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Investment and Funds
Saving money to invest in a long-term goal is a rewarding experience. There are many different investments that are available, each of which offers the potential for a return that can beat inflation. It is important to think about the various types of investments and how they relate to your overall financial goals, particularly your tolerance for risk.
Funds and investment
A fund is a group investment in which your and other investors’ funds are put together and invested in a variety of assets. This helps to spread your risk since you’re not dependent on the performance of a specific asset type. For example, a UK Equity Fund will comprise of shares from a variety of British companies.
You can also find funds with a variety of asset types, or sectors that are more specific. There’s a fund to suit each investor, no matter the level of their expertise or investment timeframe or risk tolerance.
Bond funds are a well-known option for investing. They are made up of IOUs (debt) generally from governments or companies and are an investment that is less volatile than stocks. They can be affected by changes in interest rates and the credit rating.
