Investing – What You Need to Know

Investing is a great way to achieve your long-term financial goals and to grow your money. It’s a process that can be done with the assistance of expert advisers, who help you to make sure you are balancing the need for principal protection and some potential growth against your financial situation and your comfort with the risk.

With investment funds, your and the savings of other investors are pooled together. A fund manager will buy, hold and then sell investments on your behalf. Most funds are made up of a mixture of assets, which can help lower the risk of investing. Certain funds are more specialized, such as ones that focus on commodities or property. Multi-asset funds could hold various asset classes, such as shares and bonds.

Certain funds are targeted towards a specific region https://highmark-funds.com/2020/07/27/market-risk-management-a-business-strategy-allowing-to-minimize-the-risks-entailed-in-business-activity or sector like emerging markets or green investments. There are also funds that have a range of investment goals for instance, aiming at specific growth rates or reducing risk that is unsystematic. Others have a common investment goal that include low cost investing.

Your investment period as well as your attitude to risk will determine the type of unit trusts, OEICs, and investment trusts you select. For instance, investors who are younger are more likely to accept risks that are higher and are more likely to select funds with a larger proportion of equities. On the other hand, those nearing retirement or have family obligations might prefer the risk at a lower level and select a fund with a higher percentage of bonds.