Investing is a great way to reach your long-term financial objectives and grow your money. It is also possible to do this with the assistance of a professional advisor who can help you balance your financial situation and level of comfort with risk in order to allow to increase your potential growth and the security of your principal.
With the investment funds, your and other investors’ savings are pooled together. A fund manager buys securities, holds them, and sells them on your behalf. The majority of funds consist from a mix of assets, which helps to reduce risk associated with investing. However, some funds are more specialised than others, like funds that are focused on property or commodities. Multi-asset funds could hold a mix of different asset classes, including bonds and shares.
Certain funds are geared towards particular regions or sectors, such as emerging markets or green investments. Many funds have investment goals, such as the reduction of unsystematic risk or aiming for a certain degree of growth. Others have a more general aim, such as low-cost investing.
The type of unit trusts, OEICs and investment trusts you pick will depend on the length of your investment period and your risk tolerance. For instance, investors who are younger are typically more comfortable taking more risk and are more likely to choose funds with more equity-based investments. Alternatively, those who are approaching retirement or have obligations to their families might prefer a lower level of risk and select a portfolio with a higher percentage of bonds.
