Stock Investing While On A Tight Budget

This is one thing the a beginning investor should know that when you start investing in stocks, you buy stocks from your online brokers and trade it on a regular basis. There might be a time that you just want to invest a consistent amount of money every month in stocks.

However, if you're busy with your current job or whatever it is that you're doing for a living and don't have much time to devote into actual trading, you can still invest in stocks on a regular basis. Say for example, you allocate $50 a month that you will be adding to your investment on a consistent basis.

This can easily be done through a type of mutual fund called an Equity Fund. I haven't touch the topic of mutual fund, yet, but I'm going to mention equity fund here as this is related to stock investing but managed in a different way.

Equity mutual fund is a kind of fund that is managed by professionals. Your investment portfolio is in the hands of professional investors.

Where To Get and Invest Equity Mutual Fund

Most of the time online brokerage offers such services. Talk to your online broker or if you don't have an online broker, yet, look for an online stock broker if they are offering services for mutual fund (I'll be covering mutual fund in the future as this is good investment diversification).

Basically, what an equity mutual fund does when you invest your money in it is, a team of professional investors will invest majority of percentage of your investment will be invested in the stock market. The professional investing team will go through the hassle of selecting a company where the money is going to be invested.

The rest of the money, will be invested in safe investment vehicles like bonds. However, the returns or profits through equity fund is not as big as if you're the one making the actual trading. But, it is much safer specially if you really want to go into investing but don't have much time to focus on it.

On the other hand, equity fund has the highest returns among all forms of mutual funds. Investing through this method is perfectly suited for people who are somewhat conservative but still want a decent returns from their investments.