Investment and Funds
Saving money to invest in a future goal is a rewarding experience. There are a lot of various investments to choose from – each one offers the possibility of a return that may beat inflation. But it’s important to consider the various types of investments and how they fit with your overall financial goals, particularly your tolerance for risk.
Investment and funds
A fund is a collective investment in which your and the other investors’ funds are pooled together and then put into a variety of assets. This spreads risk since you aren’t relying on the performance of a single type of asset. For instance an UK Equity Fund is made up of shares from several British companies.
There are also funds that cover a variety of kinds of assets, or certain sectors that are more specific. There’s a fund to suit any investor, regardless of what level of experience and investment timeframe or their risk tolerance.
Bond funds are a popular choice of investment. They are a mix of IOUs or debt, generally from companies or governments. They are less volatile than stocks. They are affected by changes in interest rates as well as the credit rating.