Investment and Funds

Saving money to invest in a future goal is a satisfying experience. There are plenty of different investments to choose from and each has an opportunity to earn a return that could beat inflation. It’s important to take into consideration the various types of investments and how they align with your overall financial goals including your tolerance to risk.

Funds and investment

A fund is an investment that pools your funds and the money of other investors and invests it in various assets. This helps spread the risk because you’re not dependent on the performance of just one asset type. For example an UK equity fund would be made up of shares from different British companies.

However, you can find funds that offer a variety of kinds of assets or specific industries. This means that there’s a fund for every investor regardless of their level of experience, investment timeframe or approach to risk.

Bond funds are a well-known choice of investment. They are a mix of IOUs, or debt, typically issued by companies or governments. They can be less volatile than stocks. However, they may be affected by changes in interest rates and https://highmark-funds.com/2021/07/08/generated-post the credit rating of the issuer.