Last week, we looked at basic investment planning and proven investment strategies. In this week's article, John Lowe of MoneyDoctors.ie looks at the various types of investment where long term means long term…A pooled investment – sometimes known as an investment fund – is a way for individual investors to diversify without necessarily needing much money. Your money – along with the money of all the other participants – is pooled and then invested.
Since it would be impossible for all but the richest of private investors to mimic what these pooled investments do, they are an excellent way to spread your risk. A typical fund will be invested in a minimum of 50 companies and will be managed by a professionally qualified expert.A couple of other points before we look at all the options in a little bit more detail:This is because all of them are what I would describe as ‘tailor-made investment vehicles’.
The lower the number the lower the risk and vice versa Most people are rated around 3 or 4 - all insurance companies have managed funds and most do not bother with 1 or 7 as they are deemed too extreme so essentially you only have five funds to choose from.