Have an extra $100? Congratulations, you now have enough to invest in a Charles Schwab mutual fund. How's that for a pre-Thanksgiving door buster?
This week the San Francisco-based company announced it has lowered the minimum initial investment for most mutual funds on its zero-transaction-fee Mutual Fund OneSource platform to $100, dropping the minimum for subsequent investments to $1.
Doug Hanson, vice president at Charles Schwab and head of the company’s third-party mutual fund platforms, said it was the first time the company has changed its mutual fund minimums since the 1980s. Previously, initial investment minimums were set at $2,500, with subsequent minimums set at $500.
The move to scale down minimum investments follows the introduction of Schwab Intelligent Portfolios, a client-facing digital advice platform launched earlier this year. With the announcement, the company appears prepared to offer mutual funds through that platform.
Schwab now offers the largest selection of funds available at a $100 minimum, allowing investors an easier path toward long-term savings and simplified options for diversification, the company said.
The Schwab Mutual Fund OneSource platform now offers more than 4,700 funds from over 500 companies.