Saving money to invest in a future purpose is a satisfying experience. There are many different investments available, each offering an opportunity to earn a profit that could beat inflation. It’s important to take into consideration the various kinds of investments and how they relate to your financial https://highmark-funds.com/2020/11/10/personal-finance-forum goals overall especially 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 in different types of assets. This helps spread your risk since you’re not dependent on the performance of a single asset type. For example an UK Equity Fund will consist of shares from various British companies.

There are also funds that cover a variety of asset types, or even specific areas. That means there’s a fund that is suitable for every investor regardless of 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 or debt, typically from government agencies or companies. They are less volatile than stocks. They can be affected by changes in interest rates and the credit rating.