College student looking for an EFT or Bond to invest in!!!!

[abumhira]

I am a senior college student getting ready to graduate in December. This summer I have saved at least $500. I

I would like to invest into an EFT or Bond. I already have a stock with Walmat and one Mutual Fund, one online savings. I would prefer the one with the cheapest fees and fair returns. I plan to fund it with at least $20 per month.

Any advice or recommendations???~~~~Thanks

[humandraydel]

Well if you want to fund with small amounts you need an index mutual fund, not an ETF. The transaction costs for buying ETFs will eat you alive when buying such small amounts. I recommend a total stock market index.

[Scanner]

Agree with Humandrydel.

Scottrade charges $7 per transaction on an ETF. You'd lose 1/3 of your investment in transaction costs.

[abumhira]

Thanks for the reply. I really appreciate that advise. I am definately new to this investing sector. I am researching a lot in this area. I am reading and talking to various sources. EFT are expensive whoo...Do you recommend any type of index Mutual Funds for my situation???