Fractional Shares Are A Game Changer

Robinhood’s fractional shares has solved a long term investing problem for me. What was the problem? How to invest in pricey stocks with limited financial resources. During college, I would contribute $50 every month to a mutual fund that I had with USAA at the time. This worked well because the mutual fund allowed me to purchase any dollar amount worth of shares.

Although I was contributing to my mutual fund, I also wanted to invest in individual stocks such as Google. Google’s share price in 2015 was over $700. In order to invest in Google, I would have had to cease my $50 monthly contribution to my mutual fund for 14 months in order to have enough money to purchase ONE share in Google. This was simply not practical and I wondered why there was no way to invest $50 into Google as I did with my mutual fund.

Fast forward to the present and finally, this feature exists. It’s called fractional shares and Robinhood recently introduced this new feature.

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