Is a mutual fund a smart investment with 50.00 a week, or are there better options for a good future?

I want to invest in a fund that will generate money in the future whether it be a mutual fund or something else. I need advice on getting started with a small amount of money, such as weekly or a monthly investment. Is it a good move to rely on a mutual fund when there are so many risks. Is there a wiser investment?

Sounds like you're just starting out in investing. A mutual fund is an excellent place to put your money, and you can set it up to invest monthly automatically.

Of course, the big question is which mutual fund to choose? You must sit down & think of what you want to gain from your mutual fund. Do you want income? Do you want growth? Are you willing to take risks?

Right now things don't look so good for the economy and the markets.. It might be wise to sit in cash for awhile to see how things play out. Meanwhile, read all you can about investing, mutual funds, markets, the economy, etc.

If you feel that you just want to start now, a good place for a beginner to start looking is www.morningstar.com. Lots of information there.


Good Luck,


Cber11

It's not a bad thing to do. That being said, index funds tend to grow about the same as mutual funds over long periods of time and have lower expense ratios/fees. It would be worth looking into an index fund (like the QQQ).

better to save for a CD until you get 1000 or a larger sum to drop at once on the funds.
Mutual funds are fairly safe yet costly for every transaction.

Try "The Money Paper" (moneypaper.com). It allows you to purchase stock with a minimum of $25 per year.

Mutual funds are good for recurring investing like this. Pick low cost no-load mutual funds and buy direct from the funds house, not through a broker. T. Rowe Price, Vanguard, Fidelity, etc. They do not charge any transaction fees for additional investments.

Your choice is either a bank D/A where you can expect a sure growth of about 5.5% , or a tracker fund like theVanquard. Investing the same amount every month is very good policy. Here, growth is not quaranteed, but past experience is for about 8% in the long term, with many ups and downs on the way.

Which one you will be more comfortable with depends on your personality.