Description

Saving money to invest in a long-term purpose is a satisfying experience. There are plenty of different investment options available – each one offers the possibility of a return that may beat inflation. However, it is crucial to consider the various types of investment and how they align with your overall financial goals especially your tolerance for risk.

Funds and investment

A fund is an investment which pools your money as well as the money of other investors and invests it into diverse assets. This helps spread the risk since you aren’t relying on the performance of a single asset type. For example, a UK Equity Fund is made up of shares from a variety of British companies.

There are https://highmark-funds.com/2021/12/23/market-risk-management-and-risk-calculations/ also funds that have a variety asset types, or certain sectors that are more specific. This means there is a fund for all investors, regardless of level of experience, timeframe for investment or risk-taking approach.

Bond funds are a popular choice of investment. They are comprised of IOUs (debt) – typically from governments or companies – and are an investment that is less volatile than stocks. However, they may be affected by interest rate changes and the credit rating of the issuer.