Investing can provide an excellent method to increase your wealth and reach long-term financial goals. It is also possible to do this with the help of a professional adviser, who can assist you in balancing your financial situation and level of comfort risk calculation for portfolio approach with risk against the need to grow your portfolio and the protection of your principal.

Investment funds pool your savings as well as the savings of other investors. A fund manager buys or holds investments and sells them on your behalf. The majority of funds consist from a mix of assets, which can help reduce the risk of investing. However, some are more specialised than others, like funds that focus on property or commodities. There are also multiasset funds that can hold a mix of different asset types, such as bonds and shares.

Certain funds are focused on certain regions or sectors like emerging markets or green investment. A lot of funds have specific goals for investing, like cutting down on unsystematic risks, or aiming for a certain level of growth. Others have a general investment goal that include low cost investing.

Your investment period and your approach to risk will determine the kind of unit trusts, OEICs, and investment trusts that you choose. Younger investors may prefer to take on a higher degree of risk, and consequently, choose funds that include a higher proportion of stocks. However, those approaching retirement or have obligations to their families may choose to take a lower level of risk and pick a fund that has more bonds.