Denver-based Berger Funds is bucking the trend of raising minimum investments and courting higher-net worth individuals by introducing the Berger Funds' plan. The new plan lowers the minimum investment necessary for beginning investors.

It will require a $100 to start and $100 per month through automatic monthly investments and is available for any type of account opened in any Berger Fund including money markets and both Roth and traditional IRA's. Once an investor's account grows to $2000, the automatic investment can be canceled with no fees, but prior to that an annual fee of $25 is imposed.

"At Berger we want to make investing easy and affordable. That's why we're very pleased to offer investors a choice that can help them get started and keep their money growing. This is great way for beginning investors to get started or for more seasoned investors to expand their investments as well as for parents and grandparents to give the kids a head start on a college fund," said Berger executive vice president Jack Thompson.

Berger is touting the plan as an alternative way for new investors to start an account, especially if spooked by today's higher investment minimums. The plan's automatic investments take advantage of dollar-cost averaging, which can be an attractive way to invest when starting out.

 Berger Associates, Inc., the Funds' investment advisor, will, as necessary, underwrite additional expenses created by the new low minimum plan to mitigate the impact, if any, on fund expenses. "It was important to us to find a way to open the door to small investors, yet avoid a significant impact on expenses for other shareholders," Thompson said. "This plan allows us to achieve both of those goals."

 

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