If you’re investing for the first time, funds could be a great way to start, buying into a fund is like buying a ready-made, off-the-shelf basket of investments, as we’ve already seen, they come in many flavors from the very low risk to very high risk so you can find one that’s right for you.
Also, some funds, such as multi-asset funds invest in a broad range of assets, allowing you to invest into different types of investments, or to put it another way, they allow you to put your eggs in lots of different baskets.
Funds can be less risky than buying individual shares in a single company because if one of the investments in a fund loses money, it could be balanced out by the other investments in the fund, spreading your risk in this way is known as diversification – and it’s one of the golden rules of investing.
But perhaps the best thing about funds is they’re put together by a fund manager, an experienced investment professional who knows more than a thing or two about investing, so you don’t have to be an expert to invest in funds. You’re essentially investing in an expert to do it for you.
As you’d expect from you bank, our partner Alawwal invest has specialist teams of investment professionals, some who carefully select the investments in the offered funds and others who actively manage them on your behalf, leaving you free to spend your time doing something else instead.
If you’re not confident about picking a fund, call us for any inquiry.