Defined Asset Funds[SM]
Selected Ten Portfolio
1996
Series 5
A Simple Investment Strategy for Total Return
Texaco
Philip Morris
JP Morgan
Exxon
Minnesota Mining
Chevron
DuPont
International Paper
General Motors
AT&T
Merrill Lynch
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 & Co.
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
Select Ten Portfolio
DJIA
SELECTING INVESTMENTS
FOR YOUR PORTFOLIO CAN BE
COMPLICATED. SOMETIMES,
SIMPLE CAN BE BETTER
The Select Ten Strategy
The Select Ten Portfolio seeks total return by holding the ten highest
dividend-yielding stocks of the Dow Jones Industrial Average(*) (the "Strategy
Stocks") for about one year.
It's Simple
The Portfolio offers a simple way to seek potential values in the equity
market by investing in leading companies whose prices may be depressed.
The Portfolio consists of approximately equal values of the ten stocks in the
DJIA having the highest dividend yield at the time of the offering, and will
hold them for about one year. After one year, the Portfolio will liquidate.
You may choose to reinvest your proceeds into the next Portfolio of the
then-current Strategy Stocks, if available, at a reduced sales charge, or you
can take the cash.
You can get started with the Select Ten Portfolio with as little as about $250.
It's Convenient
You have a convenient way to invest in a fixed Portfolio of well known stocks
with just one purchase. You'll also enjoy the advantages of:
o Quarterly dividends. You will receive four consolidated checks per year,
not 40 for the 10 stocks.
o Reinvestment. You may choose to reinvest your dividends at a reduced
sales charge to compound your income.
o No sell decisions. You are buying and holding for about one year, a
Portfolio of established companies with relatively high dividend yields.
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%
- ------------
<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 this brochure or the prospectus relating to the
Portfolio.
</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 amount 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)
Strategy
Year Stocks DJIA S&P 500
1971 2.47% 9.79% 14.31%
1972 23.26% 18.21% 18.98%
1973 -1.02% -13.12% -14.66%
1974 -0.31% -23.14% -26.47%
1975 57.02% 44.40% 36.92%
1976 34.81% 22.72% 23.53%
1977 -0.83% -12.71% -7.19%
1978 0.16% 2.69% 6.39%
1979 12.35% 10.52% 18.02%
1980 26.37% 21.41% 31.50%
1981 7.47% -3.40% -4.83%
1982 25.46% 25.79% 20.26%
1983 38.46% 25.68% 22.27%
1984 7.34% 1.06% 5.95%
1985 28.63% 32.78% 31.43%
1986 34.57% 26.91% 18.37%
1987 6.97% 6.02% 5.67%
1988 21.50% 15.95% 16.58%
1989 27.30% 31.71% 31.11%
1990 -7.94% -0.57% -3.20%
1991 33.37% 23.93% 30.51%
1992 8.32% 7.34% 7.67%
1993 26.92% 16.72% 9.97%
1994 3.89% 4.95% 1.30%
1995 36.48% 36.48% 37.10%
1996* 16.64% 16.81% 13.37%
*as of 9/30/96
The charts above compare hypothetical performance of the Select Ten Strategy
Stocks with the actual performance of the Dow Jones Industrial Average and the
S&P 500 Composite Stock Price Index. The results shown assume that all
dividends during each year are reinvested at the end of that year, and do not
reflect sales charges, commissions, expenses or taxes. If Portfolio sales
charges and expenses were deducted, the Strategy Stocks would have
underperformed the DJIA and the S&P in 14 out of the last 25 years, and there
can be no assurance that any Portfolio will outperform the DJIA. Actual
Portfolio performance will also differ from Strategy Stocks 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. For a more complete
discussion of Strategy Stock and Portfolio performance, please speak to your
financial professional.
Select Ten Portfolio 1996 Series 5*
Current
Ticker Dividend
Name of Issuer Symbol Yield+
1. Philip Morris Companies, Inc. MO 5.18%
2. American Telephone & Telegraph Company T 3.78%
3. J.P. Morgan & Company, Inc. JPM 3.75%
4. Exxon Corporation XON 3.57%
5. Texaco, Inc. TX 3.35%
6. Chevron Corporation CHV 3.29%
7. General Motors Corporation GM 2.97%
8. Minnesota Mining & Manufacturing Company MMM 2.56%
9. Du Pont (E.I.) De Nemours & Company DD 2.46%
10. International Paper Company IP 2.34%
*Initial date of deposit -- November 1, 1996
+Current Dividend Yield for each security was calculated by annualizing the
last quarterly or semi-annual ordinary dividend distributed on that security
and dividing the result by that security's market value as of the close of
trading on October 31, 1996. There can be no assurance that future dividends,
if any, will be maintained at the indicated rates.
The Strategy may not necessarily reflect the research opinions or any buy or
sell recommendation of any of the Sponsors.
Prior Select Ten Portfolio Performance
The Chart below shows average annual total returns for each of the three
Series, which assume an annual "rollover" into the next Portfolio. We've also
included returns for the most recently completed Portfolio of each Series:
Series From Inception
through 9/30/96 Most Recent Completed Portfolio
Inception Return Period Return
A Series 1/3/92 14.30% 1/9/95-2/23/96 34.72%
B Series 5/17/91 14.48% 5/10/95-6/28/96 25.32%
C Series 9/1/92 16.90% 9/7/94-9/30/95 22.41%
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.
Defining Your Risks
At Defined Asset Funds, our goal is to give investors the information they
need to make informed decisions. The following are important facts to keep in
mind when considering this investment for your portfolio. Please read them
carefully. Your financial professional will be happy to answer any questions
you may have.
o The Portfolio is designed for investors able and willing to assume risks
generally associated with equity investments. It may not be appropriate for
investors seeking preservation of capital or high current income.
o There can be no assurance that the Portfolio or Strategy will meet its
objective.
o The value of your investment will fluctuate with the prices of the
underlying stocks. There is no guarantee that dividend rates will be
maintained or that stock prices will not decrease.
o These stocks may have higher yields because they or their industries are
experiencing financial difficulties or are out of favor. There can be
assurance the market factors that caused these relatively low prices and high
yields will change.
Defining Your Cost
Low Initial Sales Charge/Reduced Charge for Rollovers
As illustrated in the following chart, first-time investors pay a 1% maximum
sales charge when they buy. In addition, a deferred sales charge of $1.75 per
1,000 units will be deducted from the Portfolio's net asset value each month
over the last ten months of the Portfolio's life ($17.50 total). This
deferred method of payment keeps more of your money invested over a longer
period of time.
As a % of
Amount per Public Offering
Amount Purchased 1,000 Units Price
- -------------------------------------------------------------------------
Maximum Initial Sales Charge $10.00 1.00%
Deferred Sales Charge $17.50 1.75%
=========================
Your Sales Charge $27.50 2.75%
- --------------------------------------------------------------------------
Should you reinvest the proceeds of your investment into a new portfolio, if
available, you will not be subject to the 1% initial charge, just the $17.50
deferred fee. If you sell your investment before maturity, the remaining
deferred sales charge and, in the secondary market, a charge to reflect
estimated costs of liquidating securities to meet cash redemptions, will be
deducted.
Volume Purchase Discounts
For larger purchases, the overall sales charges are reduced to put more of
your investment dollars to work for you.
Total Sales Charge
as a %
Deferred Sales Charge of the Public
Amount Purchased per 1,000 units Offering Price
- -----------------------------------------------------------------------
Less than $50,000 $17.50 2.75%
$50,000 to $99,999 $17.50 2.50%
$100,000 to $249,999 $17.50 2.00%
$250,000 or more $17.50 1.75%
- -----------------------------------------------------------------------
Tax Reporting
The proceeds received when you sell this investment will reflect the deduction
of the deferred sales charge and the charge for organizational expenses. In
addition, the annual statement and the relevant tax reporting forms you
receive at year-end will reflect the actual amount paid to you (net of the
deferred sales charge and the charge for organizational expenses).
Accordingly, you should not increase your basis in your units by the deferred
sales charge and the charge for organizational expenses.
Don't Delay
Call your financial professional for a free prospectus containing more
complete information, including all charges and expenses. Read it carefully
before you invest.
Units of the next Series are not yet available. Information herein is subject
to amendment. A registration statement relating to these securities has been
filed with the Securities and Exchange Commission. These securities may not
be sold nor may offers to buy be accepted prior to the time the registration
statement becomes effective. This document shall not constitute an offer to
buy nor shall there be any sale of these securities in any state in which such
an offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such state.
Other Select Series
Hong Kong Portfolio
(Hang Seng Index)
Japan Portfolio
(Nikkei Index)
United Kingdom Portfolio
(Financial Times Index)
Select Growth Portfolio
Equity Income Funds
Concept Series
Premier American Portfolio
Health Care Trust II
Natural Gas Trust 2
Real Estate Income Fund 2
TeleoGlobal Trust 2
Equity Income Funds Utility Series
15th Utility Common Stock Series
Equity Income Funds
Index Series
S&P 500 Index Trust 2
S&P MidCap Index Trust
Other Defined Asset Funds
Bond Funds
Municipal Income Funds
Corporate Income Funds
Government Securities Income Funds
International Bond Funds
