How to Get Started

Once you've made your initial purchase of a mutual fund, or you have an open buy order for a new mutual fund position, you can select how much, and how often, you'd like to automatically invest. You can also select a mutual fund that you already own and establish an automatic sell.

There are 3 Steps to Enroll in an Automatic Investment Plan (AIP):

Step 1. Add an AIP to a mutual fund

Option A. Enroll a current mutual fund holding in an AIP
The main table lists the mutual funds in your account that are available for enrollment in an AIP. Click on the "Enroll" link next to the fund to get started.

Option B. Buy a new mutual fund, then set up an AIP
This option is applicable if you don't yet own the mutual fund where you'd like to add an AIP.
So, if you do not already own a mutual fund, you must first make an initial investment in an eligible¹ mutual fund. The following resources may help you to select the mutual fund that's right for you:

• Schwab Mutual Fund OneSource Select List® is a compilation of our experts' top mutual funds picks for each quarter, all of which are no load, no transaction fee funds available through Schwab Mutual Fund OneSource® that offer AIP.¹
• Research Tools/Mutual Funds can help you find mutual funds by category, ratings, and more.
• Once you've made a decision and entered your mutual fund buy order, you may return to the main table to enroll the fund in an AIP.

Step 2. Decide how much to invest and how often
First, choose your AIP investment amount, which may be as little as $1 per AIP transaction. Then, select how often you'd like to automatically purchase or sell: Weekly, Every Other Week, Twice a month, Monthly, Every Three months, Every Six months, Annual.

Second, AIP isn't limited to purchases as you can establish an automated sell of the mutual already owned in the account.

Step 3. Provide funding through online transfers
Indicate how you will fund your AIP investments:

• Set up a recurring online transfer from an external account. This service allows you to transfer money from an external bank account, for example, to the cash position in your Schwab account. It's best to schedule the transfer a couple of days prior to the date of your AIP transaction so that the funds are available in your Schwab account on the date of the AIP transaction.
• Use the cash available in your existing account. In this case, there is nothing more you need to do. Please ensure there is a balance in the cash position of the Schwab account you designate to fund your AIP investment.
• Set up Direct Deposit.

Please note: If sufficient funds are not available in your Schwab account on the date of the scheduled AIP transaction, no investment will be made for that period.²

All AIP transactions are shown online and on your monthly account statement—you will not receive a separate trade confirmation for each investment. You can change, cancel, or pause your instructions at any time online.

Investors should consider carefully information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling Schwab at 800-435-4000. Please read the prospectus carefully before investing.

1. Eligible Funds: Most mutual funds available at Schwab will be eligible for automatic investment plans, except for mutual funds that do not pay Schwab for shareholder, administrative, and recordkeeping services on fund shares held by self-directed retail clients. A mutual fund may not be eligible for AIP if it is not open to new purchases or available to all investors. Use the Fund Screener tool to view a particular fund's availability at Schwab. For questions regarding a fund's eligibility for automatic investing, call 800-435-4000.

Trades in no-load mutual funds available through the Mutual Fund OneSource® service (including Schwab Funds) as well as certain other funds, are available without transaction fees. For each of these trade orders placed through a broker, a $25 service charge applies. Schwab reserves the right to change the funds we make available without transaction fees and to reinstate fees on any funds. Funds are also subject to management fees and expenses.

Schwab's short-term redemption fee of $49.95 will be charged on redemption of funds purchased through Schwab's Mutual Fund OneSource® service (and certain other funds with no transaction fee) and held for 90 days or less. Shares purchased through AIP are not subject to Schwab's short-term redemption fee. Schwab reserves the right to exempt certain funds from this fee, including Schwab Funds®, which may charge a separate redemption fee, and funds that accommodate short-term trading.

Schwab receives remuneration from fund companies, and/or their affiliates, in the Mutual Fund OneSource® service for record keeping, shareholder services, and other administrative services.

2. Cash up front is required for Automatic Investment Plan trades. If there is no money in the account on the day of the Automatic Investment Plan transaction, no trade will be placed (unless there is sufficient margin cash available). Automatic Investment Plan Mutual Fund Investing instructions will remain in effect until you delete them. If you elect to fund your AIP purchases through direct deposit or electronic funds transfer from a bank or other financial institution, consider selected a transfer date a business day or two prior to the scheduled AIP purchase date.

Schwab's Automatic Investment Plan does not ensure a profit or protect against loss in declining markets. Because AIP and dollar-cost averaging involve continuous investment in securities regardless of fluctuating price levels, investors should consider their financial ability to continue purchases through periods of low price levels.

© 2018 Charles Schwab & Co., Inc. (Schwab) All rights reserved. Member SIPC.