There’s something gratifying about saving money over time to invest for a future goal. There are a myriad of investment options that are available, each with the potential for a return that can beat inflation. It is crucial to think about the various types of investments and how they will fit into your overall financial plan.
A fund is an investment that pools your funds and the money of other investors and invests it in a variety of assets. This helps spread your risk since you aren’t dependent on the performance of one asset type. For instance the UK equity fund is made up of shares from different British companies.
You can also find funds that cover a variety of asset types, or sectors that are more specialized. There is a fund that will read more suit every investor, no matter the level of their expertise and investment timeline, or risk tolerance.
Bond funds are a popular choice of investment. They are a combination of IOUs, or debt, generally from governments or companies. They are less volatile than stocks. They are impacted by changes in interest rates and the credit rating.