2004, File No. 2-14213,
and incorporated herein by reference).

          (20)  Amendment  No.  6 to  the  Master  Distribution  and  Individual
Shareholder Services Plan (C Class), dated March 30, 2006 (filed  electronically
as Exhibit m20 to Post-Effective  Amendment No. 23 to the Registration Statement
of American Century  Strategic Asset  Allocations,  Inc. on March 30, 2006, File
No. 33-79482, and incorporated herein by reference).

          (21) Master Distribution and Individual  Shareholder  Services Plan (A
Class),  dated  September  3,  2002  (filed  electronically  as  Exhibit  m6  to
Post-Effective  Amendment  No.  34 to the  Registration  Statement  of  American
Century  California  Tax-Free and Municipal  Funds on October 1, 2002,  File No.
2-82734, and incorporated herein by reference).

          (22)  Amendment  No.  1 to  the  Master  Distribution  and  Individual
Shareholder   Services   Plan  (A  Class)   dated   February   27,  2004  (filed
electronically  as  Exhibit  m18  to  Post-Effective  Amendment  No.  104 to the
Registration Statement of the Registrant on February 26, 2004, File No. 2-14213,
and incorporated herein by reference).

          (23)  Amendment  No.  2 to  the  Master  Distribution  and  Individual
Shareholder   Services  Plan  (A  Class),   dated   September  30,  2004  (filed
electronically  as  Exhibit  m22  to  Post-Effective  Amendment  No.  106 to the
Registration Statement of the Registrant on November 29, 2004, File No. 2-14213,
and incorporated herein by reference).

          (24)  Amendment  No.  3 to  the  Master  Distribution  and  Individual
Shareholder   Services   Plan  (A  Class),   dated   November  17,  2004  (filed
electronically  as  Exhibit  m23  to  Post-Effective  Amendment  No.  106 to the
Registration Statement of the Registrant on November 29, 2004, File No. 2-14213,
and incorporated herein by reference).

          (25)  Amendment  No.  4 to  the  Master  Distribution  and  Individual
Shareholder Services Plan (A Class), dated May 1, 2005 (filed  electronically as
Exhibit m13 to Post-Effective  Amendment No. 44 to the Registration Statement of
American  Century  Municipal  Trust  on May 13,  2005,  File  No.  2-91229,  and
incorporated herein by reference).

          (26)  Amendment  No.  5 to  the  Master  Distribution  and  Individual
Shareholder   Services  Plan  (A  Class),   dated   September  29,  2005  (filed
electronically  as  Exhibit  m25  to  Post-Effective  Amendment  No.  38 to  the
Registration  Statement of American Century World Mutual Funds, Inc. on November
30, 2005, File No. 33-39242, and incorporated herein by reference).

          (27)  Amendment  No.  6 to  the  Master  Distribution  and  Individual
Shareholder Services Plan (A Class), dated March 30, 2006 (filed  electronically
as Exhibit m27 to Post-Effective  Amendment No. 23 to the Registration Statement
of American Century  Strategic Asset  Allocations,  Inc. on March 30, 2006, File
No. 33-79482, and incorporated herein by reference).

          (28)  Amendment  No.  7 to  the  Master  Distribution  and  Individual
Shareholder   Services   Plan  (A  Class),   dated   November  29,  2006  (filed
electronically  as  Exhibit  m34  to  Post-Effective  Amendment  No.  46 to  the
Registration  Statement of American Century  Quantitative  Equity Funds, Inc. on
November 29, 2006, File No. 33-19589, and incorporated herein by reference).

          (29) Master Distribution and Individual  Shareholder  Services Plan (B
Class),  dated  September  3,  2002  (filed  electronically  as  Exhibit  m7  to
Post-Effective  Amendment  No.  34 to the  Registration  Statement  of  American
Century  California  Tax-Free and Municipal  Funds on October 1, 2002,  File No.
2-82734, and incorporated herein by reference).

          (30)  Amendment  No.  1 to the  Master  Distribution  and  Shareholder
Services  Plan (B Class),  dated  February  27,  2004 (filed  electronically  as
Exhibit m20 to Post-Effective Amendment No. 104 to the Registration Statement of
the Registrant on February 26, 2004, File No. 2-14213,  and incorporated  herein
by reference).

          (31)  Amendment  No.  2 to  the  Master  Distribution  and  Individual
Shareholder   Services  Plan  (B  Class),   dated   September  30,  2004  (filed
electronically  as  Exhibit  m26  to  Post-Effective  Amendment  No.  106 to the
Registration Statement of the Registrant on November 29, 2004, File No. 2-14213,
and incorporated herein by reference).

          (32)  Amendment  No.  3 to  the  Master  Distribution  and  Individual
Shareholder   Services   Plan  (B  Class),   dated   November  17,  2004  (filed
electronically  as  Exhibit  m27  to  Post-Effective  Amendment  No.  106 to the
Registration Statement of the Registrant on November 29, 2004, File No. 2-14213,
and incorporated herein by reference).

          (33)  Amendment  No.  4 to  the  Master  Distribution  and  Individual
Shareholder Services Plan (B Class), dated May 1, 2005 (filed  electronically as
Exhibit m18 to Post-Effective  Amendment No. 44 to the Registration Statement of
American  Century  Municipal  Trust  on May 13,  2005,  File  No.  2-91229,  and
incorporated herein by reference).

          (34)  Amendment  No.  5 to  the  Master  Distribution  and  Individual
Shareholder   Services  Plan  (B  Class),   dated   September  29,  2005  (filed
electronically  as  Exhibit  m31  to  Post-Effective  Amendment  No.  38 to  the
Registration  Statement of American Century World Mutual Funds, Inc. on November
30, 2005, File No. 33-39242, and incorporated herein by reference).

          (35)  Amendment  No.  6 to  the  Master  Distribution  and  Individual
Shareholder Services Plan (B Class), dated March 30, 2006 (filed  electronically
as Exhibit m34 to Post-Effective  Amendment No. 23 to the Registration Statement
of American Century  Strategic Asset  Allocations,  Inc. on March 30, 2006, File
No. 33-79482, and incorporated herein by reference).

          (36)  Amendment  No.  7 to  the  Master  Distribution  and  Individual
Shareholder   Services   Plan  (B  Class),   dated   November  29,  2006  (filed
electronically  as  Exhibit  m42  to  Post-Effective  Amendment  No.  46 to  the
Registration  Statement of American Century  Quantitative  Equity Funds, Inc. on
November 29, 2006, File No. 33-19589, and incorporated herein by reference).

          (37) Master Distribution and Individual  Shareholder  Services Plan (R
Class),  dated  August  29,  2003  (filed   electronically  as  Exhibit  m16  to
Post-Effective  Amendment  No.  17 to the  Registration  Statement  of  American
Century Strategic Asset Allocations, Inc. on August 28, 2003, File No. 33-79482,
and incorporated herein by reference).

          (38)  Amendment  No.  1 to  the  Master  Distribution  and  Individual
Shareholder Services Plan (R Class), dated May 1, 2004 (filed  electronically as
Exhibit m15 to Post-Effective  Amendment No. 35 to the Registration Statement of
American  Century  Quantitative  Equity Funds,  Inc. on April 29, 2004, File No.
33-19589, and incorporated herein by reference).

          (39)  Amendment  No.  2 to  the  Master  Distribution  and  Individual
Shareholder   Services   Plan  (R  Class),   dated   February  24,  2005  (filed
electronically  as Exhibit m30 to  Post-Effective  Amendment  No. 22 of American
Century Strategic Asset Allocations,  Inc. on March 30, 2005, File No. 33-79482,
and incorporated herein by reference).

          (40)  Amendment  No.  3 to  the  Master  Distribution  and  Individual
Shareholder Services Plan (R Class),  dated July 29, 2005 (filed  electronically
as Exhibit m33 to Post-Effective Amendment No. 111 to the Registration Statement
of the Registrant on July 28, 2005, File No. 2-14213, and incorporated herein by
reference).

          (41)  Amendment  No.  4 to  the  Master  Distribution  and  Individual
Shareholder   Services  Plan  (R  Class),   dated   September  29,  2005  (filed
electronically  as  Exhibit  m22  to  Post-Effective  Amendment  No.  41 to  the
Registration  Statement of American Century  Quantitative  Equity Funds, Inc. on
September 29, 2005, File No. 33-19589, and incorporated herein by reference).

          (42)  Amendment  No.  5 to  the  Master  Distribution  and  Individual
Shareholder Services Plan (R Class), dated March 30, 2006 (filed  electronically
as Exhibit m40 to Post-Effective  Amendment No. 23 to the Registration Statement
of American Century  Strategic Asset  Allocations,  Inc. on March 30, 2006, File
No. 33-79482, and incorporated herein by reference).

          (43)  Amendment  No.  6 to  the  Master  Distribution  and  Individual
Shareholder   Services   Plan  (R  Class),   dated   November  29,  2006  (filed
electronically  as  Exhibit  m26  to  Post-Effective  Amendment  No.  46 to  the
Registration  Statement  of the  Registrant  on  November  29,  2006,  File  No.
33-19589, and incorporated herein by reference).

     (n)  (1) Amended and Restated  Multiple Class Plan, dated September 3, 2002
(filed  electronically as Exhibit n1 to  Post-Effective  Amendment No. 35 to the
Registration  Statement of American  Century  California  Tax-Free and Municipal
Funds on  December  17,  2002,  File No.  2-82734,  and  incorporated  herein by
reference).

          (2) Amendment No. 1 to the Amended and Restated  Multiple  Class Plan,
dated December 31, 2002 (filed  electronically  as Exhibit n2 to  Post-Effective
Amendment No. 39 to the  Registration  Statement of American  Century  Municipal
Trust on  December  23,  2002,  File No.  2-91229,  and  incorporated  herein by
reference).

          (3) Amendment No. 2 to the Amended and Restated  Multiple  Class Plan,
dated  August 29, 2003  (filed  electronically  as Exhibit n3 to  Post-Effective
Amendment No. 17 to the  Registration  Statement of American  Century  Strategic
Asset Allocations,  Inc. on August 28, 2003, File No. 33-79482, and incorporated
herein by reference).

          (4) Amendment No. 3 to the Amended and Restated  Multiple  Class Plan,
dated February 27, 2004 (filed  electronically  as Exhibit n4 to  Post-Effective
Amendment No. 104 to the  Registration  Statement of the  Registrant on February
26, 2004, File No. 2-14213, and incorporated herein by reference).

          (5) Amendment No. 4 to the Amended and Restated  Multiple  Class Plan,
dated  May  1,  2004  (filed  electronically  as  Exhibit  n5 to  Post-Effective
Amendment No. 35 to the Registration  Statement of American Century Quantitative
Equity Funds, Inc. on April 29, 2004, File No. 33-19589, and incorporated herein
by reference).

          (6) Amendment No. 5 to the Amended and Restated  Multiple  Class Plan,
dated  August 1, 2004  (filed  electronically  as Exhibit  n6 to  Post-Effective
Amendment No. 24 to the Registration  Statement of American  Century  Investment
Trust  on  July  29,  2004,  File  No.  33-65170,  and  incorporated  herein  by
reference).

          (7) Amendment No. 6 to the Amended and Restated  Multiple  Class Plan,
dated September 30, 2004 (filed  electronically  as Exhibit n7 to Post-Effective
Amendment No. 20 to the  Registration  Statement of American  Century  Strategic
Asset  Allocations,   Inc.  on  September  29,  2004,  File  No.  33-79482,  and
incorporated herein by reference).

          (8) Amendment No. 7 to the Amended and Restated  Multiple  Class Plan,
dated November 17, 2004 (filed  electronically  as Exhibit n8 to  Post-Effective
Amendment No. 106 to the  Registration  Statement of the  Registrant on November
29, 2004, File No. 2-14213, and incorporated herein by reference).

          (9) Amendment No. 8 to the Amended and Restated  Multiple  Class Plan,
dated February 24, 2005 (filed  electronically  as Exhibit n9 to  Post-Effective
Amendment No. 22 to American Century Strategic Asset Allocations,  Inc. on March
30, 2005, File No. 33-79482, and incorporated herein by reference).

          (10) Amendment No. 9 to the Amended and Restated  Multiple Class Plan,
dated July 29,  2005  (filed  electronically  as Exhibit  n10 to  Post-Effective
Amendment No. 111 to the  Registration  Statement of the  Registrant on July 28,
2005, File No. 2-14213, and incorporated herein by reference).

          (11) Amendment No. 10 to the Amended and Restated Multiple Class Plan,
dated September 29, 2005 (filed  electronically as Exhibit n11 to Post-Effective
Amendment No. 41 to the Registration  Statement of American Century Quantitative
Equity Funds,  Inc. on September 29, 2005, File No.  33-19589,  and incorporated
herein by reference).

          (12) Amendment No. 11 to the Amended and Restated Multiple Class Plan,
dated March 30, 2006 (filed  electronically  as Exhibit n12 to the  Registration
Statement of American  Century  Strategic Asset  Allocations,  Inc. on March 30,
2006, File No. 33-79482, and incorporated herein by reference).

          (13) Amendment No. 12 to the Amended and Restated Multiple Class Plan,
dated November 29, 2006 (filed  electronically  as Exhibit n13 to Post-Effective
Amendment No. 46 to the Registration  Statement of American Century Quantitative
Equity Funds,  Inc. on November 29, 2006, File No.  33-19589,  and  incorporated
herein by reference).

          (14) Letter  Agreement with American  Century  Investment  Management,
Inc.,   dated  March  30,  2006   (filed   electronically   as  Exhibit  n13  to
Post-Effective  Amendment  No.  42 to the  Registration  Statement  of  American
Century  World Mutual  Funds,  Inc. on March 30, 2006,  File No.  33-39242,  and
incorporated herein by reference).

     (o) Reserved.

     (p)  (1) American Century Investments Code of Ethics (filed  electronically
as Exhibit p1 to Pre-Effective  Amendment No. 1 to the Registration Statement of
American Century Growth Funds,  Inc. on May 30, 2006, File No.  333-132114,  and
incorporated herein by reference).

          (2) Independent Directors' Code of Ethics amended March 4, 2000 (filed
electronically  as  Exhibit  p2 to  Post-Effective  Amendment  No.  106  to  the
Registration Statement of the Registrant on November 29, 2004, File No. 2-14213,
and incorporated herein by reference).

          (3) Mason  Street  Advisors,  LLC  Statement  of  Policy  on  Personal
Securities  Transactions  (filed  electronically as Exhibit p3 to Post-Effective
Amendment No. 31 to the Registration  Statement of American  Century  Investment
Trust  on  March  9,  2006,  File  No.  33-65170,  and  incorporated  herein  by
reference).

        (q)1) Power of Attorney,  dated September 12, 2006 (filed electronically
as Exhibit 16(a) to the Registration  Statement on Form N-14 of American Century
Mutual Funds, Inc. on October 2, 2006, File No. 2-14213, and incorporated herein
by reference).

          (2)   Secretary's   Certificate,   dated  September  12,  2006  (filed
electronically  as Exhibit 16(b) to the  Registration  Statement on Form N-14 of
American  Century Mutual Funds,  Inc. on October 2, 2006, File No. 2-14213,  and
incorporated herein by reference).

Item 24. Persons Controlled by or Under Common Control with Fund

The  persons  who  serve as the  directors  of the  Registrant  also  serve,  in
substantially identical capacities, the following investment companies:

American Century Asset Allocation Portfolios, Inc.
American Century Capital Portfolios, Inc.
American Century Growth Funds, Inc.
American Century Mutual Funds, Inc.
American Century Strategic Asset Allocations, Inc.
American Century Variable Portfolios, Inc.
American Century World Mutual Funds, Inc.

Because  the  boards  of  each  of  the  above-named  investment  companies  are
identical, these companies may be deemed to be under common control.

Item 25. Indemnification

     The  Registrant  is a Maryland  corporation.  Section  2-418 of the General
Corporation  Law of Maryland  allows a Maryland  corporation  to  indemnify  its
directors,  officers,  employees  and  agents  to the  extent  provided  in such
statute.

     Article Eighth of the Registrant's  Articles of Incorporation  requires the
indemnification  of the  corporation's  directors  and  officers  to the  extent
permitted by the General Corporation Law of Maryland, the Investment Company Act
and all other applicable laws.

     The Registrant has purchased an insurance  policy insuring its officers and
directors  against  certain  liabilities  which such  officers and directors may
incur  while  acting  in such  capacities  and  providing  reimbursement  to the
Registrant for sums which it may be permitted or required to pay to its officers
and directors by way of  indemnification  against such  liabilities,  subject in
either case to clauses respecting deductibility and participation.

Item 26. Business and Other Connections of the Investment Advisor

     In addition to serving as the  Registrant's  investment  advisor,  American
Century Investment  Management,  Inc. provides portfolio management services for
other  investment  companies  as well as for other  business  and  institutional
clients.  Business backgrounds of the directors and principal executive officers
of the advisor that also hold  positions  with the Registrant are included under
"Management"  in the  Statement  of  Additional  Information  included  in  this
registration statement. The remaining principal executive officer of the advisor
and his principal occupations during the past 2 fiscal years are as follows:

          Enrique Chang (President, Chief Executive Officer and Chief Investment
          Officer).  President,  Chief  Executive  Officer and Chief  Investment
          Officer, ACGIM. Also serves as Chief Investment  Officer-International
          Equity.  Served as  President  and  Chief  Executive  Officer,  Munder
          Capital Management, 2002 to 2006.

The principal address for all American Century entities other than ACGIM is 4500
Main Street, Kansas City, MO 64111. The principal address for ACGIM is 666 Third
Avenue, 23rd Floor, New York, NY 10017.

     The  subadvisor  for Small Cap Growth  and Mid Cap  Growth is Mason  Street
Advisors LLC (MSA).  In addition to providing  investment  advisory  services to
investment companies, MSA provides investment advisory services for Northwestern
Mutual and other institutional clients. Several of the directors and officers of
MSA also serve as officers of Northwestern Mutual.  Additional information about
the business and other  connections  of MSA is available in Part I of MSA's Form
ADV and the schedules thereto (SEC file number 801-60721).

Item 27. Principal Underwriters

I.   (a) American  Century  Investment  Services,  Inc. (ACIS) acts as principal
underwriter for the following investment companies:

American Century Asset Allocation Portfolios, Inc.
American Century California Tax-Free and Municipal Funds
American Century Capital Portfolios, Inc.
American Century Growth Funds, Inc.
American Century Government Income Trust
American Century International Bond Funds
American Century Investment Trust
American Century Municipal Trust
American Century Mutual Funds, Inc.
American Century Quantitative Equity Funds, Inc.
American Century Strategic Asset Allocations, Inc.
American Century Target Maturities Trust
American Century Variable Portfolios, Inc.
American Century Variable Portfolios II, Inc.
American Century World Mutual Funds, Inc.

     ACIS is  registered  with  the  Securities  and  Exchange  Commission  as a
broker-dealer and is a member of the National Association of Securities Dealers.
ACIS is located at 4500 Main Street,  Kansas  City,  Missouri  64111.  ACIS is a
wholly-owned subsidiary of American Century Companies, Inc.

     (b) The  following is a list of the  directors  and  executive  officers of
ACIS:


Name and Principal         Positions and Offices          Positions and Offices
Business Address*          with Underwriter               with Registrant
- --------------------------------------------------------------------------------

James E. Stowers, Jr.      Director                       Director and
                                                          Vice Chairman

James E. Stowers III       Director                       None

William M. Lyons           Chairman, Executive Vice       President
                           President and Director

Brian Jeter                President and Chief            none
                           Executive Officer

Jonathan S. Thomas         Executive Vice President,      Executive
                           Chief Financial Officer and    Vice President
                           Chief Accounting Officer

Donna Byers                Senior Vice President          none

Mark Killen                Senior Vice President          none

David Larrabee             Senior Vice President          none

Barry Mayhew               Senior Vice President          none

David C. Tucker            Senior Vice President          Senior Vice
                           and General Counsel            President and
                                                          General Counsel

Jon W. Zindel              Senior Vice President          Tax Officer

Kristin E. Chandler        Chief Compliance Officer       none

* All addresses are 4500 Main Street, Kansas City, Missouri 64111

     (c) Not applicable.

Item 28. Location of Accounts and Records

     All  accounts,  books and other  documents  required  to be  maintained  by
Section 31(a) of the 1940 Act, and the rules promulgated thereunder,  are in the
possession of American Century  Investment  Management,  Inc., 4500 Main Street,
Kansas  City,  MO 64111  and 1665  Charleston  Road,  Mountain  View,  CA 94043;
American  Century  Services,  LLC, 4500 Main Street,  Kansas City, MO 64111;  JP
Morgan Chase Bank, 4 Metro Tech Center, Brooklyn, NY 11245; Commerce Bank, N.A.,
1000 Walnut,  Kansas City, MO 64105 and State Street Bank and Trust Company, One
Lincoln Street,  Boston,  Massachusetts  02111.  Certain records relating to the
day-to-day  portfolio management of Small Cap Growth and Mid Cap Growth are kept
in the offices of the subadvisor, Mason Street Advisors, LLC, 720 East Wisconsin
Avenue, Milwaukee, WI 53202.

Item 29. Management Services - Not Applicable.

Item 30. Undertakings - Not Applicable.




                                   SIGNATURES

     Pursuant  to the  requirements  of the  Securities  Act and the  Investment
Company  Act  of  1940,  the  Registrant  certifies  that  it  meets  all of the
requirements for effectiveness of this Registration Statement amendment pursuant
to Rule 485(b) promulgated under the Securities Act of 1933, as amended, and has
duly caused this amendment to be signed on its behalf by the  undersigned,  duly
authorized,  in the City of Kansas  City,  State of  Missouri on the 28th day of
February, 2007.


                               AMERICAN CENTURY MUTUAL FUNDS, INC.
                                  (Registrant)


                               By: *
                                   ---------------------------------------
                                   William M. Lyons
                                   President


     As required by the Securities Act of 1933, this Registration  Statement has
been  signed  by the  following  persons  in  the  capacities  and on the  dates
indicated.


SIGNATURE                  TITLE                             DATE
- ---------                  -----                             ----

*                         President                     February 28, 2007
- ----------------------
William M. Lyons


*                         Vice President,               February 28, 2007
- ----------------------    Treasurer and Chief
Robert J. Leach           Financial Officer


*                         Vice Chairman of the          February 28, 2007
- ----------------------    Board and Director
James E. Stowers, Jr.


*                         Director                      February 28, 2007
- ----------------------
Thomas A. Brown


*                         Director                      February 28, 2007
- ----------------------
Andrea C. Hall, Ph.D.


*                         Director                      February 28, 2007
- ----------------------
D. D. (Del) Hock


*                         Chairman of the               February 28, 2007
- ----------------------    Board and Director
Donald H. Pratt


*                         Director                      February 28, 2007
- ----------------------
Gale E. Sayers


*                         Director                      February 28, 2007
- ----------------------
M. Jeannine Strandjord


*                         Director                      February 28, 2007
- ----------------------
Timothy S. Webster



*By:  /s/ Kathleen Gunja Nelson
      -------------------------------------------
      Kathleen Gunja Nelson
      Attorney-in-Fact (pursuant to a
      Power of Attorney dated September 12, 2006)





                                  EXHIBIT INDEX

EXHIBIT           DESCRIPTION OF DOCUMENT
NUMBER


EXHIBIT (j)(1)      Consent of Deloitte & Touche,  LLP,  independent  registered
                    public accounting firm, dated February 23, 2007.

EXHIBIT (j)(2)      Consent   of    PricewaterhouseCoopers    LLP,   independent
                    registered public accounting firm, dated February 23, 2007.

EX-99.J1

CONSENT OF DELOITTE & TOUCHE, LLP

EX-99.J2

                                                                  EXHIBIT (j)(2)


            CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


We  hereby  consent  to the  incorporation  by  reference  in this  Registration
Statement  on  Form  N-1A of our  report  dated  May 1,  2006,  relating  to the
financial  statements  and financial  highlights  which appears in the March 31,
2006 Annual  Report to  Shareholders  of the Mason Street Small Cap Growth Stock
Fund and Mason Street  Aggressive  Growth Stock Fund, which is also incorporated
by reference into the Registration  Statement. We also consent to the references
to us under the headings  "Financial  Statements" and "Financial  Highlights" in
such Registration Statement.



/s/ PRICEWATERHOUSECOOPERS LLP
- ---------------------------------------
PRICEWATERHOUSECOOPERS LLP
Milwaukee, Wisconsin
February 23, 2007