You may decide to have as little as $25 automatically deducted from your checking or savings
account on a set schedule, such as on the fifteenth and/or the last business day of each month and
invested into the portfolio(s) of your choice.
Or you may choose to have investments in the Alger portfolios deducted directly from your payroll
check. All you need to do is fill out the appropriate form and submit it to your employers’ payroll department.
Alger Funds Mid-cap Growth Class B shares have averaged an annual return of 17.75% per year, and
the Capital Appreciation shares 16.24% since 1993!
This is a load fund, but their Class B shares have no sales charge if held within the Alger Fund
family for six years.
I am not suggesting that Alger Funds are right for you. Please call 800-992-3863 for their
prospectus or visit them at www.alger.com for details.
Another fund company with a similar no-money-to-start program, is the no-load Homestead Funds.
Their Small Company Stock Fund has had a 15.3% 3-year average return. Contact them at 800-258-3030
or www.homesteadfunds.com for a prospectus.
Other low-cost choices that may be right for you
No-load, T. Rowe Price will get you started with only $50 if you agree to regular additions to the
fund (which you should do anyway, of course). Their website is
www.troweprice.com and they can be reached
With a $250 initial investment, you may like American Funds’ Growth Fund of America. It has
averaged 16.27% (after load and expenses) these past 5 years and is quite well-managed. With 21
funds to choose from, their College-America 529 plan may be a good alternative to what your state
has to offer. There telephone number is 800-421-0180, and you can explore their offerings at
Another fund with just a $250 minimum is the USAA First Start Growth Fund. Contact them at 800-382-8722.
The no-load Amana Growth Fund (800-728-8762) has a minimum opening balance of only $100, and
requires additional share purchases to be just $25. You can see the prospectus and download an
application at www.amanafunds.com .
Last thoughts about mutual funds
With an index fund you don’t have to worry about all of the details of which is the “best fund”.
It’s like an airplane on auto-pilot; it’s going to automatically get you where you want to go.
The advantage of a well-managed fund is that your money can be skillfully protected in the
inevitable bear markets.
But the all-important bottom line is to get started right now, and add to your fund on a scheduled,
Get started now, keep saving and investing, and you will become wealthy. This is the way it
works for others, this is the way it will work for you.
Other Stock Market Basics Topics:
Mutual Fund Advantages
- History of Mutual Funds
- Dollar Cost Averaging
- General advice about choosing a fund
- Mutual Fund Ratings
- Evaluating Mutual Fund Investment Risk
- Mutual Fund Share Classes
- Mutual Fund Fees
- The Mutual Fund Prospectus
- How important is the manager's length of experience?
- Why is the prospectus hard to understand?
- Mutual Fund Annual Report
- Comparing your fund to the competition
- Comparing funds on an after-tax basis
- Average Return on Investment
- How Not to Pick a Mutual Fund
- Cashing in Your Fund
- When to Sell Your Fund
- Mutual Funds and Asset Allocation
- When to get started with a mutual fund
- Types of Mutual Funds
- Value Stock Funds
- Growth Stock Funds
- Small and Micro-cap Stocks
- Mid Cap
- Large Cap Companies
- Income Stock Funds
- Mutual Fund Index
- Enhanced Index Funds
- Sector Mutual Funds
- Stock Market Sectors
- Defensive Stocks
- International Funds
- Real Estate Mutual Funds
- Socially Responsible Funds
- Balanced Funds
- Tax-Efficient Funds
- Bond Convertible Funds
- Junk Bond Funds
- Mixtures of stock types
- Closed End Funds
- Exchange Traded Funds (ETF’s)
- Stock Picking Strategy - Picking your own stocks?
- Fund names, and what they really invest in
- How to get started
- Where can I start investing with no money?
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