Investing – What You Need to Know

It is a great way to grow your money and reach your long-term financial goals. It is also possible to do this with the help of a professional adviser, who can help you balance your financial situation and your comfort level with risk against the need for some growth potential and the security of your principal.

Investment funds pool your savings and those of other investors. A fund manager buys, holds and sells 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 in nature, for instance, ones https://highmark-funds.com/2021/12/23/market-risk-management-and-risk-calculations/ that focus on property or commodities. Multi-asset fund can contain a mix of different asset classes, such as shares and bonds.

Certain funds are geared toward specific regions or sectors, for instance, emerging markets or green investment. Many funds have specific investment objectives, for instance, the reduction of unsystematic risk or aiming at a certain amount of growth. Others have a general investment goal, such as low cost investing.

Your investment period and your approach to risk will determine the type of unit trusts, OEICs, and investment trusts that you choose. Younger investors may prefer to take on a greater amount of risk, and thus choose funds that include a higher percentage of stocks. Alternatively, those who are nearing retirement or have obligations to their families may choose to take a lower level of risk and select a fund with a higher percentage of bonds.