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

• Asset Type -- Stocks
• Rates High on the Risk Chart (PDF 20 KB)
• Fund Fact Sheet - Class A&B (PDF 57 KB) and R1,R2,R3 (PDF 52 KB)

Investor profile: You may want to invest in this Fund if you can tolerate the price fluctuations and volatility that are inherent in investing in a broad based small-capitalization or mid-capitalization stock mutual fund, want to diversify your investments, are seeking a growth investment as part of an asset allocation program, and/or are investing for retirement or other goals that are many years in the future. 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 Small/Mid Cap Equity Fund if you are investing with a shorter investment time horizon in mind, are seeking income rather than capital appreciation, or are uncomfortable with an investment whose value is likely to vary substantially.

Investment objective: Seeks long-term growth of capital.

Investment strategy: The fund invests primarily in equity securities of small and mid-capitalization U.S. companies. The small companies in which the fund typically invests are in the “value” category, which is defined as those securities priced cheaply relative to some financial measure of worth such as the ratio of price to earnings. Mid-capitalization companies in which Small/Mid Cap Equity Fund invests typically have market capitalizations of $1.4 billion to $17.2 billion at the time the fund purchases the securities. The mid-capitalization securities in which the fund invests are likely to demonstrate superior earnings growth relative to their peers and are likely to be selling at attractive relative valuations.

The Fund may invest up to 25% of its assets in equity securities and depository receipts of foreign companies.

Please read the Prospectus for more detailed information on expenses.

Risks

• Market risk
• Smaller company size risk
• Foreign investing risk
• Management risk

An investment in the Small/Mid Cap Equity 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.

Investing in foreign securities involves risks not normally associated with investing in the U.S. including higher trading and custody costs, less stringent accounting, legal and reporting practices, potential for political and economic instability, and the fluctuation and potential regulation of currency exchange and exchange rates.

The stocks of small companies are more volatile than the stocks of larger, more established companies.

It is important to note that diversification does not assure a profit or protect against loss in a declining market.

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

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AP2009/10/9807