I'm 24 and I'm still new to buy mutual funds I want to start off investing only $500 would that be a good idea? And how would I look for a Mutual fund that would start that low?
2007-01-01 19:49:26 · 7 answers · asked by shortstuff 1 in Business & Finance ➔ Investing
You have a couple of options. One would be to check out American Funds. They have a minimum of $250. It is a great company with some great funds. They do however have a front end load of 5.75%. That is offset somewhat by low annual expenses. I have no hesitation in recommending them. Go to their web site and check them out.
http://www.americanfunds.com/default-home.htm
There are other funds in that category. You can find them on Yahoo finance.
The other option you have is to open an account with Scottrade with your $500 and puchase closed end funds or index funds. Many closed end funds actually sell at a discount to net assets so it is like buying stocks on sale. GAM is an example. SWZ is another.
Here is a link to a site that provides research data on all available closed end and index funds (ETFs)
http://www.etfconnect.com/
2007-01-01 21:54:46 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You have received some really good advice from the previous responders. As one said 5 years is a rather short period of time for investing in equities. The reason being that if there is a sever market correction of the 2000 variety, you will likely not make up your losses in 5 years. I actually do not foresee that happening, but who knows what the future might hold. Here is a plan, maybe not the greatest of plans but nevertheless one for you to consider. Take 25% to 50% of the amount you planned to invest and invest it now. Put the rest in t-bills. When the t-bills come due in 6 months add another 5% and roll the remainder into more t-bills. Keep up that strategy. If there is a correction you will be buying more shares. If not you will be buying fewer, but you will also be making money in the process. Make sure that the mutual funds you pick are not closely corrolated. ie do not pick two growth stock mutual funds for example. If you are in fact looking to retire in 5 years, you may want to stick with mutual funds that are somewhat conservative in nature for the greater portion of your investments. I do not believe that most growth funds have yet recovered from the 2000 fall out.
2016-03-29 04:13:01 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Stay away from mutual funds they don't really take you anywhere you gain a little and then lose it all again, all in the name of diversification. The brokers get rich while you pay the cost. I would suggest ETFs rather than mutual funds. Closed ended.
2007-01-01 20:14:35 · answer #3 · answered by geezy 1 · 0⤊ 1⤋
Check out the Van Guard site, for a start.
Edit: Consult Consumer Report Magazine &/or site, also.
2007-01-01 20:00:05 · answer #4 · answered by S. B. 6 · 0⤊ 0⤋
I like fidelity mutual funds.
Fidelity Magellan - FMAGX
Fidelity Freedom 2040 - FFFFX
2007-01-01 19:59:12 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Yahoo's free fund screener:
http://screen.yahoo.com/funds.html
Try to get a four or five star Morningstar Rating.
2007-01-01 19:57:30 · answer #6 · answered by Benjovi 2 · 1⤊ 0⤋
get a money magazine. It full of ideas.
2007-01-03 08:07:45 · answer #7 · answered by sm4125 3 · 0⤊ 0⤋