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Good mutual funds for children?

January 14th, 2016 at 10:19 pm

Do any of you have any good advice for a good mutual fund to open for a child? Years ago, I used American Century Gifttrust for my granddaughters, but it is no longer offered. I have a great granddaughter now.

8 Responses to “Good mutual funds for children?”

  1. livingalmostlarge Says:

    vanguard index?

  2. Carol Says:

    I'd like to know this, too. All I could figure out was an E T F, but the fees for buying relative to her amount to invest are horrendous.

  3. Ima saver Says:

    I love vanguard funds, but the minimum to invest is $2000. When I opened funds for my granddaughters, the minimum was anything you wanted. I was hoping to find a fund with maybe a $200 minimum. I want to open something up for my great granddaughter and also the young daughter of my mortgagee.

  4. snafu Says:

    The thing about Vanguard are the super low management fees which are a hidden cost on most other MFs. If you find a fund family you like with low fees and higher performance, perhaps Fidelity for example, hunt for a discount brokerage with 'X' free trades. It gets complicated...

    I suggest a contribution of $ 200. per year is better in a Savings account, possibly joint requiring both child's mom and your signatures for any withdraws until you feel confident the parents are adding to it regularly. With the market so low just now, a $2K plan for Great Granddaughter sounds wonderful, particularly if you view a percentage as 2015 birthday, Xmas; 2016 birthday, Valentine gift, Easter, Xmas etc. it covers several years but more importantly, it grows and grows with her!

    ,,,just some random, unedited thoughts

  5. snafu Says:

    sorry, accidentally submitted...

    Would you consider buying a few shares in Disney stock [$ 95.09] via a discount broker, with automatic reinvested dividend?

  6. ceejay74 Says:

    I started Pax mutual funds for both my kids. I don't remember what the minimum was but I haven't put much in there so I think it was pretty low.

  7. Petunia 100 Says:

    I started J at Pax too. The minimum was $250, but it is 1k now.

  8. Petunia 100 Says:

    Betterment has no account minimums. Are you familiar with Betterment? They have a portfolio of etfs for stocks and a portfolio of etfs for bonds. The customer then chooses their own stock to bond ratio in increments of 10%. The etfs have ultra low costs; Betterment charges an additional layer of expense. With small accounts, the additional cost is 0.35%. So you get a very diverse portfolio, automatically rebalanced for you, at a total cost of about 0.50% annually.

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