There’s something gratifying about accumulating money over time to put aside towards a goal for the future. There are a myriad of investment options that are available, each of which offers the potential for a return that can beat inflation. It’s important to take into consideration the various types of investment and how they align with your financial goals overall, particularly your tolerance for risk.
Investment and funds
A fund is a collective investment where you and other investors’ funds are pooled together and then invested in a range of assets. This spreads your risk since you aren’t relying on the performance of one competitive advantage analysis asset type. For instance the UK Equity Fund is made up of shares issued by various British companies.
You can also find funds that offer a variety asset types, or even certain sectors that are more specific. There is a fund that will suit any investor, regardless of what level of experience and investment timeframe or the risk tolerance.
Bond funds are a well-known choice of investment. They are made up of IOUs (debt) usually from companies or governments – and are more stable than stocks. However, they may be affected by interest rate changes and the credit rating of the issuer.
Leave a Reply