I’m interested in a recommendation on specific mutual funds for adults in their 20s. I would like to help my children set up mutual fund accounts. They would need to have a minimum beginning investment amount of $500 or less. Thanks.
I’m so glad you asked about mutual funds with low minimums. Most of the information in the various media is about funds that require several thousand dollars to open them.
Cash Flo has found a reliable no load fund (that means no sales fee) with a minimum investment of $500 — the Franklin Templeton Money Market Fund . I suggest you begin there.
Because your kids are still young, they really should be in a growth fund, not a money market fund where the interest rates are only slightly higher than bank savings rates. However, my two favorite growth funds require more than $500 to get into.
So, when their Franklin Templeton Money Market Fund accounts have reached $1,000 or more, take the money out and move it to one of these funds:
* Strong Growth & Income Fund
* Neuberger & Berman Partners Fund’s
Contact each fund directly to find out what the fund invests in and to get an account application. There is no charge for opening or closing these accounts. Each child will need to provide the fund with her Social Security number and a check for the required amount, made out to the fund, in order to get started.