Saving money to invest in a long-term goal is a satisfying experience. And there are lots of different investments to choose from – each one offers the potential for a return that will beat inflation. It is important to consider the various types of investments and how they will be incorporated into your overall financial goals.

Funds and investment

A fund is a collective investment in which your and other investors’ money is pooled together and then put into a variety of assets. This helps to spread your risk since you aren’t dependent on the performance of a single asset type. For example the UK Equity Fund would consist of shares from various British companies.

However, you can find funds that provide a range of different types of assets or even specific sectors. There is a fund for every investor, no matter the level of their expertise and investment timeframe or risk tolerance.

Bond funds are a popular option for investing. They are made up of IOUs, or debt, typically from companies or governments. They are less volatile than stocks. They are affected by changes in interest rates and the credit rating.

risk calculation for portfolio approach