Investing can provide an excellent opportunity to grow your money and reach long-term financial goals. It is also possible to accomplish this with the assistance of an experienced advisor who can help you balance your financial situation and comfort level with risk in order to allow for some growth potential and the security of your principal.
With the investment funds, your and other investors’ savings are put together. The fund manager will purchase, hold and sell investments on your behalf. The majority of funds comprise various assets, which lowers the risk of investment. However, some funds are more specialized than others, for instance funds that are focused on commodities or property. Multi-asset funds can hold various asset classes, including shares and bonds.
Certain funds are geared towards a specific region or sector, such as green investments or emerging markets. There are also funds that have a range of specific investment objectives, for instance, targeting specific growth rates or reducing risk that is not systemically controlled. Others have a general goal for investing like low cost investing.
The length of your investment period and your approach to risk will determine the type of unit trusts, OEICs, and investment trusts that you choose. Younger investors might be more willing to take on a larger level of risk, and thus choose funds that have a higher percentage of stocks. For those who are approaching retirement or have obligations to their families may choose to take a lower level of risk and choose a fund that has more bonds.
