It is a great method to increase your wealth and achieve long-term financial goals. It is also possible to accomplish this with the help of a professional advisor who can help you to balance your financial situation and comfort level with risk, balancing the need to increase your potential growth and the protection of your principal.

Investment funds pool your savings and the savings of other investors. A fund manager will buy, hold and sell investments on your behalf. The majority of funds consist of a mix of assets, which helps reduce the risk of investing. However, some are more specific than others, for instance funds that focus on property or commodities. There are also multi-asset fund that could contain a mix of various asset types, including bonds and shares.

Certain funds are focused on specific regions or sectors, for instance, emerging markets or green investment. Many funds have distinct objectives for investment, such as reducing unsystematic risks or aiming to achieve a certain level of growth. Others have a more general focus, such as low-cost investing.

Your investment timeframe as well as your attitude to risk will determine the type of unit trusts, OEICs, and investment trusts you select. For example, younger investors are more likely to accept a higher level of risk and are more likely to choose funds that have a larger proportion of equities. However, those who are approaching retirement or with family commitments might prefer to take on less risk and pick funds that have more bonds.

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