Investing – What You Need to Know

Investment is a great strategy to achieve your long-term financial goals and increase the value of your money. It is also possible to achieve this with the assistance of an experienced advisor, who will help you manage your financial situation and comfort level with risk versus the need to grow your portfolio and the protection of your principal.

Investment funds pool your savings with those of other investors. A fund manager can buy, hold and sell investments on your behalf. Most funds consist https://highmark-funds.com/2021/07/08/generated-post-2 of different assets, which lowers the risk of investment. However, some funds are more specialized than others, for instance funds that concentrate on commodities or property. Multi-asset funds can hold various asset classes, including bonds and shares.

Certain funds are targeted towards specific regions or sectors such as emerging markets or green investment. Many funds have distinct investment goals, such as reducing unsystematic risks or aiming at a certain amount of growth. Others have a broad investment objective that include low cost investing.

The type of unit trusts, OEICs and investment trusts you select will depend on the duration of your investment and your risk tolerance. Younger investors may be more willing to take on a larger level of risk and therefore, pick funds with a greater proportion of stocks. Alternatively, those approaching retirement or with family obligations might prefer to take a lower level of risk and pick an investment with more bonds.