Investing – What You Need to Know

Investments can be a great opportunity to grow your money and reach long-term financial goals. It can also be accomplished with the help of professional advisers, who help you to ensure that you have the right amount of principal protection and some potential growth against your financial situation and your comfort with risk.

Investment funds pool your savings with the savings of other investors. A fund manager will then purchase, hold and even sell investments on your behalf. The majority of funds comprise a mixture of assets which reduces risk of investment. However, some funds are more specialized than others, for instance funds that focus on property or commodities. There are also multi-asset funds which may hold a mixture of different types of assets including shares and bonds.

Certain funds are geared towards certain regions or sectors like emerging markets or green investments. Many funds have specific objectives for investment, such as decreasing unsystematic risks or striving for a certain level of growth. Others have a general goal for investing, such as low cost investing.

The length of your investment period value at risk calculations for market risk management and your approach to risk will determine the kind of unit trusts, OEICs, and investment trusts you select. For instance, younger investors are more likely to accept a higher level of risk and may be more inclined to select funds with more equity-based investments. Alternatively, those approaching retirement or with family obligations may prefer to take less risk and opt for an investment with more bonds.