DEFINED ASSET FUNDS
Select Ten Portfolio
1997
Series 5
A Simple
Investment
Strategy For
Total Return.
Merrill Lynch
[LOGO]
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* for about one
year (the "Strategy").
It's Simple
The Portfolio offers a simple way to seek potential values in the equity
market by investing in established 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. Each year, we intend to reapply the screening
process to select a new Portfolio. You can reinvest in the next Portfolio, if
available, at a reduced sales charge, or you can take the cash. Although each
Portfolio is a one year investment, we recommend you stay with the Strategy
for at least three to five years.
It's Convenient
You have a convenient way to invest in a fixed Portfolio of widely held stocks
with just one purchase. You'll also enjoy the advantages of:
o Low cost. The minimum investment is about $250.
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 a year, a
Portfolio of established companies with relatively high dividend yields.
*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. The
"S&P 500" is a trademark of Standard & Poor's Corporation.
Select Ten Portfolio 1997 Series 5(**)
Name of Issuer Ticker Current
Symbol Dividend Yield***
1. Philip Morris Companies, Inc. MO 3.87%
2. General Motors Corporation GM 3.09
3. J.P. Morgan & Company, Inc. JPM 3.07
4. Chevron Corporation CHV 2.78
5. AT&T Corporation T 2.75
6. Exxon Corporation XON 2.72
7. Eastman Kodak Company EK 2.68
8. Minnesota Mining & Manufacturing MMM 2.28
Company
9. Du Pont(E.I.)De Nemours & Company DD 2.17
10. International Paper Company IP 2.12
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**Initial date of deposit - November 10, 1997.
***Current Dividend Yield for each security was calculated by
annualizing the last quarterly or semi-annual ordinary dividend received on
that security and dividing the result by that security's market value as of
the close of trading on November 7, 1997. There can be no assurance that
future dividends, if any, will be maintained at the indicated rates.
PAST PERFORMANCE OF PRIOR SELECT TEN PORTFOLIOS
The chart below shows average annual total returns for the following Series,
which assumes an annual "rollover" into the next Portfolio. We've also
included returns for the most recently completed Portfolio of each Series:
Series From Inception Most Recently
Through 9/30/97 Completed Portfolio
--------------------- -------------------
Inception Return Period Return
- --------- ------ ------ ------
5/17/91 Series B 17.63% 5/20/96- Series B 27.54%
6/27/97
1/3/92 Series A 17.86% 1/18/96- Series A 31.27%
2/28/97
9/1/92 Series C 20.75% 9/12/95- Series C 30.30%
10/31/96
7/22/96 Series 3 32.60% 7/22/96- Series 3 33.68%
8/29/97
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 Series Since Inception figures reflect a reduced
sales charge for consecutive rollovers and because the performance period of
the Most Recently Completed Portfolio is different.
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. These companies are highly capitalized and
their stocks are widely held by both individual and institutional investors.
They are:
Allied Signal
Aluminum Co. of America
American Express
AT&T
Boeing
Caterpillar
Chevron SELECT TEN PORTFOLIO
Coca-Cola DJIA DJIA
Walt Disney [LOGO]
Du Pont
Eastman Kodak
Exxon
General Electric
General Motors
Goodyear
Hewlett-Packard
IBM
International Paper
Johnson & Johnson
McDonald's
Merck
3M
J.P. Morgan & Co.
Philip Morris
Proctor & Gamble
Sears Roebuck & Co.
Travelers Group
Union Carbide
United Technologies
Wal-Mart
Hypothetical Performance of the Strategy (not any Portfolio)
Growth of $10,000 invested 1/1/72 through 9/30/97
[A mountain chart, captioned "Hypothetical Performance of the Strategy (not any
Portfolio) Growth of $10,000 invested in 1/1/72 through 9/30/97," compares the
cumulative annual performance from 1972 through 9/30/97 of the Strategy (blue)
with the Dow Jones Industrial Average (DJIA) (pink) and the S&P 500 Index
(green). A blue 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 ($505,427), the ending value of the
DJIA($251,377) and the ending value of the S&P 500 Index ($237,872)].
Past performance of the Strategy is no guarantee of future results of any
Portfolio. The Strategy would have underperformed the DJIA in 11 and the S&P
500 Index in 10 of the last 25 years. There can be no assurance that any
Portfolio will outperform either index.
Annual Total Returns
Strategy returns are net of sales charges and expenses.****
Year Strategy DJIA S&P 500 Year Strategy DJIA S&P 500
Index Index
1972 20.29% 18.21% 18.98% 1985 26.66 32.78 31.43
1973 -2.99 -13.12 -14.66 1986 32.60 26.91 18.37
1974 -2.28 -23.14 -26.47 1987 5.00 6.02 5.67
1975 55.05 44.40 36.92 1988 19.53 15.95 16.58
1976 32.84 22.72 23.53 1989 25.33 31.71 31.11
1977 -2.80 -12.71 -7.19 1990 -9.91 -0.57 -3.20
1978 -1.81 2.69 6.39 1991 31.40 23.93 30.51
1979 10.38 10.52 18.02 1992 6.35 7.34 7.67
1980 24.40 21.41 31.50 1993 24.95 16.72 9.97
1981 5.50 -3.40 -4.83 1994 1.92 4.95 1.30
1982 23.49 25.79 20.26 1995 34.51 36.48 37.10
1983 36.49 25.68 22.27 1996 25.97 28.57 22.69
1984 5.37 1.06 5.95 9/30/97 22.11 24.80 29.45
Average 16.46% 13.34% 13.10%
**** Net of Portfolio sales charges (2.75% for the first year, 1.75% for each
subsequent year) and estimated expenses (about 0.21% a year).
Average Annual Total Returns
for periods ending 12/31/96
3 year 5 year 10 year 15 year 20 year 25 year
Strategy 19.58% 17.85% 15.52% 18.43% 15.37% 16.06%
DJIA 22.57% 18.20% 16.49% 18.27% 14.27% 12.76%
S&P 500 19.44% 15.07% 15.20% 16.57% 14.33% 12.35%
Index*
Returns represent price changes plus dividends reinvested at each year end and
do not reflect any deductions of commissions or taxes. Portfolio performance
will differ from the Strategy because of commissions and taxes, 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. The Strategy does not reflect
the research opinions or any buy or sell recommendations of any of the
Sponsors. For additional information on the Strategy and the Portfolio,
please speak to your financial professional.
Defining Your Risks
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 willing and able to assume the risks
generally associated with equity investments. It may not be appropriate for
investors seeking capital preservation.
o There can be no assurance that the Portfolio or the Strategy will meet their
objectives.
o The value of your investment will fluctuate with the prices of the underlying
stocks. 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%.
o These stocks may have higher yields because they or their industries are
experiencing financial difficulties or are out of favor. There can be no
assurance that the market factors which caused these relatively low prices and
high yields will change.
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.
Defining Your Cost
Low Initial Sales Charge/
Reduced Charge for Rollovers
First-time investors pay an initial sales charge of about 1% when they buy.
All investors pay a deferred sales charge of $1.75 per 1,000 units, deducted
in each of the last ten months of the Portfolio ($17.50 total).
As a % of Public Offering Amount per
Price 1,000 Units
Initial Sales Charge 1.00% $10.00
Deferred Sales Charge 1.75% $17.50
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Maximum Sales Charge 2.75% $27.50
- --------------------------------------------------------------------------
Estimated Annual 0.19% $1.91
Operating Expenses (as a
% of net assets)
If you sell your units before termination, the remaining balance of your
deferred sales charge is deducted, along with the estimated costs of selling
Portfolio securities. If you roll over to a successor Portfolio, if
available, the initial charge is waived. You only pay the $17.50 deferred
fee and operating expenses.
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 % of the
Amount Purchased Public Offering Price
Less than $50,000 2.75%
$50,000 to $99,999 2.50%
$100,000 to $249,999 2.00%
$250,000 to $999,999 1.75%
$1,000,000 or more 1.00%
Other Select Series
Hong Kong Portfolio (Hang Seng Index)
Japan Portfolio (Nikkei Index)
United Kingdom Portfolio (Financial Times Index)
Select Growth Portfolio
Select S&P Industrial Portfolio
Select S&P Intrinsic Value Portfolio
Equity Investor Funds Concept Series
Premier American Portfolio
Premier World Portfolio
Real Estate Income Fund 2
Tele-Global Trust 2
Equity Investor Funds Index Series
S&P 500 Index Trust 2
S&P MidCap Index Trust
Other Defined Asset Funds
Corporate Income Funds
Government Securities Income Funds
International Bond Funds
Municipal Investment Trusts
Don't Delay.
Call your financial professional for a free prospectus containing more complete
information, including all charges and expenses. Read the prospectus carefully
before you invest.
Additional Select Ten Portfolios containing the then-highest dividend-yielding
stocks may be offered in the future. Information contained herein is subject
to amendment. A registration statement relating to the securities of the next
Portfolio has been filed with the Securities and Exchange Commission. The
securities of that Portfolio 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.
14950BR-11/97
[Copyright] 1997 Merrill Lynch, Pierce, Fenner & Smith Incorporated, Member
SIPC.
