Investment and Funds
Saving money to invest in a long-term goal is a satisfying one. There are many investments that are available, each with the potential for a return that can beat inflation. But it’s important to consider the various types of investments and how they relate to your financial goals overall, particularly your tolerance for risk.
Investments and funds
A fund is a group investment in which your and the other investors’ funds are pooled together and then placed in a variety assets. This helps spread the risk since you aren’t dependent on the performance of one asset type. For instance, a UK equity fund is made up of shares from different British companies.
There are also funds that offer a variety kinds of assets, or certain sectors that are more specific. This means that there is a fund to suit any investor, regardless of their level of expertise, investment timeframe or approach to risk.
Bond funds are popular investments. They are made up of IOUs (debt) – typically from government or corporate entities – and can be more stable than stocks. They are affected by changes in interest rates and the credit rating.
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