Minimum Investment Amounts

Q: I'm a dollar-cost-averager. When I add a new fund, do I have to come up with the $2,500 often listed as the minimum investment, or can I start with just the smaller subsequent investment amount?

A: This varies depending on which fund and how you're investing in it. Many funds will allow you to start with just a small amount if you sign up for automatic investments in the future. That's particularly true if you're investing directly with that fund organization. If you have an account with a fund supermarket (like Fidelity), you're likely to be governed by the policies of that particular brokerage. As always though, these types of "procedural" questions are best answered by contacting the fund/broker and asking them directly.

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