Defined Asset Funds
Select Ten Performance Summary
Time In the Market
Average Annual Total Returns through 12/31/95: Strategy Stocks, DJIA and S&P
500 (dividends reinvested at year-end).
<TABLE>
<CAPTION>
3 year 5 year 10 year 15 year 20 year 25 year
<S> <C> <C> <C> <C> <C> <C>
Strategy Stocks 21.63% 21.06% 18.21% 19.08% 17.72% 17.04%
Dow Jones Industrial Average* 18.69% 17.33% 16.34% 16.04% 14.00% 12.05%
S&P 500* 15.16% 16.50% 14.79% 14.62% 14.37% 12.03%
</TABLE>
[A mountain chart, captioned "Potential Growth of $10,000 invested in 1971
through 9/30/96", compares the performances of the Strategy Stocks (blue), Dow
Jones Industrial Average (mauve), and S&P 500 (green) beginning in 1971, and
increasing in two year increments, ending in 1995. Three boxes in the upper
left quadrant indicates the components of the chart. The x axis reflects the
three specific dollar amounts that correspond to the three different
strategies; $194,095 equals the S&P 500; $200,916 equals the Dow Jones
Industrial Average; $596,047 equals the Strategy Stocks; the y axis reflects
years.]
Timing The Market
Annual Total Returns (Periods ending December 31)
<TABLE>
<CAPTION>
1971 1972 1973 1974 1975 1976 1977 1978 1979 1980
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Strategy Stocks 2.47% 23.26% -1.02% -0.31% 57.02% 34.81% -0.83% 0.16% 12.35% 26.37%
Dow Jones Industrial 9.79% 18.21% -13.12% -23.14% 44.40% 22.72% -12.71% 2.69% 10.52% 21.41%
Average*
S&P 500 14.31% 18.98% -14.66% -26.47% 36.92% 23.53% -7.19% 6.39% 18.02% 31.50%
</TABLE>
<TABLE>
<CAPTION>
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Strategy Stocks 7.47% 25.46% 38.46% 7.34% 28.63% 34.57% 6.97 21.50% 27.30% -7.94%
Dow Jones Industrial -3.40% 25.79% 25.68% 1.06% 32.78% 26.91% 6.02% 15.95% 31.71% -0.57%
Average*
S&P 500 -4.83% 20.26% 22.27% 5.95% 31.43% 18.37% 5.67% 16.58% 31.11% -3.20%
</TABLE>
<TABLE>
<CAPTION>
1991 1992 1993 1994 1995 9/30/96
<S> <C> <C> <C> <C> <C> <C>
Strategy Stocks 33.37% 8.32% 26.92% 3.89% 36.48% 16.64%
Dow Jones Industrial Average 23.93% 7.34% 16.72% 4.95% 36.48% 16.81%
S&P 500 30.51% 7.67% 9.97% 1.30% 37.10% 13.37%
<FN>
- --------------
*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.
</TABLE>
Notes:
The data above represent past performance and there is no guarantee of future
results of Strategy Stocks or any Select Ten Portfolio. The figures compare
hypothetical performance of the Select Ten Strategy Stocks (not any actual
Portfolio) with the actual performance of the Dow Jones Industrial Average and
the S&P 500 Composite Stock Price Index. The figures do not reflect sales
charges, commissions, expenses or taxes. Portfolio performance will differ
from the Strategy Stocks because the Portfolio has sales charges and pays
brokerage commissions and other expenses among other reasons. Annual total
returns represent price changes plus dividends distributed. Average annual
total returns and the chart show dividends reinvested at each year end.
If fund sales charges and expenses are deducted, the Strategy Stocks would
have outperformed the Dow Jones Industrial Average and the S&P 500 index 14
out of the last 25 years.
Select Term Portfolio
The Dow Jones Industrial Average
The Dow Jones Industrial Average (DJIA) consists of 30 common stocks chosen by
the editors of The Wall Street Journal as representative of the New York Stock
Exchange and of American industry. The companies are highly capitalized and
their stocks are widely held by individual and institutional investors.
Allied Signal
Procter & Gamble
J.P. Morgan
American Express
3M
International Paper
Du Pont
Philip Morris
Eastman Kodak
United Technologies
Goodyear
Sears Roebuck & Co.
Bethlehem Steel
Exxon
IBM
Texaco
General Electric
Coca-Cola
General Motors
Union Carbide
McDonald's
Walt Disney
Chevron
AT&T
Caterpillar
Westinghouse Electric
Boeing
Woolworth
Merck
Aluminum Co. of America
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. Many are household names. Purchasing a Portfolio of these stocks,
instead of just one or two, is a way to diversify your stock holdings.
Investing in a number of quality stocks when their prices are depressed is a
strategy designed to increase the 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 Stocks") and holds them for about a year. The Portfolio
will remain relatively fixed during this time. After one year, the Portfolio
will liquidate. You may choose to roll your proceeds into the next portfolio
of the then-current Strategy Stocks, if available, or you can take the cash.
Defining Your Risks
Select Ten Portfolios are designed for investors able and willing to assume
the risks generally associated with equity investments, and may not be
appropriate for those seeking preservation of capital or high current income.
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 the stock prices will not decrease.
Prior Select Ten Portfolio Performance
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:
<TABLE>
<CAPTION>
Series From Inception through 9/30/96 Most Recent Completed Portfolio
Inception Return Period Return
<S> <C> <C> <C> <C> <C>
A Series 1/3/92 14.30% A Series 1/9/95-2/23/96 34.72%
B Series 5/17/91 14.48% B Series 5/10/95-6/28/96 25.32%
C Series 9/1/92 16.90% C Series 9/7/94-9/29/95 22.41%
</TABLE>
Past performance is no guarantee of future results. Average annual total
return represents price changes plus dividends reinvested, divided by the
initial public offering price, and reflects maximum sales charges and expenses.
For more complete information about the latest Equity Income Fund Select Ten
Portfolio, including sales charges and expenses, ask your financial
professional for a free prospectus. Read it carefully before you invest.
