Hello! Sorry for the silly question, not sure why I’m having such a difficult time with this.

When investing in an index fund, can you put any amount in? Say their price is $60 and I want to put in $100. Am I overpaying for one “share” or does it not matter? The minimum is $1 which makes me feel like it’s the latter, but just wanted to confirm. Thanks fam!

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Werewolfdad t1_iufmdlz wrote on October 30, 2022 at 11:19 PM

For mutual funds, yes. For ETFs, no (unless you're buying at a brokerage that allows fractional shares, then it’s also a yes)

discogrande OP t1_iufmtan wrote on October 30, 2022 at 11:22 PM

Appreciate the insight! I’m using Schwab and looking at SWPPX which I believe is mutual

Werewolfdad t1_iufnuce wrote on October 30, 2022 at 11:30 PM

Yeah that’s a mutual fund. Share price is just for record keeping. Doesn’t meant anything for a retail investor

discogrande OP t1_iufogf1 wrote on October 30, 2022 at 11:34 PM

Thanks dude!

zeppo_shemp t1_iug29uq wrote on October 31, 2022 at 1:21 AM

>can you put any amount in?

depends on the company. it's not unusual that companies require a minimum $1000 or $2500 for their funds, and each purchase thereafter needs to be $100 minimum. Fidelity has the lowest minimums for mutual funds IIRC. $0 to start and $10 is the minimum bank transfer.

ETFs are different, as mentioned.

discogrande OP t1_iug2e1n wrote on October 31, 2022 at 1:22 AM

Noted! Thanks friend