| Investing in mutual funds can be a scary | | | | point the $25 contributions can begin). |
| proposition for a lot of novice investors. After all, | | | | Systematic Contributions |
| the dreaded years between 2007 and 2009 saw | | | | In addition to the low entry level and low |
| asset values slashed dramatically, leaving a lot of | | | | minimum contributions, almost every fund allows |
| investors desperate for a recovery that has | | | | investors to contribute on a systematic basis. This |
| either happened or is in the process of happening | | | | often means a minimum investment is made with |
| (depending on their actual portfolio). In spite of the | | | | every pay check, whether weekly, every other |
| poor performance that many mutual funds | | | | week, monthly and so on. By adopting a |
| recorded in that period, these investments make | | | | systematic approach, investors are better able to |
| the most sense for investors with a limited | | | | budget and will also realize other benefits, such as |
| amount of cash to set aside for a long-term fund, | | | | dollar cost averaging. |
| whether saving for emergencies or some specific | | | | Units |
| goal. | | | | Unlike stocks which require full ownership of an |
| Expertise | | | | actual share, funds allow fractional ownership of |
| What a lot of investors will realize almost | | | | units. This means that an investor can own |
| immediately is that mutual funds offer a great | | | | 145.687 units (versus 147 whole shares if one |
| level of investment knowledge. Considering that | | | | were to buy shares). For this reason, an investor's |
| most fund managers, their analysts and trading | | | | full contribution is invested immediately, meaning |
| team come with reams of qualifications, one | | | | one can start enjoying market increases as soon |
| might wonder why they are able to get this level | | | | as the investment is made instead of having to |
| of expertise for no up-front, monthly, or annual | | | | sit on the sidelines and wait until a whole unit value |
| fee. In fact, investors are able to essentially "hire" | | | | has been amassed. |
| the brightest and best investment minds for as | | | | Summary |
| little as $25 per contribution in some cases. | | | | Given the above, mutual funds provide investors |
| Access | | | | with a tremendous opportunity to save that little |
| In fact, mutual funds are among the most | | | | extra cash that they either have left after every |
| accessible investment options that people have. | | | | payday or can live without through some minor |
| Investors have plenty of different options when | | | | sacrifices ($25 per contribution is less than a case |
| purchasing these types of investments and, as | | | | of beer, for example). Not only will longer term |
| noted above, can start with as little as $25 per | | | | investors enjoy great long-term growth by saving |
| contribution. (Almost every mutual fund will have | | | | this way, but they probably will not even notice |
| a minimum entry requirement of $500, at which | | | | that the money has been invested! |