Investing – What You Need to Know

Investment is a great strategy to achieve your long-term financial objectives and grow your money. It is also possible to accomplish this with the assistance of a professional advisor, who can help you balance your financial situation and level of comfort with risk, balancing the need for some growth potential and the protection of your principal.

With investments, your and other investors’ savings are pooled together. The fund manager will buy, hold and sell investments on your behalf. Most funds comprise a mixture of assets which reduces the risk of investing. Some funds are more specialised in nature, for instance, those that concentrate on commodities or property. There are also multi-asset funds that could contain a mix of different types of assets including bonds and shares.

Certain funds are targeted towards certain regions or sectors like emerging markets or green investments. Many funds have objectives for investment, such as decreasing unsystematic risks or striving to achieve a certain level of growth. Others have a more general investment focus, such as low-cost investing.

Your investment timeframe 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 younger are typically more comfortable taking a higher level of risk and may be more inclined to select funds with more equity-based investments. For those who are approaching retirement or have family obligations might prefer the risk at a lower level and choose a fund that has more bonds.

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