Investment is a great strategy to meet your long-term financial goals and increase the value of your money. It’s a process that can be accomplished with the help of professional advisers, who help you to keep in mind the need for primary protection and potential for growth against your current financial situation and your comfort with the risk.

Investment funds pool your savings with those of other investors. The fund manager will purchase, hold and sell investments on your behalf. The majority of https://highmark-funds.com/2021/07/08/generated-post/ funds are comprised of a mixture of assets, which can help to reduce risk associated with investing. Certain funds are more specific in nature, for instance, those that concentrate on commodities or property. There are also multi-asset funds which could contain a mix of various asset types, including bonds and shares.

Certain funds are geared towards a specific region or sector like emerging markets or green investments. Many funds have specific investment goals, such as cutting down on unsystematic risks, or aiming at a certain amount of growth. Others have a broad investment objective like low cost investing.

The type of unit trusts OEICs and investment trusts you choose to use will depend on both your investment timeframe and your approach to risk. For instance, younger investors are generally more comfortable taking risks that are higher and are likely to select funds with a larger proportion of equities. Alternatively, those who are approaching retirement or have family obligations might prefer an easier risk and select a fund that has more bonds.