How to Invest in Big Corporations With Little Money

Information on many funds and companies can be found online or in the financial section of your paper.
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When you're shopping for shoes or kitchen appliances, it's not uncommon to be told by a well-meaning friend that "the best is usually the cheapest." What that means is it's worthwhile paying more to get the best available, because you'll benefit more in the long run. That strategy can be tough to apply to your investments because shares in some of the biggest and most reliable corporations are prohibitively expensive. Fortunately, mutual funds provide a way to invest in these giant companies with relatively little money.

Step 1

Review the portfolios and past performance of several large-cap mutual funds. A number of free listings are available online, or you can subscribe to a service such as Morningstar.

Step 2

Select one or more funds that invest in the companies you want to own. Bear in mind that their investment mix will change over time, as companies' fortunes rise and fall. Still, as long as the fund's management and objectives remain consistent, the individual companies won't matter too much.

Step 3

Contact the fund company for the names of brokerages or dealers in your area, or call local brokerages until you find one that handles the funds you've chosen.

Step 4

Determine how much you can consistently budget for your investment, and set up a pre-approved monthly payment for that amount. Your monthly payments will buy units in the fund, giving you an ownership stake in a broadly diversified group of large corporations.

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