Saving money to invest in a future goal is a rewarding experience. There are a lot of different options to choose from and each has a potential return that can beat inflation. It is crucial to think about the various types of investments and how they can fit in with your overall financial goals.
Investment and funds
A fund is an investment that pools your money and the money of other investors and invests it in various assets. This spreads your risk as you don’t rely on the performance of just one type of asset. For instance the UK Equity Fund will comprise of shares from various British companies.
However, you can also find funds that offer a range of different kinds of assets or specialist sectors. This means that there is a fund for every investor no matter their level of expertise, investment timeframe or risk-taking approach.
Bond funds are popular investments. They are comprised of IOUs (debt) generally from companies or governments – and are more stable than stocks. However, they could be affected by interest rate changes and the credit rating of the issuer.
