Investing – What You Need to Know

Investment is a great strategy to achieve your long-term financial goals and increase the value of your wealth. It is also possible to accomplish this with the assistance of an experienced adviser, who can assist you in balancing your financial situation and your comfort level with risk against the need to grow your portfolio and the security of your principal.

With investment funds, your and the savings of other investors are pooled together. A fund manager will buy, hold and sell investments on your behalf. The majority of funds consist of a mixture of assets, which can help to reduce risk associated with investing. Certain funds are more focused in nature, for instance, ones that focus on property or commodities. There are also multi-asset funds which may hold a mixture of different types of assets including bonds and shares.

Certain funds are focused on particular regions or segments such as emerging markets or green investment. They also have a variety of specified investment aims, for instance, targeting specific levels of growth or reducing risk that is unsystematic. Others have a broad investment objective for example, low cost investing.

Your investment duration as well as your attitude to risk will determine the type of unit trusts, OEICs, and investment trusts that you choose. For instance, investors who are more younger are typically more comfortable taking a higher level of risk and are more likely to select funds with greater proportions of equity. On the other hand, those nearing retirement or who have family commitments might prefer to take a lower level of risk and choose a fund with more bonds.