Saving money to invest in a future goal is a rewarding experience. There are plenty of different investments to choose from each with the potential for a return that will beat inflation. It’s important to think about the different kinds of investments and how they’ll be incorporated into your overall financial goals.
Funds and investments
A fund is a collective investment in which your and the other investors’ money is pooled and then invested in a range of assets. This spreads your risk, as you don’t rely on the performance of just one asset type. For example an UK Equity Fund would consist of shares from a variety of British companies.
You can also find funds that cover a variety of different asset types, or specific areas. There’s a fund for any investor, regardless of how much experience they have, investment timeframe, or their risk tolerance.
Bond funds are among the most sought-after investments. They are comprised of IOUs (debt) usually from government or corporate entities – and can be an investment that is less volatile than stocks. However, they can be affected by interest rate changes and the credit rating of the issuer.
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