Investment is a great strategy to achieve your long-term financial goals and increase the value of your wealth. It is also possible to do this with the help of a professional advisor, who can help you to balance your financial situation and level of comfort with risk in order to allow for growth potential and the security of your principal.
Investment funds pool your savings as well as the savings of other investors. The fund manager then buys or holds investments and sells them on your behalf. The majority of funds consist of a mixture of assets, which can help reduce investment risks. However, some funds are more specialized than others, for example funds that are focused on commodities or property. There are also multi-asset funds that could contain a mix of various asset types, including shares and bonds.
Certain funds are focused on a particular region or sector, for instance, emerging markets or green investment. Some also have a variety of specified investment aims such as focusing on specific levels of growth or reducing risk that is unsystematic. Others have a common investment goal that include low cost investing.
The type of unit trusts OEICs and investment trusts you pick will depend on the timeframe you invest in and your approach to risk. Younger investors may be more inclined to take on a greater level of risk and thus choose funds that have a higher percentage of stocks. Alternatively, those who are nearing retirement or have obligations to their families might prefer the risk at a lower level and select a fund that has more bonds.
