and "kid centered" funds?

[crabbypatty]

I am looking to open a MF for our child. DH is very scared of the market and is hesitant to invest our children's money. (yes he contributes to his 401 matching program but only grudgingly)

I was thinking that if I could find a fund that holds shares in companies he knows and understands he might feel more comfortable. Along those same lines I was thinking that a good way to help educate and interest my child would be to have a fund that has companies she knows : like Disney, Coca cola, stuff like that.

Has anyone heard of funds like these? Where can I find out more?

[kv968]

Re: and "kid centered" funds?

You would want a MF that holds a lot of large-cap companies. An S&P 500 index does this. A few funds from T Rowe Price, for example, that also hold large-cap companies you might want to look into are Capital Appreciation (PRWCX), Capital Opportunity (PRCOX), Blue Chip Growth (TRBCX) and things of that nature. Other fund families have similar funds but those are the type you should look at if looking for company recognition. Granted, they'll hold companies you may not have heard of, but there should be quite a few that you do know. And of the ones I listed, Capital Appreciation may be more suited to your DH's liking. It's not as volatile as the others due to it's bond and cash holdings. These type funds are generally categorized as moderate allocation funds. The other fund families have many of these to choose from also.

[jIM_Ohio]

Re: and "kid centered" funds?

I am looking to open a MF for our child. DH is very scared of the market and is hesitant to invest our children's money. (yes he contributes to his 401 matching program but only grudgingly)

I was thinking that if I could find a fund that holds shares in companies he knows and understands he might feel more comfortable. Along those same lines I was thinking that a good way to help educate and interest my child would be to have a fund that has companies she knows : like Disney, Coca cola, stuff like that.

Has anyone heard of funds like these? Where can I find out more?

Look for large cap funds
Look for leisure funds

buy individual stocks (how much can you invest each month?). If you can invest $100 or more, individual stocks might give you what you want.

Month one, buy Disney
Month two, buy Mattel
Month three buy "local utility company"
Month four buy "local/national bank"
Month five, buy Microsoft
Month six, buy Coca Cola
Month seven, buy Johnson and Johnson
Month eight, buy P&G
Month nine buy Ford/GM auto company of choice
Month ten, buy HPQ
Month 11, buy "new company X"
Month 12, buy "new company Y"

the next year, repeat months 1-10. Choose new companies months 11 and 12. Core portfolio of 10 stocks, with smaller positions in companies "kids" are more interested in. This will also teach them about asset allocation and percentages.

I suggested high profile companies for months 1-10. Disclaimer, I own PG, MSFT, HPQ and F in my goddaughter's account.

For months 11 and 12, feel free to "suggest" clothing retailers (TLB for example- also own that for my goddaughter), supermarkets, gas stations or other smaller companies. Most local news stations list 5-10 local companies when discussing business news, use this if needed. Use months 11 and 12 to teach, based on your kids previous 10 months of homework and research.

Each month costs $4 at sharebuilder ($48 annual cost). If you could stash $1200 for a year in cash, then invest one month a year, you could knock this down to $12 (1% expense ratio). Sharebuilder will reinvest dividends for free.