Grduation gift of mutual funds or alike..?

Question

I have 200/- dollar for my nephew for graduation gift. I want him to learn to save. What can I do with this money, can I buy him some mutual funds or something like this so they learn to save and invest ...

Answer 1

That is an excellent idea you have.  Unfortunately, $200 is not sufficient to begin a purchase of most mutual funds.  About the minimum is $500.  If you go to a stock broker, there are some mutual funds that they will sell you that have a minimum purchase amount that will fall within this range.  But for $200 they may not be too anxious to talk to you.  Also there will be a sales charge associated with the purchase of these type funds.  

I do however have an option for you.  One that will work to your satisfaction and accomplish the task you wish to accomplish.  There are certain funds called closed end funds that sell their funds like other stocks are sold--on the stock market.  One of these funds is call General American Investors with a ticker GAM.  What makes this fund ideal for you is first of all it has an outstanding performance record over the long years of its existance and second you can buy the shares directly through American Stock Transfer and Trust Company and buy exactly $200.00 worth with minimal fees for the purchase.  $2.50 plus 0.10 per share.

First of all here is a link to GAM web site.

http://www.generalamericaninvestors.com/...

2nd here is a link to an explanation of how to purchase the shares.

http://www.generalamericaninvestors.com/...

To read the booklet about the plan, click on the green "booklet describing the plan".  To print out an enrollment form click on the green "enrollment application"

PS. I have owned this fund since 1992.

Answer 2

how about order qdolls?

you can visit this link to see detail!

Special Gift, Unique Gift

http://www.qdolls.com

Answer 3

Not mutual funds.  Better a savings bond.