I dont know anything about investment? i have saved some money how will i invest it?

You are your own best advisor. Only you can decide what is the right course for your money. However, to do this properly, you will need at least a basic education on investing. Stocks, bonds, and mutual funds are a good start for any beginning investor. Here are 3 sources to help get you started:

1) Mutual Funds for Dummies, by Eric Tyson. This book aught to be mailed to every citizen in this country, IMO. Highly recommended.

2) http://www.invest-for-retirement.com has a free downloadable book, by me. It is designed for beginners.

3) http://www.investopedia.com has some great tutorials.

The first thing to understand about investing is that all investments fall into two basic categories: lending investments and ownership investments.

Companies can raise capital in two general ways. They can issue stocks or bonds. A stock is ownership in a company. When you own part of a company, your investment's value is tied directly and proportionately to the performance of the company. This is because the stock's value is the predicted discounted dividends. But since the company makes no formal promises of any dividend payments, there are no guarantees. There is significant risk you will receive dividends in an amount less than you anticipated. In fact, there is a risk that the stock's price may drop to zero. Remember Enron? However, in the long run, stocks outperform bonds most of the time.

Bonds, on the other hand, are a lending investment and have more guarantees. The value of a bond is tied non-proportionately to the performance of the company. The company need only perform well enough to remain fiscally solvent (able to pay its debt). If the company does extremely well, you will not receive any income higher than the pre-determined interest payments.

Bonds are more secure than stocks for two main reasons. First, because you know the stream of income (the interest and principal payments) in advance. Secondly, because bondholders are entitled to first dibs in the event of a company's bankruptcy. If a company goes under, its assets are liquidated and returned to the bondholders first. Stockholders get sloppy seconds, if any is left.

Most people will not own just one bond or stock. Many people actually own these securities through a mutual fund, which is a pooled investment. In this way, your risk is spread out among many different stocks and bonds. Mutual funds are a great investment for beginners and people who only have a small amount of money to invest. I also recommend them for use in retirement accounts, such as IRAs.

The problem is that there are so many mutual funds out there that it can be confusing. My advice is to focus on the two most important aspects: the assets the fund holds, and the costs they charge you. Past performance of a mutual fund is not a good reason to pick it. Look at assets and costs instead.

When investing, you will need to ask yourself 2 important questions: what do I want to use the money for (your goal), and how long until I ultimately need the money (your time horizon). This will help you determine how much risk to take.

Here are some basic recommendations, just my opinion:

- For goals that are less than 2 years away, choose a money market account.

- For goals that are 2 - 7 years away, choose a bond fund with duration close to your time horizon.

- For goals that are 8 or more years away, choose a mix of stock and bond mutual funds. The further away from your goal, the more stocks you can use. As you move closer to your goal, increase bonds and decrease stocks.

Keep in mind that academic studies show that over long periods of time, it is your stock to bond ratio that determines most of the risk and return of your overall portfolio.

Several landmark studies, summarized in these links, show just how important asset allocation is:

- http://www.nomonkeybusiness.org/articles/the90rule_or40_or100.pdf
- http://www.ifa.com/media/images/investmentpolicy.pdf
- http://www.fpanet.org/journal/articles/2006_Issues/jfp1006-art6.cfm

First, these studies show that the majority of risk in a portfolio (measured by its volatility) was determined by the stock to bond ratio. The specific funds, the individual securities within the funds, and timing of the purchases played only a minor role. Second, the studies showed that almost all of a portfolio's gross return depends on the asset allocation, most of that determined by the stock to bond ratio.

My son, who is 24 likes to watch "Jim Kramer", who is a financial analyst (or something like that), on T.V. This person is attractive to the younger people who are looking into financial strategies. He also has written a couple of books. Jim Kramer (hope I got the spelling right) is of the school that believes you should do a lot of investigating regarding the investments you make, and then keep up on their record. He makes recommendations on his shows and gives the reasons why. Here is a tip that I just heard on the radio: If you invest $10 per day, beginning from the time when you are beginning your job career, put it into your company's 401K program, in 40 years you will have 2 million dollars. This is assuming the investments have made about 10%. I suppose you could do this on your own, too. Some people like to invest in mutual funds that are watched by the funds managers, and they recommend funds with a good history. Some recommend trying the Asian funds that are now seeing activity that would compare to an industrial revolotion of sorts. The point is to do a little research, and then invest. Always pay yourself, first, and don't make excuses as to why you cannot invest a particular month or a particular year, just keep doing it. Decide how much you want to invest; divide that between slow and safe investments, and faster and higher yielding investments - then, no matter what, invest regularly in what you feel will be the best investments for you. Realize that you can loose, as well as gain money. Get a couple of books that can help you, and maybe even take an outside course such as many school systems offer in the evenings, regarding investing strategies. If you are young, this is the time to begin your investment strategy. The point is to make your money work for you, so that you don't have to spend ALL your time figuring out how to make another buck. This comes from someone who has not followed all the principles, and wished we had. You have the opportunity to do it right.

your best bet is to invest it in a Roth IRA.

you should go and see an independant advisor, and he will help they are marvelous. when i had some shares to sell, mine found me a way to sell them that got me an extra grand! good luck

Start with a broad market ETF. As stated in another answer putting it in a ROTH is a good idea. When you learn more, you can expand your investmests to other types of ETFs or individual stocks.

You can get good investing ideas from the best traders at http://www.top10traders.com

Good luck.

The best place to start is education, read some books etc,
or try this cousre very easy to understand and follow a great base to start trading in any form and to see if trading is for you

Open a brokerage account at Zecco and invest in Apple and Microsoft.

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