Smaller is not better, at least when it comes to mutual funds, still there are still a few funds that let in those who aren't willng to pay. In todays USA Today, John Waggoner says that the funds still willing to take a paltry sum for entrance are, the American Funds Growth Fund of America, will let you start with $250, Davis New York Venture will get you going with an initial $1,000 and, Van Kampen Comstock will take any amount to start.

Most of the funds that do not require large initial deposits are broker sold carrying a load of 5.75% of the initial investment. A percentage that large taken from a small sum does not a rich man make. 

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