Submitted by discogrande t3_yhti7x in personalfinance

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

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

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discogrande OP t1_iufmtan wrote

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

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Werewolfdad t1_iufnuce wrote

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

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zeppo_shemp t1_iug29uq wrote

>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.

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