How do I set up my personal stock and mutual fund portfolio?

The techniques to use somewhat depend on such factors as the amount of risk you are willing to take, the number of productive years remaining to you, and the amount of money that you have to invest. As the first responder mentioned, your first step is to open a brokerage account. That is actually the simplest step. It can be done on line.

Most investment professionals would advise you to develop a diversified set of investments to reduce specific risk. Those who had large holdings of Enron I am sure would agree.

There are literally thousands of mutual funds and hundreds of index funds and closed end funds available to you to choose from not to mention thousands of stocks and bonds.

If you wish to begin with less than about $2500 your options are going to be limited because most no load mutual funds have at least that cut off amount for beginning investments. There are however load mutual funds with much lower thresholds. American Funds is one with a beginning amount of only $250 and an outstanding investment record. You can purchase shares in any open end mutual fund directly from the mutual fund company. You do not require a broker. All ETFs require a broker as do all stock and bond purchases.

If you are inexperienced with investing, then you should first become more familiar with the process. A decent beginning book is "Investing for Dummies" at about $12.00.

Go to a bank or broker.

Banks charge double on fees. You'll be paying 25-45 per stock or mutual fund purchase.

Discount brokers charge under 10 bucks.

My advice is to go to a discount brokerage like Scottrade and you can open one up that same day.

Go online and look for a local branch near your home.

http://www.scottrade.com

This is what you need to bring:

1) two forms of picture ID
2) Proof of social security

After you get one open and they give you your name and password..

You log in and start picking your stocks and mutual funds.

You can buy any mutual fund or stock you want.

That's how you start a portfolio.

For personal stock, all you need to do is to open an account with a brokerage firm. After that, just chosse the stock you like. Simple. As with mutual funds, you can ask your broker to recommend several of them to you. As with stock, you need to understand what you want. Then, from the list given by your broker, choose those that match your expectations. Better still, talk to your friends. Just like some women like to share their shopping experience, some investors also like to share their experience with you.

Here's a page for finding a good good mutual fund to invest in:
http://www.best-stock-trading-systems.co...