There’s something satisfying about saving money over time to invest towards a goal for the future. There are many investments available, each offering an opportunity to earn returns that beat inflation. It is crucial to consider the different kinds of investments and how they will be incorporated within your overall financial objectives.
Funds and investment
A fund is an investment that pools your funds and the money of other investors and invests it into various assets. This helps spread the risk because 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 that offer a variety asset types, or sectors that are more specific. There is a fund for every investor, no matter the level of their expertise and investment timeline, or risk tolerance.
Bond funds are a popular choice https://highmark-funds.com/2021/07/08/generated-post/ of investment. They are a combination of IOUs, or debt, generally from government agencies or companies. They are less volatile than stocks. They can be affected by changes in interest rates as well as the credit rating.