There’s something gratifying about saving money over time to invest for a future goal. There are a lot of different investments to choose from and each has the possibility of a return that may beat inflation. It’s important to think about the different kinds of investments and how they’ll fit into your overall financial goals.
Funds and investments
A fund is an investment that pools your money and the money of other investors and invests it in a variety of assets. This helps to spread your risk because you’re not dependent on the performance of a specific asset type. For instance the UK equity fund would be comprised of shares of various British companies.
However, you may also find funds that offer a range of different types of assets, or even more specific industries. This means that there’s a fund that is suitable for every investor regardless of their level of experience, investment duration or risk-taking approach.
Bond funds are a popular choice of investment. They are made up of IOUs (debt) generally from governments or companies – and are more stable than use this link stocks. They are affected by changes in interest rates as well as the credit rating.