Just like picking winners in a sporting event, investing gives you an opportunity to root for the teams you pick. The only difference is that you get to be the general manager of the team, deciding who's performing and who's getting benched. Using the basics will help you put together your own winning team.

The Philosophy of Four Principles
One of the great things about the BetterInvesting philosophy is that it applies no matter where you are on your investment journey. As a youth investor, you have an even greater potential for growth over your lifetime because you have more time to invest!

Here are the basic rules:

• Invest a set sum regularly—success is based on a long-term outlook
• Reinvest earning, dividends and profits —its like turbo charging your investment
• Invest in quality growth stocks and equity mutual funds—Once you know what to look for, they're easy to spot
• Diversify your investments—Protect your future by diversifying your portfolio

Use this philosophy, and keep your sights on the goal of doubling the value of your portfolio every five years. Just think of how many five-year spans you have ahead of you to double and redouble your money!

Getting What You Pay For
Whether it's the latest computer game, or a burger at a fast food joint, we all want to get what we pay for. Investing is no different, except instead of lunch, you're buying your future. That means you need to know what you're spending your money on.

Stocks
Each share of stock you buy is a certificate of ownership of as very small part of a corporation. By investing in the company (buying stock), you actually participate in the business and (hopefully!) profit from its success. The trick is to buy stock in companies that you have learned about, not just the ones that sound cool.

Risk and Reward
From no/low risk investments like U.S. Savings Bonds to high risk investments like Commodity Futures, a variety of investment options are available to you. BetterInvesting has the tools you need to help you decide which stocks to buy.

Mutual Funds
Mutual funds are a different way to invest. Instead of buying stocks in individual companies, you buy shares in a fund. Professional fund managers take the money you've invested, combine it with other shareholders' money, and invest it in an assortment of stocks, bonds and other investments.

There are three good things about investing in mutual funds.

• Diversification — It's not good to own stock in only a few companies. Diversification means your money is spread out so that if one or two stocks aren't doing so well you have others to balance them out. It isn't unusual for mutual funds to hold stock in a 100 or more different companies.
• Professional fund management —As a new investor, you may not feel confident about picking winners. In a mutual fund, experienced full-time managers and analysts handle your investments.
• Convenience — Mutual funds are easy to buy and sell.

As a youth member of BetterInvesting, you have access to the Mutual Fund Resource Center; one of the best tools at your disposal to help determine which mutual funds to invest in.