Your investment strategy will depend partly on how much money you want to put to work. A few options:
$50 a month or more, with no lump sum
It may not seem like a lot, but even small regular investments in mutual funds or exchange-traded funds can add up.
A lump sum of less than $10,000
You have more options in this range, as many mutual funds have minimum-investment requirements of $500 to $2,500. The key is to make sure all your eggs don't end up in one basket. Invest in five or six different types of mutual funds. If U.S. stocks aren't doing great, your holdings in international stocks or real estate may help keep your overall portfolio afloat.
A lump sum of $10,000 or more
The trick here is not to jump into the market all at once, potentially putting all your money in just before stock prices tumble. One approach: Put one-twelfth of your money into the market each month for a year, a technique known as dollar-cost averaging.
Depending on your strategy, you can exploit various Investment options.
Next- Best Mutual Funds
