There are many reasons why people invest, but essentially it is to build wealth or to provide an income stream.

Some investors may have a short time frame, for example someone saving for a house deposit or a new car may wish to invest their money for just a few years. In this case, you would generally invest in less risky, or 'defensive' assets.

Other investors may have a long time frame, for example someone saving towards their retirement. This type of investor may be able to invest in riskier, or growth assets, as they have a longer period of time to ride out the bumps.

There are many reasons why people invest, and many ways they can go about it. To find out what is best for you speak with your financial adviser.