At one point or another, we will all have thought about investing money for one purpose or another, for some it will be in order to provide for their future, for others it might be a hobby or a past time, a subject that they really understand and enjoy the mind-boggling world of investment funds. One thing is for sure, the aim is to make money in the process.
Why investment funds?
A very good question to be starting with and probably the best in order to build a foundation of understanding. Investment funds have been around for as long as we can remember, they are not new nor have they changed that much over time, the technology behind them, however, has. Investment funds have always given an opportunity to everyone, by way of putting your money into a pot or ‘pot’s’ stocks or shares.
There are options for all, for example, high-risk users can make massive returns using investment funds where as low-risk users might be happy with making some money and still feeling ‘secure’, there is a myriad of market sectors to invest in, some people like to stick with ethical options whereas other are just interested in making as much money as they can, there really is something for everyone.
Technology
As we have all seen with things like mobile or online banking, things have changed massively from the days you used to have to go to the bank and fill out paperwork and forms, now, at the drop of a hat we can make transfers, payments and even apply for things like credit and loans within minutes. Something unthinkable 30 years ago.
There are blogs all over the Internet talking about things like cryptocurrency and online trading, the same can be said for the world of investments, apps and online monitoring services are available so that the end-user has much more control over what is happening with their money pot’s. Not so long ago you’d have to make a call to the insurance company or your IFA (independent financial advisor) and try and work something out over the phone, now you can see it all with your own eyes.
It’s all about the people
Perhaps an odd analogy but a pretty good one is football, you might have a favorite player or players, as we all know, it is the players that make the team, not the team itself. So, what happens if the star player moves to another team and you have money back upon this player? Do you stay with the team or do you swap the team and continue to follow your golden egg? The same goes for investments, you will want to be up to date on the latest government policies and understand that the success of your money growth lies solely with the fund managers who are making the investments.
You get ok managers and superstars, go with the winners and stay with them if they move which can happen. Remember, it’s not the fund that’s important it is who is watching the fund and making choices on your behalf.
