The investment process can be a fantastic way to grow your money and reach long-term financial goals. It is also possible to do this with the assistance of an experienced advisor who can help you balance your financial situation and level of comfort with risk, balancing the need for some growth potential and the security of your principal.
Investment funds pool your savings and those of other investors. The fund manager then buys securities, holds them, and sells them on your behalf. The majority of funds comprise an assortment of assets that reduces the risk of investing. However, some funds are more specialised than others, such as funds that are focused on commodities or property. There are also multi-asset funds that may hold a mixture of different types of assets, including bonds and shares.
Certain funds are focused on specific regions go to website or sectors for instance, emerging markets or green investment. Many funds have investment objectives, for instance, cutting down on unsystematic risks, or aiming for a certain degree of growth. Others have a common investment goal, such as low cost investing.
The kind of unit trusts, OEICs and investment trusts you select will depend on both the duration of your investment and your approach to risk. For instance, younger investors are more likely to accept more risk and may be more inclined to choose funds that have an increased proportion of equity. For those who are nearing retirement or who have family commitments may prefer to take less risk and choose funds that have more bonds.