https://highmark-funds.com/2021/12/23/value-at-risk-calculations-for-market-risk-management
It is a great way to grow your money and achieve long-term financial goals. It is also possible to accomplish this with the assistance of a professional adviser, who can assist you in balancing your financial situation and your level of comfort with risk against the need to grow your portfolio and the protection of your principal.
Investment funds pool your savings and those of other investors. A fund manager buys the investments, holds them and then sells them on your behalf. Most funds comprise different assets, which reduces risk of investment. However, some funds are more specialised than others, such as funds that are focused on property or commodities. There are also multi-asset fund that can hold a mix of different types of assets including bonds and shares.
Some funds are geared towards particular regions or sectors like emerging markets or green investments. Some also have a variety of specific investment objectives, for instance, targeting certain levels of growth or reducing risks that are not systemic. Others have a more general aim, such as low-cost investing.
The kind of unit trusts, OEICs and investment trusts you choose will depend on the timeframe you invest in and your risk tolerance. Younger investors might be more willing to accept a higher degree of risk, and consequently, choose funds that have a higher proportion of stocks. On the other hand, those nearing retirement or with family obligations might prefer to take a lower level of risk and choose a fund with more bonds.