Investing – What You Need to Know
It is a great opportunity to grow your money and reach long-term financial goals. It is also possible to do this with the assistance of an experienced adviser, who can help you manage your financial situation and comfort level with risk versus the need to grow your portfolio and the security 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. Most funds comprise a mixture of assets which reduces investment risk. Certain funds are more focused for instance, like those that concentrate on commodities or property. Multi-asset fund can contain a mix of different types of assets, such as shares and bonds.
Some funds are geared towards certain regions or sectors, such as green investments or emerging markets. Many funds have specific objectives for investment, such as reducing unsystematic risks or aiming for a certain degree of growth. Others have a more general aim, such as low-cost investing.
The type of unit trusts, OEICs and investment trusts you select will depend on both the length of your investment period and your approach to risk. For instance, investors who are younger are typically more comfortable taking greater risk and may be more inclined to select funds that contain a larger proportion of equities. On the other hand, those nearing retirement or have family commitments might want to take on less risk and pick funds that have more bonds.