It is a great way to grow your money and achieve long-term financial goals. It’s also something that can be done in conjunction with the assistance of professional advisers, helping to balance the need for principal protection and some growth potential against your financial situation and your comfort with the risk.
Investment funds pool your savings and those of other investors. A fund manager will purchase, hold and sell investments on your behalf. Most funds are made up of a mix of assets, which can help to reduce risk associated with investing. Certain funds are more focused in nature, for instance, those that concentrate on property or commodities. There are also multi-asset funds which could contain a mix of different types of assets including shares and bonds.
Some funds are geared towards certain regions or sectors like emerging markets or green investment. They also have a variety of investment goals for example, such as targeting specific levels of growth or reducing risks that are not https://highmark-funds.com/ systemic. Others have a general goal for investing that include low cost investing.
Your investment period as well as your attitude to risk will determine the type of unit trusts, OEICs, and investment trusts that you choose. For example, younger investors are generally more comfortable taking more risk and are likely to choose funds that have a larger proportion of equities. However, those approaching retirement or have obligations to their families may prefer to take less risk and choose a fund that has more bonds.