There’s something very satisfying about saving money over time to invest to achieve a straight from the source goal in the future. There are a lot of different investments to choose from and each has a potential return that can beat inflation. It is important to think about the various kinds of investments and how they are a good fit with your financial goals overall including your tolerance to risk.
Investments and funds
A fund is an investment that pools your funds and the money of other investors and invests it into a variety of assets. This spreads your risk, since you don’t have to rely on the performance of only one type of asset. For instance the UK Equity Fund would consist of shares from a variety of British companies.
However, you can also find funds that provide a variety of asset types or even more specific sectors. This means that there’s a fund to suit every investor no matter their level of experience, investment duration or approach to risk.
Bond funds are among the most sought-after investments. They are made up of IOUs, or debt, usually from companies or governments. They are less volatile than stocks. They are impacted by changes in interest rates as well as the credit rating.