IRA Ideal!
Defined Asset Funds
Select Series 1999 C
Income & Growth Quantitative Research
Select Ten Portfolio
A Defined Strategy Seeking Total Return
[logo] Merrill Lynch
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Selecting investments for your portfolio can be complicated -- a strategy can
help.
THE STRATEGY
The Select Ten Portfolio seeks total return by holding the ten highest
dividend-yielding stocks of the Dow Jones Industrial Average(1) (DJIA) for
about one year (the "Strategy").
The Portfolio looks for potential values through a contrarian approach of
investing in companies whose stocks show the highest yields, indicating that
their prices may be depressed. Because we limit the filed of potential stocks
to those in the DJIA, the Portfolio is selected from a group of large,
well-established companies whose financial strength makes it possible for them
to recover from these low prices. This basic strength is essential to the
Strategy.
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 redeem your investment. Although each Portfolio is a
one-year investment, we recommend you stay with the Strategy for at least
three to five years for potentially more consistent results.
IT'S CONVENIENT
Invest in a fixed Portfolio of widely held stocks with just one purchase, and
enjoy the advantages of:
o Quarterly Dividends. You will receive four consolidated checks per year,
not 40 for the ten stocks.
o Reinvestment. You may choose to reinvest your distributions at a reduced
sales charge to compound your income.
o Cost. Investments start at about $250, with sales charge discounts
available for purchases of $50,000 or more.
o Buy and Hold. You are buying and holding, for about a year, a portfolio of
established companies with relatively high dividend yields.
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(1)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. "S&P 500 Index" is a trademark of The McGraw-Hill Companies, Inc.
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o Tax-Efficiency. On rollovers to future Portfolios, if available, you will
defer recognition of gains and losses on stocks that are transferred to the
new Portfolio.
SELECT TEN PORTFOLIO -- 1999 SERIES C*
Name of Issuer Ticker Symbol Current Dividend Yield**
1. Phillip Morris Companies, Inc. MO 5.65%
2. J.P. Morgan & Company, Inc. JPM 3.42
3. General Motors Corporation GM 3.21
4. Sears, Roebuck & Company S 2.80
5. Chevron Corporation CHV 2.77
6. Goodyear Tire & Rubber Company GT 2.44
7. Caterpillar, Inc. CAT 2.42
8. Minnesota Mining & Manufacturing MMM 2.37
Company
9. Eastman Kodak Company EK 2.33
10. Du Pont (E.I.) De Nemours & Company DD 2.22
The Portfolio does not reflect the research opinions or any buy or sell
recommendations of any of the Sponsors.
* Initial date of deposit -- October 4, 1999.
** Current dividend yield for each security was calculated by annualizing
the last monthly, quarterly or semi-annual ordinary dividend received
on that security and dividing the result by its market value as of the
close of trading on October 1, 1999. There can be no assurance that
future dividends, if any, will be maintained at the indicated rates.
PAST PERFORMANCE OF PRIOR SELECT TEN PORTFOLIOS
Past performance is no guarantee of future results.
Series From Inception Through Most Recently Completed Portfolio
9/30/99
(including annual rollovers)
Inception Series Return Period Series Return
5/17/91 B 14.12% 6/1/98-7/9/99 B 6.82%
1/3/92 A 14.40 1/28/98-3/5/99 A 5.33
9/1/92 C 17.42 9/22/97- C 6.79
10/23/98
7/22/96 3 15.93 8/3/98-9/10/99 3 11.05
11/1/96 5 13.00 11/10/97- 5 6.66
12/18/98
1/2/97 J 10.31 1/6/98-2/8/99 J 8.80
2/25/97 I 9.47 3/2/98-4/9/99 I 2.65
4/28/97 2 8.71 5/4/98-6/4/99 2 2.47
9/3/97 4 6.72 9/3/97-10/2/98 4 2.02
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The chart above shows average annual total returns which represent price
changes plus dividends reinvested, divided by the initial public offering
price, and reflect maximum sales charges and expenses. Returns for Series
From Inception differ from Most Recently Completed Portfolio because the
former figures reflect a reduced sales charge on annual rollovers and
different performance periods.
[DJIA logo]
THE DOW JONES INDUSTRIAL AVERAGE
The Dow Jones Industrial Average 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.
The current companies are:
Alcoa
Allied Signal
American Express
AT&T
Boeing
Caterpillar
Chevron
Citigroup
Coca-Cola
Du Pont
Eastman Kodak
Exxon
General Electric
General Motors
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Goodyear
Hewlett-Packard
IBM
International Paper
Johnson & Johnson
J.P. Morgan
McDonald's
Merck
Minnesota Mining & Manufacturing (3M)
Philip Morris
Procter & Gamble
Sears Roebuck
Union Carbide
United Technologies
Wal-Mart Stores
Walt Disney
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HYPOTHETICAL PAST PERFORMANCE OF THE STRATEGY
(NOT ANY PORTFOLIO)
Growth of $10,000 Invested Over 25 Years -- 1/1/74 Through 9/30/99
Strategy*.....$512,140 DJIA.....$329,092 S&P 500 Index**.....$325,772
Growth of $10,000 Invested Over 26 Years -- 1/173 Through 9/30/99
Strategy (net of sales charges and expenses)*
DJIA
S&P 500 Index
[A mountain chart compares the cumulative annual performance from 1973 through
1999 among the Strategy stocks (orange), the DJIA (pink), and the S&P 500
Index (purple). The initial value of each is $10,000; the ending values are
as follows: $496,345 (Strategy); $285,915 (DJIA); $278,013 (S&P).]
Since stocks in the Portfolio were chosen solely by applying the Strategy, we
analyzed the Strategy to see how it could have performed. Past performance of
the Strategy is no guarantee of future results of any Portfolio. The Strategy
(with Portfolio sales charges and expenses deducted) would have underperformed
the DJIA in 13 and the S&P 500 Index in 12 of the last 26 years. There can be
no assurance that any Portfolio will outperform either index.
Portfolio results of this equally-weighted value-oriented Strategy may differ
from the capitalization-weighted DJIA for various reasons. For example, the
DJIA performance may be driven by stocks not held in the Portfolio, such as
growth stocks.
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
1973 -4.08% -13.12% -14.66% 1987 5.06 6.02 5.67
1974 -2.40 -23.14 -26.47 1988 22.44 15.95 16.58
1975 55.65 44.40 36.92 1989 25.65 31.71 31.11
1976 33.25 22.72 23.53 1990 -10.14 -0.57 -3.20
1977 -2.90 -12.71 -7.19 1991 31.81 23.93 30.51
1978 -1.91 2.69 6.39 1992 6.44 7.34 7.67
1979 10.48 10.52 18.02 1993 25.30 16.72 9.97
1980 24.69 21.41 31.50 1994 1.95 4.95 1.30
1981 5.51 -3.40 -4.83 1995 34.97 36.48 37.10
1982 23.78 25.79 20.26 1996 26.34 28.57 22.69
1983 36.93 25.68 22.27 1997 19.29 24.78 33.10
1984 5.41 1.06 5.95 1998 8.55 18.00 28.34
1985 27.00 32.78 31.43 9/30/99 5.92 13.96 5.38
1986 32.96 26.91 18.37 Average 15.72% 13.35% 13.24%
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AVERAGE ANNUAL TOTAL RETURNS
For periods ending 12/31/98 3 year 5 year 10 year 15 year 20 year 25 year
Strategy* 17.73% 17.51% 16.12% 16.74% 17.49% 16.78%
DJIA 23.71% 22.08% 18.62% 17.71% 17.14% 14.40%
S&P 500 Index 27.97% 23.82% 19.03% 17.74% 17.50% 14.71%
Returns shown represent price changes plus dividends reinvested at year ends,
divided by the initial public offering price and do not reflect deduction of
any commissions or taxes. Portfolio performance will differ from the Strategy
because Portfolios are established and liquidated at different times during
the year, they normally purchase and sell stocks at prices different from
those used in determining Portfolio unit price, they are not fully invested at
all times, stocks may not be weighted equally and Strategy returns do not
reflect deduction of commissions.
* Net of Portfolio sales charges (2.75% for the first year, 1.75% for each
subsequent year) and estimated expenses.
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[Defined Asset Funds logo]
EQUITY INVESTOR FUNDS
OTHER SELECT SERIES
United Kingdom Portfolio
(Financial Times Index)
Institutional Holdings Portfolio
Select Growth Portfolio
Select Large-Cap Growth Portfolio
Select S&P Industrial Portfolio
Select Standard & Poor's
Industry Turnaround Portfolio
Select Standard & Poor's
Intrinsic Value Portfolio
CONCEPT SERIES
Baby Boom Economy Portfolios[SM]
Financial Services Portfolio
Health Care Trust
Internet Portfolio
Premier American Portfolio
Premier World Portfolio
Real Estate Income Fund
Tele-Global Trust
Utility Portfolio
INDEX SERIES
S&P 500 Trust
S&P MidCap Trust
FIXED-INCOME FUNDS
Corporate Funds
Government Funds
Municipal Funds
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DEFINED ASSET FUNDS -- OUR PHILOSOPHY
At Defined Asset Funds, we are ever mindful that behind every investment
dollar lies something infinitely more important -- your investment goal. This
is why we offer a full range of defined investments to meet a variety of
objectives.
We are committed to providing our investors with some of today's most
attractive equity and fixed-income investments, within the convenient "buy and
hold" structure of a unit investment trust. For income, for growth or for
total return, we believe that time in the market can be an effective strategy
for growing your portfolio.
At Defined Asset Funds, we set the foundation for all of our portfolios in
this way, because we too have an important goal in mind -- yours.
SELECT TODAY!
You can get started with the Select Ten Portfolio for about $250. Call your
financial professional for a free prospectus containing more complete
information, including sales charges, expenses and risks. Please read it
carefully before you invest or send money.
DEFINING YOUR RISKS
Please keep in mind the following factors when considering this investment.
Your financial professional will be happy to answer any questions you may have.
o The Portfolio is designed for investors who can assume the risks associated
with equity investments. It may not be appropriate for investors seeking
capital preservation or high current income.
o There can be no assurance that the Portfolio will meet its objective, that
dividend rates will be maintained, that stock or unit prices will not
decrease over the life of the Portfolio or that the Portfolio will
outperform the indices.
o The value of your investment will fluctuate with the prices of the
underlying stocks. Stock prices can be volatile.
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 contributed to these relatively low
prices and high yields will change.
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TAX REPORTING
When seeking capital appreciation, managing tax liability on capital gains can
be vital to your over-all return. by holding this Fund for more than one
year, individuals may be eligible for favorable federal tax rates on net
long-term capital gains (currently no more than 20%).
Generally, dividends and any gains will be subject to tax each year whether or
not reinvested. However, on rollovers to future Portfolios, if available,
investors will defer recognition of gains and losses on stocks that are
transferred to the new Portfolio. Please consult your tax advisor concerning
state and local taxation.
DEFINING YOUR COSTS
First-time investors pay an initial sales charge of about 1% when they buy.
In addition, all investors pay a deferred sales charge of $17.50 per 1,000
units, about 1.75%, deducted over the last ten months of the Portfolio.
As a % of Public Amount Per
Offering Price 1,000 units
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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 Expenses
(as a % of net assets) 0.145% $1.44
Estimated Organization Costs $0.54
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If you sell your units before the termination date, the remaining balance of
your deferred sales charge will be deducted, along with the estimated costs of
selling Portfolio securities, from the proceeds you receive. If you roll over
to a successor Portfolio, if available, the initial sales charge on that
Portfolio will be waived. You will only pay the deferred sales charge on that
Portfolio.
VOLUME PURCHASE DISCOUNTS
For larger purchases, the overall sales charges are reduced to put more of
your investment dollars to work for you.
Amount Total Sales Charge as a % of
Purchased Public Offering Price
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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%
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The information in this brochure is not complete and may be changed. We may
not sell securities of the next Portfolio until the registration statement
filed with the Securities and Exchange Commission is effective. This brochure
is not an offer to sell these securities and is not soliciting an offer to buy
these securities in any state where their offer or sale is not permitted.
Printed on Recycled Paper 11342BR-10/99
[Copyright] 1999 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member
SIPC.
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