It is a great way to grow your money and reach your long-term financial goals. It is also possible to achieve this with the help of a professional advisor who can assist you in balancing your financial situation and comfort level with risk in order to allow to grow your portfolio and the protection of your principal.
With investment funds, your as well as other investors’ savings are pooled together. A fund manager will buy, hold and then sell investments on your behalf. Most funds are made up from a mix of assets, which helps reduce investment risks. However, some are more specialised than others, like funds that are focused on property or commodities. Multi-asset fund can contain a mix of different asset classes, such as bonds and shares.
Certain funds are geared towards certain regions or sectors, such as green https://highmark-funds.com/2020/07/27/market-risk-management-a-business-strategy-allowing-to-minimize-the-risks-entailed-in-business-activity investments or emerging markets. Many also have a range of specific investment objectives such as focusing on specific growth levels or reducing risks that are not systemic. Others have a broad investment objective for example, low cost investing.
Your investment timeframe 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 take on a higher level of risk and therefore choose funds that have a higher proportion of stocks. On the other hand, those nearing retirement or with family commitments may prefer to take less risk and opt for funds that have more bonds.
