Investment and Funds

Saving money to invest in a long-term goal is a rewarding experience. There are many different investments available, each offering a potential return which can beat inflation. But it’s important to consider the various kinds of investments and how they are a good fit with your financial goals overall especially your tolerance for risk.

Funds and investments

A fund is a group investment where your and other investors’ funds are pooled and then placed in a variety 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 of shares from several British companies.

However, you may also find funds that provide a range of different asset types or even more specialist sectors. This means there is a fund that is suitable for every investor regardless of their level of expertise, investment timeframe or risk-taking approach.

Bond funds are among the most sought-after investments. They are a mixture of IOUs, or debt, usually from government agencies or companies. They can be less volatile than stocks. They can be affected by changes in interest rates and the credit rating.

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