What are some mutual funds that I can invest in for $50-$100.?

I'm 17 years old and would like to start investing as soon as a turn 18. However, I'd only like to start off small and have something that is a low risk investment such as a mutual fund. What are some mutual funds that I can invest in with a limited budget?

Mutual funds is not a low risk investment. They are less riskier than investing in individual stocks, but more riskier than investing in bonds. If you want higher returns, you would need to invest in riskier mutual funds. If you want low risk, you would invest in growth funds, growth and income funds, or just income funds (these invest in bonds and cash).

I opened my Roth IRA at Primerica Financial Services. You get a free investment advisor who can pick mutual funds for you. Most companies won't bother talking to you if you don't have large amount of money to invest. They offer various mutual funds from different companies such as Fidelity Advisors, Van Kampen, Legg Mason Partners, American Funds, etc. These are all big companies that has quality mutual funds and have low fees.

There are two ways you invest into a mutual fund.

1) You can open an IRA account (as long as you are currently working) and enjoy the tax-deferred status on your investments. You can invest into each mutual fund for as low as $25/month. If you don't invest monthly, then you need to put in an initial deposit of $250. If you want to buy more shares, the minimum you need to invest is $25. Keep in mind, all IRAs have a maximum contribution limit. Currently you can only put in $4000 for this year. In 2008, its $5000.

2) You can invest into a mutual fund directly. The minimum investment is $50/month or you can put in an initial deposit of $500. You can invest as much money as you want. There is no maximum amount you invest when you invest outside of qualified retirement plans such as the IRA. However, your investments don't grow tax-deferred. So, if there is any gains or interest or dividends, you pay income taxes on them.

Some tips you should take when you invest:
1) Diversification reduces your volatility
2) Investing systematically (meaning you invest once a month) will reduce the cost per share you own over time.
3) No matter what happens in the stock market, always remember why you are investing. Most people tend to pull out of the stock market when it crash. Smart investors will stay in and continue to invest.
4) Invest in mutual funds with low fees
5) Whether you invest in no-load or load funds, studies has shown that neither one has an advantage over the other.
6) Mutual funds are long term investments, not short term.

Most mutual funds require at least $2000 to start, however you can get in with$100 if you set up an automatic deposit of $50/month.

When investing in these, do your homework, just as you would as if you were buying a car or individual stock. Look at the moving averages, see how they've peformed over the last 1, 3, and 5 years. Check out the fees. Try not to get one with an upfront or back end load. There's thousands of excellent no load funds out there.
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It's great you're starting to save already. I would suggest looking for a promotional event for opening a savings account with a bank. It's not uncommon for a bank to offer some match on your account opening and match. Citibank has a $50 bonus for a new checking and savings.

You'll earn a great boost with minimal risk to start on your investing path. Good luck.

Most mutual funds have a minimum investment limit. The least I know of that has good mutual funds is $250. American Funds. Now there is another option open to you. Open an account though Sharebuilder.com and buy shares of etfs. It will cost you $4.00 per transaction but if you want to buy shares $50 to $100 at a time that is an option. But with American Funds once you reach the $250 initial investment subsequent investments can be $25 at a time. Here is the link to check them out.

http://www.americanfunds.com/default-hom...

It cannot be done at the levels you want to invest. Why? Because the fees that mutual funds charge are based on the amount you invest; (i.e. 00.75% of your investment). Investing only $100, they cannot afford to mail you a prospectus, not to mention statements, tax forms and the like. The only way this might work is with a college promotion to get you on their system before you have a lot of money so you will continue with them when you do accumulate wealth.


However, antoher option is to purchase an ETF; however, your ransaction fees would be high (i.e. $10 on a $100 investment, put you already 10% in the hole.)

If you're looking for low risk and the amount your considering setting aside is so small (sorry no offense but most mutual funds have usually $1000-2000 limits) why not consider a CD? It's the safest thing out there and you can get around 5% or slightly more at most banks.

Hi, here is a collection of informative articles about investing. a free online investing tutorial for you.

http://www.investingtutorial.info/

good luck !

wish you make fortune from investing !