The investment process is a great way to achieve your long-term financial goals and also grow your money. It’s a process that can be accomplished with the help of professional advisors to help you make sure you are balancing the need for principal protection and some potential growth against your financial situation and your ability to accept risk.
Investment funds pool your savings with the savings of other investors. A fund manager buys securities, holds them, and sells them on your behalf. Most funds consist of various assets, which reduces risk of investment. However, some are more specialised than others, such as funds that are focused on commodities or property. Multi-asset fund can contain a mix of different asset classes, such as shares and bonds.
Some funds are geared towards particular regions or segments like emerging markets or green investment. Many funds have goals for investing, like decreasing unsystematic risks or striving at a certain amount of growth. Others have a broad investment objective for example, low cost investing.
Your investment duration as well as your attitude to risk will determine the kind of unit trusts, OEICs, and investment trusts you select. For example, younger investors tend to be more comfortable with greater risk and are more likely to select funds that contain more equity-based investments. On the other hand, those nearing retirement or have family commitments might prefer to take a lower level of risk and pick funds that have more bonds.
