What mutual fund(s) do you recommend for a $1000 investment?
Question by Ohio: What mutual fund(s) do you recommend for a 00 investment?
I’m a college student, and have $ 1000 to invest in the stock market. I’ve been reading Mutual Funds for Dummies, but just want some advice as for specific mutual funds.
Any recommendations as for which mutual fund I should invest in? Would I be better off going for individual stocks? Keep in mind, I only have $ 1000 to invest. I’m with Scottrade by the way.
Best answer:
Answer by Redjr01
I can’t recommend anything if you only have $ 1000.00. That’s not much at all. I would recommend saving a little more if possible. A lot of good mutual funds require at least $ 2500 to get into. I am sure there are some funds that will allow you to buy in for $ 1000.00, I just don’t know who they are. The funds worth the risk are a little pricier, unfortunately. As for stocks, to buy a block of shares the price of the stock would have to be less than $ 10/SHE. I would tell you to take a look at Citibank(C), but they seem to be facing a reverse split in the future and I would hate to see your 100 shares be pared down to 20 shares. You will have better options if you just save your money until you have at least $ 5000 to invest. I would even go as far to say 10k. In the meantime, find a site that will allow you to simulate trading by using fake money. This way you’ll learn how to invest without actually putting your own money at risk. And when you have the money and you have learned about investing, you won’t be asking these questions on internet boards.
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Comments
There are quite a few funds that will accept an amount of $ 1,000. I would suggest with that amount you could do an index fund like SWPPX (my favorite). To be honest the new money magazine has a huge section on Mutual funds I highly suggest you pick it up because it has several really good suggestions. It really depends on how aggressive you want to be.
My favs are SWPPX (index fund), HABDX (bond fund), and UMBWX (which is foreighn fund). Again I suggest you pick up the new money magazine has great tips.
Well, you are definitely on the right track. Many of the good mutual funds have a greater minimum investment that $ 1000. And many Scottrade will charge you to invest with. You can however save that charge by investing directly with the fund.
How much risk do you wish to take?
Artisan International has a $ 1000 minimum and I don’t think Scottrade will charge you to buy it. Ticker is ARTIX. It is not a great fund, but not a dog either. Oakmark has several funds with a $ 1000 minimum. Oakmark International Small Cap has a very good record with a 10 year annual return of 12.7%. Ticker is OAKEX. Here is a final one to consider. Delafield Fund. Ticker is DEFIX. This has a 10 year annual return of 12.3%. Now this is a smaller fund with only 1 billion about in assets so it should be easier to manage than the other two. ARTIX is the largest with 7 billion so it will be the most difficult to manage.
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