The investment process can be a fantastic way to grow your money and meet your long-term financial goals. It’s also a strategy that can be done in conjunction with the help of professional advisers, who help you to keep in mind the need for primary protection and growth potential with your financial situation and your ability to accept risk.

Investment funds pool your savings as well as 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 can help to reduce risk associated with investing. Certain funds are more specialized in nature, for instance, those that concentrate on property or commodities. Multi-asset funds can read more hold several asset classes, including shares and bonds.

Certain funds are targeted towards a specific region or sector, such as green or emerging markets. They also have a variety of specific investment objectives such as focusing on specific levels of growth or reducing risk that is not systemically controlled. Others have a more general focus, such as low-cost investing.

Your investment duration as well as your attitude to risk will determine the kind of unit trusts, OEICs, and investment trusts you select. Younger investors may be more willing to accept a higher level of risk, and consequently, choose funds that have a higher percentage of stocks. Alternatively, those who are nearing retirement or have obligations to their families might want to choose less risk and select a portfolio that has more bonds.