Select Ten Performance Summary
as of 9/30/97
SELECToTEN
An Ideal IRA Choice!
Defined Asset Funds[SM]
A Simple Strategy For Total Return
The Select Ten Portfolio seeks total return by holding the ten current highest
dividend-yielding stocks of the Dow Jones Industrial Average* (DJIA) for about
one year. Purchasing a Portfolio of these stocks, instead of just one or two,
is a way to diversify your stock holdings. The Strategy of investing in a
number of established stocks while their prices are depressed, may increase
your potential for total return.
How the Portfolio Works
The Portfolio consists of approximately equal values of the ten stocks in the
DJIA having the highest dividend yield shortly before the initial offering
date (the "Strategy") and holds them for about a year. During this time the
Portfolio will remain relatively fixed. After one year, the Portfolio will
liquidate. You may choose to roll your proceeds into the next Portfolio of
the then-current Strategy, if available, or you can take the cash. Although
this is a one year investment, we recommend you stay with the Strategy for
three to five years.
Defining Your Risks
Select Ten Portfolios are designed for investors willing and able to assume the
risks generally associated with equity investments, and may not be appropriate
for those seeking preservation of capital. The value of the investment will
fluctuate with the prices of the underlying stocks. There can be no assurance
that dividend rates will be maintained or that stock prices will not decrease.
Generally, dividends and any gains will be subject to tax each year. Capital
gains, if any, on assets held over a year will be taxed up to the maximum
federal tax rate of 28%.
Past Performance of Prior Select Ten Portfolios
The chart below shows average annual total returns for each of the four
established Series, which assume an annual "rollover" into the next Portfolio.
We've also included returns for the most recently completed Portfolio of each
Series:
<TABLE>
<CAPTION>
Series From Inception through 9/30/97 Most Recently Completed Portfolio
Inception Return Period Return
<S> <C> <C> <C> <C> <C>
5/17/91 B Series 17.63% 5/20/96-6/27/97 B Series 27.54%
1/3/92 A Series 17.86% 1/18/96-2/28/97 A Series 31.27%
9/1/92 C Series 20.75% 9/12/95-10/31/96 C Series 30.30%
7/22/96 3 Series 32.60% 7/22/96-8/29/97 3 Series 33.68%
</TABLE>
Past performance is no guarantee of future results. Average annual total
returns represent price changes plus dividends reinvested, divided by the
initial public offering price, and reflect maximum sales charges and expenses.
Returns for Series Since Inception and Most Recently Completed Portfolio will
differ because Series Since Inception figures reflect a reduced sales charge
for consecutive rollovers. Also, the returns will differ because the
performance period of the Most Recently Completed Portfolio is different.
The Dow Jones Industrial Average
The Dow Jones Industrial Average consists of 30 stocks chosen by the editors of
The Wall Street Journal as representative of the NY Stock Exchange and of
American industry. The companies are highly capitalized and their stocks are
widely held by individual and institutional investors.
Allied Signal Eastman Kodak Merck
Aluminum Co. of America Exxon 3M
American Express General Electric J.P. Morgan & Co.
AT&T General Motors Philip Morris
Boeing Goodyear Procter & Gamble
Caterpillar Hewlett-Packard Sears Roebuck & Co.
Chevron IBM Travelers Group
Coca-Cola International Paper Union Carbide
Walt Disney Johnson & Johnson United Technologies
Du Pont McDonald's Wal-Mart
[bottom far left side of the page reads: Merrill Lynch ]
[A mountain chart, captioned "Hypothetical Performance of the Strategy (not any
Portfolio) Growth of $10,000 invested in 1972 through 9/30/97" compares the
cumulative annual performance from 1972 through 9/30/97 of the Strategy (blue),
the DJIA (red) and the S&P 500 Index (green). A blue box in the upper left
quadrant indicates the components of the Strategy performance section of the
chart. The horizontal or (Y) axis compares the cumulative annual performance
by YEAR , from 1972 through 9/30/97. The vertical or (X) axis reflects DOLLAR
AMOUNT value for each index from 1972 ending 9/30/97. The initial value of
each investment is $10,000. Throughout the period from 1972 through September
30, 1997, increases in each investment build towards the right vertical or (X)
axis. At the end of this period, the right vertical or (X) axis, reflects the
ending value of the STRATEGY ($505,427), the ending value of the DJIA
($251,377) and the ending value of the S&P 500 Index ($237,872).]
Past performance of the Strategy is no guarantee of future results of any
Portfolio. There can be no assurance that any Portfolio will outperform either
index. The Strategy would have underperformed the DJIA in 11 and the S&P 500
Index in 10 of the last 25 years. Returns assume dividends were reinvested at
year ends and do not reflect commissions or taxes. The DJIA and S&P 500 Index
do not reflect sales charges and expenses.
Annual Total Returns
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
S&P 500 S&P 500
Strategy** DJIA Index Strategy** DJIA Index
1972 20.29% 18.21% 18.98% 1985 26.66 32.78 31.43
1973 -2.99 -13.12 -14.66 1986 32.60 26.91 18.37
1974 -2.28 -23.14 -26.47 1987 5.00 6.02 5.67
1975 55.05 44.40 36.92 1988 19.53 15.95 16.58
1976 32.84 22.72 23.53 1989 25.33 31.71 31.11
1977 -2.80 -12.71 -7.19 1990 -9.91 -0.57 -3.20
1978 -1.81 2.69 6.39 1991 31.40 23.93 30.51
1979 10.38 10.52 18.02 1992 6.35 7.34 7.67
1980 24.40 21.41 31.50 1993 24.95 16.72 9.97
1981 5.50 -3.40 -4.83 1994 1.92 4.95 1.30
1982 23.49 25.79 20.26 1995 34.51 36.48 37.10
1983 36.49 25.68 22.27 1996 25.97 28.57 22.69
1984 5.37 1.06 5.95 09/30/97 22.11 24.80 29.45
Average 16.46% 13.34% 13.10%
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDING DECEMBER 31, 1996
10 15 20 25
3 Year 5 Year Year Year Year Year
STRATEGY** 19.58% 17.85% 15.52% 18.43% 15.37% 16.06%
DJIA 22.57% 18.20% 16.49% 18.27% 14.27% 12.76%
S&P 500 Index 19.44% 15.07% 15.20% 16.57% 14.33% 12.35%
Your actual Portfolio performance will differ from the Strategy because of
sales charges and expenses, because Portfolios are established and liquidated
at different times during the year, they normally purchase and sell stocks at
prices different from the closing prices used in determining Portfolio unit
price, Portfolios are not fully invested at all times and stocks may not be
weighted equally. Annual total returns represent price changes plus dividends
distributed (reinvested at year ends in average returns).
* Dow Jones & Company, Inc., owner of the name "Dow Jones Industrial
Average," is unaffiliated with and did not participate in the creation
of the Portfolio or the selection of its stocks, and has neither
reviewed nor approved any information in the prospectus relating to the
Portfolio. "S&P 500" is a trademark of Standard & Poor's Corporation.
** Net of Portfolio sales charges (2.75% for the first year, 1.75% for
each subsequent year) and estimated expenses (about 0.21% a year).
For more complete information about the latest Equity Investor Fund Select Ten
Portfolio, including sales charges and expenses, ask your financial
professional for a free prospectus. Read the prospectus carefully before you
invest.
15371IN-10/97
[Copyright]1997 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member
SIPC.
