There’s something gratifying about saving money over time in order to invest for a future goal. There are many investments that are available, each with the potential for a return that can beat inflation. But it’s important to consider the different types of investment and how they are a good fit with your overall financial goals especially your tolerance for risk.
Funds and investment
A fund is an investment that pools your money and the money of other investors and invests it in various assets. This spreads your risk as you don’t rely on the performance of one type of asset. For instance, a UK equity fund would be made up of shares from various British companies.
However, you can find funds that offer an array of different types of assets or even specific industries. This means there is a fund to suit any investor, regardless of their level of expertise, investment timeframe or approach to risk.
Bond funds are a well-known choice of investment. They are made up of IOUs or debt, typically from governments or corporations. They can be less volatile than stocks. They can be affected by changes in interest rates and the credit rating.
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