Basically, if you're dead set on investing in a mutual fund for the long-term and want the smartest gains (a good mix of risk/reward), then I recommend about 75% of your portfolio in value (undervalued) funds and 25% in large cap (big, strong companies).
There are riskier choices with higher potential gains, but in my opinion the risk is not worth the incremental reward. By investing in mutual funds rather than doing it yourself, you're effectively delegating responsibility to a third party in exchange for a portion of your profits.
Have you read Rich Dad, Poor Dad by Robert Kiyosaki?
General Tips... Look at big-picture trends more than individual stock performances. Also, minimize risk by doing your own research, keep educated. Don't take people's words for things, trust their judgement to a degree, but always aim on verifying for yourself when you can. I personally do not care to give control to mutual funds, but that doesn't mean they won't work. Until you are more educated with your decisions, I do not recommend putting the whole pot in, not that I would recommend that to anyone, but even more so for beginners with little disposable income. Ensure you have a buffer for times when you might need liquid money.
Many new investors are lured to the appeal of a penny stock due to the low price and potential for rapid growth which may be as high as several hundred percent in a few days.
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Similarly, severe loss can occur and many penny stocks lose all of their value in the long term. Accordingly, the SEC warns that penny stocks are high risk investments and new investors should be aware of the risks involved but you can even make very big money. These risks include limited liquidity, lack of financial reporting, and fraud. A penny stock is a common stock that trades for less than $5 a share. While penny stocks generally are quoted over-the-counter, such as on the OTC Bulletin Board or in the Pink Sheets, they may also trade on securities exchanges, including foreign securities exchanges. In addition, penny stocks include the securities of certain private companies with no active trading market. Although a penny stock is said to be "thinly traded," share volumes traded daily can be in the hundreds of millions for a sub-penny stock. Legitimate information on penny stock companies can be difficult to find and a stock can be easily manipulated.
I would google "low cost index funds". You generally want to invest in lower cost index funds and index funds with minimal trading. That's what differentiates mutual funds from index funds. Funds with lots of trading and speculation are more expensive over the long run. I'm not sure this website lets me suggest companies to invest with but if you google low cost index funds you'll find the more reputable companies. Also you could google John Bogle, who is the index fund guru. You might also consider investing in an IRA eventually.
Check with Vanguard mutual funds . They have a good tutorial on their site . No load index funds with good diversification is a good place to start . I agree with Carlos Danger and I have had great success with them . Look here and good luck .
if in USA, visit a library for either series
"for dummies" or "idiots guide to"
money 'investing'.
best investment is your education
and not having school loans.
do study 'total money make over'dave ramsey
for enlightenment.
My company is Edward Jones. It's all one on one with no hype because they don" make commission on what they sell. I love it, because I can go there any time I want to see whats whats discuss it and change whatever I want
put half in vanguard s&p 500 and half in a biotech stock like amgn, don't put it all in a mutual fund because you limit your upside
Hello,
I am a nineteen year old college student and i want to begin investing. Currently my plan is a somewhat long term plan and I know i want to invest in Mutual funds. Since i am young i want to have an aggressive portfolio for now. I have about 1000 dollars in my account.
I want to have a growing mutual fund that i can keep putting money into. I am new to this so im not sure exactly what fund i should look into. Any kind of tip would help.
Thank you.
J
