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I want to know if there are any funds (in US), that let you put some money in per period, like weekly or monthly. I know you can put money into 401k per paycheck. I want something similar without the restrictions of 401k. What are these funds called? Any good suggestions.

I got this idea from (Systematic Investment Plan) SIPs in emerging countries like India. Are there any equivalents in US?

Thanks!


Thanks JB King,

Google for Automatic Investment Plan. You can find everything about it through your broker's website.

Basically, how this works? 1. Lets say I have a fidelity account. 2. I purchase an initial investment in one of the specified commission-free mutual fund with minimum required investment. 3. Then I can enroll in automatic investment every month with a specified amount (any amount, no limits) to put money in that fund.

Now, lets say, you want to diversify. 1. You have to purchase another commission free fund with the minimum required investment. 2. Then you can create another rule to add money into it every month.

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Almost any mutual fund will allow it. They in fact like this way of investing. I have been making monthly contributions to IRA funds, Roth IRA funds and non-retirement funds for many years.

Either the fund can pull money from your bank, or your bank can send the funds. Some companies will even allow multiple direct deposits, including to mutual funds.

  • I want something different than IRA / 401k. Automatic investment plan seems to do it. – Nick Nov 27 '14 at 7:42
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    @Nick Almost every brokerage/investment website will allow (even encourage) you to do this, whether they call it an automatic investment plan or not. So you shouldn't be asking for a "fund" that does this -- a fund is just a particular batch of money invested in a particular thing; rather it is the institution (who runs the funds) that makes the decisions about allowing scheduled investments. – dg99 Nov 28 '14 at 20:49
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If you're looking for a more active investment plan, maybe you should consider CEF's (closed end funds). They operate similar to mutual funds except trade daily, though usually with lower volume. Morningstar.com is a great source for both traditional funds and CEFs.

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    This doesn't answer the question asked. – Dilip Sarwate Dec 22 '14 at 14:33

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