So you have $1,000 to invest and want to know how to get started?
You might be thinking this is a chance to pick up stock in a company you like.
Each company is unique, so before buying any stocks check out the underlying company’s industry position, growth rate, growth potential, income, revenue, competitors and management structure to see whether it works for your goals.
Then to actually purchase the stock you’ll need to open a brokerage account and buy your shares using the stock's ticker.
But if you don't have the time or inclination to do that kind of research, or you don’t want to risk your money by investing in a single company’s fortunes, then investing in a diversified fund is probably your best bet.
Diversified funds are a mix of stocks, bonds, and other investments.
Index funds, mutual funds, ETFs, and some robo-advised offers are all examples of diversified funds.
These can help you spread your money across various markets, so the fate of your portfolio doesn’t hinge on the performance of a single company or asset.
There are lots of ways to go about this.
Funds can be aggressive—which means higher risk and therefore higher returns and losses —or more conservative.
They can give you broad access to the stock market, or focus on particular sectors, like tech or energy.
So before you buy anything, think about what you want to accomplish with your investment.
And once you’ve picked your fund, keep investing.
Even small contributions, made regularly, will likely add up over time.
Finally, remember that setting realistic goals and making a financial plan to achieve them are the basic keys to investing.