What is the best way to invest small capital?

There are many people just like you that are, or were looking to invest and those that did bought Mutual Funds and/or Exchange Traded Funds (ETFs). One purpose of mutual funds is to help investors like you, who are either just entering the investment world or who have no investing experience. Once you feel you at least have an understanding of investments you should look into ETFs which are similar to mutual funds but are traded on the exchanges.

Mutual Fund companies as well as ETFs have an entire array of products many will fit your needs. You can go to the MSN.Money website
http://moneycentral.msn.com/home.asp it has an entire section on mutual funds and Exchange Traded Funds. Read about the various products and in doing so you will be getting investment ideas and at the same time educating yourself about investing.

You could also contact the funds companies for more information. I have found that Vanguard & Fidelity can meet your needs for mutual funds. The service and information they provide is all free and you will find it helpful

Gold started the day in positive territory, then slipped into the negative column, but quickly rebounded to the plus side. Silver showed some weakness through the first half-hour of trading, down $.14. Oil continues lower, down $.39 at $123.89 a barrel. The dollar continues to rally, up 5 basis points at 73.29. As I look at these markets as trading begins today we have a neutral performance. With the euro slightly higher against the dollar, gold is generating some support. At one point during the first half-hour of trading, we saw gold up as much as $4.

The London Bullion Market Association published its survey of the twenty-four most prominent precious metal analysts. Not surprisingly the consensus averages for all four precious metals have risen year on year, and for the most part quite sharply. In fact, compared to last year where the analysts generally forecasted substantially lower prices than were actually achieved, the consensus forecast is almost $200 an ounce higher this year. In addition to the forecast averages rising sharply, the forecasted highs have risen as well. Over half of the analysts expect gold to be at or above $1,000 an ounce this year. These analysts include some of the most prominent big bank analysts. For example, Jeff Christian of the CPM Group forecasts a high of $1,060 this year. Dave Davis of Credit Suisse Standard Securities forecast a high of $1,110. Almost all of the analysts site a combination of severe economic problems in the financial system, geopolitical tensions, and declining supply of gold as being principal factors in their forecast. Ross Norman of the Bullion Desk, who has been on of the most prominent and successful at making these predictions, is forecasting a high of $1,250 with an average price for the year of $976. He is also forecasting silver to reach a high of $18.80 an ounce. In fact, the average high forecasted for silver is $18.49 an ounce. The average high forecasted for gold among all twenty-four of the analysts is $1,009 an ounce.

Therefore, given these forecasts, it is reasonable to conclude there is significant upside potential in the gold market today. If gold were to rally to $1,009 an ounce, as would be consistent with that average forecast, it would represent a 15% increase from today's levels. It would also represent an overall increase for the year of more than 20%. Silver also shows excellent upside potential.

In order to increase it , small amount should be kept in a Safe Govt.Bank, or a Bank having good reputation and giving good interest. If you do not need the amount for a period of 5 years then invest in a mutual fund of good reputation. When you invest in Bank deposits advantage is that you can avail advance against security of the same when you need and you deposit continues to earn interest at the same rate.In order to add to your capital through further savings you should use recurring deposit accounts of Banks paying good interest.

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Mutual funds.

It gives you the most diversification for the least money and you get a professional manager managing your money ( and every one else's money that own shares).

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