Saving money to invest in a future purpose is a satisfying experience. There are many investments available, each offering a potential return which can beat inflation. It’s important to think about the different types and how they will fit into your overall financial plan.
Funds and investments
A fund is a group investment in which your and the other investors’ money is pooled together and then placed in a variety assets. This helps spread the risk as you are not dependent on the performance of a single asset type. For instance the UK Equity Fund would consist of shares issued by various British companies.
However, you may also find funds that provide an array of different types of assets, or even more specific sectors. There is a fund for each investor, no matter what their level of expertise and investment timeline, or level of risk tolerance.
Bond funds are a popular investment. They are a mix of IOUs, or debt, generally from companies or governments. They can be less volatile than how to keep data safe with data rooms stocks. However, they can be affected by changes in interest rates and the credit rating of the issuer.