A well-diversified investment portfolio is a cornerstone of any long-term financial plan. While some investors choose to select individual securities — such as stocks and bonds — and actively monitor each holding, that approach requires time, discipline and ongoing attention. For many investors, that level of involvement simply isn’t practical.
Mutual funds offer a simpler alternative to investors. With a single investment, you gain exposure to a diversified basket of securities managed according to a defined strategy. Even investors who primarily own individual securities often use mutual funds to complement their portfolios, which can potentially reduce volatility and limit dependence on the performance of any single company.
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Traditionally, many well-known mutual funds require minimum initial investments of $3,000 or more. For investors who are just getting started or prefer to invest incrementally, that threshold can be a barrier. The good news: A growing number of high-quality mutual funds have no minimum investment requirement, many of which have delivered competitive long-term results to investors.
Notable Mutual Funds With No Minimum Investment
Here are some notable examples of fund providers that offer mutual funds without initial investment requirements:
| Mutual Fund | Expense Ratio |
| Fidelity Nasdaq Composite Index Fund (ticker: FNCMX) | 0.29% |
| Fidelity 500 Index Fund (FXAIX) | 0.015% |
| Fidelity Zero Total Market Index Fund (FZROX) | 0% |
| Schwab Total Stock Market Index Fund (SWTSX) | 0.03% |
| Schwab International Index Fund (SWISX) | 0.06% |
| Fidelity U.S. Bond Index Fund (FXNAX) | 0.025% |
| Neuberger Small Cap Growth Fund (NSRSX) | 0.81% |
Fidelity Nasdaq Composite Index Fund (FNCMX)
This fund tracks the Nasdaq composite index and offers exposure to large growth-oriented companies in the U.S., particularly in the information technology and communications services sectors.
Expense ratio: 0.29% Five-year annualized return: 13.3%
Fidelity 500 Index Fund (FXAIX)
Designed to track the S&P 500, this fund offers broad exposure to large-cap U.S. companies with one of the lowest expense ratios in the industry.
Expense ratio: 0.015% Five-year annualized return: 14.7%
Fidelity Zero Total Market Index Fund (FZROX)
Passively managed with a 0% expense ratio, this fund attempts to mirror the performance of the U.S. equity market, including large-, mid- and small-cap stocks.
Expense ratio: 0% Five-year annualized return: 13.5%
Schwab Total Stock Market Index Fund (SWTSX)
Similar to FZROX, this fund offers broad exposure to the entire U.S. public equity market, including large-, mid- and small-cap stocks, at a very low cost.
Expense ratio: 0.03% Five-year annualized return: 13.2%
Schwab International Index Fund (SWISX)
This fund tracks the MSCI EAFE Index and provides diversified exposure to developed international markets outside the U.S.
Expense ratio: 0.06% Five-year annualized return: 10%
Fidelity U.S. Bond Index Fund (FXNAX)
This fund focuses on broad access to fixed-income securities in the U.S., with the Bloomberg U.S. Aggregate Bond Index as its primary benchmark.
Expense ratio: 0.025% Five-year annualized performance: -0.3%
Neuberger Small Cap Growth Fund (NSRSX)
NSRSX is an actively managed fund that takes a bottom-up, research-driven approach relative to small-cap growth companies in the U.S. publicly traded market.
Expense ratio: 0.81% Five-year annualized return: 4.6%
[Read: The 7 Best Fidelity Mutual Funds to Buy and Hold]
Understanding Portfolio Concentration
Some index-based funds, particularly those tracking the Nasdaq, have significant exposure to a small group of dominant companies. For example, FNCMX has meaningful allocations to large technology firms such as Apple Inc. (AAPL), Nvidia Corp. (NVDA), Microsoft Corp. (MSFT), Amazon.com Inc. (AMZN), Meta Platforms Inc. (META) and Alphabet Inc. (GOOG, GOOGL). Collectively, U.S.-based companies make up the vast majority of the fund’s assets.
This concentration can drive strong returns during favorable market cycles, but it also highlights the importance of understanding what you own — and how each fund fits within your broader portfolio.
What to Consider Before Buying a Mutual Fund
Strong returns alone shouldn’t be the deciding factor when choosing a mutual fund, though. Before investing, consider a range of qualities, including:
— Expense ratios, which directly impact long-term returns.
— Long-term performance rather than short-term results.
— Investment focus, such as growth-versus-value or domestic-versus-international.
— Portfolio fit, including how the fund complements existing holdings.
— Management tenure, preferably at least three years with the particular fund.
Takeaway
Mutual funds with no minimum investment requirement can be an effective way to build diversification, manage risk and gain market exposure — especially for investors who want flexibility or prefer to invest gradually. While accessibility is important, the best results come from selecting funds that align with your goals, time horizon and overall asset allocation strategy.
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7 of the Best Mutual Funds With No Minimum Investment originally appeared on usnews.com
Update 01/29/26: This story was published at an earlier date and has been updated with new information.
