The investment process is a great way to achieve your long-term financial goals and also grow your money. It’s also a strategy that can be done in conjunction with the assistance of expert advisers, who help you to balance the need for principal protection and some growth potential against your financial situation and your comfort with risk.

With investments, your and the savings of other investors are put together. A fund manager will buy, hold and then sell investments on your behalf. The majority of funds comprise a mixture of assets which lowers the risk of investment. However, some funds www.highmark-funds.com/2023/04/15/competitive-advantage-analysis are more specialized than others, such as funds that concentrate on property or commodities. Multi-asset fund can contain various asset classes, including shares and bonds.

Certain funds are geared towards specific regions or segments like green or emerging markets. Some also have a variety of investment goals that are specific for example, such as targeting specific growth rates or reducing risk that is unsystematic. Others have a more general investment objective, for instance, low-cost investing.

The kind of unit trusts, OEICs and investment trusts you choose will depend on the duration of your investment and your approach to risk. Younger investors may be more willing to accept a higher level of risk, and consequently, choose funds with a greater proportion of stocks. However, those who are approaching retirement or with family commitments might prefer to take a lower level of risk and opt for funds that have more bonds.

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