I just came into $2000.I really want to invest it.But I dont know where to start.Any tips?

I am thinking about stocks or mutual funds.If anyone got any experience in these thing, I'd really appreciate it.
Additional Details
I dont need the money immediately so i can afford to let it sit for at least three years.

A good start is to ask what you want to use the money for later. Are you planning for retirement (if so, you may want to setup an IRA or Roth IRA, so any gains have favorable tax treatment)? Would you want to use it to buy a new house? Or, is it just for extra spending cash? Once you know this, you should have a better grasp on the time frame of the investment.

For the best return possible, what you should invest in are no-load, small-cap growth index mutual funds. Historically, these have the best average return (at ~16% per year), compared to other options. This should double your money every six years or so, depending on the markets. The only downside is you need to have a time frame of at least 5-10 years, so if the market tanks in one year, you have time to make up for it later. Historically, the market (as a whole) has always recovered from crashes, so the risks are not as worrisome as you might initially think.

What does the stock terminology mean? Well.... No-load means that there are no managment fees for participating in the fund. Many of the actively managed funds don't do better than others, so you want to avoid paying fees. Small-cap just means that the companies invested in are smaller, and have the potential to get much bigger. Growth funds focus on companies that haven't reached their potential yet (compared to value stocks, which seem to be underpriced relative to the underlying value of the company's assets). An index fund is representative of many stocks, which reduces unneeded risks to your money.

You want a index mutual fund that has selected at least 30 different stocks, in different industries, ideally. Without going into too much detail, the reason for this is that the markets have a significant amount of unsystematic risk, and selecting 30 (or more) stocks minimizes this risk. The bad thing about unsystematic risk is that you can't expect a return for bearing it (sort of like not having fire insurance for your house, then expecting money when it burns down). A prospectus (information about mutual funds) will detail what stocks a fund typically invests in, as well as detailing the fund's performance (typically over the last 1, 5, and 10 years, if these are available).

If you need the money very soon, then a money-market fund, or CD might be a good choice. These do not pay lower interest rates (compared to the gain you would get from the stock market), but you do get some interest, and the money is more readily available.

Hope this helps, and happy investing!

Depends on when you may need the money. If you'll need it within the next few years you want to stay away from stocks and/or mutual funds as they're more for long term investments. You can put your money into a CD (Certificate of Deposit) or a Money Market account. Even Internet Savings Accounts that pay high interest rates should be considered. Check "ingdirect.com" for example.

Investing in "individual" stocks takes a lot of knowledge and practice; so I would not suggest doing this until you understand completely how the stock markets work.

Vanguard.com is ideal for long term investors who want to learn about mutual funds, index funds, and exchange-traded-funds (ETFs). Trading funds is less risky than trying to trade "individual" stocks.

Unless you plan on spending everyday of your life looking at stock charts trying to determine the best time to get in and out of "individual" stocks, I would look into some sort of fund.

Also be very careful about asking for stock tips online. Most are probably worthless or contain unethical motives. Do not fall for any Pump-and-Dump scams.

As far as books go, I actually started out with the Investing for Dummies books, and they definitely pushed me in the right direction. To many other books have their own agendas in my opinion.

The websites below all contain plenty of FREE information to get you started in the right direction.

If you plan on NEVER touching it until retirement go for mutual funds or an IRA. If you want more short term go with a CD for a term that is suitable for you.

go to yahoo finance and check out EVX. share price keeps on climbing.

mutual funds are probably the way to go. take a look at http://www.marketwatch.com/news/story/quarterly-update-lazy-portfolios-still/story.aspx?guid=%7B33325373%2DCDCA%2D4A95%2D9937%2D301D1E3E7E8D%7D

its an interesting article on creating mutual fund portfolios to limit your downside risk.

Good Luck

growth stock mutual funds...

however, do not invest in something you don't first understand... you will lose money.

avoid buying single stocks. you will lose money there too.

For a 3-year time horizon, I would recommend a short-term bond mutual fund from http://www.vanguard.com . 3 years is too short to invest in stocks, so stick with bonds.

If you want get a basic education on stocks, bonds, and mutual funds, any of these sources should point you in the right direction:

1) Mutual Funds for Dummies, by Eric Tyson
2) http://www.invest-for-retirement.com... has a free downloadable book
3) http://www.investopedia.com has some great tutorials
4) The Boglehead's Guide to Investing

I suggest putting it in a Roth ORA with Capital Choice. That will earn you at least 10%. Check it out... My future Husband deals with this company and its a great program.. They also offer some other benefits to.

buy single stock that is high in quality. but if you can't afford yet, then go for mutual fund first. since you can put it aside, go for growth fund.

Step-by-Step Stock Investing for Beginners
http://www.stock-investment-made-easy.com/
http://answers.yahoo.com/question/index;_ylt=As61UR4DWXZnVDIVK6se6XLty6IX?qid=20070717183111AAk8IIS&show=7#profile-info-kFApW5uJaa

Good Choice! Go to ameritrade.com or etrade.com and open an IRA. By the question I guess that you don't have a high income / high tax rate, so you should open a ROTH IRA, especially if you are young. You may want to invest in FXI, an exchange traded fund that invests in China. There is no guarantee how the market in China will move in the short term but it is a pretty safe bet that 20 years from now China will be the worlds top economy.

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