Mutual Fund Problems for Young Adults 

Mutual fund accounts that do not maintain a balance of  $1,000 cost the mutual fund company more money to maintain than they generate. This is why all mutual fund companies request an initial investment of $500-$1,000 to establish an account. In addition, the industry has determined that subsequent minimum investments less than $50 are not cost effective. Therefore, subsequent minimum invests are almost always $50 to $100. Both the initial investment and the subsequent minimum investment act as “barriers of entry” to those who cannot afford them. INVESCO understands this and they are willing to address the problem by waiving the following:

• Initial investment (normally $500-$10,000)

• Reduce the subsequent minimum investment from $50 to $25

• Custodial fee

Mutual funds that waive the initial investment and reduce the subsequent minimum investment are lifesavers for young adults.

Most mutual funds are not lifesavers. They are for-profit organizations managed by shareholders that want an immediate return on their investment. Which means very few funds will waive the initial investment and reduce the subsequent minimum investment because it will cut into their return. It is them against you.

Invesco has knocked down the barriers that normally prevent young adults from investing and taking advantage of their greatest asset—time. To receive these benefits, simply write the following advisor code on the top of your Invesco application: 94238-1-1.

Application forms maybe obtained directly from Invesco 1-800-6-invesco (1-800-646-8372) or online at www.invescofunds.com. Consider investing in one of their funds that have gained at least 18% annually over the last 18 to 35 years. For example, the following Invesco funds have performed very well over the last 18 years as of March 2002:

• Health Sciences (23.7%, 18 year)

• Leisure (20.70%, 18 year)

Financial Services (19.47%, 16 year) has also done well, however, it falls a couple of years short of the 18 year rule.