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| *Ostroff, Fair and Company>>>Investing |
Best way to invest ? |
What would be the best way to invest 拢300.00 per month ? I am thinking about a medium risk investment .. and what kind of growth would i expect ?? any ideas ?? I'd recommend starting with a mutual fund, and then after you get a nice chunk of money put away, you could transfer it to individual stocks. A riskier investment will give you a higher return, but there is also a chance that you can lose your money. So, you may want to diversify. Choose some high-risk, high-return investments, along with some low-risk, low-return investments. Real Estate is the greatest investment. I would save up a lot and then put a down payment for your first property, then rent it out and buy another property. Get yourself a Roth Ira and start putting the money into that for your retirement. The only other thing I would get is a mutual fund because they are safer than stocks alone. Push the boat out and take some risks. 拢300 a month buying stock really won't get you too much of a return. You pay 0.5% stamp duty, 拢7-拢15 broker fee, plus a ridiculous spread investing 拢300. Look at that in percentage terms of the investment and you need big moves on FTSE 100 stocks just to break even. I would suggest using a leveraged product such as a CFD or spreadbet account. Fees are minimal, Spreadbetting is Tax Free and with the leverage your 拢300 could become 拢3000 in a month if you make the right investment Take a look at the LSE website - lots of ideas - but whatever you do diversify - don't put all your eggs in one basket. http://www.londonstockexchange.com/en-gb... Mike10613 Well, the definition of medium risk is different for different people. But, how about a balanced mutual fund or a fund-of-funds which has about half the money in bonds and half the money in stocks. Over a period of several decades you might expect an average annual return of about 6 - 8%, depending upon many factors. ETFs are cheaper than mutual funds. ETFs have very low annual expenses, nearly 20 basis points or 0.2% less. As against this, actively managed mutual funds show average expenses exceeding 135 basis points (1.35%). This does not include the extra 2% - 5% as loads, 12(b)-1 marketing fees, transactions costs, and soft dollar expenses mutual funds, passed on to you but never informed, except in very fine print that nobody cares to read. |
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