The Best Way to buy mutual funds
Buying mutual funds is easier than you might think! Here's how to get started:
- Open an investment account:
- Ask your parents to help you open a custodial account with companies like Fidelity, Vanguard, or Charles Schwab
- You'll need to be at least 18 to open your own account
- Save some money:
- Many mutual funds require a minimum investment of $1,000 or more
- Some companies offer lower minimums for teens and students
- Choose your mutual funds:
- Look for index funds that track the S&P 500 for a good start
- Consider target-date funds that automatically adjust as you get older
- Make your purchase:
- Use your investment account's website or app
- Enter the fund's ticker symbol and how much you want to invest
Here are some popular places to buy mutual funds:
- Fidelity - Offers zero minimum investment funds
- Vanguard - Known for low-cost index funds
- Charles Schwab - Has many low-minimum investment options
Remember: Always talk to your parents or a trusted adult before making any investment decisions. They can help you understand the risks and make smart choices.