Choosing the correct investment fund 

The contributions you pay into your chosen investment plan is invested in one or more funds. Choosing the correct investment fund or funds within your investment is a very important decision. This is because the performance of the funds you choose helps to determine the value of your investment.  You want to get the best return for your investment, but this also has to be balanced against the level of risk you are prepared to take.

Investment Funds

Some investors may have the skills, time and confidence to pick their own stocks and shares for their portfolio. But for most people investment funds – where an investment expert chooses which stocks and shares to invest in – are a more manageable and flexible way to benefit from the potential performance of markets around the world.

Why it’s important that you know about investment funds.

The contributions you pay into your chosen investment is invested in one or more funds. The way it works is fairly straightforward. The fund manager is the professional company responsible for the day-to-day running of an investment fund. Under the fund manager’s supervision an investment fund works by pooling together money from many investors to invest in a selection of assets, such as shares, bonds or property. These are known as the underlying assets. Choosing the underlying assets to invest in is known as asset allocation.

Each investment fund has its own objective outlining, what it aims to achieve for its investors and  its own particular mix of assets. This helps you and your financial adviser to match the right fund, or funds, to your investment objectives and risk profile.

How to choose the right investment funds to meets your needs.

I will take you through the processes of risk profiling and asset allocation and will clear up much of the uncertainty involved in fund selection. To give you the greatest choice and flexibility, Discovery Invest offers a wide range of investment funds on our platform and we provide plenty of tools to help you to choose the most suitable investment funds.