Low initial investment mutual funds

Most investors would like to start investing small before they graduate to investing big. Starting to investing with $ 100 can be quite easy for most investors. Through this, companies have emerged offering investment opportunity for this amount or even lower amounts. It is however important to note that investing $ 100 will not always guarantee investors diversification of the mutual fund. The risk levels associated with these funds are also very high. Beside this, there are some low-cost mutual funds, which have a decent return when investors invest $ 100. These funds are not only offered by emerging investment companies but even know companies e.g. The Charles Schwab Corporation and BlackRock also offer them.

Mutual funds have proven that they are the best option for investors who are looking to invest in a less risky way so that they can earn more than fixed income instrument offer. Collected money from different individuals or organizations is usually invested in stocks, assets bonds among other investments. The ability of investors to invest their money in a basket of securities is one of the best features of mutual funds, which makes them quite attractive. Investors will not have to worry about having to invest in large chunk in securities separately. Mutual funds are usually less risky than any assets class.

For investors who are investing 100 bucks or less most of the available facilities need these investors to contribute on a monthly basis. There are even some companies, which let the investor to open an account without having to invest even a single penny however; you will be required to boast this through a $ 50 on a monthly basis. An example is the USAA First Start Growth. This fund has a return of 14.2% over the last three years.it does not carry a front or deferred sale load and this makes this fund more attractive.

The following are the top two low initial investment mutual fund

Schwab Health Care

This fund seeks a capital appreciation over long periods. It mostly invest a major part of its assets in companies which are related to healthcare sector. A large part of this investment is made in domestic companies through the use of Schwab Equity Rating. A maximum of 25% of the fund’s assets is usually invested in foreign countries. The minimum investment amount is $ 100. It has an annual expense ratio of 0.82%, which is significantly lower than other in this category is, which is 1.39%

BlackRock Basic Value R

This is a feeder fund, which invest about 100% of assets in Master Basic Value LLC. Master LLC invests in undervalued equities and mostly in domestic common stocks. The minimum initial investment for this fund is $ 100. This fund has a subsequent investment of $ 50. It has an annual expense ratio of 1.21%, which is lower than the average for this category, which is 1.13%