Investment and Funds

There’s something gratifying about accumulating money over time in order to invest towards a goal for the future. There are a myriad of investment options that are available, each with the potential for a return that can beat inflation. It is important to think about the various types of investments and how they are a good fit with your financial goals overall, particularly your tolerance for risk.

Funds and investments

A fund is an investment that pools your money with the money of other investors and invests it into different types of assets. This spreads your risk, because you don’t depend on the performance of just one asset type. For instance an UK Equity Fund is made up blog here of shares from a variety of British companies.

There are also funds that offer a variety asset types, or certain sectors that are more specific. This means that there’s a fund that is suitable for every investor no matter their level of experience, investment duration or approach to risk.

Bond funds are a well-known choice of investment. They are made up of IOUs (debt) usually from governments or companies – and are more stable than stocks. They are affected by changes in interest rates as well as the credit rating.