Saving money to invest in a long-term goal is a satisfying one. There are a lot of different options to choose from and each has the possibility of a return that may beat inflation. It’s important to think about the different types and how they can be incorporated into your overall financial plan.
Investment and funds
A fund is an investment that pools your money with the money of other investors and invests it into a variety of assets. This spreads the risk because you don’t depend on the performance of a single type of asset. For example the UK equity fund would be made up of shares from different British companies.
There are also funds that offer a variety asset types, or even specific areas. There is a fund for all investors, regardless of what their level of expertise and investment timeline, or their risk tolerance.
Bond funds are a popular investment. They are made up of IOUs (debt) typically from governments or companies and can be an investment that is less volatile than stocks. They are impacted by changes in interest rates and the credit rating.
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