How can a 23 year old recent college graduate invest $8000? A diversified portfolion is my goal. Thank you!!!

Question

How can a 23 year old recent college graduate invest $8000? A diversified portfolion is my goal. Thank you!!!

Answer 1

Everyone's a " little bit" right !!

...but first off, put at least half into a ROTH IRA...get it open and buy into almost any mutual fund ...WHAT DID HE SAY ? ANY FUND? ...Yep ! It's more important to get " started" than to get it " exactly right " ( You can change...down the road...when you know more..okay?)

.. then you open a " brokerage account"...and here's where you start learning... you either buy into a fund in natural resources, energy, or maybe Brazil....   OR...you read a little about ETFs and buy a little into all those areas ( and more ) for a while... when you see what's doing best.... you look for mutual funds in that area.... go back to the IRA  and buy into one of those.

...as you learn more...as you see what fund or ETF is just head and shoulders above the others, you look for a good company in that sector...and you make your first ( little) stock purchase.  Now, you're " investing".... with your money on the line YOU WILL LEARN...when to change..when to take some profit... whether to make your second ( third, fourth) purchase in the same sector or widen your scope...etc,etc.

...BUT always keep one eye on that IRA...add to it...move it.. THAT IS YOUR FUTURE...bulk it up NOW...then let it ride for 35/40 years.

..Fidelity has info..E*trade is easy...Scottrade is, too.

...basic fund FGBLX..FAIRX..

..ETFS  XME( metals/mining) MOO ( ag, ag/chems) OIH, OSU, XLE ( oil and energy) EWZ ( Brazil)

...learn to get quotes and charts ( yahoo has 'em)  look at some of these :  HK..EP..TBSI..ANR..PBR..CLF..

POT..ENER..

Answer 2

Hey man. You can diversify part of your investment in affiliate marketing. Why? Cause it's easy and affordable and can make you a killing if you know how. $100 or less is enough to start. Start building a real solid business and make it to autopilot, it's something that everyone must learn. This is not a sales pitch. If you are interested to learn, here's the link: http://richguidetosuccess.com

Answer 3

Put it all in IEP  run by Carl Ichan

Answer 4

It depends, what is your risk tolerance, how long do you expect this money to be invested, how much is your gross worth, how much are you making, how much debt do you have? To give you advice without knowing the anwser to those questions is not to give good advise.

Do you want to get the highest return and don't care if you lose all 8k? Then commodities or options on the dow or s& p might be for you.

Do you want this to grow over the next 15 years so you can buy a house, then mutual funds or EFT's might be for you.

Do you want to buy a car with this money in 2 yrs?

Then bonds or zero coupon bonds might be for you.

You see there is a lot out there.

Answer 5

If you are Indian National or NRI, then open a bank account and a trading account with a broker. Convert your money in Rupees INR and now you can invest.  For diversified portfolio, you can invest in a Index Mutual fund, buy Exchange traded Index fund called SPICE or directy buy NIFTY Futures.

But before doing so be conversant with stock invesment and related risks, and further practice with some investment game like www.moneybhai.com ,  www.sharebuilder.com etc.

Answer 6

Invest in mututal funds. They are already diversified.

Answer 7

The easiest way is mutual funds even though you have to pay fees.  If you are interested in buying individual stocks I would read a few books first, then dip your toe in before investing the total amount.  I'd go to Morningstar's website and pick out only 5 star funds.  You will get the diversification you need in a mutual fund.

Answer 8

Without having more information about your personal information, such as age, current income and other data such as risk tolerance, martial status, and demographics it would be very inappropriate for me or any other person to provide specific investment information in this type of media

There are many people just like you that are, or were looking to invest and those that did bought Mutual Funds and/or Exchange Traded Funds (ETFs).  One purpose of mutual funds is to help investors like you, who are either just entering the investment world or who have no investing experience.

Once you feel you at least have an understanding of investments you should look into ETFs which are similar to mutual funds but are traded on the exchanges.

Mutual Fund companies as well as ETFs have an entire array of products many will fit your needs. You can go to the MSN.Money website

http://moneycentral.msn.com/home.asp  it has an entire section on mutual funds and Exchange Traded Funds.  Read about the various products and in doing so you will be getting investment ideas and at the same time educating yourself about investing.

You could also contact the funds companies for more information.  I have found that Vanguard & Fidelity can meet your needs for mutual funds.  The service and information they provide is all free and you will find it helpful.

Regardless of what you decide, do not ever let anyone tell you not to invest, especially those that do not invest themselves.

Answer 9

Actually I wouldn't make a diversified portfolio. Contrary to popular belief, diversification is actually the way to assure yourself of mediocre returns. Look at market history, great returns and investors make their money from focusing on a few sectors, not dozens, perhaps 2 or 3 that lead each market rally, and focus on them. So, minimal diversification.

Also, at your age you have the great advantage of educating yourself on investing and the time spent will pay dividends for years to come. Take the time now, while the market is in a major downtrend to learn the history of stock investing, what works, and what doesn't. Don't listen to the media. Don't listen to me. Look at a few books on investing for example Bill'O Neill's 'How to Make Money in Stocks' is a great starting point.