Best way to invest small amounts in stock market

Richards1983

Hi all,

I'm interested to put a small amount of money in the stock market, e.g. 2k in Tesla. What's the best way of doing so? Should I go through Davy/Goodbody's?

Thanks for your advice,
Con

dennyk

Richards1983 wrote: »

e.g. 2k in Tesla.

Buying a bunch of one stock is not a good way to invest in the stock market, it's really just gambling. If you want to invest, you want to diversify. The best way to do that with a relatively small amount of money is to put it into a diverse mutual fund of some sort, with whatever asset class balance suits your risk tolerance.

Brokers like Degiro and Davy sell ETFs, which are exchange traded shares of mutual funds; those can be a good option if you have a smaller amount of money than the lump sum minimums for opening an investment account at a traditional investment firm. However, be sure to do your research on the tax treatment of ETFs, as there can be some caveats (e.g. deemed disposal).

Richards1983

Many thanks dennyk.

I hear you on diversification. I'm interested to place a couple of relatively small bets and leave them there for a long time.