Saving money to invest in a future goal is a rewarding experience. And there are lots of different options to choose from and each has the potential for a return that will beat inflation. However, it is crucial to consider the different types of investment and how they align with your overall financial goals especially your tolerance for risk.

Funds and investments

A fund is an investment that pools your funds and the money of other investors and invests it into diverse assets. This allows you to spread your risk as you are not dependent on the performance of a specific asset type. For instance the UK Equity Fund will comprise of shares from several British companies.

However, you can also find funds that provide an array of different asset best site types or even more specific areas. There’s a fund to suit any investor, regardless of the level of their expertise, investment timeframe, or risk tolerance.

Bond funds are a popular investment. They are made up of IOUs or debt, typically issued by governments or companies. They can be less volatile than stocks. They are impacted by changes in interest rates as well as the credit rating.