Low Initial Investment Mutual Funds Review

Low Initial Investment Mutual Funds

Low initial investment mutual funds are a great opportunity to get involved with the stock market even if you do not have too much money to begin with. Low initial investment mutual funds will allow you to open up a brokerage account for as low as $100 to $500 and start growing your investments right away.

Since your budget is limited, you have to be really careful about selecting good mutual funds that offer decent performance ratings along with low expense ratio of anywhere from 1% and below, preferably with no load fees. No load initial investment mutual funds are absolutely ideal for small budget investors due to the fact that there is no brokerage fee associated with purchasing your stocks and you can direct 100% or your investments into working for your future.

Morningstar Mutual Funds Screener is an excellent online resource for helping you find any types of mutual funds, including low initial investment and growth stock mutual funds by putting in basic search criteria. Identify whether you prefer domestic or foreign markets, large or small cap mutual funds, your initial investment amount and expense rate preference of 1% or lower. Definitely click on “no load mutual funds” option as you should try to avoid unnecessary expenses at low investment budget level. Mutual fund returns data is somewhat tricky because almost all stock market players have been affected by recent economic downturn and the numbers are not going to be that great.

Bottom line, It’s OK to go with low initial investment mutual funds as long as you understand all the trading rules and follow them to avoid paying more money than you should.

If you feel like money market funds are a way to go for short term liquid investment, scroll over to read an article on how to find the best money market mutual fund rates.