Are there any mutual funds that will accept such a small amount? If so please tell me which ones and tell me if you think it is good. THANKS!!!!
2007-03-11 05:52:42 · 5 answers · asked by edstafford 2 in Business & Finance ➔ Investing
well with this small of an amount mutual funds are a good choice. Morningstar.com has a lot of excellent suggestions (stick to NO LOAD funds) under 2 grand. here is the link to get you started. http://screen.morningstar.com/FundSelector.html
My only issue with the fund of funds is yes you are instantly diversified but you are basically mirrioring the market. You want to BEAT the market. Ariel, Dodge Cox, Oakmark, American World Capital growth (own CWGFX) all of these BEAT the market easily and for a while too.
ETFS are generally cheaper but you are in for wilder rides in market swings going this route.
2007-03-11 06:43:42 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I agree with jeb......, mostly. Vanguard lets you in "cheap" only with their STAR fund, symbol VGSTX, $1,000 is the nimimum. It is a fund of funds, as it holds 11 other Vanguard funds. It is also well diversified as those 11 funds include stocks of all sizes, bonds, and both domesitc and international stocks. T. Rowe Price will let you invest for a initial investment of maybe $50 or maybe $250 (no more) if you agree to have at least $50 per month electronically switched from your checking account, until their usual minimum of $2500 is reached.
2007-03-11 15:53:45 · answer #2 · answered by gosh137 6 · 0⤊ 0⤋
Yes! You can get started with a few diff companies that have low minimum initial investments for their funds..(.but don't get into front-end load ...some " low- priced" funds are big on that)
I think Vanguard lets you in " cheap" on some funds...
Another way to go about getting started would be ETF's ( like funds..invest your money " broadly" in a certain sector...but a cheaper " buy-in" price...because you can buy just 10, 15, or 25 shares)
look at both ETF's and a variety of funds at :
http://finance.yahoo.com/etf
When you have a little idea of what's available...just go to someone like E-trade and open a small account buy into something and watch it work for six months/ a year...add to it, move it...you'll never regret learning to take care of your money ( whether it's two grand or twenty)
Good luck.
2007-03-11 15:27:28 · answer #3 · answered by jebediabartlett 6 · 0⤊ 0⤋
Yes, there are out there that you can buy with regular smaller amount investment every month. You can contact local broker to find out which one. one of the way to invest when you have little money is by using options or future.
However any investment is risky without knowledge. my suggestion to you is to use the money to learn first about the stock market if you want to invest in.
2007-03-11 13:46:58 · answer #4 · answered by Anonymous · 0⤊ 0⤋
mutual funds do not equal the stock market. you'll do better by going with a large company that consistantly proves itself and waiting it out long-term (like Wal-mart, Cocacola, Boeing, Proctor Gamble, etc).
2007-03-11 14:17:41 · answer #5 · answered by contemplating 5 · 0⤊ 0⤋