https://highmark-funds.com/2021/07/08/generated-post-2
Investing is a great way to achieve your long-term financial goals and also grow your wealth. It can also be done in conjunction with the assistance of expert advisers, who help you to ensure that you have the right amount of primary protection and growth potential against your financial situation and your ability to accept risk.
Investment funds pool your savings and those of other investors. The fund manager then buys or holds investments and sells them on your behalf. The majority of funds consist of a mixture of assets, which can help lower the risk of investing. Certain funds are more specialized like ones that focus on commodities or property. There are also multi-asset fund that may hold a mixture of different asset types, including shares and bonds.
Some funds are geared towards certain regions or sectors, such as emerging markets or green investments. A lot of funds have specific objectives for investment, such as the reduction of unsystematic risk or aiming for a certain degree of growth. Others have a more general goal, like low-cost investing.
The type of unit trusts OEICs and investment trusts you choose to use will depend on the timeframe you invest in and your risk tolerance. For example, younger investors are typically more comfortable taking risks that are higher and may be more inclined to select funds with greater proportions of equity. However, those who are approaching retirement or who have family commitments may prefer to take less risk and choose a fund with more bonds.
