Hello Ankit. $50k is not a small amount to start with by any means. Many traders start with $1k or less.
You've made a wise decision to invest rather than waste it. Now, the answer to your question depends on your particular experience and financial situation.
If you're a passive investor that desires to delegate investment responsibility to a third party, then a mutual fund (with any of the big names) may be ideal. If you're an active investor that desires to do your own investing, then trading stocks may be ideal.
Note the more risk or responsibility you delegate away, the less return you'll make. Whatever your decision may be, please perform sufficient research to understand the associated risks/rewards - especially if you decide to start actively trading stocks.
In my opinion, active stock trading is most profitable when performed wisely. Wisely is the key word; a wise investor is a knowledge person with the ability to control their emotions as stocks fluctuate up and down.
If you are interested in learning stock trading, then Investopedia.com is a helpful tool to learn basic market terminology. You'll also want to research fundamental analysis and basic accounting principles; there are books/articles all over the Internet on these areas.
If you are a risky investor than you can try your luck in stock market. But on a safe side i will recommend you to go for bank fixed deposits. Now a days banks are offering high interest rates for short term duration. Other than this you can invest some portion of your money in gold.
But always be in the safer side.
Contribute the max. for 2013 and 2014 into a Roth IRA
Keep a year reseved in your bank for your expenses
Whatever is left over put half into inflation protected bonds from treasurydirect.gov and the other half into blue chip growth or capital appreciation fund from troweprice
Best of luck. Take care
Hi, I have an amount of around 50,000/-, which is absolutely a very small for any investment but I want to invest the amount rather than wasting it in any purchasing etc. Any suggestions will be highly appreciated
Thanks
