competitive advantage analysis
Investing can provide an excellent opportunity to grow your money and reach long-term financial goals. It can also be done with the assistance of professional advisers, helping to ensure that you have the right amount of primary protection and potential growth against your financial situation and your ability to accept risk.
With the investment funds, your and other investors’ savings are put together. A fund manager will then purchase, hold and sell investments on your behalf. Most funds are made up from a mix of assets, which can help lower the risk of investing. Certain funds are more focused, such as those that concentrate on property or commodities. There are also multi-asset funds which could contain a mix of different types of assets including bonds and shares.
Certain funds are targeted towards specific regions or sectors such as emerging markets or green investment. 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 more general focus, such as low-cost investing.
The type of unit trusts OEICs and investment trusts you choose will depend on the duration of your investment and your risk tolerance. Younger investors might be more inclined to accept a higher level of risk and consequently, choose funds that include a higher percentage of stocks. For those who are approaching retirement or have obligations to their families might want to choose the risk at a lower level and pick a fund that has more bonds.
