Saving money to invest in a future purpose is a satisfying experience. There are many investments that are available, each of which offers an opportunity to earn returns that beat inflation. It’s important to think about the various types of investments and how they will fit within your overall financial objectives.
Funds and investment
A fund is an investment that pools your money and the money of other investors and invests it into different types of assets. This spreads risk since you aren’t relying on the performance of just one type of asset. For instance an UK Equity Fund is made up of shares from various British companies.
However, you can also find funds that provide various types of assets, or even more specific industries. This means that there is a fund that is suitable for every investor regardless of their level of experience, investment duration or approach to risk.
Bond funds are a popular choice of investment. They are made up of IOUs (debt) – typically from government or corporate entities – and can be more stable than stocks. They can be affected by changes in interest rates and the credit rating.