Investing is a great way to reach your long-term financial goals and to grow your capital. It can also be done in conjunction with the assistance of expert advisers, who help you to keep in mind the need for https://highmark-funds.com/2021/07/08/generated-post-2 principal protection and some potential growth against your financial situation and your ability to accept the risk.

With investment funds, your and other investors’ savings are put together. A fund manager will purchase, hold and even sell investments on your behalf. The majority of funds consist of a variety of assets, which can help reduce investment risks. However, some are more specialised than others, for example funds that concentrate on property or commodities. There are also multi-asset funds which can hold a mix of different types of assets, including bonds and shares.

Some funds are geared towards particular regions or sectors, such as emerging markets or green investments. Many also have a range of investment goals that are specific for instance, aiming at specific growth rates or reducing risks that are not systemic. Others have a more general investment objective, for instance, low-cost investing.

Your investment duration and your approach to risk will determine the kind of unit trusts, OEICs, and investment trusts that you choose. For example, younger investors are generally more comfortable taking a higher level of risk and are more likely to choose funds that have greater proportions of equity. However, those close to retirement or have obligations to their families may prefer to take an easier risk and select a portfolio with a higher percentage of bonds.