The investment process can be a fantastic opportunity to grow your money and achieve long-term financial goals. It is also possible to do this with the assistance of a qualified advisor who can help you balance your financial situation and comfort level with risk versus the need for some growth potential and the protection of your principal.
Investment funds pool your savings as well as the savings of other investors. A fund manager can purchase, hold and sell investments on your behalf. The majority of funds consist from a mix of assets, which helps reduce investment risks. Certain funds are more specialized, such as those that concentrate on property or commodities. There are also multi-asset go to website funds which may hold a mixture of different types of assets including bonds and shares.
Some funds are geared towards particular regions or segments such as emerging markets or green investment. Many funds have distinct investment goals, such as the reduction of unsystematic risk or aiming to achieve a certain level of growth. Others have a common investment goal, such as low cost investing.
The kind of unit trusts, OEICs and investment trusts you choose to use will depend on both the length of your investment period and your risk tolerance. For example, younger investors are typically more comfortable taking risks that are higher and may be more inclined to choose funds that have a larger proportion of equities. On the other hand, those close to retirement or have family obligations may prefer to take an easier risk and pick a fund that has more bonds.
