There’s something gratifying about accumulating money over time to save for a long-term goal. There are a myriad of investment options that are available, each of which offers an opportunity to earn a profit that could beat inflation. It’s important to think about the different kinds of investments and how they will be incorporated within your overall financial objectives.
Funds and investment
A fund is an investment that pools your money and the money of other investors and invests it into various assets. This spreads your risk, since you don’t have to rely on the performance of one type of asset. For instance an UK Equity Fund would consist of shares from various British companies.
There are also funds that offer a variety different asset types, or specific areas. This means that there’s a fund to suit all investors, regardless of level of experience, timeframe for investment or risk-taking approach.
Bond funds are a popular investment. They are made up of IOUs (debt) usually from governments or companies – and are an investment that is less volatile than stocks. They are impacted by changes in interest rates as well as the credit rating.
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