A common criticism of mutual funds is that many fund families have a relatively high minimum investment, often in the $1000-$3000 range. Thus, it can be difficult for someone who is just starting out to build a diversified mutual fund portfolio.
While it’s no secret that I’m a huge fan of The Vanguard Group, I thought I’d point that Schwab has reduced the minimum initial investment on their mutual funds to $100 each. Their expenses ratios are also very competitive. For example, the S&P 500 and Total Stock Market Funds weigh in at 0.09%
If you’re looking to get started investing, but the high minimum investments have been scaring you off, then you should definitely check out Schwab Funds. And no, they didn’t pay me to say this. 🙂