Investing – What You Need to Know

08 Ott Investing – What You Need to Know

https://highmark-funds.com/2021/12/23/market-risk-management-and-risk-calculations/

Investing is a great way to achieve your long-term financial goals and to grow your wealth. It’s a process that can be done with the help of professional advisors, who can help you make sure you are balancing the need for primary protection and potential growth against your financial situation and your comfort with risk.

With investment funds, your as well as other investors’ savings are put together. A fund manager will then buy, hold and then sell investments on your behalf. The majority of funds consist from a mix of assets, which can help lower the risk of investing. However, some funds are more specific than others, like funds that focus on property or commodities. There are also multi-asset funds which can hold a mix of different types of assets such as bonds and shares.

Some funds are geared towards particular regions or sectors, such as green investments or emerging markets. Many also have a range of specified investment aims, for instance, targeting specific levels of growth or reducing risk that is not systemically controlled. Others have a general investment goal, such as low cost investing.

Your investment duration as well as your attitude to risk will determine the type of unit trusts, OEICs, and investment trusts you select. Younger investors might be more willing to take on a greater level of risk and therefore choose funds that include a higher proportion of stocks. However, those who are approaching retirement or who have family commitments might want to take on less risk and choose a fund with more bonds.