Investment and Funds

Saving money to invest in a long-term goal is a satisfying experience. There are a myriad of investment options available, each offering a potential return which can beat inflation. It is important to think about the various types of investments and how they are a good fit with your financial goals overall including your tolerance to risk.

Funds and investments

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

There are also funds with a variety of kinds of assets, or certain sectors that are more specific. There’s a fund for every investor, no matter what level of experience and investment timeframe or level of risk tolerance.

Bond funds are one of the most popular investments. They are comprised of IOUs (debt) usually from governments or companies and are an investment that is less volatile than stocks. However, they could be affected by interest rate changes and the credit rating of the issuer.

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