Investing can provide an excellent way to grow your money and meet your long-term financial goals. It is also possible to accomplish this with the help of a professional advisor who can help you balance your financial situation and your level of comfort with risk, balancing the need to increase your potential growth and the security of your principal.

Investment funds pool your savings as well as those of other investors. A fund manager will purchase, hold and sell investments on your behalf. The majority of funds comprise different assets, which lowers the risk of investment. However, some funds are more specialized than others, for example funds that concentrate on commodities or property. There are also multi-asset funds that may hold a mixture of different types of assets, including shares and bonds.

Certain funds are focused on specific regions or sectors like emerging markets or green investment. They also have a variety of specific investment objectives, for instance, targeting specific growth rates or reducing risk that is unsystematic. Others have a more general focus, such as low-cost investing.

Your investment duration 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 larger degree of risk, and consequently, choose funds that contain a higher percentage of stocks. On the other hand, those close to retirement or have obligations to their families may choose to take a lower level of risk and pick a fund that has more bonds.

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