Investment and Funds

Saving money to invest in a long-term goal is a rewarding experience. There are many investments available, each offering the potential for a return that can beat inflation. It’s important to think about the different kinds of investments and how they can fit into your overall financial plan.

Investment and funds

A fund is a group investment in which your and other investors’ funds are pooled and then invested in a variety of assets. This spreads the risk because you don’t depend on the performance of only one asset type. For instance an UK Equity Fund is made up of shares issued by various British companies.

However, you can find funds that provide a range of different kinds of assets or specialist sectors. There’s a fund for each investor, no matter what level of experience, investment timeframe, or the risk tolerance.

Bond funds are popular investments. They are made up of IOUs (debt) typically from government or corporate entities – and are an investment that is less volatile than stocks. However, they can still be affected by interest rate changes and the credit rating of the issuer.

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