I have $2000 to invest. Should invest in Stocks or Mutual Funds ??

I would need my 2000 back after 12 months. Which investment would give me the best return before i need my principal amount back in about a year time.

Mutual fund - The Fairholme Fund is my fav

Mutual funds are safer. Check the CD rates at banks within two states around you, you might be pleasantly surprised at the higher rates. Also, congress is about to raise the intrest rate so check that before investing, it should make the CD's more appealing since they are no risk.

Talk to a financial advisor near you. They would be the best source of this information. Also, check with your local banks on CD's that are for that time frame-it's safer and there is a return on your investment.

Most mutual funds invest in stocks, so there's no difference in the basic investment vehicle, except with a mutual find, you get diversification that is hard to replicate with only $2,000 (too many commissions spreading that much money around to a dozen different stocks).

If you can't afford to lose any of the money, you should consider a CD or T-Bills. They're safe. With a mutual fund, you might have less in a year's time than what you have right now. Risky assets are inappropriate for money that will be needed in only a year.

You should open a 12 month cd wich guarantees you your money in 12 months+ interest which is 5 1/4 plus right now. stocks are speculative you might be down to 0 in 12 month. and your mutual fund might be down in 12 months and worth less than 2000 you might have to wait for it to go up.

u must invest in stock markets.
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