There’s something gratifying about saving money over time to save towards a goal for the future. There are plenty of different investment options available Each one has the potential for a return that will beat inflation. It’s important to think about the various types of investments and how they will be incorporated into your overall financial plan.
Investments and funds
A fund is a group investment where your and other investors’ money is put together and invested in a variety of assets. This allows you to spread your risk because you’re not https://highmark-funds.com/2021/12/23/value-at-risk-calculations-for-market-risk-management dependent on the performance of one asset type. For example an UK Equity Fund would consist of shares from various British companies.
There are also funds that offer a variety different asset types, or certain sectors that are more specific. There is a fund for each investor, no matter how much experience they have and investment timeline, or level of risk tolerance.
Bond funds are a popular option for investing. They are comprised of IOUs (debt) generally from governments or companies – and are more stable than stocks. However, they can still be affected by interest rate changes and the credit rating of the issuer.
