Many people have savings that they would like to multiply. However, not everyone has the right knowledge and skills to invest in a way that will bring us profits. Of course, we can put money into the bank for a deposit, but the profits that we get from such an “investment” will often be lower than inflation, so realistically our money will lose value. We can look for opportunities to increase our resources ourselves, but we will have to spend a lot of our time. Perhaps it would be better to entrust this task to specialists who are employed by investment funds?
At the beginning, let’s say what investment funds are. They are peculiar “companies” to which we can deposit money, and they try to multiply them. Of course, they charge a commission for their services, because they have to earn some money. Investment funds employ financial specialists who know (or at least should know) everything about investments. Their task is to locate the deposited funds so that they bring the most profits. There are huge funds for earning money, as there are many investment products. They just have to choose the ones that will allow them to earn. As most of us realize, there are investment products that carry a different degree of risk. Some are safe, for others the risk is very high.
Investment funds, or rather specialists employed in them, invest our money in both safe and risky products. Therefore, we never know what the result will reach the fund to which we paid the money. And is there a risk that the funds invested will be lost? Of course. If the fund misses and pays our money into the wrong financial instrument, it simply loses it. And we will not be able to recover them. This is our risk related to investment funds. Is there any fund that is completely safe? Well, there is no such thing. Investment funds, unlike bank deposits, are not secured by any fund, so if they lose, we also lose. We can, of course, somehow protect ourselves by investing our money in various sub-funds or even by paying money to various investment funds. In that case, even if we lose some of our funds, the rest will bring us profits.
Is it worth to use the services of investment funds and thanks to them try to multiply our savings? Of course, each of us must take this decision independently. We have to be aware that our funds will never be completely safe and if the fund makes the wrong decision, we can lose it. But on the other hand, the funds can bring us a lot of profits, which we could not achieve by investing alone.