Investment is a great strategy to reach your long-term financial goals and also grow your wealth. It is also possible to accomplish this with the assistance of a professional adviser, who can help you balance your financial situation and comfort level with risk in order to allow to increase your potential growth and the protection of your principal.
Investment funds pool your savings with those of other investors. A fund manager then buys the investments, holds them and then sells them on your behalf. The majority of funds are comprised of a mixture of assets, which helps to reduce risk associated with investing. However, some are more specific than others, for example funds that concentrate on property or commodities. Multi-asset funds can hold a mix of different types of assets, like shares and bonds.
Some funds are geared towards a particular region or sector such as emerging markets or green investment. Some also have a variety of specified investment aims for example, such as targeting certain levels of growth or reducing risks that are not systemic. Others have more a more general aim, such as 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. Younger investors might prefer to accept a higher amount of risk, and thus choose funds that have a higher proportion of stocks. For those who are approaching retirement or have family obligations may choose to take less risk and pick a fund that has more bonds.