My advice would be to stick with the mutual fund (as long as it has a reasonable - low - expense ratio. At $20 over 2 months, that's the equivalent of 12.6% (compounded) per year - though past performance is not necessarily a predictor of future performance. The benefits of mutual funds include diversification (which lowers risk) and professional management. Investing in just a few stocks, or a single business which you won't have time to participate in, increases your risk. Investing in the business reduces your liquidity - you most likely wouldn't be able to get your money out quickly if you needed/wanted to. As a young college student, being able to get to your money quickly and easily would be important. Good luck, and keep saving if you can!

$20 on $1000 in 2 months translates to a 12% annual return, which is pretty good, so don't knock that.

I understand that you're impatient, but there's only so much money that a $1000 investment can get you in 2 months. Patience, friend. By the way, if you put the money into a Roth IRA, you might get a $100 tax credit (or more!) by filling out IRS Form 8880, and you can still withdraw the principal for any reason you like.

The only reasons to switch to stocks would be 1) if you know what you are doing or 2) you think it would be fun.

Hey J slow and steady usually work best but if you've got time to play with stocks there's money to be made but its just as easy lost/spent.

Peace

I'm 19 y/o and at community college. I have $1000 in a mutual fund. It's only made about $20 in 2 months. Now do you think I should just take that out and invest in my own stocks. When I calculated it out I would've made more money by now investing in the stocks I've been watching. Now instead of that should I invest the $1000 into a vending machine business. This is why I told you I'm in community college. I'm finishing my 2 year and going away to a four year. Do you think it would be worth it to invest in the vending machine business if I'm going away in august? Should I just pay someone to take care of the business while I'm away? Which option would be best for me?