Investing – What You Need to Know
It is a great method to increase your wealth and reach your long-term financial goals. It can also be done in conjunction with the assistance of professional advisors to help you make sure you are balancing the need for primary protection and potential growth against your financial situation and your comfort with risk.
Investment funds pool your savings with those of other investors. A fund manager then purchases, holds and sells investments on your behalf. Most funds consist of an assortment of assets that lowers the risk of investment. Certain funds are more focused like ones that focus on property or commodities. Multi-asset funds could hold an array of different types of assets, like shares and bonds.
Some funds are geared towards particular regions or sectors, such as green or emerging markets. Some also have a variety of specified investment aims, for instance, targeting specific growth levels or reducing unsystematic risk. Others have a general investment goal for example, low cost investing.
The type of unit trusts, OEICs and investment trusts you select will depend on both the timeframe you invest in and your approach to risk. For example, younger investors are typically more comfortable taking risks that are higher and are more likely to choose funds with more equity-based investments. For those who are nearing retirement or with family obligations might want to take on less risk and choose an investment with more bonds.