Lux Investing

What is the best way to invest a small sum of money every month with compounded growth.?

What is the best way to invest a small sum of money every month with compounded growth? Is it money market Account? Mutual Funds? I am a layman w/ no investment plan or knowledge. Need some advice from someone with financial wisdom in Canada.

Public Comments

1. The first thing you must consider is "Return on Investment" (ROI) for small investments. Although the money market will yield a small ROI, it is also LOW RISK. So that is the next factor you need to consider - what is the risk associated with the investment? The lower the risk, the lower the ROI. Next consider what you can risk. If you are older go with the money market investment because you can't afford to risk the money since you have less time to earn it back. If you are younger, go with a higher risk item that also has a higher ROI. I would suggest a MUTUAL FUND because of the small monthly investment, a little more risky, but greater ROI. When you get your funds built up you can then diversify into riskier mutual funds portfolios or flat out stock exchange investments. The most important thing is to KEEP INVESTING and NEVER SPEND IT except for reinvesting. Good luck in your quest.
2. Mutual funds are good. Pick 2 or more of the top performing ones. Here's a page for finding a good good mutual fund to invest in: http://www.best-stock-trading-systems.com/mutual_fund_ratings.html
3. Well Money Market accounts are ok, but in order to get the best interest you have to have around 25,000 to get that competitive rate. You can get an IRA or a tiered savings account. Talk to your bank or there investment rep. They are free and give great advice.