Investment and Funds
Saving money to invest in a future goal is a rewarding experience. There are plenty of different investments to choose from – each one offers a potential return that can beat inflation. It is crucial to consider the various kinds of investments and how they’ll fit into your overall financial goals.
Investments and funds
A fund is a collective investment in which your and other investors’ funds are pooled and invested in a variety of assets. This spreads your risk, as you don’t rely on the performance of one type of asset. For example, a UK equity fund is comprised of shares from various British companies.
You can also find funds that offer a variety asset types, or even certain sectors that are more specific. This means that there’s a fund that is suitable for all investors, regardless of level of experience, investment duration or risk-taking approach.
Bond funds are popular investments. They are made up of IOUs, or debt, typically from companies or governments. They can be less volatile than stocks. However, they may be affected by changes in interest rates and the credit rating of the issuer.
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