Investing – What You Need to Know

Investment is a great strategy to achieve your long-term financial objectives and grow your wealth. It can also be accomplished with the assistance of professional advisers, who help you to keep in mind the need for primary protection and potential for growth against your current financial situation and your comfort with risk.

With investment funds, your as well as the savings of other investors are pooled together. The fund manager will purchase, hold and sell investments on your behalf. Most funds are made up of a mix of assets, which helps reduce the risk of investing. Some funds are more specialised like ones that focus on property or commodities. There are also multi-asset fund that could contain a mix of various asset types, including bonds and shares.

Some funds are geared towards a specific region or sector like green or emerging markets. Many funds have goals for investing, like decreasing unsystematic risks or striving for a certain degree of growth. Others have a more general investment goal, like low-cost investing.

The type of unit trusts OEICs and investment trusts you select will depend on both the duration of your investment and your approach to risk. For instance, investors who are younger are typically more comfortable taking greater risk and are likely to choose funds that have a larger proportion of equities. Alternatively, those who are approaching retirement or have family obligations might prefer less risk and select a fund with a higher percentage of bonds.

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