What is the best way for a young investor to invest $1000 besides CD's.?

I can save about $2000 each year and want to avoid low yield investments like CD's and savings accounts.

Firstly that swiss bank account method sounds like a scam. Mutual funds are okay, but they charge a high commision like 3 or 5% to start.

The highest risk would be investing in individual stocks because they can fluctuate enormously. The second riskiest option is the mutual fund, which can generate great returns but it's hard to predict a funds performance. The third riskiest option, and my suggestion would to invest in index funds, especially the Vangard index funds or the S&P 500, which are designed to mimic the performance of the entire stock market, which has historically been several times the growth rate of a CD. The Vangard fund fees are extremely low.

When you invest in a large collection of stock like an index fund, you lower your risk, because when 1 stock falls of the map, you still have 499 other stocks in your portfolio. Of course the ultimate decision on how much risk you want is up to you.

Put everything on the CNY Bonus TOTO S$10million!

An yearly event!

Open a Roth IRA

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If you want to save for the long run, but can't afford high management fees, buy an ETF. The biggest provider of these is www.ishares.com

Mutual funds is a good thing to get into. Stop by Charles Schwab or TD Waterhouse, or go to E*trade, if you're comfortable with online only. Because mutual funds are done by experienced managers, you don't need to know much. The downfall, though, is you'll end up with capital income and loss as the fund sells its shares even if you don't see a dime of it due to reinvestment. Still, if you pick a good fund (check it out from Morningstar.com), this is much more fun than savings or CD's.

For a young investor with a $1000 and a long time horizon. If you can handle the volatility, put it in an aggressive growth fund.