** Only available to shareholders with account registrations established prior to 5/01/06.

• Asset Type -- Stocks & Bonds
• Fund Fact Sheet - Class A&B (PDF 55 KB) and R1,R2,R3 (PDF 54 KB)

Investor profile: You may want to invest in the Equity and Bond Fund if you are seeking long-term growth potential, some current income, and/or the convenience of a balanced portfolio of stocks and bonds in a single investment. You can open an account in this fund with a minimum initial investment of $250 ($50 by automatic investment).

You may not want to invest in the Equity and Bond Fund if you have a short term investment horizon, want the greater growth potential of an investment entirely in equity securities, or are unwilling to accept share price fluctuations.

Investment objective: Seeks long-term growth of principal while providing some current income.

Investment strategy: The Equity and Bond Fund invests all of its assets in shares of the State Farm Equity Fund and the State Farm Bond Fund. Generally, the Equity and Bond Fund attempts to maintain approximately 60% of its net assets in shares of the State Farm Equity Fund and approximately 40% of its net assets in shares of the State Farm Bond Fund. The Equity and Bond Fund never invests more than 75% of its net assets in either underlying Fund. Though the Equity and Bond Fund is not an asset allocation or market timing mutual fund, it does, from time to time, adjust the amount of its assets invested in each underlying Fund as economic, market and financial conditions warrant. Please refer to the descriptions of the investments of the State Farm Equity Fund and the State Farm Bond Fund for a discussion of the portfolio securities of these Funds and the risks associated with each.

Please read the Prospectus for more detailed information on expenses.

Risks
In general, because the Equity and Bond Fund invests all of its assets in the State Farm Equity Fund and the State Farm Bond Fund, the risks of investing in the Equity and Bond Fund are the same as investing in those underlying funds.

• Market risk
• Foreign investing risk
• Interest rate risk
• Income risk
• Credit risk
• Management risk

An investment in the Equity and Bond Fund is not a deposit of any bank or other insured depository institution and is not insured or guaranteed by the FDIC or any other government agency. You can lose money by investing in the Fund.

It is important to note that there is market risk involved when investing in mutual funds, including possible loss of principal.

An automatic investment plan does not assure a profit and does not protect against loss in declining markets.  An automatic investment plan involves continuous investment in securities regardless of fluctuating prices.  You should consider your financial ability to continue purchases through periods of high or low price levels.

It is important to note all bonds are subject to interest rate risk, including those issued by the U.S. Government.  There is risk that the bonds a fund holds may decline in value due to an increase in interest rates.

State Farm VP Management Corp Risk/Important Disclosures. State Farm Mutual Funds Prospectus. The State Farm College Savings Plan Enrollment Handbook (PDF 553 KB) .

Need Assistance? 1-800-447-4930

AP2009/10/9803