Saving money to invest in a future purpose is a satisfying experience. There are many investments that are available, each of which offers a potential return which can beat inflation. It’s important to take into consideration the various kinds of investments and how they align with your overall financial goals especially your tolerance for risk.
Investment and funds
A fund is a collective investment where your and other investors’ funds are pooled and then invested in a variety of assets. This helps spread your risk as you are not relying on the performance of a single asset type. For example an UK Equity Fund will consist of shares from several British companies.
However, you may also find funds that offer a variety of types of assets or even specific areas. There’s a fund to suit every investor, no matter what level of experience, investment timeframe, or their risk tolerance.
Bond funds are a popular option for investing. They are a combination of IOUs, or debt, typically from governments or companies. They can be less volatile than stocks. They are affected by changes in interest rates as well as the credit rating.
