Best No-Load Funds to Get Started Investing With Just $100

These Top Schwab Funds Are High Quality, Cheap, and Have Low Minimums

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Finding mutual funds to get started investing for $100 or less can be more challenging than finding the best funds. For this reason, the minimum initial investment hurdle can make the first investment difficult for some investors. But finding the best no-load mutual funds for $100 or less can be easy if you know where to look.

Mutual Fund Minimum Initial Investments

Mutual funds are without a doubt the best type of investment for the majority of beginning investors but many funds have minimum initial investment amounts of $3,000 or higher. Therefore beginning investors often have to save hundreds or thousands of dollars just to get started investing in mutual funds. This cost hurdle reduces one of the biggest advantages of investing — getting started early.

But there are several fund companies that offer mutual funds with low minimum initial investment amounts. However, there aren't many fund shops that have low minimums AND high quality no-load funds for the do-it-yourself investor.

Although Vanguard Investments and Fidelity Investments have offer some of the best no-load funds on the market, their minimum initial investments for the majority of their funds are $3,000 and $2,000, respectively. Not many beginners are fortunate enough to have $2,000 or more to get started investing.

But at least one outstanding discount brokerage firm with a great selection of mutual funds for beginning investors is Charles Schwab. Even better, they have several high quality, no-load funds with minimum initial purchase amounts of $100 or less!

Best No-Load Funds to Get Started Investing With Just $100

  • Schwab S&P 500 Index (SWPPX): It's hard to go wrong with an index fund with a minimum initial purchase amount of $1.00 and a rock bottom expense ratio of just 0.02%, which rivals that of Vanguard funds. At 100% stocks, investors will need to be able to hold on during the inevitable bear markets, when stock prices can decline by 20% or more in just a few months' time. However, the long-term (more than 10-year) returns of stock index funds are among the most competitive of all mutual fund types.
  • Schwab Balanced Fund (SWOBX): Balanced funds can be an ideal way for beginners to start investing because they are a diversified blend (a balance) of stocks, bonds and cash. In different words, balanced funds can be a complete portfolio in themselves! The Schwab Balanced Fund has an asset allocation of roughly 60% stocks, 35% bonds and 5% cash. This makes for a moderate (medium-risk) blend appropriate for most investors. SWOBX is typically an above-average performer and has a minimum initial investment of just $100.
  • Schwab International Core Equity (SICNX): If you are wanting to expand your portfolio to include foreign stocks, this fund is among the best of no-load funds with a minimum initial purchase of $100. SICNX invests in large-cap stocks (large companies) that are outside of the United States. Long-term performance ranks are high compared to other large-cap international funds.

Investors should note that some mutual fund companies offer lower minimum initial investments, such as $100 or lower, when the investor establishes an Individual Retirement Account (IRA) and sets up a systematic investment plan that automatically withdraws at least $100 per month out of a bank account for deposit into the IRA.

Now go out and get started investing with just $100 or less!

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.