When faced with so many fund choices, how do you even begin to pick a winner? After deciding what sort of risks you’re prepared to take with your money, you need to grasp exactly which circles you could be moving in.
Most funds fit into standard categories. This helps when we’re working together to narrow down the search and select a fund that complements your personal investment objectives. So let’s take a look at:
Each investment category has different benefits and risks. Often, these fund types are combined to mix it up a bit and prevent investors being over-exposed in one area.
You may also have heard about futures or options. These are more speculative investments. You would agree to buy something like sugar or oil at a fixed price, in the future, effectively trying to pre-empt what will happen to the price before you buy. These are used by fund managers to complement the rest of your investments, but are not suitable for most private investors.