Investing is a great way to reach your financial objectives and grow your money. It’s also something that can be done in conjunction with the assistance of expert advisors, who can help you ensure that you have the right amount of principal protection and some potential growth against your financial situation and your ability to accept the risk.

Investment funds pool your savings and those of other investors. A fund manager buys, holds and sells investments on your behalf. The majority of funds consist of a mixture of assets, which helps reduce the risk of investing. However, some are more specialized than others, for instance funds that are focused on property or commodities. Multi-asset funds could hold a mix of different types of assets, such as shares and bonds.

Certain funds are targeted towards particular regions or segments like emerging markets or green investment. Some also have a variety of investment goals such as focusing on specific growth rates https://highmark-funds.com/2021/12/23/value-at-risk-calculations-for-market-risk-management/ or reducing unsystematic risk. Others have a more general investment aim, such as low-cost investing.

The kind of unit trusts, OEICs and investment trusts you pick will depend on the timeframe you invest in and your approach to risk. Younger investors might prefer to take on a higher level of risk, and thus choose funds that contain a higher percentage of stocks. However, those approaching retirement or have obligations to their families may prefer to take the risk at a lower level and select a portfolio with a higher percentage of bonds.