There’s something satisfying about saving money over time in order to invest for a future goal. There are many different options to choose from each with an opportunity to earn a return that could beat inflation. It’s important to take into consideration the various types of investment and how they are a good fit with your overall financial goals including your tolerance to risk.
Investment and funds
A fund is an investment that pools your funds and the money of other investors and invests it in different types of assets. This helps spread the risk as you are not dependent on the performance of just one asset type. For example, a 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 areas. This means that there is a fund that is suitable for any investor, regardless of their level of experience, investment timeframe or approach to risk.
Bond funds are a well-known option for investing. They are a https://highmark-funds.com/ mixture of IOUs or debt, generally from government agencies or companies. They can be less volatile than stocks. However, they can be affected by interest rate changes and the credit rating of the issuer.