https://highmark-funds.com/2021/07/08/generated-post-2/

The investment process is a great way to reach your long-term financial goals and also grow your money. It’s also a strategy that can be done in conjunction with the assistance of professional advisers, who help you to ensure that you have the right amount of principal protection and some growth potential with your financial situation and your comfort with risk.

With investments, your and other investors’ savings are put together. A fund manager can buy, hold and then sell investments on your behalf. The majority of funds comprise an assortment of assets that lowers the risk of investment. Certain funds are more focused for instance, like those that concentrate on commodities or property. There are also multi-asset funds which might hold a mix of various asset types, including bonds and shares.

Some funds are geared toward specific regions or segments like green investments or emerging markets. Some also have a variety of specified investment aims for example, such as targeting certain levels of growth or reducing unsystematic risk. Others have a general goal for investing, such as low cost investing.

Your investment timeframe and your approach to risk will determine the kind of unit trusts, OEICs, and investment trusts that you choose. For instance, investors who are younger are generally more comfortable taking risks that are higher and may be more inclined to choose funds that have an increased proportion of equity. For those who are nearing retirement or have obligations to their families may prefer to take the risk at a lower level and choose a fund with a higher percentage of bonds.