Where and How Can I Invest $600 in Mutual Funds?

Question

Are there tickers for mutual funds?
What are some good mutual funds for $600 to start?

Answer 1

Yes. There are tickers for mutual funds.

Here is the ticker for one that has a $250 minimum investment. AMECX.

This fund is marketed by American Funds. Here is the link to their web site.

http://www.americanfunds.com/default-home.htm

But you need to know this. These funds carry a front end load of about 5.75%. They do have other class of funds without the load, but they have higher expense ratios. This particular fund is one of their better funds but they do have quite a few others.

Their are some other companies that have low minimum investments also, but I believe most if not all also carry a load.

To buy a no-load fund you need a minimum investment of about $2000 to $2500.

You do have two additional options. Index funds that are exchange traded and closed end funds that are also exchange traded. You buy them through a stock broker. Scottrade charges $7.00 to buy and I believe they have a minimum of $500 to open an account.

Here is a link to index and closed end funds, for you to check out.

http://www.etfconnect.com/

Answer 2

Yes, mutual funds do have ticker symbols. Keep in mind, though, that mutual funds do not trade in the same way that stocks trade. Not all brokers are able to purchase mutual funds which are operated by other brokerage firms. I highly recommend the educational material at The Motley Fool...."www.fool.com". They offer some very sound avice on mutual fund investing and a good tutorial on the basics of how mutual funds work.

There are well over 3000 mutual funds actively trading today, with a vast majority of them underperforming their target indices. For someone new to mutual fund investing, a good strategy is to seek out index funds. These funds seek to match the performance of a specific stock market index...the S&P 500, for instance. They're not glamourous by any means, but since over 80% of the mutual funds out there underperform the S&P 500, you'd automatically be earning better returns than a lot of poor folks who got caught chasing last year's "hot" mutual fund. Another advantage of index funds is that they have very low maintence fees because they are largely automated...there is no team of fund managers taking one or two percentage points off the top of your returns. The Vanguard S&P 500 index fund, for instance, has a management fee of only 0.18%.

A lot of large funds require initial deposits greater than what you're looking to invest, but there are some out there with $250 or $500 dollar minimums. Just need to do some searching. Good luck!

Answer 3

1) Open a brokerage account at Zecco.
2) Yes.
3) Vice Fund.

Answer 4

How about an IRA? You can open one of those through most banks or financial institutions. It's stands for Individual Retirement Account. They are usually mutual funds and you can choose all kinds of plans to start saving toward your retirement.

Answer 5

Talk to your bank. Most have investment officers. Don't let them talk you into investing in their bank. Invest in a known mutual fund.