06 Jun Investment and Funds
There’s something satisfying about saving money over time to put aside for a long-term goal. There are a lot of different options to choose from each with an opportunity to earn a return that could beat inflation. However, it is like it crucial to consider the different types of investment and how they are a good fit with your financial goals overall, particularly your tolerance for risk.
Funds and investment
A fund is an investment which pools your money as well as the money of other investors and invests it in a variety of assets. This helps to spread your risk since you’re not dependent on the performance of just one asset type. For example the UK equity fund will be comprised of shares of different British companies.
However, you may also find funds that offer an array of different types of assets or even specific areas. There’s a fund to suit every investor, no matter how much experience they have and investment timeframe or level of risk tolerance.
Bond funds are a popular choice of investment. They are made up of IOUs (debt) typically from governments or companies – and are an investment that is less volatile than stocks. However, they may be affected by interest rate changes and the credit rating of the issuer.