The investment process is a great way to meet your long-term financial objectives and grow your savings. It’s also something that can be accomplished with the assistance of professional advisors, who can help you keep in mind the need for primary protection and potential for growth against your current financial situation and confidence in the risk.
With investment funds, your and the savings of other investors are put together. A fund manager buys or holds investments and sells them on your behalf. The majority of funds are comprised from a mix of assets, which can help reduce the risk of investing. Certain funds are more specialized, such as ones that focus on property or commodities. There are also multi-asset fund that can hold a mix of different types of assets, such as bonds and shares.
Some funds are geared towards specific regions or sectors for instance, emerging markets or green investment. Many funds have investment objectives, for instance, cutting down on unsystematic risks, or aiming to achieve a certain level of growth. Others have a more general investment aim, such as low-cost investing.
Your investment duration as well as your attitude to risk will determine the kind of unit trusts, OEICs, and investment trusts you select. For instance, younger investors are typically more comfortable taking risks that are higher and are more likely to choose funds that have a larger proportion of equities. For those who are nearing retirement or with family commitments might prefer to take on less risk and pick a fund with more bonds.
