Investment and Funds

Saving money to invest in a long-term purpose is a satisfying experience. There are many different investments that are available, each of which offers an opportunity to earn a profit that could beat inflation. It is important to think about the use this link various types of investments and how they align with your financial goals overall, particularly your tolerance for risk.

Investment and funds

A fund is an investment which pools your money as well as the money of other investors and invests it in different types of assets. This spreads the risk since you aren’t relying on the performance of only one asset type. For instance, a UK equity fund would be comprised of shares of various British companies.

You can also find funds that have a variety asset types, or specific areas. This means that there’s an investment that will suit every investor no matter their level of experience, investment duration or risk-taking approach.

Bond funds are a popular investment. They are made up of IOUs (debt) – typically from governments or companies – and can be an investment that is less volatile than stocks. However, they could be affected by changes in interest rates and the credit rating of the issuer.