Investment is a great strategy to achieve your long-term financial goals and also grow your money. It’s also something that can be done with the assistance of expert advisors to help you make sure you are balancing the need for principal protection and some potential for growth against your current financial situation and your ability to accept risk.

Investment funds pool your savings with the savings of other investors. The fund manager will buy, hold and then sell investments on your behalf. Most funds are made up of a mix of assets, which helps reduce the risk of investing. However, some are more focused than others, for example funds that focus on commodities or property. Multi-asset funds may hold a mix of different types of assets, such as https://highmark-funds.com/2020/07/27/market-risk-management-a-business-strategy-allowing-to-minimize-the-risks-entailed-in-business-activity/ bonds and shares.

Certain funds are targeted towards particular regions or sectors like green or emerging markets. Many also have a range of investment goals for example, such as targeting certain levels of growth or reducing risks that are not systemic. Others have a broad investment objective for example, low cost investing.

The type of unit trusts, OEICs and investment trusts you choose will depend on both the duration of your investment and your approach to risk. For instance, investors who are younger are typically more comfortable taking risks that are higher and may be more likely to select funds with greater proportions of equity. On the other hand, those nearing retirement or who have family commitments may prefer to take less risk and pick a fund that has more bonds.