Which is better to invest in if your a beginner in investing? Stock or Mutual Funds?

I am only 16 and i want to start investing. I have been resarching since the summer and I have money saved up in my savings account to start investing.

Mutual funds in that they are already diversified and they are professionally managed.

Invest in mutual funds. However, research ALL of your options.

Do you want stable mutual funds with low returns (such as municipal bonds) or do you want high risk funds with higher returns (such as international stocks)?

It's good that you are thinking of investing! If you are a new investor, Mutual Funds are a better way to go as they are comprised of a group of stocks and, therefore, less likely to make drastic moves downward (or upward for that matter). The first thing to do is determine your risk level: can you afford to lose some of this money? The more risk you are willing to take, the bigger returns you can expect (or the bigger losses if you choose poorly). Next, do your homework. Start by reading up on investing. Suze Orman's books are a great place to start. You can get them at the public library! Good Luck!

Start with this stock and you will be ok.

China Mobile (CHL). Population and economy exloding. Adding overr 1 million suscribers a month. At a forward 17 P/E ratio, a stock doesn't get much cheaper on a valuation basis. To make things even better, it carries a 4% dividend yield. It has to go down 4% before you start to lose money!! Just signed a contract with google for it to be primary search engine on phones. This stock is amazing. Put your money in it and watch it grow.

You want your money to grow. Our jobs, all our clothing and textiles are made in China. China is where the growth is. Where were your sneakers made? In China. Your shirt? China. Don't beleive me? Look at the lable. Bet on China and you will be ok.

A broad based mutual fund (or a total market index fund) is your best bet. Wait until you have a lot more experience & knowledge before getting into stocks.