Investments can be a great opportunity to grow your money and reach long-term financial goals. It’s also a strategy that can be accomplished with the assistance of professional advisers, who help you to keep in mind the need for principal protection and some growth potential with your financial situation and your ability to accept risk.
With the investment funds, your and the savings of other investors are pooled together. The fund manager will buy, hold and then sell investments on your behalf. Most funds comprise various assets, which reduces the risk of investing. Certain funds are more specific for instance, like those that concentrate on commodities or property. There are also multi-asset funds that can hold a mix of different asset types, including shares and bonds.
Certain funds are value at risk calculations for market risk management targeted towards specific regions or sectors like emerging markets or green investment. Many funds have specific goals for investing, like decreasing unsystematic risks or striving for a certain degree of growth. Others have a more general investment aim, such as low-cost investing.
Your investment timeframe as well as your attitude to risk will determine the kind of unit trusts, OEICs, and investment trusts you select. For example, younger investors are more likely to accept more risk and are likely to select funds with greater proportions of equity. Alternatively, those who are close to retirement or have family obligations might prefer less risk and choose a fund that has more bonds.