How to pick fidelity fund(s) for $4000.00?

Question

I save 4K for my 2006 IRA, but don't know what fund(s) to pick. Most funds required a minimum of $2500 to start. How can I split 4K for 2 funds: international and mid cap growth?
Thanks for all the suggestion.

Answer 1

I've done it with my daughters' IRA's in this way....Fidelity allows you to trade ( on-line) anything in your IRA...so buy the $ 2500. fund in mid-caps ...and use the other $ 1400. to invest in ETF's ( one or more..up to you) There is a " commission" on those trades, but nothing to panic about...
One daughter is in FRESX...and MXE ( ETF) Had a very nice year!
The other is in FEMKX..and DBA...good results, too!
You can try that approach or just invest in one fund for awhile...but once it makes $ 600 -$700. you can then move $2500. into your second choice.....the "minimum balance" required in a fund is LESS than the " minimum initial purchase" requirement....so, after you own it for awhile your balance in the fund can drop down to $ 2000.
I hope one plan or the other works for you !
If you're unfamiliar or squeamish about the ETF's ...give yourself some time to do some reading... or go to the " watchlist" on your Fidelity site...set up a " phony" fund plus ETF portfolio and see what it does in a couple of months!!
Don't be afraid to use that site....move your funds..buy something different.....IT"S YOUR MONEY... and Fidelity works for YOU.
P.S. If you do end up with the " one-fund" option, give that FEMKX a look....I have a little of it in every IRA, rollover, and 401 that I " manage"( me, wife, two girls, three friends)

Answer 2

I don't think Fidelity will work for you. morningstar.com has a rudimentary mutual fund screener that will let you specify fund type, minimum investment, and other criteria to find possible funds. I ran it and found AIM, American Century, and Dreyfyus, among others, have international funds that meet your criteria. I don't follow these families, so I can't suggest a specific fund. I like your allocation, though.

Alternatively, if you don't trade, you can open a brokerage account and buy exchange-traded funds (ETF's) in any quantity you want. Scottrade is probably the cheapest, but check for inactivity fees. They would charge you $7 for each purchase. Some ETF's are very competitive on expenses and some are not. I have abandoned mutual funds because ETF's are so much more flexible.