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Step 1
Decide what kind of investment you would like to make. There are a variety of ways to invest in oil and gas including stocks of individual oil and gas companies, mutual funds weighted towards the oil and gas sector, and more recently ETFs that reflect the value of the underlying asset's price. Each of these investment vehicles is different and you are encouraged to research them to find the one that best fits your strategy. For this example, we'll invest $2,500 in a mutual fund weighted towards oil and other energy assets, Black Rock All-Cap Global Resources A.
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Step 2
Call your broker or log in to your online brokerage account. If calling your broker, simply ask to invest $2,500 in Black Rock All-Cap Global Resources A. You can also ask them to advise you on other gas and oil weighted investments.
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Step 3
If using an online brokerage like Fidelity or Etrade, sign on and click on "Trade." Enter the ticker symbol for Black Rock All-Cap Global Resources A (BACAX) and enter your investment amount. The minimum for this particular fund is $1,000.
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Step 4
After submitting the trade, you should receive confirmation from your brokerage.
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Step 5
Other investment ideas include investing in oil and gas futures. This can be very risky, however, and if you are interested, make sure you understand the how futures trading works before beginning.
Comments
cmjg10 said
on 9/25/2008 For a more "direct approach", you can buy royalty shares of producing wells. You can acquire a percentage of the income from the producing well from the landowner. A royalty owner does not share in the expense of the well, therefore, you start receiving monthly royalty checks once the well is in production. http://louisianaroyalties.weebly.com/