Where should I invest my $2,000.
should I invest in a mutual fund or stocks.
Please tell me which mutual fund and a safe one.
Once I learn the game, I will invest more :)
2007-02-01 04:45:14 · 14 answers · asked by goose 1 in Business & Finance ➔ Investing
It depends on where your other saved money is. You should have diverse savings, i.e. some in a Money Market, some in Mutual Funds, some in bonds, etc. Some that are conservative, some that are more volatile, but with potential for a higher return. It also depends on your age, and when you may need the money.
Go to your local library and get a book on personal finances. Suze Orman's 9 Steps to Financial Freedom is great. Most of the books at the public library are written for the average Joe, not financial wizards, so they are easy to understand.
Also, try the Motley Fool website. Good advice, and it's free, but you have to register.
Individuals with small amounts of money should NEVER buy single stocks. It is too risky. Mutual Funds are always a better way to go if your name isn't Gates, Buffet, Rockefeller, etc.
2007-02-01 04:54:18 · answer #1 · answered by suzykew70 5 · 0⤊ 0⤋
Call up Fidelity or Merrill Lynch or T. RowePrice or even your own bank - don't listen to some Yahoo?
My recommendation, assuming your young. Invest in a mutual fund that is index based (S&P 500) and just let it ride. I put a $1000 into a Fidelity fund in the 80s and haven't touched it since, it's now worth close to $15K.
Other advise - don't watch it closely. Just look at the statement once a year or so. The short term fluctuations can be scary.
I invested $5K in an Ameritrade account in the 90s, just to try my hand at being a trader. It went the wrong direction for a long time, I've finally pulled it up over $6K, but it might be worth more after 10 years if I'd just put it in my Fidelity account. Trading individual stocks is not for amateurs. To make big money you either have to start with big money, get illegal insider info or get very lucky. The mutual funds are the big investors on Wall Street, hence they start with big money.
Think of trading individual stocks as being similar to betting in Vegas. You probably won't lose it all, but it might feel like it if you invest $2K in a stock that goes down and stays down. You get emotionally attached which is a bad thing.
2007-02-01 05:03:58 · answer #2 · answered by Fester Frump 7 · 1⤊ 0⤋
since, you don't know exactly what you want I would open a trading account online, Etrade, Ameritrade, Scottrade... and put your money in the money market, it is like a savings account but with way better interest. First I would start with a stock of something you are interested in, don't buy something "just because", you want it to be something you know about and follow the trends of so that you can be prepared for any changes in the company. That way you can further your moves, whether to sell or buy more. Keep it easy, don't use all your money at first, let some earn interest and start slow... best to see how much time you will be able to allow, if you can't give much time for research best to not blow your money, plus if you do it online, it is much cheaper to make trades and it is always accessable. Most investing should be for the long term, mutual funds will usually take longer to earn on but stocks can be more volatile, just make sure you read up on anything before buying. Most online brokers have history and news of each company's information, they can be very helpfull.
2007-02-01 07:03:15 · answer #3 · answered by shonb 2 · 0⤊ 0⤋
I have invested in money market savings accounts online. That is a good place to start and then you can learn about other investments while your money is earning interest (5%) FDIC insured. I also have an account at Scottrade. You pay 7 dollars for every trade. You could then buy mutual funds and earn a higher return on your investment.
2007-02-01 05:08:00 · answer #4 · answered by en tu cabeza 4 · 0⤊ 0⤋
A money market mutual fund will earn you about 4-10% depending on the fund, that is a good place to start.
GICs are safe and gaurenteed, but they only give 3-4%, also a good place to start.
2007-02-01 04:48:04 · answer #5 · answered by Anonymous · 0⤊ 0⤋
In general mutual funds offer more diversification and require less expertise than individual stocks. If you own your own home or have other significant long term debt, you may be better off paying down the principal balance of your loan. If you are paying 7% on a mortgage that is a 7% guaranteed return on your money if you pay down the principal of the loan.
2007-02-01 04:57:32 · answer #6 · answered by dan02351 1 · 0⤊ 0⤋
With 2000 to invest, try an investment that is riskier, that is what i would do in order to try to make it a larger sum, and then quit the un-safe investment. It is not a large sum of money, and investing in stock might bring you a big outcome.
2007-02-01 05:08:05 · answer #7 · answered by Jorge Alberto G 2 · 0⤊ 0⤋
I would stick in a mutual fund or CD while you "learn more" then move it to wherever you decide. This option will bring a lower return but you won't lose all while learning.
2007-02-01 04:47:44 · answer #8 · answered by Doug 4 · 0⤊ 0⤋
look at www.economicinvest.com for some good reseach on how to invest. This firm looks at stock price, company fundamentals and market conditions to determine a value, then compares it to current price, and reccomends stocks that are going to go up based on that. They also provide investment philosophy and techniques in their newsletter that are used by institutional money managers.
2007-02-01 06:11:51 · answer #9 · answered by redfearn_jc 2 · 0⤊ 0⤋
Open an Ameritrade account online. Invest in something safe first like Exxon - it pays almost 4% and grows.
2007-02-01 04:48:12 · answer #10 · answered by Anonymous · 0⤊ 1⤋