Best Mutual Funds For Young Investors 2017

Mutual Funds That Make Sense For Young Investors

Let’s admit it, investing is still scary for a large segment of the population, not the least of which are young people. They still remember vividly the Great Recession of 2008-2009. It was a time when stocks were creating and mutual funds for young investors were the last thing on anyone’s mind. However, the reality now is much different and some people are finally starting to approach the stock market once again. They may be doing so with a timid step, but they are starting to get back to at least looking into investing again.

The time is now for young people to invest. It doesn’t much matter if the market is too high or too low right now, it is almost certainly a lot lower than it will be when these young folks are ready to retire. As such, they should be putting aside some money for themselves and their future. The young investor who gets started today can see a huge accumulation of their money over time if they give it enough care and attention.

Word Mutual Fund on mini chalkboard and coin in the jar with blurred background of books, green plant and clock

With all of this being said, one type of mutual fund recommended for young people is a total market index fund.¬†Kiplinger¬†recommends the Vanguard Total Stock Market (VTSMX) as the right choice for today’s young person. This is an incredibly low fee fund that simply mimics the movement of the market overall as a whole. You can so that it is low on the creativity scale, but it is often much more stable than some of the other funds out there. Young people who still fear the market in some ways could do a lot worse than to have a fund that is stable and predictable.

Some might suggest that a young investor should be a little more adventurous with their investments since they are young and have time to recover any losses that they might sustain in the early days. That is a fair enough argument and probably appeals greatly to some young investors who want something a little more exciting to talk about when the subject of investing comes up. For those type of people perhaps the Vanguard Explorer (VEXPX) is the right place to turn to.

The Balance recommends this fund among others because it is something that can be a little more aggressive for those who are not fans of just sitting around and passively watching their money grow. Those who crave the action of the stock market can surely appreciate this type of fund.

Vanguard is recommended for both of these types of funds simply because they are the lowest on fees. Fees seem like a small thing that can be an afterthought for a lot of people, but the reality is that those fees can quickly eat up a big portion of one’s investment dollar if they are not careful. Therefore, it is advisable to look for funds that keep the fees low. Vanguard does that and thus earns itself the reputation of being a great place for people of any age to invest.