What’s the aim of the fund you’re investing in – to grow your money, Questions you’ll want generate a regular income or give you a total return? to ask before What’s the level of risk involved and how will it be minimised by the fund investing manager running it? How does the fund manager engage with company management? Choosing a fund with the right You should also decide on the outcome you’d like from this aims, objectives and charges investment – whether you’d like regular income, long-term growth or both (called a total return) will help you choose Choosing the right equity fund depends on your investment the fund that’s right for you. goals – are you looking for an income from your investment, to grow your initial investment or to benefit from both? How does your fund manager Asking your financial adviser or researching the aims of a engage with company fund and the types of investment it makes will help you decide if it’s right for you. management? Different types of fund and investment companies impose If your fund manager’s investment firm has an analyst team different fees. Therefore, investors should be aware of this to research companies, your fund manager will benefit from when choosing their investments. relevant information about the marketplace. This specialist expertise complements the fund managers’ more generalist Make sure you have determined knowledge and focus. your investment needs and your With this added knowledge, they should be able to make level of risk more informed investment decisions on your behalf. The fund you choose could be a low risk/low return or a high risk/high return fund. You should decide on the level of risk you’re willing to take before looking for the right fund. It is important to understand the level of risk involved in a fund, and the methods by which the fund manager may seek to manage risk. 8