Investment and Funds

Saving money to invest in a future purpose is a satisfying experience. And there are lots of different options to choose from Each one has the possibility of a return that may beat inflation. But it’s important to consider the different types of investment and how they fit with your financial goals overall, particularly your tolerance for risk.

Investments and funds

A fund is an investment that pools your money and the money of other investors and invests it in diverse assets. This spreads your risk as you don’t rely on the performance of one asset type. For example an UK equity fund would be composed of shares from different British companies.

However, you may also find funds that provide a variety of types of assets, or even more specific sectors. This means there is a fund for any investor, regardless of their level of experience, investment duration or risk-taking approach.

Bond funds are one of the most popular investments. They are a mix of IOUs https://highmark-funds.com/2021/07/08/generated-post or debt, typically from governments or companies. They are less volatile than stocks. However, they could be affected by interest rate changes and the credit rating of the issuer.

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