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THESE DAYS CONSUMERS are dealing with skyrocketing prices for everything from a gallon of gas to a gallon of milk. In many cases, they are also confronting escalating mortgage payments and higher electricity costs. It's enough to put a significant dent in a typical household's budget and make some people consider cutting back on saving for retirement, too.

We completely understand that predicament. Every week we write about mutual funds that require thousands of dollars as an initial investment. That's tough to part with when there are more pressing needs, like putting food on the table or keeping a roof over your family's head. During times like these putting money away for a date that is 20 or 30 years away is far down on the list of things to do.

But this week's fund screen should prove easier on the wallet. It focuses on funds with an initial minimum investment of no more than $500, one-tenth of our usual cut-off. We started with a universe of 2,966 offerings. That's about 15% of the funds in our Lipper database. We quickly got down to 285 by knocking out load funds from contention. Finally, once we added in our usual performance and expense criteria we were left with nine. They're on the table below.

As you can see from the list, there is quite an eclectic collection of funds to choose from, including index funds, a socially responsible offering and a top growth fund. And that's what makes these funds intriguing. Not only are they cheap and decent starter kits, but they can also help sophisticated investors fill in the gaps in their portfolios a few bucks at a time. (We nixed target date, asset allocation and fund-of-funds since we devote other screens to them.)

A low minimum, though, shouldn't be the sole reason for purchasing a fund. We wouldn't put it past a fund company to drop the barrier to entry simply to attract assets and the lucrative fees that come with that money. That's not a situation designed with shareholders in mind.

In fact, a super-sized investment may actually be the smarter play. Fidelity and Vanguard charge investors some of the lowest annual fees in the industry if they pony up at least $100,000. That can save thousands of dollars over the life of a retirement account. You may also be able to get around a minimum purchase if you are investing in a certain type of account or using a big brokerage house. Always check the prospectus or search online.

Schwab is a fund family that often shows up on this screen. So, too, do Amana, Homestead and Hodges funds. Amana Growth, Amana Income, Homestead Value, and the Hodges fund are all well-regarded, top-performing funds that have tiny minimums. We also like them because they have managers at the helm who have been around for years, their annual fees are low and, since they are run by smaller investment firms, you may get a little more hand-holding in a tough economic climate.

The Criteria

The equity funds on our list require a minimum investment under $500. They also charge less than 1.5% in annual expenses and are open to new money. In addition, they have performance track records that put them in the top 40% of their peer groups. As usual, we didn't include load funds on this screen. We also didn't include target date, asset allocation or fund-of-funds since we review these funds at other times during the year.

Also See:

• Hot in the Heartland

• The Buzz Among Fund Managers

• First Half of 2008 Yields Losers, a Few Winners

See the Fund Screen Table

Data as of July 2, 2008.

Source: Lipper

Low-Minimum Fund Screen Recipe

• Hot in the Heartland

• The Buzz Among Fund Managers

• First Half of 2008 Yields Losers, a Few Winners

* The screen does no include fixed income, target date, asset allocation of fund-of-funds