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February 13, 2000
While researching different mutual funds, I came across a great program to help you establish a regular investing program – the Warburg Pincus Funds "SaveMyMoney" (click here http://www.warburg.com/smm/savemymoney.htm). It offers a good selection of funds that have different levels of risk and potential return so it fits any type of investor – from beginner to advanced. It's a simple and hassle-free way to start building your investment portfolio now!
Probably one of the biggest hurdles a beginning investor faces is accumulating the money for the initial investment. Most mutual funds require a minimum of $1,000 to $2,500 to start with. Sometimes it's too overwhelming to put together $1,000 with credit card bills, car payments and rent looming over you every month. Each week you say to yourself: "I'm going start saving my money and open up an investment account". But for some reason you always fall a little short of $1,000 and never seem to get around to opening that investment account, even though you know how important it is to start saving for retirement.
Normally these Warburg Pincus Funds require either a $1,000 or $2,500 minimum initial investment, but through the SaveMyMoney program you can start off with as little as $250. It's a great way to invest in a solid performing mutual fund that usually requires a much higher initial investment. This low minimum investment allows you to start investing sooner rather than later..or worse yet never.
Another advantage to the program is the $50 additional monthly investment. Although we all have good intentions of adding to our investment, it's so easy to forget to transfer the money each month or each quarter. With a SaveMyMoney account, $50 will be automatically deducted each month from your bank account and invested into the mutual fund of your choice. This is a simple and efficient way to insure periodic contribution to help your investments grow. Because successful investing doesn't end at your initial investment, it's equally as important to keep adding to your account. The SaveMyMoney program will help keep you on track.
The SaveMyMoney program offers four different mutual fund choices with reasonable operating expenses ranging from a low of .55% to a high of 1.35%. If you have a long-term investment horizon and can stomach some volatility, check out the Capital Appreciation Fund (symbol CUCAX). It is a Morningstar five star rated fund that typically invests in large cap growth companies. As of December 31, 1999, the year to date return was 48.25%. The five year average annual return was 33.06%. If you prefer investing in stocks of companies believed to be undervalued take a look at the Value Fund (symbol RBEGX). Less aggressive than the Capital Appreciation Fund it generated a year to date return of 5.72% at December 31, 1999 and reflected a five year average annual return of 13.04%. For more conservative investors looking for a blend of equities (stocks) and fixed income securities, the Balance Fund may be your "cup of tea". As of December 31, 1999, the year to date return was 13.89% and the five year average annual return was 13.89%. The SaveMyMoney program even offers a mutual fund for short-term investors – the Cash Reserve Fund. This money market fund sports a current yield of around 5.18%.
In the so called "investment game", the advantage is always given to the early investor – the earlier the better. Get in the game with Warburg Pincus's SaveMyMoney program.
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