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First thing is to figure out what your purpose with this fund will be. If you have other investments or secure retirement savings, this might be “play” money. If this is your whole nut, then you might want to be more careful.
Second is think about taxes across assets. IRA/401(k) are tax free once in the account, but since the source is a car sale, I’m thinking this would be a regular account. If you can contribute any part of the sale to a tax deferred account, do that.
For the tax deferred account, if there is not enough to fool with (say more than $10k but really more), I’d go with the index funds RunSilent recommended. A fund with high dividend or interest yield is ideal in this account since it is tax deferred. If you do have enough to feel comfortable picking stocks and diversifying (at least 5, ideally 10 or more stocks. So if average price is $50/share and a standard buy is 100 shares (or multiples of 100), you need $5k per stock. $25k-$50k for a DIY diversified portfolio, which can include those index funds.
If taxable account, same rules about diversification and funds, but now buy growth stocks because when you sell them (to realize gains, since you won’t be receiving cash dividends) the gains will be taxed at the lower long-term capital gains rate. Some dividends are ok, just recognize that they will be taxed at your marginal rate.
I like Motley Fool’s basic service ($99/yr I think) except that you will get up-sell emails every week. Use their recommendations as a starting point, do further research and reading on each stock before you buy. And apply your own standards - for example I don’t buy tobacco or alcohol stocks because of the damage those products have done to my friends and family. Fool is a good place to start reading up on stocks, and I really like their foundational advice: Never Sell! If you have that philosophy, you’ll think long-term about the prospects for the stock/company.
Others like to trade more frequently than I, some are in and out the same day, and use options, etc for more fun, gains and risk. All that depends on the level of expertise, confidence and risk you have.
Disclaimer: while I have a lot of experience in this area I am not a financial advisor. These are just my opinions and reflect my own risk tolerance.
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