Investments can be a great opportunity to grow your money and meet your long-term financial goals. It is also possible to do this with the assistance of a qualified adviser, who can help you balance your financial situation and your comfort level with risk against the need for growth potential and the protection of your principal.
Investment funds pool your savings and those of other investors. A fund manager will buy, hold https://highmark-funds.com/2021/12/23/value-at-risk-calculations-for-market-risk-management and then sell investments on your behalf. Most funds consist of various assets, which lowers the risk of investment. Certain funds are more focused for instance, like ones that focus on property or commodities. Multi-asset funds may hold various types of assets, such as bonds and shares.
Some funds are geared towards specific regions or segments, such as green or emerging markets. Many funds have specific objectives for investment, such as the reduction of unsystematic risk or aiming to achieve a certain level of growth. Others have a more general goal, like low-cost investing.
The type of unit trusts, OEICs and investment trusts you choose will depend on both the length of your investment period and your approach to risk. For instance, investors who are younger are typically more comfortable taking a higher level of risk and may be more inclined to choose funds that have more equity-based investments. On the other hand, those nearing retirement or with family commitments may prefer to take less risk and choose funds that have more bonds.