Investing question?

Question

So i have a useable 1000 a month that i want to invest but dont know how? i will have this for about 4 years. what is going to grow the fastest without that much risk. somewone told me the s&p 500 with like 11% average intrest a year. any adice woulld be great

Answer 1

If you just want to do the S&P500, then look to invest in SPY--it is the symbol for a trust fund, an Exchange Traded Fund (ETF) that holds the stocks in the S&P500. If you want to do the Dow Jones Industrial averages stocks, there is an ETF, symbol DIA. If you wanted to get the top 100 companies on the New York Stock Exchange, by market capitalization, look for symbol NY, an ETF by Ishares. If you want to buy the top dividend paying stocks, there is an ishares ETF, DVY. If you wanted to buy into the top nanotechnology companies, the powershares ETF is PXN.

Unless you are buying an individual stock, ETFs are a practical way to buy a bunch. You have one commission charge to buy like common shares, and the expense ratios are usually very low, last I saw DVY was at something like 0.20 percent--much better than mutual funds.

If you go to businessweek.com and look under their interactive S&P500 score card, you can sort through and find specific companies and only buy those you are interested in, say just those making a profit. That way you only get the good stuff, by whatever your standard is, without buying the junk (although junk sometimes fixes whatever was wrong and recovers the next year).