Investing can provide an excellent method to increase your wealth and reach your long-term financial goals. It’s a process that can be accomplished with the assistance of professional advisors, who can help you make sure you are balancing the need for principal protection and some growth potential with your financial situation and your comfort with the risk.
Investment funds pool your savings and the savings of other investors. A fund manager will purchase, hold and even sell investments on your behalf. Most funds are made up of a mix of assets, which can help reduce the risk of investing. Certain funds are more specific, such as ones that focus on commodities or property. There are also multiasset funds that may hold a mixture of various asset types, such as bonds and shares.
Certain funds are geared toward specific regions or sectors for instance, emerging markets or green investment. Some also have a variety of specified investment aims such as focusing on specific growth levels or reducing risk that is not systemically controlled. Others have a common investment goal for example, low cost investing.
The type of unit trusts OEICs and investment trusts you choose will you can look here depend on the timeframe you invest in and your risk tolerance. For example, younger investors are generally more comfortable taking risks that are higher and are likely to choose funds that have more equity-based investments. On the other hand, those nearing retirement or with family obligations may prefer to take less risk and select an investment with more bonds.
