Which funds seek long-term appreciation?

If your goal is long-term appreciation of your investment, there are six funds in the State Farm Mutual Fund Trust that could fit within your plans. Capital appreciation is the objective of the three equity funds (State Farm Equity Fund, State Farm Small/Mid Cap Equity Fund, and State Farm International Equity Fund) and the three index funds (State Farm S&P 500 Index Fund, State Farm Small Cap Index Fund and State Farm International Index Fund). Each of these funds invests in stocks that the portfolio managers believe have the potential to increase in value over time.

The equity funds are actively managed in an attempt to meet the investment objective of each fund. Managers will purchase the stocks of companies that fit within the stated objective, hoping they will increase in value. Although each of the equity funds seeks to achieve 'long-term growth of capital', each fund will attempt to achieve this by investing in different types of companies.

Index funds seek to mirror the returns, before fees and expenses, of a particular stock index as stated in the investment objective of the fund. The manager attempts to reach the objective by purchasing stocks of companies found in the benchmark index. The stocks are purchased in amounts that reflect the weighting of the index.

There are risks involved in investing in stock funds including the loss of principal. Generally, the greater the risk of loss, the greater the potential for reward. 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.

"Standard & Poor's®, "S&P®,""S&P 500®,""Standard & Poor's 500," and "500" are trademarks of The McGraw-Hill Companies, Inc. that the State Farm Mutual Fund Trust has licensed for use. The S&P 500 Index Fund is not sponsored, endorsed, sold or promoted by Standard & Poor's, and Standard & Poor's makes no representations regarding this advisability of investing in the S&P 500 Index Fund.

To talk to someone about your financial future or to obtain a prospectus for the State Farm Mutual Fund Trust, contact your registered State Farm® agent or call 1-800-447-4930. Read the prospectus carefully before you invest or send money.

State Farm VP Management Corp Risk/Important Disclosures. State Farm Mutual Funds Prospectus. The State Farm College Savings Plan Enrollment Handbook (PDF 260 KB) .

Need Assistance? 1-800-447-4930

AP2008/01/9837