Saving money to invest in a future goal is a satisfying one. There are many different investments available, each offering a potential return which can beat inflation. It is crucial to think about the various kinds of investments and how they can be incorporated within your overall financial objectives.
Investment and funds
A fund is a group investment where your and other investors’ funds are pooled and invested in a range of assets. This spreads your risk as you don’t rely on the performance of one type of asset. For example an UK Equity Fund would consist of shares from several British companies.
But, you can also find funds that offer various asset types or even more specific sectors. There is a fund that will suit each investor, no matter the level of their expertise or investment timeframe or the risk tolerance.
Bond funds are popular investments. They are made up of IOUs (debt) usually from governments or companies and are an investment that is less volatile than stocks. They are impacted by changes in interest rates and the credit rating.
