MUNICIPAL INVESTMENT TRUST FD INSURED SER 405 DEF ASSET FDS
497, 1999-10-18
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                                     DEFINED ASSET FUNDSSM
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                              MUNICIPAL INVESTMENT TRUST FUND
                              INSURED SERIES 405
                              (A UNIT INVESTMENT TRUST)
                              O   PORTFOLIO OF INSURED LONG-TERM MUNICIPAL BONDS
                              O   DESIGNED TO BE FREE OF REGULAR FEDERAL INCOME
                                  TAX
                              O   INCOME DISTRIBUTIONS TWICE A YEAR



SPONSORS:                      -------------------------------------------------
Merrill Lynch,                 The Securities and Exchange Commission has not
Pierce, Fenner & Smith         approved or disapproved these Securities or
Incorporated                   passed upon the adequacy of this prospectus. Any
Salomon Smith Barney Inc.      representation to the contrary is a criminal
PaineWebber Incorporated       offense.
Dean Witter Reynolds Inc.      Prospectus dated October 15, 1999.


<PAGE>
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Defined Asset FundsSM
DEFINED ASSET FUNDSSM IS AMERICA'S OLDEST AND LARGEST FAMILY OF UNIT INVESTMENT
TRUSTS WITH OVER $160 BILLION SPONSORED IN THE LAST 28 YEARS. OUR FAMILY OF
DEFINED FUNDS HELPS INVESTORS WORK TOWARD THEIR FINANCIAL GOALS WITH A FULL
RANGE OF QUALITY INVESTMENTS, INCLUDING MUNICIPAL, CORPORATE AND GOVERNMENT BOND
PORTFOLIOS, AS WELL AS DOMESTIC AND INTERNATIONAL EQUITY PORTFOLIOS.

DEFINED ASSET FUNDS OFFER A NUMBER OF ADVANTAGES:
   O FIXED PORTFOLIO: DEFINED FUNDS FOLLOW A BUY AND HOLD INVESTMENT STRATEGY;
     FUNDS ARE NOT MANAGED AND PORTFOLIO CHANGES ARE LIMITED.
   O PRESELECTED PORTFOLIOS: WE CHOOSE THE STOCKS AND BONDS IN ADVANCE, SO YOU
     KNOW WHAT YOU'RE INVESTING IN.
   O PROFESSIONAL RESEARCH: OUR DEDICATED RESEARCH TEAM SEEKS OUT STOCKS OR
     BONDS APPROPRIATE FOR A PARTICULAR FUND'S OBJECTIVES.
   O ONGOING SUPERVISION: WE MONITOR EACH PORTFOLIO ON AN ONGOING BASIS.
NO MATTER WHAT YOUR INVESTMENT GOALS, TOLERANCE FOR RISK OR TIME HORIZON,
THERE'S PROBABLY A DEFINED ASSET FUND THAT SUITS YOUR INVESTMENT STYLE. YOUR
FINANCIAL PROFESSIONAL CAN HELP YOU SELECT A DEFINED ASSET FUND THAT WORKS BEST
FOR YOUR INVESTMENT PORTFOLIO.


CONTENTS
                                                                PAGE
                                                          -----------
RISK/RETURN SUMMARY AND PORTFOLIO.......................           3
WHAT YOU CAN EXPECT FROM YOUR INVESTMENT................           7
   INCOME TWICE A YEAR..................................           7
   RETURN FIGURES.......................................           7
   RECORDS AND REPORTS..................................           7
THE RISKS YOU FACE......................................           8
   INTEREST RATE RISK...................................           8
   CALL RISK............................................           8
   REDUCED DIVERSIFICATION RISK.........................           8
   LIQUIDITY RISK.......................................           8
   CONCENTRATION RISK...................................           8
   BOND QUALITY RISK....................................           9
   INSURANCE RELATED RISK...............................           9
   LITIGATION AND LEGISLATION RISKS.....................           9
SELLING OR EXCHANGING UNITS.............................          10
   SPONSORS' SECONDARY MARKET...........................          10
   SELLING UNITS TO THE TRUSTEE.........................          10
   EXCHANGE OPTION......................................          11
HOW THE FUND WORKS......................................          11
   PRICING..............................................          11
   EVALUATIONS..........................................          12
   INCOME...............................................          12
   EXPENSES.............................................          12
   PORTFOLIO CHANGES....................................          13
   FUND TERMINATION.....................................          13
   CERTIFICATES.........................................          13
   TRUST INDENTURE......................................          13
   LEGAL OPINION........................................          14
   AUDITORS.............................................          14
   SPONSORS.............................................          15
   TRUSTEE..............................................          15
   UNDERWRITERS' AND SPONSORS' PROFITS..................          15
   PUBLIC DISTRIBUTION..................................          15
   CODE OF ETHICS.......................................          16
   YEAR 2000 ISSUES.....................................          16
   ADVERTISING AND SALES LITERATURE.....................          16
TAXES...................................................          16
SUPPLEMENTAL INFORMATION................................          17
FINANCIAL STATEMENTS....................................          18
   REPORT OF INDEPENDENT ACCOUNTANTS....................          18
   STATEMENT OF CONDITION...............................          18


                                       2
<PAGE>
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RISK/RETURN SUMMARY


       1.  WHAT IS THE FUND'S OBJECTIVE?
           The Fund seeks interest income that is exempt from regular
           federal income taxes by investing in a fixed portfolio
           consisting primarily of insured, long-term municipal
           revenue bonds.
       2.  WHAT ARE MUNICIPAL REVENUE BONDS?
           Municipal revenue bonds are bonds issued by states,
           municipalities and public authorities to finance the cost
           of buying, building or improving various projects intended
           to generate revenue, such as airports, health care
           facilities, housing and municipal electric, water and sewer
           utilities. Generally, payments on these bonds depend solely
           on the revenues generated by the projects, excise taxes or
           state appropriations, and are not backed by the
           government's taxing power.
       3.  WHAT IS THE FUND'S INVESTMENT STRATEGY?
        o  The Fund plans to hold to maturity 10 insured, long-term
           tax-exempt municipal bonds with an aggregate face amount of
           $10,000,000, and some short-term bonds reserved to pay the
           deferred sales charge. The Fund is a unit investment trust
           which means that, unlike a mutual fund, the Fund's
           portfolio is not managed.
        o  The bonds are rated AAA or Aaa by Standard & Poor's,
           Moody's or Fitch.
        o  Most of the bonds cannot be called for several years, and
           after that they can be called at a premium declining over
           time to par value. Some bonds may be called earlier at par
           for extraordinary reasons.
        o  100% of the bonds are insured by AAA or Aaa-rated insurance
           companies that guarantee timely payments of principal and
           interest on the bonds (but not Fund units or the market
           value of the bonds before they mature).

           The Portfolio consists of municipal bonds of the following
           types:



                                                 APPROXIMATE
                                                  PORTFOLIO
                                                  PERCENTAGE



        o  Airports/Ports/Highways                   20%
        o  General Obligation                        20%
        o  Hospitals/Health Care                     30%
        o  Municipal Water/Sewer Utilities           20%
        o  Special Tax                               10%



       4.  WHAT ARE THE SIGNIFICANT RISKS?
           YOU CAN LOSE MONEY BY INVESTING IN THE FUND. THIS CAN
           HAPPEN FOR VARIOUS REASONS, INCLUDING:
        o  Rising interest rates, an issuer's worsening financial
           condition or a drop in bond ratings can reduce the price of
           your units.
        o  Because the Fund is concentrated in hospital/health care
           bonds, adverse developments in this sector may adversely
           affect the value of your units.
        o  Assuming no changes in interest rates, when you sell your
           units, they will generally be worth less than your cost
           because your cost included a sales fee.
        o  The Fund will receive early returns of principal if bonds
           are called or sold before they mature. If this happens your
           income will decline and you may not be able to reinvest the
           money you receive at as high a yield or as long a maturity.



       5.  IS THIS FUND APPROPRIATE FOR YOU?
           Yes, if you want income free of regular federal income tax.
           You will benefit from a professionally selected and
           supervised portfolio whose risk is reduced by investing in
           insured bonds of several different issuers.
           The Fund is not appropriate for you if you want a
           speculative investment that changes to take advantage of
           market movements, if you do not want a tax-advantaged
           investment or if you cannot tolerate any risk.


                                       3
<PAGE>
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                               DEFINED PORTFOLIO
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Insured Series--405

<TABLE>
<CAPTION>

                                                                                RATING
                                                                              OF ISSUES           COST
PORTFOLIO TITLE                                  COUPON      MATURITY (1)        (2)          TO FUND (3)
- -------------------------------------------------------------------------------------------------------------
AIRPORTS/PORTS/HIGHWAYS (20%):
<S> <C>                                               <C>         <C>         <C>          <C>
1. $1,000,000 City of Chicago, IL, Chicago           5.00%       01/01/2035          AAA   $       835,060.00
   Midway Arpt., Rev. Bonds, Ser. 1998 B
   (MBIA Ins.)
2. $1,000,000 Massachusetts Tpke. Auth.,             5.00        01/01/2039          AAA           834,270.00
   Metro. Hwy. Sys. Rev. Bonds, Ser. 1999 A
   (Ambac Ins.)


GENERAL OBLIGATION (20%):


3. $1,000,000 District of Columbia, G.O.             5.25        06/01/2026          AAA           893,010.00
   Rfdg. Bonds, Ser. 1998 B (FSA Ins.)
4. $1,000,000 The City of Seattle, WA, Ltd.          5.75        12/01/2028          AAA           965,690.00
   Tax G.O. Bonds, Ser. 1999 B (FSA Ins.)
5. $90,000 City of Mesquite, TX, Pub. Prop.          4.15        02/15/2002          AAA            90,000.00
   Fin. Contractual Oblig., Ser. 1998 (FSA
   Ins.) (4)


HOSPITALS/HEALTH CARE (30%):


6. $1,000,000 Indiana Hlth. Fac. Fin. Auth.,         5.00        11/01/2029       Aaa(m)           843,270.00
   Hosp. Rev. Bonds (Sisters of St. Francis
    Hlth. Svc., Inc. Proj.), Ser. 1999 A
    (MBIA Ins.)
7. $1,000,000 Illinois Hlth. Fac. Auth., Rev.        5.00        01/01/2025          AAA           853,510.00
   Bonds (Alexian Brothers Med. Ctr., Inc.
   Proj.), Ser. 1992 A (FSA Ins.)
8. $1,000,000 Travis Cnty., TX, Hlth. Fac.          5.875        11/15/2024          AAA           960,070.00
   Dev. Corp., Rev. Bonds (Ascension Hlth.
   Credit Grp.), Ser. 1999 A (Ambac Ins.)
9. $90,000 Iowa Fin. Auth., Hosp. Rev. Bonds         5.75        02/15/2001          AAA            91,788.30
   (Sisters of Mercy Hlth. Corp. Oblig.
   Grp.), Ser. 1992 N (FSA Ins.) (4)


MUNICIPAL WATER/SEWER UTILITIES (20%):


10. $1,000,000 Jefferson Cnty., AL, Swr. Rev.       5.375        02/01/2027          AAA           916,480.00
    Rfdg. Warrants, Ser. 1997 A (Financial
    Guaranty Ins.)
11. $1,000,000 The City of Seattle, WA, Wtr.         6.00        07/01/2029          AAA         1,000,000.00
    Sys. Rev. Bonds, Ser. 1999 B (Financial
    Guaranty Ins.)


SPECIAL TAX (10%):


12. $1,000,000 City of Austin, TX, Hotel             5.80        11/15/2029          AAA           972,230.00
    Occup. Tax. Sub. Lein Rfdg. Bonds, Ser.
    1999 (Ambac Ins.)
                                                                                           ------------------
                                                                                           $     9,255,378.30
                                                                                           ------------------
                                                                                           ------------------
</TABLE>


- ------------------------------------
(1)  Approximately 10% of the long-term bonds are callable in 2007, 10% are
     callable in 2008, and the remaining long-term bonds are callable in 2009.
     Some bonds could be called earlier under extraordinary circumstances.
(2)  All ratings are by Standard & Poor's Ratings Group unless followed by
     '(m)', which indicates a Moody's Investors Service rating or by '(f)',
     which indicates a Fitch IBCA rating. An AAA rating indicates highest
     quality bonds with a very strong capacity to pay interest and repay
     principal.
(3)  Approximately 1% of the bonds were deposited at a premium, 11% at par, and
     88% at a discount from par. Sponsors' profit on deposit was $67,810.00.
(4)  The interest and principal on these bonds will be used to pay the deferred
     sales charge obligations of the investors, and these amounts are not
     included in the calculation of Estimated Current and Long Term Returns.

                      ------------------------------------

                   PLEASE NOTE THAT IF THIS PROSPECTUS IS USED AS A PRELIMINARY
                   PROSPECTUS
                   FOR A FUTURE FUND IN THIS SERIES, THE PORTFOLIO WILL CONTAIN
                   DIFFERENT
                   BONDS FROM THOSE DESCRIBED ABOVE.


<PAGE>


           DEFINING YOUR INCOME AND
           ESTIMATING YOUR RETURN



           WHAT YOU MAY EXPECT (RECORD DAY: 10th day of
           each May and November)
           First payment per 1,000 units (5/25/00)           $   29.96
           Regular Semi-Annual Income per 1,000 units
           (each May and November beginning 11/25/00):       $   26.31
           Annual Income per 1,000 units:                    $   52.62
           These figures are estimates on the business day before the
           initial date of deposit; actual payments may vary.



           Estimated Current Return                                  5.62%
           Estimated Long Term Return                                5.78%
           These returns will vary (see page 7)



       6.  WHAT ARE THE FUND'S FEES AND EXPENSES?
           This table shows the costs and expenses you may pay,
           directly or indirectly, when you invest in the Fund.



           INVESTOR FEES
                                                               2.90%
           Maximum Sales Fee (Load) on new purchases
           (as a percentage of $1,000 invested)



           You will pay an up-front sales fee of 1.00%, as well as a
           total deferred sales fee of $19.00 per 1,000 units ($2.38
           per 1,000 units quarterly in the first year and $2.37 per
           1,000 units quarterly in the second year). Employees of
           some of the Sponsors and their affiliates may be charged a
           reduced sales fee of no less than $5.00 per 1,000 Units.
           The maximum sales fee is reduced if you invest at least
           $100,000, as follows:



                                                 YOUR MAXIMUM
                                                    SALES FEE
                     IF YOU INVEST:                  WILL BE:
           -----------------------------------  -----------------
           Less than $100,000                            2.90%
           $100,000 to $249,999                          2.65%
           $250,000 to $499,999                          2.40%
           $500,000 to $999,999                          2.15%
           $1,000,000 and over                           1.90%

           Maximum Exchange Fee                          1.90%


           ESTIMATED ANNUAL FUND OPERATING EXPENSES


                                           AS A % OF       AMOUNT
                                              $1,000    PER 1,000
                                            INVESTED        UNITS
                                           ----------  -----------
                                                .068%   $    0.63
           Trustee's Fee
                                                .049%   $    0.46
           Portfolio Supervision,
           Bookkeeping and
           Administrative Fees (including
           updating
           expenses)
                                                .014%   $    0.13
           Evaluator's Fee
                                                .022%   $    0.21
           Other Operating Expenses
                                           ----------  -----------
                                                .153%   $    1.43
           TOTAL



                                                          AMOUNT
                                                       PER 1,000
                                                           UNITS
                                                 ---------------------
                                                       $    2.00
           ORGANIZATION COSTS (deducted from
           Fund assets at the close of the
           initial offering period)



           The Sponsors historically paid updating expenses.
           EXAMPLE
           This example may help you compare the cost of investing in
           the Fund to the cost of investing in other funds.
           The example assumes that you invest $10,000 in the Fund for
           the periods indicated and sell all your units at the end of
           those periods. The example also assumes a 5% return on your
           investment each year and that the Fund's operating expenses
           stay the same. Although your actual costs may be higher or
           lower, based on these assumptions your costs would be:



            1 Year     3 Years    5 Years    10 Years
             $326       $359       $395        $504



           You will pay the following expenses if you do not sell
           your units:



            1 Year     3 Years    5 Years    10 Years
             $231       $359       $395        $504



       7.  HOW HAVE SIMILAR FUNDS PERFORMED IN THE PAST?
           In the following chart we show past performance of prior
           municipal Insured Series, which had the same investment
           objectives, strategies and types of bonds as this Fund.
           These prior Series differed in that they charged a higher
           sales fee. These prior Insured Series were offered between
           January 5, 1988 and October 17, 1996 and were outstanding
           on September 30, 1999. OF COURSE, PAST PERFORMANCE OF PRIOR
           SERIES IS NO GUARANTEE OF FUTURE RESULTS OF THIS FUND.



           AVERAGE ANNUAL COMPOUND TOTAL RETURNS
           FOR PRIOR SERIES
           Reflecting all expenses. For periods ended 9/30/99.



                   WITH SALES FEE                    NO SALES FEE
            1 YEAR     5 YEARS   10 YEARS    1 YEAR     5 YEARS   10 YEARS


- -------------------------------------------------------------------


High         1.40%      6.67%      6.01%      2.72%      7.86%      6.60%
Average      -2.36      5.05       5.72       -0.41      6.11       6.31
Low          -7.31      2.86       5.55       -4.69      3.63       6.14


- -------------------------------------------------------------------


Average
Sales fee    2.04%      5.22%      5.82%


- -------------------------------------------------------------------

Note: All returns represent changes in unit price with distributions reinvested
 into the Municipal Fund Investment Accumulation Program.

                                       4
<PAGE>


       8.  IS THE FUND MANAGED?
           Unlike a mutual fund, the Fund is not managed and bonds are
           not sold because of market changes. Rather, experienced
           Defined Asset Funds financial analysts regularly review the
           bonds in the Fund. The Fund may sell a bond if certain
           adverse credit or other conditions exist.
       9.  HOW DO I BUY UNITS?
           You can buy units from any of the Sponsors and other
           broker-dealers. The Sponsors are listed later in this
           prospectus. Some banks may offer units for sale through
           special arrangements with the Sponsors, although certain
           legal restrictions may apply.
           The minimum investment is $250.
           UNIT PRICE PER 1,000 UNITS              $936.70
           (as of October 14, 1999)
           Unit price is based on the net asset value of the Fund plus
           the up-front sales fee. An amount equal to any principal
           cash, as well as net accrued but undistributed interest on
           the unit, is added to the unit price. Unit price also
           includes the estimated organization costs shown on the
           previous page. An independent evaluator prices the bonds at
           3:30 p.m. Eastern time every business day. Unit price
           changes every day with changes in the prices of the bonds
           in the Fund.
           UNIT PAR VALUE                               $1.00
           Unit par value means the total amount of money you should
           generally receive on each unit by the termination of the
           Fund (other than interest and premium on the bonds). This
           total amount assumes that all bonds in the Fund are either
           paid at maturity or called by the issuer at par or are sold
           by the Fund at par. If you sell your units before the Fund
           terminates, you may receive more or less than the unit par
           value.
      10.  HOW DO I SELL UNITS?
           You may sell your units at any time to any Sponsor or the
           Trustee for the net asset value determined at the close of
           business
           on the date of sale, less any remaining
           deferred sales fee. You will not pay any other fee when you
           sell your units.
      11.  HOW ARE DISTRIBUTIONS MADE AND TAXED?
           The Fund pays income twice a year. In the opinion of bond
           counsel when each bond was issued, interest on the bonds in
           this Fund is generally 100% exempt from regular federal
           income tax. A portion of the income may also be exempt from
           state and local personal income taxes, depending on where
           you live.
           You will also receive principal payments if bonds are sold
           or called or mature, when the cash available is more than
           $10.00 per 1,000 units. You will be subject to tax on any
           gain realized by the Fund on the disposition of bonds.
      12.  WHAT OTHER SERVICES ARE AVAILABLE?
           REINVESTMENT
           You will receive your income in cash unless you choose to
           compound your income by reinvesting at no sales fee in the
           Municipal Fund Investment Accumulation Program, Inc. This
           program is an open-end mutual fund with a comparable
           investment objective except that those bonds will generally
           not be insured. Income from this program will generally be
           subject to state and local income taxes. For more complete
           information about the program, including charges and fees,
           ask the Trustee for the program's prospectus. Read it
           carefully before you invest. The Trustee must receive your
           written election to reinvest at least 10 days before the
           record day of an income payment.
           EXCHANGE PRIVILEGES
           You may exchange units of this Fund for units of certain
           other Defined Asset Funds. You may also exchange into this
           Fund from certain other funds. We charge a reduced sales
           fee on exchanges.


                                       5
<PAGE>
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    TAX-FREE VS. TAXABLE INCOME: A COMPARISON OF TAXABLE AND TAX-FREE YIELDS

<TABLE>
<CAPTION>

                                  EFFECTIVE
TAXABLE INCOME 1999*               % TAX                         TAX-FREE YIELD OF
  SINGLE RETURN    JOINT RETURN   BRACKET    3%     3.5%     4%     4.5%     5%     5.5%     6%     6.5%
                                                        IS EQUIVALENT TO A TAXABLE YIELD OF
- ----------------------------------------------------------------------------------------------------------
<S>        <C>    <C>       <C>      <C>       <C>    <C>      <C>    <C>      <C>     <C>     <C>     <C>
$      0- 25,750 $      0- 43,050   15.00     3.53   4.12     4.71   5.29     5.88    6.47    7.06    7.65
- ----------------------------------------------------------------------------------------------------------
$ 25,751- 62,450 $ 43,051-104,050   28.00     4.17   4.86     5.56   6.25     6.94    7.64    8.33    9.03
- ----------------------------------------------------------------------------------------------------------
$ 62,451-130,250 $104,051-158,550   31.00     4.35   5.07     5.80   6.52     7.25    7.97    8.70    9.42
- ----------------------------------------------------------------------------------------------------------
$130,251-283,150 $158,551-283,150   36.00     4.69   5.47     6.25   7.03     7.81    8.59    9.38   10.16
- ----------------------------------------------------------------------------------------------------------
OVER $283,151       OVER $283,151   39.60     4.97   5.79     6.62   7.45     8.28    9.11    9.93   10.76
- ----------------------------------------------------------------------------------------------------------
</TABLE>


To compare the yield of a taxable security with the yield of a federally
tax-free security, find your taxable income and read across. The table
incorporates 1999 federal income tax rates and assumes that all income would
otherwise be taxed at a U.S. investor's highest tax rate. Yield figures are for
example only.

*Based upon net amount subject to federal income tax after deductions and
exemptions. This table does not reflect the possible effect of other tax
factors, such as alternative minimum tax, personal exemptions, the phase out of
exemptions, itemized deductions, the possible partial disallowance of deductions
or state or local taxation. Consequently, you should consult your own tax
advisers in this regard.

                                       6
<PAGE>
WHAT YOU CAN EXPECT FROM YOUR INVESTMENT

INCOME TWICE A YEAR

The Fund will pay you regular income twice a year. Your income may vary because
of:
   o elimination of one or more bonds from the Fund's portfolio because of
     calls, redemptions or sales;
   o a change in the Fund's expenses; or
   o the failure by a bond's issuer to pay interest.

Changes in interest rates generally will not affect your income because the
portfolio is fixed.

Along with your income, you will receive your share of any available bond
principal.

RETURN FIGURES

We cannot predict your actual return, which will vary with unit price, how long
you hold your investment and changes in the portfolio, interest income and
expenses.

Estimated Current Return equals the estimated annual cash to be received from
the bonds in the Fund less estimated annual Fund expenses, divided by the Unit
Price (including the maximum sales fee):


 Estimated Annual                  Estimated
 Interest Income        -       Annual Expenses
- -------------------------------------------------
                   Unit Price


Estimated Long Term Return is a measure of the estimated return over the
estimated life of the Fund. Unlike Estimated Current Return, Estimated Long Term
Return reflects maturities, discounts and premiums of the bonds in the Fund. It
is an average of the yields to maturity (or in certain cases, to an earlier call
date) of the individual bonds in the portfolio, adjusted to reflect the Fund's
maximum sales fee and estimated expenses. We calculate the average yield for the
portfolio by weighting each bond's yield by its market value and the time
remaining to the call or maturity date.

Yields on individual bonds depend on many factors including general conditions
of the bond markets, the size of a particular offering and the maturity and
quality rating of the particular issues. Yields can vary among bonds with
similar maturities, coupons and ratings.

These return quotations are designed to be comparative rather than predictive.

RECORDS AND REPORTS

You will receive:
o a statement of income payments twice a year;
o a notice from the Trustee when new bonds are deposited in exchange or
  substitution for bonds originally deposited;
o an annual report on Fund activity; and
o annual tax information. This will also be sent to the IRS. You must report the
  amount of tax-exempt interest received during the year.

You may request:
o copies of bond evaluations to enable you to comply with federal and state tax
  reporting requirements; and
o audited financial statements of the Fund.

You may inspect records of Fund transactions at the Trustee's office during
regular business hours.

                                       7
<PAGE>
THE RISKS YOU FACE

INTEREST RATE RISK

Investing involves risks, including the risk that your investment will decline
in value if interest rates rise. Generally, bonds with longer maturities will
change in value more than bonds with shorter maturities. Bonds in the Fund are
more likely to be called when interest rates decline. This would result in early
returns of principal to you and may result in early termination of the Fund. Of
course, we cannot predict how interest rates may change.

CALL RISK

Many bonds can be prepaid or 'called' by the issuer before their stated
maturity.

Some bonds may be required to be called incrementally pursuant to mandatory
sinking fund provisions.

Also, an issuer might call its bonds during periods of falling interest rates,
if the issuer's bonds have a coupon higher than current market rates.

In extraordinary cases, an issuer might be able to call its bonds if, for
example:
   o it no longer needs the money for the original purpose;
   o the project is condemned or sold;
   o the project is destroyed and insurance proceeds are used to redeem the
     bonds;
   o any related credit support expires and is not replaced; or
   o interest on the bonds become taxable.

If the bonds are called, your income will decline and you may not be able to
reinvest the money you receive at as high a yield or as long a maturity. An
early call at par of a premium bond will reduce your return.

REDUCED DIVERSIFICATION RISK

If many investors sell their units, the Fund will have to sell bonds. This could
reduce the diversification of your investment and increase your share of Fund
expenses.

LIQUIDITY RISK

The bonds will generally trade in the over-the-counter market. We cannot assure
you that a liquid trading market will exist, especially since current law may
restrict the Fund from selling bonds to any Sponsor. The value of the bonds, and
of your investment, may be reduced if trading in bonds is limited or absent.

CONCENTRATION RISK

When a certain type of bond makes up 25% or more of the portfolio, the Fund is
said to be 'concentrated' in that bond type, which makes the Fund less
diversified.

Here is what you should know about the Fund's concentration in hospital and
health care bonds:
   o payment for these bonds depends on revenues from private third-party payors
      and government programs, including Medicare and Medicaid, which have
      generally undertaken cost containment measures to limit payments to health
     care providers;
   o hospitals face increasing competition resulting from hospital mergers and
      affiliations;
   o hospitals need to reduce costs as HMOs increase market penetration and
     hospital supply and drug companies raise prices; and
   o hospitals and health care providers are subject to various legal claims by
     patients

                                       8
<PAGE>
      and others and are adversely affected by increasing costs of insurance.
   o many hospitals are aggressively buying physician practices and assuming
     risk contracts to gain market share. If revenues do not increase
     accordingly, this practice could reduce profits.
   o Medicare is changing its reimbursement system for nursing homes. Many
     nursing home providers are not sure how they will be treated. In many
     cases, the providers may receive lower reimbursements and these would have
     to cut expenses to maintain profitability.
   o most retirement/nursing home providers rely on entrance fees for operating
     revenues. If people live longer than expected and turnover is lower than
     budgeted, operating revenues would be adversely affected by less than
     expected entrance fees.

Changes to the portfolio from bond redemptions, maturities and sales may affect
the Fund's concentration over time.

BOND QUALITY RISK

A reduction in a bond's rating may decrease its value and, indirectly, the value
of your investment in the Fund.

INSURANCE RELATED RISK

The bonds are backed by insurance companies (as shown under Defined Portfolio).
Insurance policies generally make payments only according to a bond's original
payment schedule and do not make early payments when a bond defaults or becomes
taxable. Although the federal government does not regulate the insurance
business, various state laws and federal initiatives and tax law changes could
significantly affect the insurance business. The claims-paying ability of the
insurance companies is generally rated AAA by Standard & Poor's or another
nationally recognized rating organization. The insurance company ratings are
subject to change at any time at the discretion of the rating agencies.

LITIGATION AND LEGISLATION RISKS

On April 20, 1999, the District of Columbia publicly announed that it was
notified by the IRS that its Multimodal Revenue Bonds, Medlantic/Helix Issue
1998, A-C had been selected for examination by the IRS with regard to their tax
exempt status. According to public disclosures, the IRS is expected to consider
whether those bonds are properly treated as 'new money' rather than refunding
bonds under the Internal Revenue Code of 1986, as amended. The Travis County
Health Facilities Development Corporation Revenue Bonds (Ascension Health Credit
Group) Series 1999 A in this Fund are in some ways similar to the District of
Columbia Bonds mentioned above, and therefore no assurance can be given that any
future legislation or any action of the IRS, including, but not limited to,
selection of the Travis County Health Facilities Development Corporation Revenue
Bonds (Ascension Health Credit Group) Series 1999 A for audit examination, or
the course or result of any examination of these Bonds, or other bonds that
present similar tax issues will not affect the tax-exempt status and the market
price for these Bonds, and in turn, the market price for the Units in this Fund.
If any of the Bonds were determined not to be tax-exempt, you could be required
to pay income tax for current and prior years, and if the Fund were to sell
these Bonds, it might have to sell them at a substantial discount.

We do not know of any pending litigation that might have a material adverse
effect upon the Fund.

Future tax legislation could affect the value of the portfolio by:

                                       9
<PAGE>
   o limiting real property taxes,
   o reducing tax rates,
   o imposing a flat or other form of tax, or
   o exempting investment income from tax.

SELLING OR EXCHANGING UNITS

You can sell your units at any time for a price based on net asset value. Your
net asset value is calculated each business day by:
   o adding the value of the bonds, net accrued interest, cash and any other
     Fund assets;
   o subtracting accrued but unpaid Fund expenses, unreimbursed Trustee
     advances, cash held to buy back units or for distribution to investors and
     any other Fund liabilities; and
   o dividing the result by the number of outstanding units.

Your net asset value when you sell may be more or less than your cost because of
sales fees, market movements and changes in the portfolio.

As of the close of the initial offering period, the price you receive will be
reduced to reflect estimated organization costs.

If you sell your units before the final deferred sales fee installment, the
amount of any remaining installments will be deducted from your proceeds.

SPONSORS' SECONDARY MARKET

While we are not obligated to do so, we will buy back units at net asset value
without any other fee or charge other than any remaining deferred sales charge.
We may resell the units to other buyers or to the Trustee. You should consult
your financial professional for current market prices to determine if other
broker-dealers or banks are offering higher prices.

We have maintained a secondary market continuously for over 28 years, but we
could discontinue it without prior notice for any business reason.

SELLING UNITS TO THE TRUSTEE

Regardless of whether we maintain a secondary market, you can sell your units to
the Trustee at any time by sending the Trustee a letter (with any outstanding
certificates if you hold Unit certificates). You must properly endorse your
certificates (or execute a written transfer instrument with signatures
guaranteed by an eligible institution). Sometimes, additional documents are
needed such as a trust document, certificate of corporate authority, certificate
of death or appointment as executor, administrator or guardian.

Within seven days after your request and the necessary documents are received,
the Trustee will mail a check to you. Contact the Trustee for additional
information.

As long as we are maintaining a secondary market, the Trustee will sell your
units to us at a price based on net asset value. If there is no secondary
market, the Trustee may sell your units in the over-the-counter market for a
higher price, but it is not obligated to do so. In that case, you will receive
the net proceeds of the sale.

If the Fund does not have cash available to pay you for units you are selling,
the agent for the Sponsors will select bonds to be sold. Bonds will be selected
based on market and credit factors. These sales could be made at times when the
bonds would not otherwise be sold and may result in your receiving less than the
unit par value and also reduce the size and diversity of the Fund.

                                       10
<PAGE>
If you acquire 25% or more of the outstanding units of the Fund and you sell
units with a value exceeding $250,000, the Trustee may choose to pay you 'in
kind' by distributing bonds and cash with a total value equal to the price of
those units. The Trustee will try to distribute bonds in the portfolio pro rata,
but it reserves the right to distribute only one or a few bonds. The Trustee
will act as your agent in an in kind distribution and will either hold the bonds
for your account or sell them as you instruct. You must pay any transaction
costs as well as transfer and ongoing custodial fees on sales of bonds
distributed in kind.

There could be a delay in paying you for your units:
   o if the New York Stock Exchange is closed (other than customary weekend and
     holiday closings);
   o if the SEC determines that trading on the New York Stock Exchange is
     restricted or that an emergency exists making sale or evaluation of the
     bonds not reasonably practicable; and
   o for any other period permitted by SEC order.

EXCHANGE OPTION

You may exchange units of certain Defined Asset Funds for units of this Fund at
a maximum exchange fee of 1.90%. You may exchange units of this Fund for units
of certain other funds at a reduced sales fee if your investment goals change.
To exchange units, you should talk to your financial professional about what
funds are exchangeable, suitable and currently available.

Normally, an exchange is taxable and you must recognize any gain or loss on the
exchange. However, the IRS may try to disallow a loss if the portfolios of the
two funds are not materially different; you should consult your own tax adviser.

We may amend or terminate this exchange option at any time without notice.

HOW THE FUND WORKS

PRICING

The price of a unit includes interest accrued on the bonds, less expenses, from
the initial date of deposit up to, but not including, the settlement date, which
is usually three business days after the purchase date of the unit.

Bonds also carry accrued but unpaid interest up to the initial date of deposit.
To avoid having you pay this additional accrued interest (which earns no return)
when you buy, the Trustee advances this amount to the Sponsors. The Trustee
recovers this advance from interest received on the bonds.

In addition, a portion of the price of a unit consists of cash to pay all or
some of the costs of organizing the Fund including:
   o cost of initial preparation of legal documents;
   o federal and state registration fees;
   o initial fees and expenses of the Trustee;
   o initial audit; and
   o legal expenses and other out-of-pocket expenses.

EVALUATIONS

An independent Evaluator values the bonds on each business day (excluding
Saturdays, Sundays and the following holidays as observed by the New York Stock
Exchange: New Year's Day, Presidents' Day, Martin Luther King, Jr. Day, Good
Friday, Memorial Day, Independence

                                       11
<PAGE>
Day, Labor Day, Thanksgiving and Christmas). Bond values are based on current
bid or offer prices for the bonds or comparable bonds. In the past, the
difference between bid and offer prices of publicly offered tax-exempt bonds has
ranged from 0.5% of face amount on actively traded issues to 3.5% on inactively
traded issues; the difference has averaged between 1 and 2%.

INCOME

Interest on any bonds purchased on a when-issued basis or for a delayed delivery
does not begin to accrue until the bonds are delivered to the Fund. The Trustee
may reduce its fee to provide you with tax-exempt income for this non-accrual
period. If a bond is not delivered on time and the Trustee's annual fee and
expenses do not cover the additional accrued interest, we will treat the
contract to buy the bond as failed.

The Trustee credits interest to an Income Account and other receipts to a
Capital Account. The Trustee may establish a Reserve Account by withdrawing from
these accounts amounts it considers appropriate to pay any material liability.
These accounts do not bear interest.

EXPENSES

The Trustee is paid monthly. It also benefits when it holds cash for the Fund in
non-interest bearing accounts. The Trustee may also receive additional amounts:
   o to reimburse the Trustee for the Fund's operating expenses;
   o for extraordinary services and costs of indemnifying the Trustee and the
     Sponsors;
   o costs of actions taken to protect the Fund and other legal fees and
     expenses;
   o expenses for keeping the Fund's registration statement current; and
   o Fund termination expenses and any governmental charges.

The Sponsors are currently reimbursed up to 55 cents per $1,000 face amount
annually for providing portfolio supervisory, bookkeeping and administrative
services and for any other expenses properly chargeable to the Fund. Legal,
typesetting, electronic filing and regulatory filing fees and expenses
associated with updating the Fund's registration statement yearly are also now
chargeable to the Fund. While this fee may exceed the amount of these costs and
expenses attributable to this Fund, the total of these fees for all Series of
Defined Asset Funds will not exceed the aggregate amount attributable to all of
these Series for any calendar year. The Fund also pays the Evaluator's fees.
Certain of these expenses were previously paid for by the Sponsors.

The Trustee's, Sponsors' and Evaluator's fees may be adjusted for inflation
without investors' approval.

Quarterly deferred sales fees you owe are paid with interest and principal from
certain bonds. If these amounts are not enough, the rest will be paid out of
distributions to you from the Fund's Capital and Income Accounts.

The Sponsors will pay advertising and selling expenses at no charge to the Fund.
If Fund expenses exceed initial estimates, the Fund will owe the excess. The
Trustee has a lien on Fund assets to secure reimbursement of Fund expenses and
may sell bonds if cash is not available.

PORTFOLIO CHANGES

The Sponsors and Trustee are not liable for any default or defect in a bond; if
a contract to buy any bond fails in the first 90 days of the Fund, we generally
will deposit a replacement tax-exempt

                                       12
<PAGE>
bond with a similar yield, maturity, rating and price.

Unlike a mutual fund, the portfolio is designed to remain intact and we may keep
bonds in the portfolio even if their credit quality declines or other adverse
financial circumstances occur. However, we may sell a bond in certain cases if
we believe that certain adverse credit conditions exist or if a bond becomes
taxable.

If we maintain a secondary market in units but are unable to sell the units that
we buy in the secondary market, we will redeem units, which will affect the size
and composition of the portfolio. Units offered in the secondary market may not
represent the same face amount of bonds that they did originally.

We decide whether or not to offer units for sale that we acquire in the
secondary market after reviewing:
   o diversity of the portfolio;
   o size of the Fund relative to its original size;
   o ratio of Fund expenses to income;
   o current and long-term returns;
   o degree to which units may be selling at a premium over par; and
   o cost of maintaining a current prospectus.

FUND TERMINATION

The Fund will terminate following the stated maturity or sale of the last bond
in the portfolio. The Fund may also terminate earlier with the consent of
investors holding 51% of the units or if total assets of the Fund have fallen
below 40% of the face amount of bonds deposited. We will decide whether to
terminate the Fund early based on the same factors used in deciding whether or
not to offer units in the secondary market.

When the Fund is about to terminate you will receive a notice, and you will be
unable to sell your units after that time. On or shortly before termination, we
will sell any remaining bonds, and you will receive your final distribution. Any
bond that cannot be sold at a reasonable price may continue to be held by the
Trustee in a liquidating trust pending its final sale.

You will pay your share of the expenses associated with termination, including
brokerage costs in selling bonds. This may reduce the amount you receive as your
final distribution.

CERTIFICATES

Certificates for units are issued on request. You may transfer certificates by
complying with the requirements for redeeming certificates, described above. You
can replace lost or mutilated certificates by delivering satisfactory indemnity
and paying the associated costs.

TRUST INDENTURE

The Fund is a 'unit investment trust' governed by a Trust Indenture, a contract
among the Sponsors, the Trustee and the Evaluator, which sets forth their duties
and obligations and your rights. A copy of the Indenture is available to you on
request to the Trustee. The following summarizes certain provisions of the
Indenture.

The Sponsors and the Trustee may amend the Indenture without your consent:
   o to cure ambiguities;
   o to correct or supplement any defective or inconsistent provision;
   o to make any amendment required by any governmental agency; or
   o to make other changes determined not to be materially adverse to your best
     interest (as determined by the Sponsors).

                                       13
<PAGE>
Investors holding 51% of the units may amend the Indenture. Every investor must
consent to any amendment that changes the 51% requirement. No amendment may
reduce your interest in the Fund without your written consent.

The Trustee may resign by notifying the Sponsors. The Sponsors may remove the
Trustee without your consent if:
   o it fails to perform its duties and the Sponsors determine that its
     replacement is in your best interest; or
   o it becomes incapable of acting or bankrupt or its affairs are taken over by
     public authorities.
Investors holding 51% of the units may remove the Trustee. The Evaluator may
resign or be removed by the Sponsors and the Trustee without the consent of
investors. The resignation or removal of either becomes effective when a
successor accepts appointment. The Sponsors will try to appoint a successor
promptly; however, if no successor has accepted within 30 days after notice of
resignation, the resigning Trustee or Evaluator may petition a court to appoint
a successor.

Any Sponsor may resign as long as one Sponsor with a net worth of $2 million
remains and agrees to the resignation. The remaining Sponsors and the Trustee
may appoint a replacement. If there is only one Sponsor and it fails to perform
its duties or becomes bankrupt the Trustee may:
   o remove it and appoint a replacement Sponsor;
   o liquidate the Fund; or
   o continue to act as Trustee without a Sponsor.

Merrill Lynch, Pierce, Fenner & Smith Incorporated acts as agent for the
Sponsors.

The Trust Indenture contains customary provisions limiting the liability of the
Trustee, the Sponsors and the Evaluator.

LEGAL OPINION

Davis Polk & Wardwell, 450 Lexington Avenue, New York, New York 10017, as
special counsel for the Sponsors, has given an opinion that the units are
validly issued.

AUDITORS

Deloitte & Touche LLP, 2 World Financial Center, New York, New York 10281,
independent accountants, audited the Statement of Condition included in this
prospectus.

                                       14
<PAGE>
SPONSORS

The Sponsors and their underwriting percentages are:

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (a wholly-owned subsidiary of
Merrill Lynch & Co., Inc.)
P.O. Box 9051,
Princeton, NJ 08543-9051                                                  65.00%
SALOMON SMITH BARNEY INC.
(an indirectly wholly-owned subsidiary of
Citigroup Inc.)
388 Greenwich Street--23rd Floor,
New York, NY 10013                                                        10.00%
DEAN WITTER REYNOLDS INC. (a principal operating subsidiary of Morgan Stanley
Dean Witter & Co.)
Two World Trade Center--59th Floor,
New York, NY 10048                                                         5.00%
PAINEWEBBER INCORPORATED (a wholly-owned subsidiary of PaineWebber Group Inc.)
1285 Avenue of the Americas,
New York, NY 10019                                                        20.00%
                                                 100.00%

Each Sponsor is a Delaware corporation and it, or its predecessor, has acted as
sponsor to many unit investment trusts. As a registered broker-dealer each
Sponsor buys and sells securities (including investment company shares) for
others (including investment companies) and participates as an underwriter in
various selling groups.

TRUSTEE

The Chase Manhattan Bank, Customer Service Retail Department, 4 New York
Plaza--6th Floor, New York, New York 10004 is the Trustee. It is supervised by
the Federal Deposit Insurance Corporation, the Board of Governors of the Federal
Reserve System and New York State banking authorities.

UNDERWRITERS' AND SPONSORS' PROFITS

Underwriters receive sales charges when they sell units. Sponsors also realize a
profit or loss on deposit of the bonds shown under Defined Portfolio. Any cash
made available by you to the Sponsors before the settlement date for those units
may be used in the Sponsors' businesses to the extent permitted by federal law
and may benefit the Sponsors.

A Sponsor or Underwriter may realize profits or sustain losses on bonds in the
Fund which were acquired from underwriting syndicates of which it was a member.
Approximately 10% of the bonds in the Fund were purchased from one or more of
the Sponsors.

During the initial offering period, the Sponsors also may realize profits or
sustain losses on units they hold due to fluctuations in the price per unit. In
maintaining a secondary market, the Sponsors will also realize profits or
sustain losses in the amount of any difference between the prices at which they
buy units and the prices at which they resell or redeem them.

PUBLIC DISTRIBUTION

During the initial offering period, units will be distributed to the public by
the Sponsors and dealers who are members of the National Association of
Securities Dealers, Inc. This period is 30 days or less if all units are sold.
The Sponsors may extend the initial period up to 120 days.

The Sponsors do not intend to qualify units for sale in any foreign countries.
This prospectus does not constitute an offer to sell units in any country where
units cannot lawfully be sold.

In the initial offering period, the concession to dealers will be $21 per 1,000
units. We may change the concession at any time. Dealers may

                                       15
<PAGE>
resell units to other dealers with a concession not in excess of the original
concession to dealers.

CODE OF ETHICS

Merrill Lynch, as agent for the Sponsors, has adopted a code of ethics requiring
preclearance and reporting of personal securities transactions by its employees
with access to information on portfolio transactions. The goal of the code is to
prevent fraud, deception or misconduct against the Fund and to provide
reasonable standards of conduct.

YEAR 2000 ISSUES

Many computer systems were designed in such a way that they may be unable to
distinguish between the year 2000 and the year 1900 (commonly known as the 'Year
2000 Problem'). We do not expect that the computer system changes necessary to
prepare for the Year 2000 will cause any major operational difficulties for the
Fund.

The Year 2000 Problem may adversely affect the issuers of the securities
contained in the Portfolio, but we cannot predict whether any impact will be
material to the Portfolio as a whole.

ADVERTISING AND SALES LITERATURE

Sales material may discuss developing a long-term financial plan, working with
your financial professional; the nature and risks of various investment
strategies and Defined Asset Funds that could help you toward your financial
goals and the importance of discipline; how securities are selected for these
funds, how the funds are created and operated, features such as convenience and
costs, and options available for certain types of funds including automatic
reinvestment, rollover, exchanges and redemption. It may also summarize some
similarities and differences with mutual funds and discuss the philosophy of
spending time in the market rather than trying to time the market, including
probabilities of negative returns over various holding periods.

TAXES

The following summary describes some of the important income tax consequences of
holding units. It assumes that you are not a dealer, financial institution,
insurance company or other investor with special circumstances or subject to
special rules. You should consult your own tax adviser about your particular
circumstances.

At the date of issue of each bond, counsel for the issuer delivered an opinion
to the effect that interest on the bond is exempt from regular federal income
tax. However, interest may be subject to state and local taxes and may be taken
into account in determining your preference items for alternative minimum tax
purposes. Neither we nor our counsel have reviewed the issuance of the bonds,
related proceedings or the basis for the opinions of counsel for the issuers. We
cannot assure you that the issuer (or other users) have complied or will comply
with any requirements necessary for a bond to be tax-exempt. If any of the bonds
were determined not to be tax-exempt, you could be required to pay income tax
for current and prior years, and if the Fund were to sell the bond, it might
have to sell it at a substantial discount.

In the opinion of our counsel, under existing law:

GENERAL TREATMENT OF THE FUND AND YOUR INVESTMENT

The Fund will not be taxed as a corporation for federal income tax purposes, and
you will be

                                       16
<PAGE>
considered to own directly your share of each bond in the Fund.

GAIN OR LOSS UPON DISPOSITION

When all or part of your share of a bond is disposed of (for example, when the
Fund sells, exchanges or redeems a bond or when you sell or exchange your
units), you will generally recognize capital gain or loss. Your gain, however,
will generally be ordinary income to the extent of any accrued 'market
discount'. Generally you will have market discount to the extent that your basis
in a bond when you purchase a unit is less than its stated redemption price at
maturity (or, if it is an original issue discount bond, the issue price
increased by original issue discount that has accrued on the bond before your
purchase). You should consult your tax adviser in this regard.

If your net long-term capital gains exceed your net short-term capital losses,
the excess may be subject to tax at a lower rate than ordinary income. Any
capital gain from the Fund will be long-term if you are considered to have held
your investment in each bond for more than one year and short-term otherwise.
Because the deductibility of capital losses is subject to limitations, you may
not be able to deduct all of your capital losses.

YOUR BASIS IN THE BONDS

Your aggregate basis in the bonds will be equal to the cost of your units,
including any sales charges and the organizational expenses you pay, adjusted to
reflect any accruals of 'original issue discount,' 'acquisition premium' and
'bond premium'. You should consult your tax adviser in this regard.

EXPENSES

If you are not a corporate investor, you will not be entitled to a deduction for
your share of fees and expenses of the Fund. Also, if you borrowed money in
order to purchase or carry your units, you will not be able to deduct the
interest on this borrowing for federal income tax purposes. The IRS may treat
your purchase of units as made with borrowed money even if the money is not
directly traceable to the purchase of units.

STATE AND LOCAL TAXES

Under the income tax laws of the State and City of New York, the Fund will not
be taxed as a corporation. If you are a New York taxpayer, your income from the
Fund will not be tax-exempt in New York except to the extent that the income is
earned on bonds that are tax-exempt for New York purposes. Depending on where
you live, your income from the Fund may be subject to state and local taxation.
You should consult your tax adviser in this regard.

SUPPLEMENTAL INFORMATION

You can receive at no cost supplemental information about the Fund by calling
the Trustee. The supplemental information includes more detailed risk disclosure
about the types of bonds that may be in the Fund's portfolio, general risk
disclosure concerning any insurance securing certain bonds, and general
information about the structure and operation of the Fund. The supplemental
information is also available from the SEC.

                                       17
<PAGE>
                       REPORT OF INDEPENDENT ACCOUNTANTS

The Sponsors, Trustee and Holders of Municipal Investment Trust Fund, Insured
Series 405, Defined Asset Funds (the 'Fund'):

We have audited the accompanying statement of condition and the related defined
portfolio included in the prospectus of the Fund as of October 15, 1999. This
financial statement is the responsibility of the Trustee. Our responsibility is
to express an opinion on this financial statement 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 statement is free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statement. Our procedures included
confirmation of cash, securities and an irrevocable letter of credit deposited
for the purchase of securities, as described in the statement of condition, with
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 statement referred to above presents fairly, in
all material respects, the financial position of the Fund as of October 15, 1999
in conformity with generally accepted accounting principles.

DELOITTE & TOUCHE LLP
NEW YORK, N.Y.
OCTOBER 15, 1999
                 STATEMENT OF CONDITION AS OF OCTOBER 15, 1999

TRUST PROPERTY


Investments--Bonds and Contracts to purchase Bonds(1)    $       9,255,378.30
Cash                                                                20,000.00
Accrued interest to Initial Date of Deposit on underlying
  Bonds                                                            109,844.71
                                                         --------------------
           Total                                         $       9,385,223.01
                                                         --------------------
                                                         --------------------
LIABILITIES AND INTEREST OF HOLDERS
Liabilities: Advance by Trustee for accrued interest (2) $         109,844.71
Reimbursement of Sponsors for organization expenses (3)             20,000.00
                                                         --------------------
Subtotal                                                           129,844.71
                                                         --------------------
Interest of Holders of 10,000,000 Units of fractional
  undivided interest outstanding:
Cost to investors (3)(4)(5)                                      9,366,978.30
Organization expenses (3) and gross underwriting
  commissions(4)                                                  (111,600.00)
                                                         --------------------
Subtotal                                                         9,255,378.30
                                                         --------------------
           Total                                         $       9,385,223.01
                                                         --------------------
                                                         --------------------


- ---------------

          (1) Aggregate cost to the Fund of the bonds listed under Defined
Portfolio is based upon the offer side evaluation determined by the Evaluator at
the evaluation time on the business day prior to the Initial Date of Deposit.
The contracts to purchase the bonds are collateralized by an irrevocable letter
of credit which has been issued by DBS Bank, New York Branch, in the amount of
$9,298,073.13 and deposited with the Trustee. The amount of the letter of credit
includes $9,187,568.30 for the purchase of $10,180,000.00 face amount of the
bonds, plus $110,504.83 for accrued interest.
          (2) Representing a special distribution to the Sponsors by the Trustee
of an amount equal to the accrued interest on the bonds.
          (3) A portion of the Unit Price consists of cash in an amount
sufficient to pay for costs incurred in establishing the Fund. These costs have
been estimated at $2.00 per 1,000 Units. A distribution will be made at the
close of the initial offering period to an account maintained by the Trustee
from which the organization expense obligation of the investors to the Sponsors
will be satisfied. If the actual organization costs exceed the estimated amount
shown above, the Sponsors will pay for this excess amount.
          (4) Assumes the maximum up-front sales fee per 1,000 units of 1.00% of
the Unit Price. A deferred sales fee of $19.00 per 1,000 Units is payable over a
two-year period ($2.38 per 1,000 Units quarterly in the first year and $2.37 per
1,000 units quarterly in the second year). Distributions will be made to an
account maintained by the Trustee from which the deferred sales fee obligation
of the investors will be satisfied. If units are redeemed prior to the final
deferred sales charge deduction, the remaining portion of the deferred sales fee
applicable to such units will be transferred to the account on the redemption
date.
          (5) Aggregate Unit Price (exclusive of interest) computed on the basis
of the offer side evaluation of the underlying bonds as of the evaluation time
on the business day prior to the Initial Date of Deposit.

                                       18
<PAGE>
                             Defined
                             Asset FundsSM


HAVE QUESTIONS ?                         MUNICIPAL INVESTMENT TRUST FUND
Request the most recent free             INSURED SERIES 405
Information Supplement                   (A Unit Investment Trust)
that gives more details about            ---------------------------------------
the Fund, by calling:                    This Prospectus does not contain
The Chase Manhattan Bank                 complete information about the
1-800-323-1508                           investment company filed with the
                                         Securities and Exchange Commission in
                                         Washington, D.C. under the:
                                         o Securities Act of 1933 (file no.
                                         333-88767) and
                                         o Investment Company Act of 1940 (file
                                         no. 811-1777).
                                         TO OBTAIN COPIES AT PRESCRIBED RATES--
                                         WRITE: Public Reference Section of the
                                         Commission
                                         450 Fifth Street, N.W., Washington,
                                         D.C. 20549-6009
                                         CALL: 1-800-SEC-0330.
                                         VISIT: http://www.sec.gov.
                                         ---------------------------------------
                                         No person is authorized to give any
                                         information or representations about
                                         this Fund not contained in this
                                         Prospectus or the Information
                                         Supplement, and you should not rely on
                                         any other information.
                                         ---------------------------------------
                                         When units of this Fund are no longer
                                         available, this Prospectus may be used
                                         as a preliminary prospectus for a
                                         future series, but some of the
                                         information in this Prospectus will be
                                         changed for that series.
                                         Units of any future series may not be
                                         sold nor may offers to buy be accepted
                                         until that series has become effective
                                         with the Securities and Exchange
                                         Commission. No units can be sold in any
                                         State where a sale would be illegal.


                                                  100444RR--10/99


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