Investing – What You Need to Know
Investments can be a great way to grow your money and reach your long-term financial goals. It is also possible to achieve this with the assistance of an experienced advisor, who can help you manage your financial situation and comfort level with risk in order to allow for growth potential and the security of your principal.
Investment funds pool your savings and those of other investors. A fund manager buys or holds investments and sells them on your behalf. The majority of funds are comprised of a mixture of assets, which can help to reduce risk associated with investing. Certain funds are more specialized, such as ones that focus on commodities or property. Multi-asset funds could hold several asset classes, such as bonds and shares.
Certain funds are targeted towards particular regions or segments like emerging markets or green investment. Many funds have goals for investing, like reducing unsystematic risks or aiming for a certain degree of growth. Others have a broad investment objective, such as low cost investing.
Your investment period and your approach to risk will determine the kind of unit trusts, OEICs, and investment trusts you select. Younger investors might be more willing to accept a higher level of risk, and consequently, choose funds with a greater percentage of stocks. On the other hand, those nearing retirement or have obligations to their families may choose to take the risk at a lower level and pick a fund that has more bonds.