Investments can be a great way to grow your money and meet your long-term financial goals. It’s also something that can be done with the assistance of professional advisors, who can help you make sure you are balancing the need for primary protection and growth potential against your financial situation and confidence in risk.
Investment funds pool your savings as well as the savings of other investors. A fund manager will then buy, hold and sell investments on your behalf. The majority of funds comprise an assortment of assets that reduces investment risk. Certain funds are more focused, such as ones that focus on commodities or property. There are also multi-asset funds which might hold a mix of different asset types, including bonds and shares.
Certain funds are geared towards particular regions or sectors, such as emerging markets or green investments. Many also have a range of investment goals for example, such as targeting specific growth rates or reducing unsystematic risk. Others have a general goal for investing for example, low cost investing.
Your investment timeframe as well as your attitude to risk will determine the kind of unit trusts, OEICs, and investment trusts that you choose. Younger investors might be more willing to take on a larger level of risk and thus choose funds with a greater percentage of stocks. On the other hand, those nearing retirement or have family commitments may prefer to take less risk and pick an investment with more bonds.