Schwab Lowers Minimum Initial Investment on Mutual Fund OneSource Platform


Charles Schwab 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. Previously, initial investment minimums were set at $2,500, with subsequent minimums set at $500.

According to Schwab, it now offers the largest selection of funds available at a $100 minimum.

The Schwab Mutual Fund OneSource platform now offers more than 4,700 funds from over 500 companies.

In the company’s press release announcing the change, Schwab highlighted these advantages of lower minimum initial investment amounts:

  • By committing a smaller amount, they can help to alleviate investor concerns about market timing, especially in volatile markets
  • They can make it easier to branch out beyond a single asset-allocation fund solution
  • They can provide exposure to areas of the market that were previously inaccessible with smaller investment amounts
  • They can help investors who want to start – or continue – an Automatic Investment Plan. For example, someone could start with a $100 initial investment and continue with regular monthly investments of $100. Committing a smaller amount initially makes it easier to initiate a dollar-cost-averaging approach.

Mutual funds represent an easy way for investors to achieve diversification in their portfolios. Here at AAII, we offer an array of resources to help mutual fund investors achieve their financial goals:

As an AAII member, you receive AAII’s annual guides to the top mutual funds and ETFs, along with a number of other valuable member benefits. If you are not an AAII member and want to become an effective manager of your own assets, simply take a risk-free 30-day Trial AAII Membership.


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