Investing Advice

Where can I start investing with no money?

This sounds a little hard to believe, but yes, there are two mutual fund companies that will let you sign up with no money to start, $0.00!

One mutual fund company, Alger Funds, will let you get started this way. You buy shares on your own schedule, a minimum of $25.00 invested at a time.

The Alger funds offered are:

Capital Appreciation
Large-cap Growth
Mid-cap Growth
Small-cap Stock

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 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 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 and they can be reached at 800-638-5660.

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 .

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, regular basis.

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:

  1. Mutual Fund Advantages
  2. History of Mutual Funds
  3. NAV
  4. Dollar Cost Averaging
  5. General advice about choosing a fund
  6. Mutual Fund Ratings
  7. Evaluating Mutual Fund Investment Risk
  8. Mutual Fund Share Classes
  9. Mutual Fund Fees
  10. The Mutual Fund Prospectus
  11. How important is the manager's length of experience?
  12. Why is the prospectus hard to understand?
  13. Mutual Fund Annual Report
  14. Comparing your fund to the competition
  15. Comparing funds on an after-tax basis
  16. Average Return on Investment
  17. How Not to Pick a Mutual Fund
  18. Cashing in Your Fund
  19. When to Sell Your Fund
  20. Mutual Funds and Asset Allocation
  21. When to get started with a mutual fund
  22. Types of Mutual Funds
  23. Value Stock Funds
  24. Growth Stock Funds
  25. Small and Micro-cap Stocks
  26. Mid Cap
  27. Large Cap Companies
  28. Income Stock Funds
  29. Mutual Fund Index
  30. Enhanced Index Funds
  31. Sector Mutual Funds
  32. Stock Market Sectors
  33. Defensive Stocks
  34. International Funds
  35. Real Estate Mutual Funds
  36. Socially Responsible Funds
  37. Balanced Funds
  38. Tax-Efficient Funds
  39. Bond Convertible Funds
  40. Junk Bond Funds
  41. Mixtures of stock types
  42. Closed End Funds
  43. Exchange Traded Funds (ETF’s)
  44. Stock Picking Strategy - Picking your own stocks?
  45. Fund names, and what they really invest in
  46. How to get started
  47. Where can I start investing with no money?

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