How to Invest in Research Stocks

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Investing in research stocks is best done by letting a fund manager find the companies with the most potential for a high return, so a mutual fund or exchange traded fund is a great way to go. Put money in a variety of research stocks, including health, biomedical and biotech, with investing advice from a certified financial planner in this free video on personal finance.

Part of the Video Series: Investing Information
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Video Transcript

Remember a few years ago when everybody was interested in high tech stocks? One of the big appeals at that time was the opportunity for great investment return on small companies that specialized in research and technology. How do you invest today in research technology stocks? One of the best ways to do this is to leave those choices up to the experts rather than you having to go out and determine what is a good company that primarily does research? Why not consider letting a fund manager make those decisions for you? What kind of fund manager? Well there are managers that manage exchange traded funds and mutual funds for investing that allow you to specialize in the companies within those funds. One sector may be high tech or research stocks. Generally these are companies that perform different types of research in all areas, health, biomedical, biotech, all kinds of things like that. The fund managers actually have analysts that work for them and research these companies so that you don't have to do that. In addition the fund managers make sure that the companies are quality that they are investing in plus you get lots of diversification rather than just picking one type of company you are able to invest a little bit of money in lots of different kinds of companies. Some places to go to get research like this would be a website example of Morningstar. Morningstar gives you the opportunity to research different types of criteria like the length of time the fund manager has been in place, the types of companies you are interested in, and how expensive is it? Each stock and each mutual fund that is on the market today generally will have information held at a place like Morningstar. Morningstar is probably your best bet as far as a place to start that will help you find the type of fund that you are looking for that invests primarily in research stocks.


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