Best way to invest $500 for a child

For $500 to reach $1 million, your investment would have to double about 11 times . If your investment earns a 10 percent average annual return and doubles approximately every 7.2 years, it will take about 79.2 years for your $500 to reach over $1 million.

Instead of simply buying a stock index, you can opt to invest your $500 into a no-load mutual fund that is managed by investment professionals . These fund managers will pick and choose stocks that match the investment objective of the fund you buy.25 Oca 2022

Keep cash invested for 5 years or more Time allows your money to grow and bounce back from short-term market fluctuations. The potential payoff: $500 invested at a 7% return for 30 years will grow to close to $4,000 .29 Nis 2021