Investing is a great way to reach your long-term financial goals and to grow your savings. It is also possible to do this with the assistance of an experienced adviser, who can help you balance your financial situation and your level of comfort with risk in order to allow for some growth potential and the security of your principal.
With the investment funds, your and other investors’ savings are put together. The fund manager will purchase, hold and even sell investments on your behalf. Most funds comprise a mixture of assets which reduces the risk of investing. However, some are more specific than others, like funds that are focused on property or commodities. There are also multiasset funds that can hold a mix of various asset types, such as bonds and shares.
Some funds are geared toward particular regions or sectors, such as emerging markets or green investments. They https://highmark-funds.com/2021/12/23/value-at-risk-calculations-for-market-risk-management also have a variety of specific investment objectives such as focusing on specific growth rates or reducing unsystematic risk. Others have a broad investment objective like low cost investing.
The type of unit trusts, OEICs and investment trusts you choose will depend on the duration of your investment and your approach to risk. Younger investors may prefer to accept a higher level of risk, and therefore choose funds with a greater proportion of stocks. For those who are nearing retirement or with family commitments may prefer to take less risk and opt for an investment with more bonds.
