4 Under-$100 Mutual Funds To Rake In Big Gains

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For those who are beginning their investment journey and don’t want to risk much, investing in mutual funds under $100 is a great way to get started. Obviously, there are plenty of low-priced stocks but it should be noted that stocks may not always provide investors the diversity that mutual funds assure.

Moreover, risks associated with penny stocks are higher. On the other hand, there are low-cost mutual funds with decent returns where investors can invest as little as $100.

Furthermore, a variety of fund houses offer mutual funds with a minimum initial investment amount of $3,000 or higher. This is why people generally wait to save the minimum amount. However, there is always the risk of losing out on returns due to a late start. To counter this cost-hurdle, one must begin by buying low-cost funds.

However, finding mutual funds under $100 can be cumbersome. This is because individual investors, who are just starting out, might find it difficult to screen best no-load mutual funds for $100 or less.

Notably, a $100 bet will make more sense when the bulk of the amount is invested and no charges are paid from it. Funds that carry no sales load and have relative low expense ratio should be preferred.

Why Mutual Funds?

Mutual funds are great options for investors looking for a relatively less risky way to earn at least more than what fixed-income instruments offer. Money from individuals and even organizations are invested in stocks, bonds, or other assets covering diverse industries globally.

One of the benefits of mutual funds is that these allow small investors to park money in a basket of securities at one go. One need not worry about investing a large chunk in securities separately. Moreover, these are less risky than any individual asset class as underperformance of a security gets mitigated by the outperformance of others in the portfolio. In addition to asset diversification, mutual funds provide liquidity and economies of scale, and are professionally managed.

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