Investing – What You Need to Know
Investments can be a great method to increase your wealth and reach your long-term financial goals. It’s a process that can be done with the help of professional advisers, who help you to keep in mind the need for principal protection and some growth potential with your financial situation and confidence in risk.
With investment funds, your as well as the savings of other investors are pooled together. A fund manager will then buy, hold and sell investments on your behalf. Most funds consist of different assets, which reduces risk of investment. However, some are more specialised than others, for instance funds that concentrate on property or commodities. There are also multiasset funds that can hold a mix of different types of assets including bonds and shares.
Certain funds are focused on a particular region or sector, for instance, emerging markets or green investment. There are also funds that have a range of investment goals for example, such as targeting specific growth levels or reducing risks that are not systemic. Others have a more general aim, such as low-cost investing.
The type of unit trusts, OEICs and investment trusts you pick will depend on your investment timeframe and your approach to risk. Younger investors might be more https://highmark-funds.com/2021/07/08/generated-post willing to take on a greater level of risk, and thus choose funds that have a higher percentage of stocks. For those who are nearing retirement or have family commitments might prefer to take on less risk and pick a fund with more bonds.