Investment is a great strategy to reach your financial goals and also grow your savings. It is also possible to do this with the assistance of a qualified adviser, who can help you manage your financial situation and your level of comfort with risk versus the need for growth potential and the security of your principal.
With the investment funds, your and the savings of other investors are pooled together. A fund manager then purchases, holds and sells investments on your behalf. Most funds consist of various assets, which reduces risk of investment. Some funds are more specialised in nature, for instance, ones that focus on property or commodities. Multi-asset funds can hold an array of different asset classes, such as shares and bonds.
Certain funds are geared toward certain regions or sectors, for instance, emerging markets or green investment. Many funds have investment objectives, for instance, the reduction of unsystematic risk or aiming to achieve a certain level of growth. Others have a more general objective, for instance, low-cost investing.
The type of unit trusts, OEICs and investment trusts you choose will depend on your investment timeframe and your approach to risk. Younger investors might prefer to accept a higher amount of risk, and therefore, pick funds that have a higher percentage of stocks. However, those who are approaching retirement or with family commitments might prefer to take a lower level of risk and select funds that have more bonds.
