It is a great way to grow your money and reach your long-term financial goals. It is also possible to do this with the assistance of an experienced advisor, who will assist you in balancing your financial situation and level of comfort with risk, balancing the need to grow your portfolio and the protection of your principal.

Investment funds pool your savings with the savings of other investors. A fund manager buys or holds investments and sells them on your behalf. The majority of funds consist from a mix of assets, which can help reduce the risk of investing. However, some are more specialized than others, like funds that focus on property or commodities. Multi-asset funds could hold various types of assets, like shares and bonds.

Certain funds are targeted towards specific regions or segments like emerging markets or green investments. Many funds have specific investment objectives, for instance, reducing unsystematic risks or aiming for a certain degree of growth. Others have a more general goal, like low-cost investing.

Your investment duration as well as your attitude to risk will determine the type of unit trusts, OEICs, and investment trusts that you choose. Younger investors may be more inclined to take on a higher level of risk, and thus straight from the source choose funds that contain a higher percentage of stocks. On the other hand, those nearing retirement or with family commitments may prefer to take less risk and pick a fund with more bonds.