Mutual Funds: The Gifts That Keep on Giving

Like a subscription to Sports Illustrated, investments are the gift that keeps on giving.

If you're thinking of giving somebody shares of a mutual fund you won't get a free swimsuit issue, but you might wind up with some nice tax breaks.

The tax advantages of giving shares of mutual funds have made them popular gifts, especially for children. And many mutual fund companies encourage such giving by lowering their initial investment requirements for accounts opened as gifts. T. Rowe Price, for example, normally requires a $2,500 minimum to open a mutual fund account, but reduces that to $1,000 for a gift account. ...