When choosing a fund

When choosing a fund you should identify your needs first and select a fund that best suits these:

What is your time scale?

Are you a short- or long-term investor? Although some funds cater for short-term needs, most funds need at least three to five years for your money to grow, so that market fluctuations are smoothed.

What is your risk?

The type of fund you choose will depend on the amount of risk you are prepared to take. Factors are age, health, income, alternative liquid assets, financial/collective investment portfolio knowledge, and whether or not you have dependants. An investor seeking security and income should select a money market fund, an income fund, an asset allocation fund or a mix thereof. A more aggressive investor can select a general equity fund or an equity fund that invests in a specific sector of the market such as financial and industrial companies, resources and basic industries or smaller companies.

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