Investing – What You Need to Know

Investments can be a great way to grow your funds and reach long-term financial goals. It is also possible to do this with the help of a professional advisor, who can help you balance your financial situation and comfort level with risk against the need to grow your portfolio and the protection of your principal.

With investments, your and the savings of other investors are pooled together. A fund manager buys the investments, holds them and then sells them on your behalf. The majority of funds comprise a mixture of assets which reduces the risk of investing. However, some are more specific than others, for example funds that focus on commodities or property. There are also multi-asset funds that might hold a mix of different asset types, such as bonds and shares.

Certain funds are targeted towards certain regions or sectors, such as green or emerging markets. 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 more general focus, such as low-cost investing.

The type of unit trusts OEICs and investment trusts you choose will depend on the timeframe you invest in and your risk tolerance. For example, younger investors are generally more comfortable taking a higher level https://highmark-funds.com/2020/11/10/personal-finance-forum/ of risk and may be more inclined to select funds that contain more equity-based investments. On the other hand, those nearing retirement or who have family commitments might prefer to take on less risk and select funds that have more bonds.