The Young Investor Fund (YIF) employs a "core-plus" investment approach. The Fund invests approximately 50% of its assets in low cost Exchange Traded Funds ("ETF's") or other funds that seek to track the S&P 500 Index. The remaining assets of the Fund are primarily invested in large capitalization equity stocks of individual companies which the Adviser considers high quality, well known companies that produce products or provide services that are recognized by most investors, including children and teenagers. In selecting individual stock investments, emphasis is placed on those companies that the Adviser believes to have above average long-term growth potential, a history of growth, an established and experienced management team and a strong balance sheet.

Generally, in the Non-Index portion the fund follows the basic investment guidelines of the following legendary investors:

• John Bogle: “90% of fund managers underperformed the market in every 10 year period since records begin in 1960’s.”(2)
• Warren Buffet: “Best returns are achieved by companies with a stable history and can keep their competitive edge with minimal changes.”(3)
• Peter Lynch: “You should only invest in companies you understand... which generally lead to solid stocks with excellent profits.”(4)
• John Neff: “Manage your portfolio like a tennis player just trying to keep the ball in play and let the opponent make the mistakes.”(5)
• David Dreman: “Do not use market timing or technical analysis...These techniques can only cost you money.”(2)

The use of a passive investing strategy is not a bet against active management but rather a way to help to reduce overall portfolio risk that is primarily dependent on stock selection and market timing factors.

FOR YOUNG INVESTORS AND FAMILIES INVESTING FOR COLLEGE THE FUND INCORPORATES A FINANCIAL LITERACY COMPONENT AND COLLEGE TUITIION CREDIT PROGRAM AS SUMMARIZED BELOW.

• FINANCIAL LITERACY COMPONENT
Monetta believes that involvement in the investment process develops good financial habits that will last a lifetime. This process begins with an age-based financial kit, quarterly newsletter and various educational games and activities where kids can win prizes or earn awards.

• ACCUMULATE COLLEGE TUITION REWARDS
As a Monetta shareholder and/or as a custodian on a student's account, you will automatically receive one-time 500-Point Tuition Reward bonus when you enroll as a sponsor in the SAGE program. Every student whom you register in the program will also receive a one-time, non-transferable 500-point bonus. Each point is worth $1.00 in guaranteed minimum scholarships from a participating member school. Through your enrollment in Monetta Tuition Rewards, you will be able to generate discounts of up to one full year's tuition for each of your registered beneficiaries at participating colleges. There is no cost to enroll.

The 500 Tuition Rewards points can be utilized by your children, grandchildren or any other relative whom you register. Think of Tuition Rewards as similar to "frequent flyer miles", that do not affect financial aid, and are non-taxable points which are separate from your investment account.

While your Monetta account is active, each registered student will receive non-transferable points every year on his/her birthday according to the following schedule:

Ages   1 through 11            500  Tuition Reward Points
Ages 12 through 14            750  Tuition Reward Points
Ages 15 through 17*      1,000  Tuition Reward Points

Each participating student, is only allowed one set of Tuition Reward Points per birthday. Multiple sponsors will not result in additional accumulation of Tuition Reward Points.

The Last date for student rewards to be earned is the 17th birthday, or August 31st of the year the student begins 12th grade - whichever is sooner.


Disclosures

*An Automatic Investment Plan does not assure, and does not protect against, a loss in declining markets. Such a plan involves continuous investment in securities regardless of fluctuating price levels and investors should consider their financial ability to continue purchases through periods of low price levels.

Source: http://www.travismorien.com/indexactive.htm (The Common Sense Truth About Managed Funds)

¹.http://www.investmentthinktank.com/wp-content/whitepapers/Active%20Passive/PassiveandActiveManagementABalancedPerspective.pdf

(2) Source: http://www.travismorien.com/FAQ/shares/contrariantng.htm
Book Summary: Contrarian Investment Strategies Written By Travis Morien: The Next Generation
(3) Source:http://travismorien.com/invest_FAQ/index2.php?option=com_content&task=view&id=63&pop=1&page1...
Stability: Written By Travis Morien
(4) Source: http://travismorien.com/invest_FAQ/index2.php?option=com_content&task=view&id=155&pop=1&page1...
Book Summary: Beating the Street Written By Travis Morien
(5) Source:http://travismorien.com/invest_FAQ/index2.php?option=com_content&task=view&id=161&pop=1&page1...
Neff's methods: Written By Travis Morien
Morningstar Direct, SSgA Strategy & Research.

The portion of the Fund that invests in underlying ETF’s that track the Index will be subject to certain risks which are unique to tracking the Index. By investing in ETF’s, you will indirectly bear your share of any fees and expenses charged by the underlying funds, in addition to indirectly bearing the principal risks of the funds. Please refer to the prospectus for further details.

Standard and Poor’s 500 Index The S&P 500 Index is the Standard & Poor’s Index of 500 stocks, a widely recognized, unmanaged index of common stock prices. It is not available for direct investment.

While the fund is no-load, management, distribution fees and other expenses may apply.

Monetta Financial Services, Inc. (MFSI) is the investment advisor to the Monetta Funds. The advisor has contracted with SAGE Scholars, Inc. to offer Tuition Rewards (points) to all Monetta Fund Shareholders that enroll in the Tuition Rewards program through Monetta's website.