There’s something very satisfying about saving money over time to invest for a long-term goal. There are plenty of different investment options available and each has the possibility of a return that may beat inflation. It is important to think about the various types of investment and how they are a good fit with your overall financial goals and your level of tolerance for risk.
Investment and funds
A fund is an investment which pools your money as well as the money of other investors and invests it into different types of assets. This spreads the risk since you aren’t relying on the performance of just one asset type. For instance an UK equity fund will be composed of shares from various British companies.
You can also find funds that have a variety kinds of assets, or certain sectors that are more specific. This means that there is a fund to suit any investor, regardless of their level of experience, investment timeframe or risk-taking approach.
Bond funds are a well-known option for investing. They are comprised of IOUs (debt) typically from governments or companies and are an investment that is less volatile than stocks. They are impacted by changes in interest rates and the credit rating.