Saving money to invest in a future goal is a satisfying experience. There are many different investments to choose from – each one offers an opportunity to earn a return that could beat inflation. It is crucial to consider the various types of investments and how they can be incorporated within your overall financial objectives.
Investments and funds
A fund is an investment that pools your money with the money of other investors and invests it in various assets. This spreads your risk as you don’t rely on the performance of a single asset type. For example an UK Equity Fund is made up of shares issued by various British companies.
You can also find funds that offer a variety different asset types, or certain sectors that are more specific. This means there is a fund for all investors, regardless of level of experience, investment duration or risk-taking approach.
Bond funds are a popular option for investing. They are made up of IOUs (debt) – typically from governments or companies and can be a less volatile option than stocks. However, they may be affected by changes in interest rates and the credit rating of the issuer.
