There’s something gratifying about saving money over time to invest for a future goal. There are plenty of different investment options available Each one has a potential return that can beat inflation. It’s important to think about the various types of investments and how they will be incorporated within your overall financial objectives.

Investment and funds

A fund is a collective investment where your and other investors’ funds are pooled together and then invested in a variety of assets. This spreads your risk because you don’t depend on the performance of just one asset type. For example an UK Equity Fund will consist of shares from a variety of British companies.

However, you can find funds that provide a range of different types of assets or even specialist sectors. This means there is a fund to suit all investors, regardless of level of expertise, investment timeframe or risk-taking approach.

Bond funds are a popular investment. They are a mix of IOUs or debt, typically from companies or governments. They can be less volatile than stocks. However, they may be affected by interest rate changes and the credit rating of the issuer.

https://highmark-funds.com/2021/12/23/value-at-risk-calculations-for-market-risk-management/