Investing – What You Need to Know

It is a great method to achieve your long-term financial goals and also grow your savings. It is also possible to achieve this with the help of a professional advisor who can help you to balance your financial situation and comfort level with risk, balancing the need for growth potential and the security of your principal.

With investment funds, your and the savings of other investors are pooled together. A fund manager can purchase, hold and even sell investments on your behalf. The majority of funds are comprised of a variety of assets, which can help lower the risk of investing. However, some are more focused than others, like funds that are focused on property or commodities. Multi-asset funds can hold an array of different types of assets, like shares and bonds.

Certain funds are geared towards certain regions or sectors, such as emerging markets or green investments. They also have a variety of specified investment aims for example, such as targeting specific growth levels or reducing risk that is not systemically controlled. Others have a common investment goal that include low cost investing.

The kind of unit trusts, OEICs and investment trusts you select will depend on the duration of your investment and your risk tolerance. Younger investors may be more inclined to take on a greater level of risk and therefore choose funds with a greater proportion of stocks. For those who are close to retirement or have family obligations might want to choose a lower level of risk and pick a fund that has more bonds.

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