https://highmark-funds.com/2021/07/08/generated-post-2/
The investment process is a great way to reach your financial objectives and grow your capital. It’s a process that can be accomplished with the help of professional advisers, helping to make sure you are balancing the need for primary protection and growth potential against your financial situation and confidence in the risk.
Investment funds pool your savings and those of other investors. The fund manager then buys, holds and sells investments on your behalf. The majority of funds consist of a mix of assets, which helps to reduce risk associated with investing. Certain funds are more specialized like those that concentrate on property or commodities. There are also multi-asset funds which might hold a mix of different types of assets, including bonds and shares.
Certain funds are geared towards specific regions or segments, such as green or emerging markets. They also have a variety of investment goals that are specific, for instance, targeting certain levels of growth or reducing risk that is unsystematic. Others have a broad investment objective that include low cost investing.
The type of unit trusts, OEICs and investment trusts you choose will depend on the timeframe you invest in and your approach to risk. Younger investors may be more inclined to take on a greater amount of risk, and therefore, pick funds that have a higher percentage of stocks. On the other hand, those nearing retirement or have family obligations may choose to take a lower level of risk and choose a fund that has more bonds.