An Ideal IRA Choice!
Defined Asset Funds[SM]
Select S&P Industrial Strategy Summary
as of 9/30/97
[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*
(ochre), the Dow Jones Industrial Average (DJIA)** (pink), the S&P 500 Index**
(purple) and the S&P Industrial Index ** (green). An ochre 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 ($442,689), the ending
value of the DJIA ($251,377), the ending value of the S&P 500 Index ($237,872)
and the ending value of the S&P Industrial Index ($231,578).]
Past performance of the Strategy is no guarantee of future results of any
Portfolio. There can be no assurance that any Portfolio will outperform these
indices. The Strategy would have underperformed the DJIA in 11, the S&P
Index in 10 and the S&P Industrial Index in 9 of these years. Returns assume
dividends were reinvested at each year end and do not reflect commissions or
taxes. The DJIA, S&P 500 Index and the S&P Industrial Index do not reflect
sales charges and expenses.
Annual Total Returns
<TABLE>
<CAPTION>
S&P S&P
S&P 500 Industrial S&P 500 Industrial
Strategy* DJIA Index Index Strategy* DJIA Index Index
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1972 14.82% 18.21% 18.98% 19.83% 1985 29.66 32.78 31.43 30.08
1973 -18.64 -13.12 -14.66 -14.61 1986 28.46 26.91 18.37 18.54
1974 -5.14 -23.14 -26.47 -26.54 1987 2.55 6.02 5.67 9.13
1975 40.21 44.40 36.92 36.78 1988 41.58 15.95 16.58 15.80
1976 30.55 22.72 23.53 22.59 1989 35.01 31.71 31.11 29.30
1977 -6.32 -12.71 -7.19 -8.20 1990 1.02 -0.57 -3.20 -0.84
1978 6.06 2.69 6.39 7.50 1991 26.75 23.93 30.51 30.39
1979 26.20 10.52 18.02 18.40 1992 11.38 7.34 7.67 5.63
1980 18.06 21.41 31.50 32.98 1993 2.31 16.72 9.97 8.90
1981 7.66 -3.40 -4.83 6.69 1994 11.30 4.95 1.30 3.75
1982 25.61 25.79 20.26 20.14 1995 36.27 36.48 37.10 34.26
1983 24.47 25.68 22.27 22.79 1996 12.12 28.57 22.69 22.70
1984 12.24 1.06 5.95 4.09 09/30/97 20.46 24.80 29.45 28.86
Average 15.86% 13.34% 13.10% 12.98%
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDING DECEMBER 31, 1996
<TABLE>
<CAPTION>
3 Year 5 Year 10 Year 15 Year 20 Year 25 Year
<S> <C> <C> <C> <C> <C> <C>
STRATEGY 19.00% 13.94% 17.02% 19.29% 16.82% 15.51%
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%
S&P Industrial Index 19.56% 14.48% 15.30% 16.46% 14.21% 12.25%
</TABLE>
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 each year end in average returns).
** "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.
* Net of Portfolio sales charges (2.75% for the first year, 1.75% for each
subsequent year) and estimated expenses (about 0.22% a year).
[LOGO] Merrill Lynch
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 Index, 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 a 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.
o Low minimum investment. You can get started with the Select S&P Industrial
Portfolio with as little as $250.
o No sell decisions. You are buying and holding for about a year, a Portfolio
of established companies with relatively high dividend yields.
o 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.
o Reinvestment. You may choose to reinvest your dividends, subject only to
the deferred sales charge, to compound your income.
o 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. 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 rate of 28%.
About Standard & Poor's
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 Investor Fund Select S&P
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 - 10/97
