What to invest under 5k?

Question

I'm wondering if I should invest in mutual funds for 5k or should I put them in CD accounts since the stock market seems to be pretty bad right now. And also which mutual fund should I be invested in?

Answer 1

Are you a long-term investor? When do you need the money?

If you need the money within a few years, then CDs might be the best bet.

If it is longer than a few years, I think that you need to put your money into a few good NO LOAD (no sales charge) equity mutual funds. Yahoo can help you see lists of top mutual funds - look for those who have performed well for the last 5 years in categories like small value and international.

Good luck -