<PAGE>
DEFINED ASSET FUNDSSM
- --------------------------------------------------------------------------------
GOVERNMENT This Defined Fund was formed for the purpose of
SECURITIES obtaining safety of capital and current monthly
INCOME FUND distributions of payments of interest and
GNMA SERIES 2A principal through investment in a fixed portfolio
A UNIT INVESTMENT consisting primarily of mortgage-backed securities
TRUST of the modified pass-through type (the 'Ginnie
- ------------------------------Maes') fully guaranteed as to principal and
/ / MONTHLY INCOME interest by the Government National Mortgage
/ / MORTGAGE BACKED Association ('GNMA'). The full faith and credit of
SECURITIES the United States is pledged to the payment of the
securities in the Fund but the units of the Fund,
as such, are not backed by said full faith and
credit. (See Risk Factors--GNMA Series and Freddie
Mac Series in Part B.) The value of the units of
the Fund will fluctuate with the value of the
Portfolio of underlying securities, and the
principal amount of underlying securities
represented by each unit will be reduced as
principal is paid on the underlying mortgages. Due
to withholding requirements, the Fund may not be
suitable for foreign investors.
Minimum Purchase: $250
-------------------------------------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR
DISAPPROVED BY THE SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE SECURITIES COMMISSION NOR
HAS THE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS DOCUMENT. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
-------------------------------------------------
SPONSORS: PART A OF THIS PROSPECTUS MAY NOT BE DISTRIBUTED
Merrill Lynch, UNLESS ACCOMPANIED BY GOVERNMENT SECURITIES
Pierce, Fenner & Smith INCOME FUND PROSPECTUS PART B.
Incorporated INVESTORS SHOULD READ BOTH PARTS OF THIS
Salomon Smith Barney Inc. PROSPECTUS CAREFULLY AND RETAIN THEM FOR FUTURE
Prudential Securities REFERENCE.
Incorporated INQUIRIES SHOULD BE DIRECTED TO THE TRUSTEE AT
Dean Witter Reynolds Inc. 1-800-221-7771.
PaineWebber Incorporated PROSPECTUS PART A DATED NOVEMBER 20, 1998.
<PAGE>
- --------------------------------------------------------------------------------
Defined Asset FundsSM
Defined Asset Funds is America's oldest and largest family of unit investment
trusts, with over $115 billion sponsored over the last 25 years. Each Defined
Asset Fund is a portfolio of preselected securities. The portfolio is divided
into 'units' representing equal shares of the underlying assets. Each unit
receives an equal share of income and principal distributions.
Defined Asset Funds offer several defined 'distinctives'. You know in advance
what you are investing in and that changes in the portfolio are limited - a
defined portfolio. Most defined bond funds pay interest monthly - defined
income. The portfolio offers a convenient and simple way to invest - simplicity
defined.
Your financial professional can help you select a Defined Asset Fund to meet
your personal investment objectives. Our size and market presence enable us to
offer a wide variety of investments. The Defined Asset Funds family offers:
o Municipal portfolios
o Corporate portfolios
o Government portfolios
o Equity portfolios
o International portfolios
The terms of Defined Funds are as short as one year or as long as 30 years.
Special defined funds are available including: insured funds, double and triple
tax-free funds and funds with 'laddered maturities' to help protect against
changing interest rates. Defined Asset Funds are offered by prospectus only.
- ----------------------------------------------------------------
Defined GNMA Series
- ----------------------------------------------------------------
Our defined portfolio of mortgage-backed GNMA Securities offers you a simple and
convenient way to participate in the GNMA market and obtain monthly income while
earning an attractive return as well as the assurance of an investment in
securities that are guaranteed by GNMA, a federal agency.
INVESTMENT OBJECTIVES
To obtain safety of capital and current monthly income distributions through
investment in a portfolio of interest-bearing GNMA Securities. The full faith
and credit of the United States is pledged to the payment of the Securities but
the units of the Fund, as such, are not directly backed.
- ----------------------------------------------------------------
Defining Your Portfolio
- ----------------------------------------------------------------
PROFESSIONAL SELECTION AND SUPERVISION
The Portfolio of Securities is selected by experienced buyers. The Fund is not
actively managed; however, it is regularly reviewed and a Security can be sold
if retaining it is considered detrimental to investors' interests.
PORTFOLIO COMPOSITION
The Portfolio consists of 2 different issues of mortgage-backed Securities of
the modified pass-through type guaranteed by GNMA: 40% Ginnie Maes maturing
8/15/14 to 9/15/27, 6.00%; 60% Ginnie Maes maturing 8/15/14 to 9/15/27, 7.50%.
All of the Ginnie Maes in the Fund are backed by pools of long term mortgages on
1-to 4-family dwellings. The Ginnie Maes are fully guaranteed as to payment of
principal and interest by GNMA. The Fund was created August 29, 1997. The
information in this prospectus is as of July 31, 1998, the evaluation date.
TAX INFORMATION
Distributions of ordinary income or capital gain from the Fund will be included
in a U.S. investor's gross income, but will not be eligible for the dividends-
received deduction for corporations.
Noncorporate investors who have held their units for more than one year may be
entitled to a 20% maximum federal tax rate for capital gains derived from the
Fund. (As a result of recent changes in law, the 18 months holding period
discussed in Part B no longer applies.)
In order to meet certain tax requirements, a special distribution of income,
including capital gains, may be declared for holders of record as of a date in
December, which special distribution will generally be paid after the end of the
year.
The Fund is not likely to be suitable for foreign investors (including
nonresident alien individuals and foreign corporations) not engaged in U.S.
trade or business, because distributions to foreign investors (if not designated
as capital gain dividends) will generally be subject to 30% U.S. withholding tax
(or a lower applicable treaty rate), whereas interest income of the type
received by the Fund would generally not have been subject to withholding if it
had been received directly by foreign investors. Under certain circumstances,
withholding agents will file with the Internal Revenue Service foreign person
information returns. (See Taxes in Part B.)
- ----------------------------------------------------------------
Defining Your Investment
- ----------------------------------------------------------------
PUBLIC OFFERING PRICE PER 1,000 UNITS $948.86
The Public Offering Price as of July 31, 1998, the evaluation date, is based on
the aggregate bid side value of the underlying Securities in the Fund
($67,700,719), divided by the number of units outstanding (73,556,373) times
1,000 plus a sales charge of 3.00% of the Public Offering Price (3.093% on the
value of the underlying Securities). The Public Offering Price on any subsequent
date will vary. An amount equal to principal cash, if any, as well as net
accrued but undistributed interest on the unit is added to the Public Offering
Price. The underlying Securities are evaluated by an independent evaluator at
3:30 p.m. Eastern time on every business day.
PREMIUM AND DISCOUNT ISSUES
On the evaluation date, 60% of the Securities were valued at a premium over par
and 40% at a discount from par (see Risk Factors in Part B).
LOW MINIMUM INVESTMENT
You can get started with a minimum purchase of about 1,000 Units. There is no
minimum purchase for payroll deduction plans.
PRINCIPAL DISTRIBUTIONS
Principal from sales, redemptions and maturities of Securities in the Fund will
be distributed to investors periodically when the amount to be distributed is
more than $5.00 per 1,000 units.
A-2
<PAGE>
- --------------------------------------------------------------------------------
REINVESTMENT OPTION
You can elect to automatically reinvest your distributions into a separate
portfolio of mortgage-backed securities. Reinvesting helps to com# your
income.
TERMINATION DATE
The Fund will generally terminate no later than one year following the maturity
date of the last maturing Security listed in the Portfolio. The Fund may be
terminated earlier if the value is less than 40% of the face amount of
securities deposited. On the evaluation date the value of the fund was 115% of
the face amount of securities deposited.
- ---------------------------------------------------------------
Defining Your Risks
- ---------------------------------------------------------------
RISK FACTORS
U. S. Government securities are not affected by credit risk but are subject to
changes in market value resulting from changes in interest rates. Unit price
fluctuates and the value of units will decline if interest rates increase. The
mortgages underlying the GNMA Securities are amortized, and there is no
prepayment protection. The potential for appreciation that might otherwise
result from a decline in interest rates would be limited by any increase in
prepayments by mortgagors as interest rates decline. Investors may also receive
payments of principal sooner than anticipated, and interest payments will
decrease as principal is returned. Because regular payments of principal will be
received over the life of the Fund and because of the possible maturity, sale or
other disposition of Securities, the size, composition and return of the
Portfolio may change at any time. Because of the sales charges, returns of
principal and fluctuations in unit price, among other reasons, the sale price
will generally be less than the cost of your units. There is no guarantee that
the Fund will achieve its investment objective.
The Fund itself and the units are not backed by the full faith and credit of the
U.S. Government (see Risk Factors in Part B).
- ---------------------------------------------------------------
Defining Your Costs
- ---------------------------------------------------------------
SALES CHARGES
Although the Fund is a unit investment trust rather than a mutual fund, the
following information is presented to permit a comparison of fees and an
understanding of the direct or indirect costs and expenses that you pay.
As a %
of Secondary
Market
Public Offering
Price
---------------
Maximum Sales Charges 3.00%
The Fund (and therefore the investors) bear all or a portion of its
organizational costs--including costs of preparing registration statements, the
trust indenture and other closing documents, registering units with the SEC and
the states and the initial audit of the Portfolio--as is common for mutual
funds.
ESTIMATED ANNUAL FUND OPERATING EXPENSES
Per 1,000
Units
---------------
Trustee's Fee $ 0.76
Portfolio Supervision, Bookkeeping and
Administrative Fees $ 0.23
Evaluator's Fee $ 0.02
Organizational Expenses $ 0.20
Other Operating Expenses $ 0.08
---------------
TOTAL $ 1.29
REDEEMING OR SELLING YOUR INVESTMENT
You may redeem or sell your units at any time. Your price is based on the Fund's
then current net asset value (based on the lower, bid side evaluation of the
Securities, as determined by an independent evaluator), plus principal cash, if
any, as well as accrued interest. The bid side redemption and secondary market
repurchase price per 1,000 units as of the evaluation date was $920.39 ($28.47
less than the Public Offering Price). There is no fee for redeeming or selling
your units.
- ---------------------------------------------------------------
Defining Your Income
- ---------------------------------------------------------------
MONTHLY INTEREST INCOME
The Fund pays monthly income.
WHAT YOU MAY EXPECT
(PAYABLE ON THE 23RD DAY OF THE MONTH TO HOLDERS OF RECORD ON THE 17TH DAY OF
THE MONTH):
Regular Monthly Income per 1,000 units: $ 5.10
Annual Income per 1,000 units: $ 61.28
These figures are estimates determined as of the evaluation date and actual
payments may vary.
A-3
<PAGE>
GOVERNMENT SECURITIES INCOME FUND
GNMA SERIES - 2A,
DEFINED ASSET FUNDS
REPORT OF INDEPENDENT ACCOUNTANTS
The Sponsors, Trustee and Holders
of Government Securities Income Fund,
GNMA Series - 2A,
Defined Asset Funds:
We have audited the accompanying statement of condition of Government
Securities Income Fund, GNMA Series - 2A, Defined Asset Funds,
including the portfolio, as of July 31, 1998 and the related
statements of operations and of changes in net assets for the period
August 30, 1997 to July 31, 1998. These financial statements are the
responsibility of the Trustee. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. Securities owned at July 31, 1998, as shown in
such portfolio, were confirmed to us by The Bank of New York, the
Trustee. An audit also includes assessing the accounting principles
used and significant estimates made by the Trustee, as well as
evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of
Government Securities Income Fund, GNMA Series - 2A, Defined Asset
Funds at July 31, 1998 and the results of its operations and changes
in its net assets for the above-stated period in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
New York, N.Y.
October 26, 1998
D - 1
<PAGE>
GOVERNMENT SECURITIES INCOME FUND,
GNMA SERIES - 2A,
DEFINED ASSET FUNDS
STATEMENT OF CONDITION
AS OF JULY 31, 1998
<TABLE>
<CAPTION>
TRUST PROPERTY:
<S> <C> <C>
Investment in marketable securities - at value
(cost $67,032,710)(Note 1)..................... $67,368,520
Receivable from paydowns....................... 389,235
Accrued interest receivable...................... 383,597
Deferred organization costs (Note 5)........... 67,195
Other receivable................................ 17,729
_____________
Total trust property................. 68,226,276
LESS LIABILITIES:
Advance from Trustee............................. $ 413,894
Accrued expenses................................. 11,492
Other liabilities (Note 5)....................... 37,918 463,304
_____________ _____________
NET ASSETS, REPRESENTED BY:
73,556,373 units of fractional undivided
interest outstanding (Note 3).................. 67,350,340
Undistributed net investment income.............. 412,632
_____________
$67,762,972
=============
UNIT VALUE ($67,762,972/73,556,373 units).......... $0.92124
=============
</TABLE>
See Notes to Financial Statements.
D - 2
<PAGE>
GOVERNMENT SECURITIES INCOME FUND,
GNMA SERIES - 2A,
DEFINED ASSET FUNDS
STATEMENT OF OPERATIONS
<TABLE><CAPTION>
August 30,
1997
to
July 31,
1998
_____________
<S> <C>
INVESTMENT INCOME:
Interest income........................... $2,399,889
Trustee's fees and expenses............... (36,355)
Sponsors' fees............................ (5,322)
_____________
Net investment income..................... 2,358,212
_____________
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized loss on securities sold
or redeemed............................. (69,609)
Unrealized appreciation of investments.... 335,810
_____________
Net realized and unrealized gain on
investments............................. 266,201
_____________
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS........................... $2,624,413
=============
</TABLE>
See Notes to Financial Statements.
D - 3
<PAGE>
GOVERNMENT SECURITIES INCOME FUND,
GNMA SERIES - 2A,
DEFINED ASSET FUNDS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE><CAPTION>
August 30,
1997
to
July 31,
1998
_____________
<S> <C>
OPERATIONS:
Net investment income....................... $ 2,358,212
Realized loss on securities sold
or redeemed............................... (69,609)
Unrealized appreciation of investments...... 335,810
_____________
Net increase in net assets resulting
from operations........................... 2,624,413
_____________
DISTRIBUTIONS TO HOLDERS (Note 2):
Income...................................... (2,245,673)
Principal................................... (4,586,962)
_____________
Total distributions......................... (6,832,635)
_____________
CAPITAL SHARE TRANSACTIONS:
Issuance of 73,056,373 units................ 71,495,180
Organization costs.......................... (16,798)
_____________
Net capital share transactions.............. 71,478,382
_____________
NET INCREASE IN NET ASSETS.................... 67,270,160
NET ASSETS AT BEGINNING OF PERIOD............. 492,812
_____________
NET ASSETS AT END OF PERIOD................... $67,762,972
=============
PER UNIT:
Income distributions during period.......... $0.06051
=============
Principal distributions during period....... $0.08982
=============
Net asset value at end of period............ $0.92124
=============
TRUST UNITS OUTSTANDING AT END OF PERIOD...... 73,556,373
=============
</TABLE>
See Notes to Financial Statements.
D - 4
<PAGE>
GOVERNMENT SECURITIES INCOME FUND,
GNMA SERIES - 2A,
DEFINED ASSET FUNDS
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940 as
a Unit Investment Trust. The following is a summary of significant
accounting policies consistently followed by the Fund in the
preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
(a) Securities are stated at value as determined by the Evaluator
based on bid side evaluations for the securities (see "How to
Sell Units - Trustee's Redemption of Units" in this Prospectus,
Part B), except that value on August 30, 1997 was based upon
offer side evaluations at August 28, 1997 the day prior to the
Date of Deposit. Cost of securities at August 30, 1997 was also
based on such offer side evaluations.
(b) The Fund is not subject to income taxes. Accordingly, no
provision for such taxes is required.
(c) Interest income is recorded as earned.
2. DISTRIBUTIONS
A distribution of net investment income is made to Holders each
month. Receipts other than interest, after deductions for
redemptions and applicable expenses, are distributed as explained
in "Income, Distributions and Reinvestment - Distributions" in this
Prospectus, Part B.
3. NET CAPITAL
Cost of 73,556,373 units at Date of Deposit......... $ 74,675,134
Less sales charge................................... 2,987,235
______________
Net amount applicable to Holders.................... 71,687,899
Realized loss on securities sold or redeemed........ (69,609)
Principal distributions............................. (4,586,962)
Organization costs.................................. (16,798)
Unrealized appreciation of investments.............. 335,810
______________
Net capital applicable to Holders................... $67,350,340
==============
4. INCOME TAXES
As of July 31, 1998, unrealized appreciation of investments, based
on cost for Federal income tax purposes, aggregated $335,810, all of
which related to appreciated securities. The cost of investment
securities for Federal income tax purposes was $67,032,710 at
July 31, 1998.
D - 5
<PAGE>
GOVERNMENT SECURITIES INCOME FUND,
GNMA SERIES - 2A,
DEFINED ASSET FUNDS
NOTES TO FINANCIAL STATEMENTS
5. DEFERRED ORGANIZATION COSTS
Deferred organization costs are being amortized over five
years. Included in "Other liabilities" in the accompanying
Statement of Condition is $37,918 payable to the Trustee
for reimbursement of costs related to the organization of
the Trust.
D - 6
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND
GNMA SERIES - 2A,
PORTFOLIO
AS OF JULY 31, 1998
<TABLE><CAPTION>
Date or
Port- Range of
folio Face Interest Stated
No. Description of Securities Amount Rate Maturities Cost Value(1)
___ _________________________ ______ ______ ___________ ______ _______
<S> <C> <C> <C> <C> <C>
1 Government National Mortgage $27,818,277 6.000% 09/15/23 $26,924,578 $27,122,820
Association Modified Pass Through to
Mortgage Backed Securities 07/15/28
2 Government National Mortgage 39,120,972 7.500 11/15/03 40,108,132 40,245,700
Association Modified Pass Through to
Mortgage Backed Securities 07/15/28
______________ ______________ ______________
TOTAL $66,939,249 $67,032,710 $67,368,520
============== ============== ==============
(1) See Note 1 to Financial Statements.
(2) On the initial date of deposit, the range
of stated maturities were as follows:
6.00% GNMA - 08/15/14 to 09/15/27
7.50% GNMA - 08/15/14 to 09/15/27
</TABLE>
D - 7
<PAGE>
GOVERNMENT SECURITIES INCOME FUND
GNMA SERIES
DEFINED ASSET FUNDS
I want to learn more about automatic reinvestment in the GNMA Fund Investment
Accumulation Program, Inc. Please send me information about the Program and a
current Prospectus.
My Name (please print) Registered Holder
My Address, including
Zip Code (please print)
Registered Holder
(Two signatures required if
joint tenancy)
12345678
<PAGE>
BUSINESS REPLY MAIL NO POSTAGE
FIRST CLASS PERMIT NO. 1313 NEW YORK, NY NECESSARY
IF MAILED
POSTAGE WILL BE PAID BY ADDRESSEE IN THE
INVESTMENT ACCUMULATION PROGRAM (GNMA 2A) UNITED STATES
THE BANK OF NEW YORK
UNIT INVESTMENT TRUST DEPARTMENT
P.O. BOX 974
WALL STREET STATION
NEW YORK, NY 10268-0974
- --------------------------------------------------------------------------------
(Fold along this line.)
- --------------------------------------------------------------------------------
(Fold along this line.)
<PAGE>
<PAGE>
DEFINED
ASSET FUNDSSM
SPONSORS: GOVERNMENT SECURITIES
Merrill Lynch, INCOME FUND
Pierce, Fenner & Smith Incorporated GNMA Series 2A
Defined Asset Funds (A Unit Investment Trust)
P.O. Box 9051 PROSPECTUS PART A
Princeton, NJ 08543-9051 This Prospectus consists of a Part A and
(609) 282-8500 a Part B. This Prospectus does not
Salomon Smith Barney Inc. contain all of the information with
Unit Trust Department respect to the investment company set
388 Greenwich Street--23rd Floor forth in its registration statement and
New York, NY 10013 exhibits relating thereto which have
(212) 816-4000 been filed with the Securities and
PaineWebber Incorporated Exchange Commission, Washington, D.C.
1200 Harbor Boulevard under the Securities Act of 1933 and the
Weehawken, NJ 07087 Investment Company Act of 1940, and to
(201) 902-3000 which reference is hereby made. Copies
Prudential Securities Incorporated of filed material can be obtained from
One New York Plaza the Public Reference Section of the
New York, NY 10292 Commission, 450 Fifth Street, N.W.,
(212) 778-6164 Washington, D.C. 20549 at prescribed
Dean Witter Reynolds Inc. rates. The Commission also maintains a
Two World Trade Center--59th Floor Web site that contains information
New York, NY 10048 statements and other information
(212) 392-2222 regarding registrants such as Defined
EVALUATOR: Asset Funds that file electronically
Interactive Data Services, Inc. with the Commission at
14 Wall Street http://www.sec.gov.
New York, NY 10005 No person is authorized to give any
TRUSTEE: information or to make any
The Bank of New York representations with respect to this
Unit Investment Trust Department investment company not contained in its
P.O. Box 974 registration statement and exhibits
Wall Street Division relating thereto; and any information or
New York, NY 10268-0974 representation not contained therein
1-800-221-7771 must not be relied upon as having been
authorized. This Prospectus does not
constitute an offer to sell, or a
solicitation of an offer to buy,
securities in any state to any person to
whom it is not lawful to make such offer
in such state.
11322--10/98
