Monetta Mutual Funds has launched a new fund targeted at children and teens.

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.”

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