There’s something very satisfying about saving money over time to invest to achieve a goal in the future. There are many different investments available, each offering a potential return which can beat inflation. It is important to consider the different types and how they’ll fit into your overall financial plan.
Investment and funds
A fund is a group investment in which your and other investors’ money is pooled and then placed a knockout post in a variety assets. This spreads the risk as you don’t rely on the performance of just one asset type. For instance an UK Equity Fund would consist of shares from several British companies.
There are also funds that offer a variety kinds of assets, or sectors that are more specialized. This means there is a fund to suit every investor regardless of their level of experience, investment duration or risk-taking approach.
Bond funds are a popular choice of investment. They are comprised of IOUs (debt) usually from governments or companies and can be a less volatile option than stocks. They are affected by changes in interest rates as well as the credit rating.