https://highmark-funds.com/2020/11/10/personal-finance-forum

The investment process can be a fantastic way to grow your money and achieve long-term financial goals. It is also possible to achieve this with the assistance of a qualified advisor, who will assist you in balancing your financial situation and your comfort level with risk, balancing the need to grow your portfolio and the protection of your principal.

With investments, your and other investors’ savings are pooled together. A fund manager then buys, holds and sells investments on your behalf. The majority of funds are a mixture of assets which reduces risk of investment. However, some are more specialised than others, for instance funds that are focused on property or commodities. There are also multiasset funds that could contain a mix of different asset types, including bonds and shares.

Certain funds are geared towards a specific region or sector like green or emerging markets. Many funds have distinct investment objectives, for instance, cutting down on unsystematic risks, or aiming to achieve a certain level of growth. Others have a general investment goal for example, 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. For instance, investors who are younger are typically more comfortable taking risks that are higher and may be more inclined to select funds that contain more equity-based investments. For those who are close to retirement or have obligations to their families may choose to take a lower level of risk and pick a fund that has more bonds.