Low minimum to open, mutual funds

[Ima saver]

Re: Low minimum to open, mutual funds

Fannie mae and IBM are stocks. I have some stocks, but would rather see the young people invest in mutual funds.

[JoyJoy]

Re: Low minimum to open, mutual funds

Never hurts for them to know the difference. I told our son about mutual funds and he asked what about stocks?

[JoyJoy]

Re: Low minimum to open, mutual funds

I listed Mutual Funds too Ima. Sorry this is your topic of discussion so people just ignore the stock section.

[JoyJoy]

Re: Low minimum to open, mutual funds

Okay I dispensed with the stocks. Mutual Funds only. Sorry!

Very good topic.

[Roupey03]

Re: Low minimum to open, mutual funds

Great I am gonna start looking into this.

Something like 50 bucks to start and 50 bucks a month would be nice for now.

[Ima saver]

Re: Low minimum to open, mutual funds

That is the way I got started. I didn't even know American Century would let you do this with $50. I started that way, but thought they had upped their limit. That is great!!

[disneysteve]

Re: Low minimum to open, mutual funds

What type of penalties can I expect from these mutual funds. What if I want out? What kind of rate should you be able to expect from them?

From your questions, it sounds like you aren't familiar with what mutual funds are.

A mutual fund is an investment instrument that pools money from multiple investors and uses that money to purchase one or more types of investments: stocks, bonds, real estate, etc. A particular fund might invest in stocks that make up the S & P 500 index, for example. Or a fund might invest in healthcare companies, or short-term bonds, or international stocks.

What type of return you will get depends completely on what type of fund you invest in and how that type of investment performs over time.

As for penalties, many mutual fund companies have limits on short-term trading so you may be restricted from selling shares for a designated period of time. Mutual funds should not be used as short-term investments. If you have money that you will be needing in the near future, perhaps less than 3-5 years, you probably want to stick to a high-yield savings or money market account.

[Ima saver]

Re: Low minimum to open, mutual funds

Very good answer, Disneysteve!!

[Roupey03]

Re: Low minimum to open, mutual funds

Thanks for all the info guys!

[yellow heel]

Re: Low minimum to open, mutual funds

Yes, this is good info!! Keep them coming!!