Investing can provide an excellent way to grow your funds and reach long-term financial goals. It is also possible to achieve this with the help of a professional advisor, who can help you to balance your financial situation and your comfort level with risk, balancing the need for some growth potential and the security of your principal.
Investment funds pool your savings and those of other investors. The fund manager will purchase, hold and sell investments on your behalf. Most funds comprise a mixture of assets which reduces investment risk. However, some are more specialised than others, such as funds https://highmark-funds.com/2021/12/23/market-risk-management-and-risk-calculations/ that focus on commodities or property. Multi-asset funds may 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. Many funds have specific objectives for investment, such as decreasing unsystematic risks or striving for a certain level of growth. Others have a more general goal, like low-cost investing.
The length of your investment period as well as your attitude to risk will determine the kind of unit trusts, OEICs, and investment trusts that you choose. Younger investors may be more inclined to take on a higher amount of risk, and therefore choose funds that include a higher percentage of stocks. On the other hand, those nearing retirement or with family obligations might want to take on less risk and pick a fund with more bonds.