Thrasher Funds is bringing something new to an old industry.  With the new GendeX mutual fund that launched this November, Thrasher aims to inspire young adults to start investing through educational outreach and lifestyle style-oriented marketing. 

The fund is marketed towards Generations X,Y and Z, who may not believe they know enough or have enough money to participate in the stock market.  In its own unique way, Thrasher is aiming at making investing feel more accessible and on par with a retail purchase.

James Perkins, founder of Thrasher Funds and manager of the portfolio, has experience in the so-called "old" industry.  After having worked for Alliance Capital and Morgan Stanley's Equity Research Group, Perkins sees younger generations as a group that hasn't been adequately addressed in the past by financial institutions. 

Thrasher's president, Khalid Jones agrees, stating that the most important thing is saving in style.  By that he means that young investors shouldn't feel that they need to give up their current lifestyle; all that is necessary is to create a consistent and habitual savings and investing plan.  In addition, he is a strong proponent of investing in companies you support as a customer.

The walking portfolio
You may have never thought about it this way, but you probably know more than you think about choosing investments.  Thrasher utilizes the concept of the "walking portfolio" to explain to young adults that they are more engaged in the stock market than they may think, and leverages the fact that over two-thirds of today's economy is driven by the consumer and lifestyle supporting companies. 

This tool demonstrates how the stock market is integrated into many aspects of Gen X and Y's lifestyle by examining the clothes you wear, the car you drive, the food you eat, and even the social causes you support.  In taking a closer look, you may be surprised to find out how many publicly traded companies are integral to your lifestyle.

Perkins manages the portfolio around the Demographic Convergence Thesis, which is based on the idea that two different demographics, such as 25-year-old and 45-year-old women, would be consumers of the same product, such as jeans.  While the two demographics generally have a different outlook on finances and spending, these factors translate into market dynamics which can be levered when selecting a portfolio.

Examples of companies that have embodied these characteristics include Ralph Lauren, Armour Holdings and Toyota. Thrasher's portfolio represents a diverse array of industries and market capitalizations with low turnover.

However, many people face a psychological brick wall of fear that keeps them from starting to invest, often because they don't have enough money saved or don't know how to choose investments and start investing.

Thrasher claims the GendeX Fund offers an opportunity to make investing more accessible to a new generation and to educate this demographic about the benefits of investing.  The firm's youth-oriented marketing campaigns and website are inspired by young adult investors for young adult investors.

"We don't necessarily identify with the older man walking down the beach in his rolled up chinos thinking about retirement and his grandchildren, nor is this next generation about to sit down in a financial advisor's office anytime soon," says Thrasher's founder.

What you'll pay
You can take advantage of an early start and the GendeX fund's broad market exposure in well-known companies with a minimum investment of $100.  From there, a $50 automatic investment is required each month to encourage saving until you reach an investment of $2,500.  For those with a steady income who may question their ability to save consistently, this could be a great way to save and invest. 

The fund charges a one percent management fee. A two percent redemption fee is incurred for redeeming your money before a year has passed, again to encourage saving, and investors must pay a monthly account maintenance fee of $2 for accounts below $2,500.

Besides providing a prospective investment to young adults, Thrasher Funds is also trying to offer education.  Some of you may have already stumbled upon Thrasher TV's "Making Money Never Goes Out of Style" promo on YouTube.  If you haven't, you may be amazed by the topics and the presentation methods Perkins and Jones use to help viewers learn about stocks and investing.  Ever since the spring of 2007, they have been filming videos aimed at viewers 18 to 34 years old.  

In one video, for instance, Perkins is walking down the street of Manhattan's edgy SoHo district, passing a series of stores for companies you can "own."  The goal of the video is to show young investors how to make money from their favorite companies and not just for them. You can learn more about Thrasher simply by visiting its websites, including on Facebook and MySpace.

Thrasher Funds Online
www.thrasherfunds.com

www.myspace.com/thrasherfunds

www.youtube.com/thrasherTV