Investments can be a great opportunity to grow your money and achieve long-term financial goals. It’s a process that can be done with the assistance of expert advisors, who can help you ensure that you have the right amount of principal protection and some growth potential with your financial situation and your ability to accept the risk.
Investment funds pool your savings and the savings of other investors. The fund manager then buys securities, holds them, and sells them on your behalf. The majority of funds consist of a mixture of assets, which helps lower the risk of investing. Some funds are more specialised for instance, like those that concentrate on commodities or property. Multi-asset funds can hold an array of different types of assets, like shares and bonds.
Certain funds are targeted towards specific regions or segments, such as green or emerging markets. They also have a variety of specified investment aims, for instance, targeting specific levels of growth or reducing unsystematic risk. Others have a common investment goal for example, low cost investing.
Your investment duration and your approach to risk will determine the kind of unit trusts, OEICs, and investment trusts that you choose. Younger investors may prefer to take on a larger degree of risk, and therefore, pick funds that contain a higher proportion of stocks. For those who are nearing retirement or with family commitments may prefer to take less risk and select a fund with more bonds.
