Saving in funds is long-term and it is exposed to a certain level of risk and exchange rate fluctuations in global capital markets. Each investor must be familiar with their attitude to risk and, based on this information and in relation to the expected duration and objective of the investment, they must appropriately diversify the assets of the investment in the funds.
If the investments funds are needed as soon as within one year, the funds that are least exposed to fluctuations in the capital markets are suitable for the selection of investments.
With a five-year saving period, you can already afford to diversify your assets into medium-risk funds that promise moderate asset growth.
A saving period of five to ten years allows assets to be diversified into riskier investments. In return for the assumed risk, a higher return could be achieved due to the long-time horizon.
A long period of saving (ten years and more) can bring above-average returns, so you can focus your assets on even the riskiest investments, which otherwise means greater fluctuations in the value of assets during the saving period. When investing, make sure you have the appropriate geographical and industry diversification.