Investing can provide an excellent method to increase your wealth and reach long-term financial goals. It is also possible to achieve this with the assistance of a qualified advisor, who will help you manage your financial situation and comfort level with risk against the need for growth potential and the protection of your principal.
With investment funds, your and other investors’ savings are put together. A fund manager buys securities, holds them, and sells them on your behalf. Most funds are made up from a mix of assets, which can help reduce the risk of investing. However, some funds are more specific than others, for example funds that concentrate on property or commodities. There are also multi-asset funds which might hold a mix of different asset types, including bonds and shares.
Certain funds are targeted towards particular regions or sectors, such as green or emerging markets. They also have a variety of investment goals for example, such as targeting specific levels of growth or reducing risks that are not systemic. Others have a more general aim, such as low-cost investing.
Your investment period as well as your attitude to risk will determine the type of unit trusts, OEICs, and investment trusts you select. Younger investors might be more willing to take on a larger amount of risk, and therefore, pick funds that contain a higher proportion of stocks. However, those who are approaching retirement or with family commitments might want to take on less risk https://highmark-funds.com/2021/07/08/generated-post-2 and choose funds that have more bonds.