Investments can be a great opportunity to grow your money and meet your long-term financial goals. It is also possible to accomplish this with the assistance of a qualified advisor, who can help you to balance your financial situation and comfort level with risk versus the need to increase your potential growth and the protection of your principal.
Investment funds pool your savings as well as the savings of other investors. A fund manager will then purchase, hold and even sell investments on your behalf. Most funds are made up of a mix of assets, which can help to reduce risk associated with investing. Certain funds are more focused in nature, for instance, ones that focus on commodities or property. There are also multi-asset fund that could contain a mix of various asset types, such as bonds and shares.
Certain funds are geared toward specific regions or sectors for instance, emerging markets or green investment. Many funds have distinct investment goals, such as decreasing unsystematic risks or striving for a certain level of growth. Others have a general goal for investing that include low cost investing.
The type of unit trusts, OEICs and investment trusts you choose to use will depend on the duration of your investment and your risk tolerance. For example, younger investors are typically more comfortable taking risks that are higher and are more likely to select funds that contain more equity-based investments. However, those approaching retirement or have obligations to their families may prefer to take less risk and select a fund with a higher percentage of bonds.
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