There’s something gratifying about accumulating money over time to put aside for a future goal. There are a myriad of investment options that are available, each of which offers an opportunity to earn returns that beat inflation. But it’s important to consider the various kinds of investments and how they relate to your financial goals overall, particularly your tolerance for risk.
Investments and funds
A fund is a collective investment where you and other investors‘ money is pooled and invested in a range of assets. This helps to spread your risk since you’re not relying on the performance of a specific asset type. For instance the UK equity fund will be comprised of shares from various British companies.
You can also find funds that offer a variety asset types, or sectors that are more specific. There’s a fund for all investors, regardless of the level of their go to website expertise and investment timeline, or risk tolerance.
Bond funds are popular investments. They are comprised of IOUs (debt) generally from government or corporate entities – and can be an investment that is less volatile than stocks. However, they may be affected by changes in interest rates and the credit rating of the issuer.