Select S&P Industrial Strategy Summary
DEFINED ASSET FUNDS[SM]
Time In The Market
Average Annual Total Returns For Periods Ending December 31, 1996
Strategy S&P
Stocks DJIA* S&P 500* Industrial*
3 Year 21.35% 22.57% 19.44% 19.56%
5 Year 16.13% 18.20% 15.07% 14.48%
10 Year 19.13% 16.49% 15.20% 15.30%
15 Year 21.35% 18.27% 16.57% 16.46%
20 Year 18.88% 14.27% 14.33% 14.21%
25 Year 17.55% 12.76% 12.35% 12.25%
[A mountain chart, captioned "Hypothetical Growth of $10,000 invested in 1972
through 3/31/97", compares the cumulative annual performance from 1972 through
1996 between the Strategy Stocks (yellow), the Dow Jones Industrial Average
(pink), the S&P 500 (purple), and the S&P Industrial (green). A box in the
lower left quadrant indicates the components of the chart. The y axis
reflects years in 1 year increments. The initial value of each is $10,000;
the ending values are as follows: $585,489 (Strategy Stocks); $206,721
(DJIA); $188,717 (S&P 500); $184,512 (S&P Industrial).]
<TABLE>
<CAPTION>
Annual Total Returns
Periods Ending December 31
1972 1973 1974 1975 1976 1977 1978 1979 1980 1981
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Strategy Stocks 17.80% -16.66% -3.16% 42.19% 32.53% -4.34% 8.04% 28.18% 20.04% 9.64%
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%
S&P Industrial 19.83% -14.61% -26.54% 36.78% 22.59% -8.20% 7.50% 18.40% 32.98% -6.69%
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991
Strategy Stocks 27.59% 26.45% 14.22% 31.64% 30.44% 4.53% 43.56% 36.99% 3.00% 28.73%
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%
S&P Industrial 20.14% 22.79% 4.09% 30.08% 18.54% 9.13% 15.80% 29.30% -0.84% 30.39%
1992 1993 1994 1995 1996 3/31/97
Strategy Stocks 13.36% 4.29% 13.28% 38.25% 14.10% 2.87%
DJIA 7.34% 16.72% 4.95% 36.48% 28.57% 2.63%
S&P 500 7.67% 9.97% 1.30% 37.10% 22.69% 2.70%
S&P Industrial 5.63% 8.90% 3.75% 34.26% 22.70% 2.67%
</TABLE>
The data above represent past performance and are no guarantee of future
results. The figures compare hypothetical performance of the S&P Industrial
Strategy Stocks (not any actual Portfolio) with the actual performance of the
DJIA, S&P 500 Composite Stock Price Index and the S&P Industrial Index. There
can be no assurance that any Portfolio will outperform these indices. Annual
total returns represent price changes plus dividends distributed. Average
annual returns and the chart show dividends reinvested at each year end. The
results shown do not reflect sales charges, commissions, expenses or taxes.
If Portfolio sales charges and expenses were deducted from the Strategy Stocks
only, the Strategy Stocks would have underperformed the DJIA in 11, the S&P
500 in 10, and the S&P Industrial Index in 9, of the last 25 years. Portfolio
performance will also differ from Strategy Stock 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.
*"Standard & Poor's," "S&P" and "S&P 500" are trademarks of The McGraw-Hill
Companies, Inc. and have been licensed for use by Defined Asset Funds. The
Portfolio is not sponsored, managed, sold or promoted by Standard & Poor's.
The name "Dow Jones Industrial Average" is the property of Dow Jones &
Company, Incorporated.
The Portfolio
The Defined Asset Funds[SM] Select S&P Industrial Portfolio uses a proprietary
four-part screening process, to select 15 high dividend-yielding stocks from
the overall Index. The result is a Portfolio that seeks to provide a
combination of value, capital appreciation and current dividend income.
The Selection Process
The Select S&P Industrial Portfolio looks for potential values in the equity
market by investing in quality companies in the S&P Industrial Index, a subset
of the S&P 500, that may be out of favor. We do this by employing a
disciplined four-part screening process:
1. Defining the Universe. We begin with the S&P Industrial Index, and
remove any stocks that are in the Dow Jones Industrial Average (DJIA).
2. Quality Screen. Only stocks that are ranked A+ or A by Standard &
Poor's are included.
3. Market Capitalization. The stocks are then ranked by their market
capitalization from highest to lowest, and the lowest 25% are
eliminated.
4. Highest Dividend Yield. The remaining stocks are ranked according to
dividend yield. The 15 highest-yielding stocks are selected for the
Portfolio.
The Defined Asset Funds Select Strategy
Like each Portfolio in the Defined Asset Funds Select Series, the Select S&P
Industrial Portfolio employs a "buy and hold" style of investing for
approximately one year following a disciplined investment strategy. At the
end of one year, the screening process is reapplied and a new Portfolio is
selected. You can reinvest your earnings into the new Portfolio, if
available, or you can redeem your investment.
Although the Select Portfolios are one year investments, we recommend staying
with the Strategy for at least three to five years.
Defined Advantages
With the Select S&P Industrial Portfolio, you have a convenient way to invest
in a Portfolio that provides a variety of advantages.
bullet Low minimum investment. You can get started with the Select S&P
Industrial Portfolio with as little as $250.
bullet No sell decisions. You are buying and holding for about a year, a
Portfolio of established companies with relatively high dividend
yields.
bullet A deferred sales charge. You pay only part of your total sales charge
when you buy, since most will be collected on a deferred basis. This
way, more of your money is put to work immediately.
bullet Reinvestment. You may choose to reinvest your dividends, subject only
to the deferred sales charge, to compound your income.
bullet Year-end rollover. Each Portfolio liquidates in about one year, at
which time you'll have the opportunity to reinvest your proceeds into
the next Portfolio, if available.
Defining Your Risks
The Select S&P Industrial Portfolio is 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 this investment will fluctuate with the value of the
underlying stocks and the sales price may be more or less than the original
cost. There can be no assurance that dividend rates will be maintained or
that stock prices will not decrease.
About Standard & Poor's
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STANDARD & POOR'S is a leading financial information and investment research
company. Since 1860, they have provided investors with financial research,
benchmarks and market data. Its most notable benchmark, the S&P 500 Composite
Stock Price Index, features utility, financial, transportation and industrial
stocks. The S&P Industrial Index, a sub-set of the S&P 500, includes only
highly capitalized industrial stocks.
For more complete information about the latest Equity Income Fund Select
Industrial Portfolio, including sales charges and expenses, ask your financial
professional for a free prospectus. Read the prospectus carefully before you
invest.
Units of the next Series are not yet available. Information contained herein
is subject to amendment. A registration statement relating to the securities
of the next series 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
brochure shall not constitute an offer to sell or the solicitation of 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.
[Copyright] 1997 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member
SIPC. 11585IN-4/97