[Document entitled: "Defined Asset Funds". A large yellow band outlines the
page and on it reads:"Select Ten Performance Summary"].
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(0) (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, any
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
aassurance 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.
[A chart entitled "Past Performance of Prior Select Ten Portfolios"]
The chart below shows average annual total returns for each of the three
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:
[The chart has two sides labeled "Series fom Inception through 6/30/97" and
"Most Recently Completed Portfolio", respectively].
Inception Return Period Return
A Series 1/3/92 17.08% A Series 1/18/96-2/28/97 31.27%
B Series 5/17/91 17.32% B Series 5/20/96-6/27/97 27.54%
C Series 9/1/92 20.78% C Series 9/2/95-10/31/96 30.30%
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 figures reflect a reduced sales charge for consecutive
rollovers. Also, the returns will differ because the performance periods 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
Aluminum Co. of America
American Express
AT&T
Boeing
Caterpillar
Chevron
Coca-Cola
Walt Disney
Du Pont
Eastman Kodak
Exxon
General Electric
General Motors
Goodyear
Hewlett-Packard
IBM
International Paper
Johns & Johnson
McDonald's
Merck
3M
J.P. Morgan & Co.
Philip Morris
Procter & Gamble
Sears Roebuck & Co.
Travelers Group
Union Carbide
United Technologies
Wal-Mart
[Overleaf: A mountain chart entitled "Hypothetical Performance of the
Strategy (not any Portfolio)", compares the growth of $10,000 invested in
1972 through 6/30/97 of the Strategy (net of sales charges and expenses)
[blue], the DJIA [maroon] and the S&P 500 Index [dark green]. A box in the
upper left quadrant indicates the components of the chart. Each entity is
labeled with a dollar value: $471,379 [blue], $241,749 [maroon] and
$221,444 [dark green]. The y-axis reflects the years: 1972, 1977, 1982,
1987, 1992 and 1996.]
[A note beneath the chart reads: "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. Returns assume dividends were
reinvested at each year end and do not reflect commissions or taxes. Only
strategy results reflect Portfolio sales charges (2.75% for the first year;
1.75% for each subsequent year) and estimated expenses (about 0.20% a year).]
[A chart entitled "Annual Total Returns" follows].
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1972 1973 1974 1975 1976 1977 1978 1979 1980 1981
Strategy 23.26% -1.02% -0.31% 57.02% 34.81% 0.83% 0.16% 12.35% 26.37% 33.37%
DJIA 18.21% -13.12% -23.14% 44.40% 22.72% -12.71% 2.69% 10.52% 21.41% -3.40%
S&P 500 18.98% -14.66% -26.47% 36.92% 23.53% -7.19% 6.39% 18.02% 31.50% -4.83%
Index
1982 1983 9184 1985 1986 1987 1988 1989 1990 1991
Strategy 25.46% 38.46% 7.34% 28.63% 34.57% 6.97% 21.50% 27.30% -7.94% 33.37%
DJIA 25.79% 25.68% 1.06% 32.78% 26.91% 6.02% 15.95% 31.71% -0.57% 23.93%
S&P 500 20.26% 22.27% 5.95% 31.43% 18.37% 5.67% 16.58% 31.11% -3.20% 30.51%
Index
1992 1993 1994 1995 1996 6/30/97
Strategy 8.32% 26.92% 3.89% 36.48% 27.94% 15.34%
DJIA 7.34% 16.72% 4.95% 36.48% 28.57% 20.02%
S&P 500 7.67% 9.97% 1.30% 37.10% 22.69% 20.51%
Index
</TABLE>
Notes:
The data above represent hypothetical past performance and are no guarantee of
future results. Portfolio performance will differ from the Strategy because of
Portfolio sales charges and other 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 rices 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.
If Portfolio sales charges and expenses were deducted, the Strategy would have
underperformed the Dow Jones Industrial Average in 11 and the S&P Index in 10
of the last 25 years.
[Footnote:]
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 and
information in the prospectus relating to the Portfolio. "S&P 500" is a
trademark of Standard & Poor's Corporation.
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.
