I have $2500 how best can i invest it and get a Good ROI (RETURN ON INVESTMENT)?

Answer 1

Higher risk means higher reward, but also a higher chance of failing. There's no risk with bank CD's, but also a low interest rate. As risk rises, so does the ROI.

You should learn how to invest by checking out some educational books, like anything written by the Motley Fool guys (www.fool.com). You can also learn through an investment club, and you can invest your money $50 or $100 at a time with the club (www.betterinvesting.org). You could also research a couple of stocks and split your money into two or three and see how you do. You should invest in things you understand, after learning how it works.

Frankly, for a good ROI, I like ExxonMobil. I understand what they sell and how it works, and it always seems to go up, and it pays a dividend. But that works for me, you should make your own choices.

Answer 2

You may want to reconsider savings accounts, Money Market Funds, or Certificates of Deposit (CD's) afterall, because, contrary to what another poster said, you ARE beating inflation.... Inflation is only running at about 2 to 3 percent annually, so, with a one year CD paying over 5 percent annually (actually, some banks are paying nearly 5.5 percent for a one-year CD), you are not doing too bad.

Sure, you're not beating inflation by much, but what's more important is that you get a return OF your investment as well as a return ON your investment.

You should realize, that if you want better than 5 or 5 and a half percent guaranteed return (I say "guaranteed," because most Bank deposits, in-bank Money Market Accounts and Bank CD's carry FDIC insurance which covers your principal up to 100,000 dollars) you will have to take on more risk, by investing in things such as stocks, bonds, ETF's, mutual funds, real estate, commodities and such - Which Have NO Insurance or Guarantees!!!.

If you don't know much about those riskier things like stocks, bonds, mutual funds, etc., I would definitely park your money in a CD for a while, say 6 months to a year, and let it sit there safely earning good interest while you educate yourself on the other market opportunites that are out there. You will be happy to see ALL of your money returned to you at the end of the deposit term, plus some nice interest to boot.

Good night, and good luck. Col. Kurtz.

Answer 3

The best way of getting a good return on investment, is investing in an investment vehicle that you know very well. don't invest in savings. Savings can never bring good ROIs because the rate of inflation always eats away the interest offered in savings accounts. In my opinion, examples of savings are mone market accounts, CDs/term deposit accounts and mutual funds. Find something that will bring you greater percentage of Return of Investment higher than inflation rate.

Answer 4

With that amount of money and for the long term, I would say just get an index fund with a low management expense ratio (<1%). I understand 'Vanguard' is a good fund for Americans.
An Index Fund merely tries to copy the return of the larger index by purchasing representative stocks. That's why they don't charge as much to manage it.

Answer 5

That would entirely depend on your risk tolerance. For a completely safe vehicle, try eloan.com's online savings account. Your money isn't locked like a cd would be and you get decent rates.

Answer 6

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Answer 7

Open a brokerage account at TD Ameritrade and invest in DIA.

Answer 8

Try a ROTH IRA.