At least half of the fund’s portfolio will be invested in companies that children and teenagers can relate to, with the balance invested in other mutual funds that track the S&P 500. Investors in the fund will also receive financial literacy information.
Investors can also arrange for 5% of their account balance to be earmarked for college tuition credits each year.
“Some theme funds may struggle with long-term performance due to a lack of fund diversification,” said Robert S. Bacarella, president of Monetta. “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.”
