Investing can provide an excellent opportunity to grow your money and meet your long-term financial goals. It’s also something that can be done in conjunction with the assistance of expert advisors, who can help you ensure that you have the right amount of principal protection and some growth potential with your financial circumstances and comfort with the risk.
Investment funds pool your savings with those of other investors. A fund manager can purchase, hold and sell investments on your behalf. The majority of funds consist of a variety of assets, which helps lower the risk of investing. Certain funds are more specialized for instance, like ones that focus on commodities or property. Multi-asset funds can hold a mix of different types of assets, such as shares and bonds.
Certain funds are targeted towards specific regions or segments, such as green investments or emerging markets. They also have a variety of specific investment objectives such as focusing on specific growth rates or reducing unsystematic risk. Others have a more general investment objective, for instance, low-cost investing.
The length of your investment period and your approach to risk will determine the type of unit trusts, OEICs, and investment trusts that you choose. For example, younger investors are generally more comfortable taking a higher level of risk and may be more likely to select funds that contain greater proportions of equity. Alternatively, those approaching retirement or have family commitments might prefer to take a lower level of risk and select an investment with more bonds.