Could you help me with investment advice?

1 Answer

Answer :

most internet brokerages are going to require around $1,500 – $2,500 to open an account. Even with this amount, your best bet is to begin with mutual funds (especially with limited investing knowledge) to maximize your portfolio diversification. With $1,500 you will not be able to appropriately spread your money across stocks in different sectors/industries which leads to a lot of risk (the investment equivalent of putting all your eggs in one basket). A mutual fund invests in many different stocks and allows you to purchase shares of their diversified portfolio which gives you instant diversification. Research a few mutual funds and find one that matches your interests. You can find one’s that focus on international investing, technology, small companies, large companies, etc. Then open an etrade or scotttrade account and buy some shares. Later, when you have more money in the account, if you see a company you would like to invest in, buy some shares and build your portfolio over time.

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