People who are new to the stock market need to learn how the system works before they start investing. The reason is quite simple. There is a lot of money to be made in the stock market but it is possible to lose money. The safest approach for the new investor would be to sign up with a reputable money manager who will recommend the right portfolio of safe and profitable stocks. One of the best tips for investors is that they should target properly managed mutual funds. This is where the Russells 2000 program comes into the picture. This program is one great investment idea for new investors.
This program is based on the sensible formula that there is money to be made in small-cap stocks. This is why the operators of this program target some of the smallest securities that are likely to make money for the investor. As a mutual fund, Russells 2000 is almost perfect. Practically all the stocks and securities bought for the investor have low prices. The advantage here is that the investor can buy a lot of these securities because the prices are low. Another advantage is that the risk of loss is minimized by portfolio diversification. People who sign up with Russells 2000 are effectively buying stocks in many different firms so if some stocks do not do well, others will and this means profit for the investor.
The great thing about Russells 2000 is that this mutual fund has been able to beat the market consistently for a number of years. Anybody who looks at the stock market index can see that this program is simply in a class of its own. The top 10 performing stocks of this program have recorded return on investment of 43.69%-78.23%. This is truly an impressive performance and it is evidence that this mutual fund is a money maker.
When it comes to mutual funds, Russells 2000 seems to have found a winning formula. This program makes money for investors and this is what makes it so popular. There is also the important fact that the people behind this program stick to the small-cap segment of the US security market. This policy has worked perfectly so there is no point in changing a winning formula.