Investing – What You Need to Know

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It is a great method to reach your financial objectives and grow your savings. It is also possible to accomplish this with the assistance of an experienced advisor, who will help you to balance your financial situation and your comfort level with risk against the need for some growth potential and the protection of your principal.

Investment funds pool your savings as well as those of other investors. A fund manager buys securities, holds them, and sells them on your behalf. Most funds consist of different assets, which reduces investment risk. Certain funds are more specific, such as ones that focus on property or commodities. There are also multiasset funds that might hold a mix of various asset types, such as bonds and shares.

Some funds are geared towards a specific region or sector, such as green investments or emerging markets. A lot of funds have specific investment goals, such as decreasing unsystematic risks or striving at a certain amount of growth. Others have a broad investment objective, such as low cost investing.

The kind of unit trusts, OEICs and investment trusts you pick will depend on the length of your investment period and your approach to risk. Younger investors may be more willing to take on a higher level of risk, and therefore, pick funds that include a higher proportion of stocks. On the other hand, those nearing retirement or have obligations to their families may choose to take the risk at a lower level and pick a fund that has more bonds.