Investing – What You Need to Know

Investing is a great way to meet your long-term financial objectives and grow your money. It is also possible to accomplish this with the assistance of a professional adviser, who can help you to balance your financial situation and your comfort level with risk versus the need for growth potential and the protection of your principal.

With the investment funds, your and other investors’ savings are pooled together. The fund manager will purchase, hold and even https://highmark-funds.com/2021/07/08/generated-post-2/ sell investments on your behalf. Most funds are made up from a mix of assets, which helps lower the risk of investing. Certain funds are more specialized like those that concentrate on commodities or property. There are also multi-asset funds which might hold a mix of different types of assets such as bonds and shares.

Some funds are geared toward a specific region or sector, such as emerging markets or green investments. Many funds have distinct investment objectives, for instance, reducing unsystematic risks or aiming to achieve a certain level of growth. Others have a general investment goal like low cost investing.

The type of unit trusts, OEICs and investment trusts you select will depend on your investment timeframe and your approach to risk. Younger investors may be more willing to accept a higher level of risk, and consequently, choose funds that have a higher percentage of stocks. However, those nearing retirement or have family obligations may prefer to take the risk at a lower level and choose a fund with a higher percentage of bonds.