Investing – What You Need to Know

Investment is a great strategy to meet your long-term financial goals and increase the value of your savings. It is also possible to achieve this with the assistance of an experienced advisor who can help you to balance your financial situation and comfort level with risk, balancing the need for growth potential and the protection of your principal.

Investment funds pool your savings and those of other investors. A fund manager then buys the investments, holds them and then sells them on your behalf. The majority of funds consist of a variety of assets, which helps lower the risk of investing. However, some are more specialised than others, like funds that concentrate on commodities or property. Multi-asset funds may hold various types of assets, such as bonds and shares.

Certain funds are targeted towards certain regions or sectors like emerging markets or green investment. Many funds have distinct investment objectives, for instance, the reduction of unsystematic risk or aiming for a certain degree of growth. Others have a more general objective, for instance, low-cost investing.

The type of unit trusts, OEICs and investment trusts you select will depend on both the duration of your investment and your risk tolerance. Younger investors may be more willing to take on a greater degree of risk, and therefore choose funds that include a higher percentage https://highmark-funds.com/2020/11/10/personal-finance-forum/ of stocks. However, those nearing retirement or have obligations to their families may prefer to take less risk and select a fund that has more bonds.