Saving money to invest in a long-term goal is a rewarding experience. There are a lot of different investment options available Each one has an opportunity to earn a return that could beat inflation. It is important to think about the various types of investments and how they are a good fit with your overall financial goals especially your tolerance for risk.

Investments and funds

A fund is a collective investment in which your and the other investors’ money is put together and placed in a variety assets. This spreads your risk as you don’t rely on the performance of one asset type. For instance, a UK Equity Fund is made up of shares from various British companies.

You can also find funds that cover a variety of asset types, or sectors that are more specialized. This means that there is a fund that is suitable for any investor, regardless of their level of experience, investment duration or risk-taking approach.

Bond funds are a popular option for investing. They are comprised of IOUs (debt) usually from companies or governments – and can be a less volatile option than stocks. However, they can be affected by interest rate changes and the credit rating of the issuer.

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