Some theme funds may struggle with long-term performance due to a lack of fund diversification
Wheaton, IL (PRWEB) December 14, 2006
Monetta Financial Services, Inc. launches a mutual fund for kids, its Young Investor Fund, that combines company specific and index investing. The Fund intends to invest at least 50% of its net assets in funds seeking to track the S&P 500* stock index with the balance in individual companies that are recognized by children and teenagers.
"Some theme funds may struggle with long-term performance due to a lack of fund diversification," states Robert S. Bacarella, Monetta's president. "We believe that a combination index/themed investment approach can generate above average, long-term performance due to the retail emphasis of the kid-themed investments and the diversification provided by the index."
Monetta's Young Investor Fund focuses on investing in individual companies that children and teenagers can recognize while providing fund diversification through index investing. In addition, shareholders can automatically receive annually 5% of their account balance in college tuition credits which can be used at nearly 200 private colleges and universities nationwide. The fund also includes a financial literacy component which provides an opportunity to teach basic financial life-skills.
Account options include a tax-advantaged Coverdell Education Savings Account or a Custodial Account. An account can be started with a $250 minimum investment with the establishment of an automatic investment plan (AIP)** or a $1,000 deposit.
For a free investment kit call 1-866-YNG-INVEST (964-4683) or visit http://www.younginvestorfund.com.
*Reflects no deduction for fees, expenses or taxes. The S&P 500 Index is the Standard & Poor's Index of 500 stocks, a widely recognized, unmanaged index of common stock prices. The S&P 500 Index is not available for direct investment.
** 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.
The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it maybe obtained by calling 1-800-Monetta, or visiting http://www.monetta.com. Read it carefully before investing.
All investments, including those in mutual funds, have risks and principal loss is possible. Limiting the purchase of individual stocks to companies that produce products or provide services that are recognized by children or teenagers may be a risk if this sector underperforms, which can be significantly affected by the performance of the overall economy, interest rates, competition, consumer confidence and spending, and changes in demographics and consumer tastes.
The portion of the Fund that invests in underlying funds that track the Index will be subject to certain risks which are unique to tracking the Index. By investing in the Funds, 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.
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™ (credits) to all Monetta Fund Shareholders that enroll in the Tuition Rewards™ program through Monetta's website. Tuition Rewards™ are remitted solely as a reduction from the college's full tuition bill, and are not awarded in cash. Tuition Rewards™ accumulate annually, equal to 2.5% of the Monetta account value on June 30 and December 31 of each year and do not expire.
The credit amount that an enrollee can earn is unlimited. However, the maximum credit amount that any one student can use for a four-year undergraduate education is $24,700 or $6,175 per year. When you enroll to receive Tuition Rewards™ you become a sponsor. A sponsor must identify an eligible student at least two years before beginning college and can sponsor multiple students from the same family, including relatives. College's may blend Tuition Rewards™ into the total financial reward package they offer to students.
For custodial accounts, MFSI has a "college savings program" where these Monetta Shareholders automatically receive an investment kit, a quarterly newsletter, various educational materials and in addition, if enrolled, will receive Tuition Rewards™ credits.
All cost for the College Savings Program including participation in the Tuition Rewards™ program are paid by MFSI.
Tuition Rewards™ is a registered trademark of SAGE Scholars. This trademark has been licensed for use by the licensee. For further information about SAGE and a complete list of participating colleges, please visit http://www.Sagescholars.com.
Quasar Distributors, LLC, distributor.
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