There’s something gratifying about saving money over time to save for a long-term goal. There are many investments available, each offering an opportunity to earn returns that beat inflation. It’s important to think about the different types and how they will fit into your overall financial plan.
Investment and funds
A fund is a group investment where you and other investors’ money is pooled and put into a variety of assets. This spreads risk since you aren’t relying on the performance of just one type of asset. For example, a UK Equity Fund would consist of shares issued by various British companies.
However, you can also find funds that provide an array of different asset types or even more specific industries. There’s a fund to suit any investor, regardless of what level of experience, investment timeframe, or the risk tolerance.
Bond funds are popular investments. They are made up of IOUs (debt) – typically from government or corporate entities – and can be an investment that is less volatile than stocks. They are affected by changes in interest rates and the credit rating.
