Updated: 11/3/2009 9:00 AM ET|
Start with a single mutual fund
If you're new to investing, it can look complicated. But it doesn't need to be. This is part 2 of 5 parts.
The editors at MSN Money have put together this Beginner's Guide to Investing to help you start putting your money to work:
For some, one mutual fund is plenty to get started as an investor. This is the best option if you don't have a lump sum to invest (watch the videos to the right for details). You don't need a ton of money to start.
Rather than spend your time cobbling together a full-blown investment portfolio, let a mutual fund company do the work for you.
A number of fund companies offer one-fund solutions, which themselves own other mutual funds (see the interactive chart below for examples).
Targeted retirement date
Some companies even tailor the funds to your desired retirement age. Want to retire in 2030? You might consider the Fidelity Freedom 2030 (FFFEX) fund, which will keep more of your money in stocks now, when you can take on a little more risk, and put more conservative bonds in the portfolio as you near retirement.
Our favorites are the targeted offerings from T. Rowe Price, which have solid performance records and charge reasonable fees. While some other fund companies, including low-cost Vanguard, require $1,000 or more to start with a target retirement fund, T. Rowe allows you to start investing with as little as $50, adding $50 more each month.
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[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.
The final week of August represented one of the quietest stretches for the stock market so far this year. The first four sessions of the week produced the ... More
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