Investing can provide an excellent opportunity to grow your money and achieve long-term financial goals. It is also possible to accomplish this with the assistance of a professional advisor who can help you manage your financial situation and your level of comfort with risk, balancing the need for growth potential and the protection of your principal.
Investment funds pool your savings as well as those of other investors. A fund manager can purchase, hold and even sell investments on your behalf. The majority of funds are different assets, which reduces investment risk. Certain funds are more specialized in nature, for instance, ones that focus on property or commodities. Multi-asset funds can hold a mix of different asset classes, such as shares and bonds.
Certain funds are geared towards a specific region or sector, such as green investments or emerging markets. Many funds have specific investment objectives, for instance, the reduction of unsystematic risk or aiming for a certain degree of growth. Others have a more general investment goal, like low-cost investing.
Your investment duration and your approach to risk will determine the kind of unit trusts, OEICs, and investment trusts that you choose. Younger investors might prefer to take on a larger degree of risk, and consequently, choose funds with a greater percentage of stocks. However, those who are approaching retirement or who have family commitments might prefer to take a lower level of risk and opt for a fund that has more bonds.
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