MONEY MADE SIMPLE | Invest in mutual funds with little money and skills


“Investing”, for most high school students, calls to mind Wall Street financiers operating baffling numbers. However, investing does not have to be so difficult. Mutual funds are an excellent alternative to stocks, requiring very little money and financial skills, that still provides a tangible experience in investing. 
A mutual fund is an investment that pools your money with other investors — thousands, or even millions — to buy a portfolio, which is a collection of various investments like stocks, bonds and currencies. It is unlike a stock, which is a partial ownership of a single company. 
The benefits of mutual funds are their inexpensive costs and diversification — they can give everyday investors access to a variety of shares, strategies and professional management that would not be normally available without the scale achieved by the pooled money. 
Characteristics can vary greatly among different mutual funds, allowing you to find a customized fund with some research. Some focus on a specific industry, such as technology or agriculture, while others focus on the size of companies. Some funds even invest in companies that advance a specific social cause, like gender equality. Through these funds, you can own thousands of shares that are personalized to your values and goals. 
There are two major types of funds: load funds and no-load funds. A load fund charges you a commission for the shares purchased. Its fees tend to be higher because it employs professional advisors for higher analysis. On the other hand, a no-load fund does not charge you a commission, in exchange for the absence of additional advisors and evaluations. 
You can begin investing by opening an account in a mutual fund company, whose advisors will help you choose the funds most suitable for your situation and goals. If you are looking for a more affordable option, you can look into no-load mutual fund companies, such as Vanguard Investments, Fidelity and PIMCO
A minor can invest in mutual funds through a custodial account, under their name and overseen by a guardian. But after reaching the legal age, you will hold complete decision-making power of the account and choose to use it for any purpose, including financing your college education. 
Buying mutual funds is a way to grow your wealth that is easier and more diversified than buying stocks. They are especially a good choice for young, new investors because of their accessibility and lower risks. So if you are anxious about the obscurity of the stock market, seek for an equally worthwhile experience with this alternative investment.