Borrowing from Wall Street legend Peter Lynch's mantra "Invest in what you know," The fund is mostly in stocks of large-cap companies that are familiar to kids.
In December, Monetta Family of Mutual Funds launched the Young Investor Fund (MYIFX), a mutual fund targeted at children and teenagers to help them develop an interest in investing.
The Top Holdings are:
Disney
Coca-Cola
McDonald's
Blockbuster
Chipotle Mexican Grill ( don't understand this, because I thought McDonald's own this co.)
Mattel
Kellogg
Dick's Sporting Goods
Hasbro
Wal-mart
Monetta Young Investor has an expense ratio of 1% ( after expense-waiver). To me that is very expensive to teach your kids about money. I'm not too fond of this idea , this mutual fund seem to be low performing. I rather buy individual stocks for my kid and give her a good finance book on investing. I'm not against the Fund, I like the picks/holdings that the fund gives and most kids/teenagers are very familiar with the companies. Just use your own due diligence.
Read more at TheStreet.com
Wednesday, March 7
Mutual Fund for Kids
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4 cool comments:
Have you found a good primer for investing to give a teenager?
At first glance - The companies listed look like they were picked by a kid to begin with - not for the performance necessarily but the brand itself.
Mutual Funds are good for teenagers, as well as individual stocks. The main thing is to get them familiar with investing and to see how money grows.
But some mutual funds are expensive. For as expense ratios. But as I said use your own due diligence
Chipotle was spun out of McDonald's and trades under the symbol CMG. Generally the holdings are solid growth companies offering good long-term prospects. The average expense ratio of mutual funds is 1.43%(Morningstar) which makes this funds expense ratio attractive especially if my kids learn something! That's priceless! Individual stock holdings teach kids nothing and most kids wouldn't be caugth reading a finance book! Why not start with a fund like this? $250 minimum investment,aged-based investment kit,no-load and free college tuition scholarships. What's not to like?
other than the expense ratio, I like the fund
Mutual funds are always easier to start when it comes to investing.
For as individual stocks that takes time and research.
The point is just to get kids interested in investing.
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