For my 21st birthday my Uncle opened a bank acounnt in my name with $500 on a mutual fund investment (tax-free).
Im really noob at investment, but at least I have $500 to play with. Do people just leave money on the mutual savings or is there some tricks I have to learn?
Like I said, he literally just gave it to me to get my feet wet.
For reference this is the name of portfolio: https://www.tdassetmanagement.com/fundDetails.form?fundId=6321&lang=en
it is not a fund that will outperform, if your uncle put 500$ in it in 2015 you've got 6,50$ out of it.
you can use it in a compound interest manner and everything you earn and can spare you put into that fund. with time if we say ideally your fund will have 5% average yearly performance and you put 5000$ in it every year, you will have 29 000$ in 5 years.
I dont mind putting in 500$ into it every month. Basically its like a savings account with a chance to lose/gain with "balanced" risk?
I dont mind not touching the money in 5-10 years. I just want to set it and forget it, and add into it every month.
Everyone in this thread is fucking retarded. $500 isn't anything spectacular, but you can grow an account with it pretty quickly if you're smart and use options.
Also, your money is in a mutual fund meaning you have no access to it, because it's in a fucking fund. Just let it sit and grow. You're obviously too retarded to trade stocks anyway.
Do a calculation. Basic compound interest.
The DJIA is outperforming it for the previous 3 years. And keep in mind in 2005 only half of fund managers beat the S&P.
Find out what risk/return you want. if its totally disposable go for it
>moderate long-term capital growth
The fund objective is right in their in the description OP.
You don't play with the $500. Just leave it alone and it will slowly grow by itself, or add in more money and it will grow slightly faster.