Saving money to invest in a future goal is a satisfying experience. There are a myriad of investment options that are available, each with the potential for a return that can beat inflation. It is crucial to think about the different kinds of investments and how they can be incorporated in with your overall financial goals.

Investment and funds

A fund is a group investment in which your and the other investors’ funds are pooled together and then invested in a range of assets. This helps spread your risk since you aren’t dependent on the performance of a specific asset type. For example, a UK equity fund is comprised of shares of different British companies.

However, you may also find funds that provide various types of assets, or even more specific sectors. That means there’s a fund to suit every investor regardless of their level of expertise, investment timeframe or risk-taking approach.

Bond funds are one of the most popular investments. They are made up of IOUs, or debt, typically issued by companies or governments. They can be less volatile than stocks. However, they can be affected by changes in interest rates and the credit rating of the issuer.

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