Most investment managers are not willing to acknowledge the fact that it is difficult to exceed the long-term return of an index fund. As a group, active funds find it difficult to gain a consistent advantage over index funds primarily due to trading cost and high expense ratios.

Monetta Young Investor Fund minimizes these costs by investing half of the fund in Exchange Traded Funds (ETF's) that track the S&P 500 Index, with the balance in individual companies that kids can recognize.

This innovative portfolio structure provides the long-term diversification required to stay competitive while creating a "Kids theme" fund that directly invests in companies that appeal to kids. Turnover is expected to be minimal with the total expense ratio capped at 1% through 12-31-08.

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Disclosures

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