You're never too young to start investing, according to Bob Bacarella, president of Monetta Mutual Funds.

Last December, Monetta launched its Young Investors Fund, targeted to kids as young as five years old to help them save for college or a big future expenditure, while teaching them the basic principles of investing.

When a child becomes a shareholder they are send a packet of financial games and CDs that teach them about investing. One of the games included in the packet, says Bacarella, is one that encourages a child to collect coins.

"If a child can first learn how to collect, they can then learn how to invest," Bacarella tells the MFWire.

Monetta also offers investing-related contests and games on their website. One game lets kids pick stocks and then watch how their investments grow, Bacarella then gives comments on which portfolios are doing the best.

Kids can track their own investments with statements they receive each month which Monetta is working to specialize to make them more kid friendly.

Even though the fund is designed for kids, performance is still a major concern.

"It was very important to me to offer kids a fund without sacrificing performance," Bacarella says.

The fund invests in ETFs and individual stocks that kids will recognize like McDonalds, Mattel, Chipotle, and Starbucks.

"We buy investments that kids can relate to, so we can give kids a feeling of ownership," Bacarella says.

The $250 minimum investment is still a little steep for children so Monetta markets the fund to parents who want their kids to get a head start on financial responsibility.

The young investors fund can be used as a compliment to the 529 plan but with an added bonus, Bacarella says, If the child is saving for college, Monetta will match their investment in tuition credits that can be used by any family member.

The fund's expense ratio is capped at 1 percent. "When investing with Monetta, kids are learning a life-skill without even realizing it," Bacarella says.  

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