Help me learn to invest

1p0kerb0y · #1 08-28-2005, 06:16 PM

I'm a rookie with a little bit of money that I don't want to just sit in a bank account. Would you recommend mutual funds on a e-trade account?

Sniper · #2 08-28-2005, 06:30 PM

Unless you are planning to do research, you are better off sticking the $$$ in an index fund... and ETrade is a more than adequate place to do that.

You should also try to add $$$ every month!

1p0kerb0y · #3 08-28-2005, 06:35 PM

What exactly is an index fund and how is it different from a mutual fund?

FishHooks · #4 08-28-2005, 06:42 PM

search this forum you will find a lot of topics on information your trying to find.

1p0kerb0y · #5 08-28-2005, 06:48 PM

or can you recommend a book for a beginner?

Sniper · #6 08-28-2005, 06:55 PM

[ QUOTE ]
What exactly is an index fund and how is it different from a mutual fund?

[/ QUOTE ]

An Index fund is a mutual fund with low expenses that tracks an index. Non-index mutual funds are usually more actively managed and have higher fees.

The most popular index funds track the S&P500.

FishHooks · #7 08-28-2005, 07:30 PM

A Random Walk Down Wall Street, All About Index Funds, are two good books, look them up on amazon to see what their all about.