In essence, the investment funds were created for retail investors or business conservative. But while most of the banks to open interest, while the examination or savings account of $ 100 and can receive a certificate of deposit of less than € 1,000 to almost double the rate on the account, it is very difficult to find an investment fund which opened for investors to invest small sums.
So small investors, given low interest ratesSavings bonds as the only way to invest? It turns out that there are still some fund companies that allow investors in the fund for less than $ 100 per month, or, in some cases even less.
Think about it. If a fund, an investor with a $ 100 and allows the cost of an average of 0.8% per year, this fund is less than $ 1 collected by the investor. Now consider the cost of sending quarterly and annual budgetThe fund can easily lose money on small investors. In fact, it is difficult for a new fund based on a gain of less than $ 500 or more to do.
Some funds, such as in the past, take proactive measures to form a single economic for small investors have a chance. Vanguard is the largest in U.S. funds and venture capital that 0.18% of freight per year to develop a fund. Vanguard charges a $ 10 account of responsibility that are less than one in an amount of $ 10,000.Even with the weight of an investor who is a balance between $ 5000 Vanguard is paying only $ 12.70 per year.
Vanguard is not the only fund investors start charging low fees. American Century charges $ 25 per year and the fidelity of $ 12 per year for each account with a balance of less than $ 10,000. Other funds have even higher rates and annual fees. Some fund companies waive the fees for the customer is doing online. Online trading and cutting of the first issues, such as eand administration, so the company can pass these savings for the investor.
Investment funds are in business to make money. While the gains for investors, it is unreasonable for society to show a decent result. Many companies believe that the costs outweigh the benefits for small investors and there is a growing need for an initial investment for the small guys out of the coverage. Some companies have even eliminated the programs hadEspecially for small investors.