Low Minimum investing Mutual Funds

**noppenbd** · 10-30-2008, 08:24 AM

Originally posted by Erndiggs View Post

Does any one know of some low, or no minimum mutual funds? I think it would be nice to have a list here. It would help me out and some of the younger people on this forum who would like to open a mutual fund account but don't have the necessary $2500 or $3000 that most funds require to open an account.

Clark howard usually recommends the Vanguard STAR fund ($1000 minimum). The ticker is VGSTX. It is a balanced fund (60/40 stocks to bonds), but even still has returned 9.8% annually since 1985.

T Rowe Price allows you to start with as little as $50 a month if you agree to an automatic investment plan. With Vanguard and TRP you can open mutual fund accounts directly with them or buy their funds through an outside brokerage (if you are strictly buying Vanguard or TRP it is cheaper to buy them direct).

Otherwise you could open a brokerage account (could be taxable or IRA or Roth IRA) and buy ETFs. There is no minimum on ETFs but you will have to pay a trading commission with each purchase, so a low cost brokerage would be best. Smartmoney recommends Tradeking ($4.95 per trade) and Firstrade ($6.95). Scottrade is also popular ($7).

**jIM_Ohio** · 10-30-2008, 09:31 AM

T Rowe Price would be a good place to start.

**Erndiggs** · 10-30-2008, 10:13 AM

any suggestions on what funds to get into, if i decide to invest in TRP

**jIM_Ohio** · 10-30-2008, 10:35 AM

Originally posted by Erndiggs View Post

any suggestions on what funds to get into, if i decide to invest in TRP

What are you investing for?
How old?
How much risk do you want to take?

**Erndiggs** · 11-01-2008, 02:20 PM

I'm investing for long term reasons, prob would want the money in about 10-15 years..... i just want to start investing where my money works for me - i have no investments yet - .... i'm 25 years old

**maat55** · 11-01-2008, 06:32 PM

I am in these three funds with them:

Health Sciences(Favorite at the moment)
New Era
International Discovery

Past performance yada yada yada

**jIM_Ohio** · 11-01-2008, 06:47 PM

Originally posted by Erndiggs View Post

I'm investing for long term reasons, prob would want the money in about 10-15 years..... i just want to start investing where my money works for me - i have no investments yet - .... i'm 25 years old

If you are just starting, is this an IRA? If so look at any of these funds

PRFDX (T Rowe Equity Income). 45% of my retirement is invested in this fund.

Blue Chip Growth- a few others in this board own this fund

Equity Index (S&P 500 index fund).

My blog lists my holdings. Between wife and I we own around 15 T Rowe funds.

I would not choose a sector fund as your first fund (like Health care). I do own the health care fund (in wife's Roth IRA) but that is less than 1% of our total portfolio right now and will never be more than 10%. Not where I would start.

The 3 funds above are solid large cap funds. If you want a multi cap fund, look at spectrum growth.

Any of the funds mentioned have risks, which includes the ability to have you invest $1000 and turn this to $700 in one day. If this risk is not for you, make sure you learn more.

1) choose your risk tolerance
2) choose an asset allocation which identifies the risk tolerance, usually expressed as a percent stocks and percent bonds.
3) choose mutual funds which fit the allocation

Most of the return comes from #2. Your allocation determines between 75-90% of your return.

Low Minimum investing Mutual Funds