Starting investing with a small amount like $250 can seem daunting, especially if you are a beginner. However, with Fidelity, it is easy to get started even with a small investment. Fidelity offers various low-cost mutual funds and ETFs that allow you to invest as little as the minimum initial purchase amount, usually $250-$1000. You can also invest in fractional shares of stocks and ETFs with no minimums. Here are some tips on how to invest $250 with Fidelity in a simple yet effective way.
Choose no-minimum index funds
Fidelity offers a variety of index funds that do not have any minimum investment requirement, meaning you can invest any amount you want. Some good options are Fidelity Zero Total Market Index Fund and Fidelity Zero International Index Fund. These funds track broad market indexes, provide instant diversification, have expense ratios of 0% and require no minimum investment.
Invest in stocks and ETFs fractionally
Another great way to start small with Fidelity is fractional share investing. You can buy fractions of stocks and ETFs commission-free with any dollar amount. This allows you to own pieces of more expensive stocks like Amazon or Google. You can build a diversified portfolio with just $250 this way.
Use target date index funds
Fidelity Freedom Index target date funds are also a good choice for beginner investors. These funds provide instant diversification and automatic rebalancing. The minimum initial investment is low at $1,000. With $250, you can make a start and continue contributing. Choose the target date fund nearest your estimated retirement year.
Try a robo-advisor account
Fidelity Go is the robo-advisor offered by Fidelity. It provides affordable investment management for a 0.35% fee. The minimum is $10 to start. Fidelity Go builds and rebalances a diversified portfolio of low-cost Fidelity mutual funds tailored to your goals. This takes the guesswork out of investing.
Invest regularly with dollar-cost averaging
The key is to keep investing consistently over time, through dollar-cost averaging. Invest $250 now, then set up automatic regular investments of whatever amount you can afford monthly or weekly. This helps average out market volatility. Maximize contributions in tax-advantaged accounts like 401(k)s and IRAs as you can.
With Fidelity’s $0 minimum index funds, fractional share investing, robo-advisor, and automatic investing options, you can start growing your money in the market with just $250. Invest regularly in low-cost, diversified funds tailored to your goals and time horizon.