There’s something satisfying about saving money over time to put aside towards a goal for the future. There are many different investments that are available, each with the potential for a return that can beat inflation. But it’s important to consider the different types of investment and how they relate to your overall financial goals including your tolerance to risk.
Funds and investment
A fund is a collective investment in which your and other investors’ funds are pooled together and then put into a variety of assets. This spreads your risk since you aren’t relying on the performance of one type of asset. For instance, a UK Equity Fund is made up of shares from various British companies.
However, you may also find funds that offer a range of different asset types or even more specific areas. There is a fund that will suit every investor, no matter how much experience they have and investment timeline, or their risk tolerance.
Bond funds are a popular investment. They are made up of IOUs or debt, generally from companies or governments. They are less volatile than stocks. However, they can still be affected by interest rate changes and the credit rating go to website of the issuer.