Young Investor Fund-A College Savings Fund For Young Investors

• LOW MINIMUM, NO-LOAD FUND INVESTMENT
An account can be opened for $250 by establishing an automatic investment plan (AIP)* of $25 per month or with a $1,000 deposit. The Fund is no-load (A mutual fund that does not charge a fee for buying or selling its shares).

• ENCOURAGE FINANCIAL LITERACY
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
Annually earn 5% of the account's value in tuition rewards, requiring only enrollment in this program to automatically receive these rewards. The rewards can be used at over 200 participating colleges by anyone in the account holders family, including, nephews, nieces or grandchildren.

• SEEKS TO PROVIDE COMPETITIVE INVESTMENT PERFORMANCE**
Most investment managers are not willing to acknowledge the fact that it is difficult to consistently exceed index fund returns. According to Travis Morien, an independent financial planner, “…it is mathematically impossible for everyone to be above average. No matter what the average is, there must always be a distribution such that half of all people (or in the case of investing, the managers of half of all invested dollars) would be below average”.

Historically, index funds outperform roughly three quarters of all active investment managers, after fees. On average, over the past 15 years ending 12/31/01, a diversified portfolio of active funds underperformed the S&P 500 Index by approximately 3% per year. The major cause of underperformance relative to the index are the management fees and the cost of trading an active portfolio. Trading costs are not included in a fund's expense ratio, however,these costs can represent as much as 1.6% annually based on a fund turnover of 100%.

Themed/Specialty Funds, historically, have also struggled with long-term performance relative to the index due to the same factors that affect an active investment approach and, in addition, a portfolio that lacks overall sector diversification.

Accordingly, Monetta believes that to generate long-term returns that seek to exceed the index, a symbiotic investment approach is required that combines an active and passive investment approach.

Therefore, the Monetta Young Investor Fund invests approximately 50% of it’s portfolio in Exchange Traded Funds (ETF's)*** that track the Standard & Poor’s 500 Index and the other half in companies that kids know and recognize, to encourage involvement. This combination of this index/themed investment approach seeks to provide a competitive, long-term investment return with low portfolio turnover, a capped expense ratio, while maintaining a kids-themed investment focus.

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)

***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.

Tuition Rewards are remitted solely as a reduction from the college’s full tuition bill and are not awarded in cash. Tuition Rewards are not taxable and do not affect Federal financial aid eligibility. Tuition Rewards are administered by SAGE Scholars, a college savings plan founded by the former dean of admissions & financial aid at the Wharton Graduate School, University of Pennsylvania. Participating college's or universities may individually impose rules and regulations governing the use of these rewards. For further information about SAGE and a complete list of participating colleges, please visit www.tuitionrewards.com. By enrolling in the SAGE Scholars Program, you become a “sponsor”. A sponsor must identify designated students (“beneficiaries”) at least two years before beginning college; a sponsor can support multiple students from the same family. Children, grandchildren, stepchildren, nieces and nephews are eligible. A designated student may receive Tuition Rewards from multiple sponsors. Tuition Rewards are applied evenly over a four-year undergraduate education and accumulate semi-annually, equal to 2.5% of the sponsor’s account value on June 30 and December 31 of each year. Each student can apply “up to” a maximum of 25% per year of the participating college’s current annual tuition cost. Participating colleges reserve the right to send admissions information to designated students once they reach high school age. Colleges reserve the right to blend Tuition Rewards into a total financial aid package offered to admitted students, and participation in the Tuition Rewards Program is not a guarantee of admission.

For custodial accounts, MFSI has a "college savings program" where the Monetta Shareholders automatically receive an investment kit, a quarterly newsletter, various educational materials and in addition, if enrolled, will receive Tuition Rewards.

All cost for the College Savings Program including participation in the Tuition Rewards Program are paid by MFSI.

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		Monetta Young Investor Fund 1776-A S. Naperville Road, Suite 100 Wheaton, IL 60187 Toll Free (866)-964-4683

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