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Hi folks. I am looking for a good performing (growth or income) fund with a minimum initial investment under $1000. Can anyone help? Thanks!

Hi Karen,

The problem with generalizing about the minimum investment price is that it can vary from broker to broker, or if you buy direct from the fund company, or from some other source. The prices cited on Morningstar or by S&P may not be the price at your broker.

So I'll just mention a couple that you might consider, which may or may not meet your personal criteria for "good performing," but which I might consider buying -- and which cost only $1000 at my main broker.

You've had a Total Market index fund suggested to you already; by coincidence, I just recently came across the Wilshire 5000 Index fund (WFIVX), which is also essentially a "total market" fund, and which has a $1000 buy-in.

In other messages I've mentioned TAREX, a good-performing Real Estate fund (not technically a REIT fund), which has done pretty well and meets the $1000 criterion. That's a specialized fund, though, so if it's the only fund you buy, it might be a bit of a gamble.

I was screening some big-cap funds recently, and although I haven't dug into them very deeply yet, I came across UMBIX and MAVFX. Unfortunately, there is a sort of cloud hanging over the company running UMBIX, and MAVFX comes from a smaller firm that just recently backed out of a deal to merge with Strong (since Strong is also under a cloud of its own).

However, I kinda think that there will be clouds over nearly everybody sooner or later. So perhaps we should just make money if the funds are still being run well, which seems to be the case. Up to the individual.

Also more or less a big-cap fund, and mentioned here in another thread, is THPGX, the Thompson Plumb Growth Fund. Good long term track record, and doing much better now after an off year in 2002.

Frankly, if I were buying just one fund for now, I would probably be learning toward a small or midcap fund, but I haven't looked at them recently, so I can't tell you which ones have a $1000 buy-in. You should be able to run screens like that at almost any broker, and at many websites (like Morningstar, etc.).

Incidentally... if you are buying within an IRA, the initial purchase prices are usually quite different. You should mention that in case it's an issue. Meanwhile, hope this helps!
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