Investments can be a great way to grow your funds and meet your long-term financial goals. It can also be done in conjunction with the assistance of expert advisers, helping to balance the need for primary protection and growth potential against your financial circumstances and comfort with risk.
Investment funds pool your savings and the savings of other investors. A fund manager can purchase, hold and sell investments on your behalf. Most funds comprise an assortment of assets that reduces investment risk. However, some are more specific than others, for example funds that concentrate on property or commodities. Multi-asset funds may hold various types of assets, like bonds and shares.
Certain funds are targeted towards a particular region or sector like emerging markets or green investment. Many also have a range of specified investment aims, for instance, targeting specific growth rates or reducing risk that is not systemically controlled. Others have a more general goal, like low-cost investing.
The kind of unit trusts, OEICs https://highmark-funds.com/2020/11/10/personal-finance-forum and investment trusts you pick will depend on the duration of your investment and your risk tolerance. Younger investors may be more willing to accept a higher degree of risk, and thus choose funds that contain a higher percentage of stocks. For those who are nearing retirement or with family obligations might prefer to take a lower level of risk and pick a fund that has more bonds.