Investing – What You Need to Know

It is a great opportunity to grow your money and meet your long-term financial goals. It is also possible to accomplish this with the assistance of a qualified advisor, who can assist you in balancing your financial situation and comfort level with risk, balancing the need for growth potential and the security of your principal.

Investment funds pool your savings as well as those of other investors. A fund manager then buys the investments, holds them and then sells them on your behalf. The majority of funds consist from a mix of assets, which helps reduce the risk of investing. However, some are more specialised than others, for example funds that focus on commodities or property. Multi-asset funds could hold an array of different types of assets, like shares and bonds.

Some funds are geared towards particular regions or segments, for instance, emerging markets or green investment. Many funds have goals for investing, like reducing unsystematic risks or aiming at a certain amount of growth. Others have a more general aim, such as low-cost investing.

Your investment timeframe and your approach to risk will determine the kind of unit trusts, OEICs, and investment trusts that you choose. For example, younger investors maximizing value at risk are typically more comfortable taking greater risk and are more likely to select funds that contain a larger proportion of equities. For those who are nearing retirement or with family commitments might prefer to take a lower level of risk and choose a fund with more bonds.