Investment and Funds

Saving money to invest in a long-term goal is a rewarding experience. There are a variety of investments that are available, each with the potential for a return that can beat inflation. It’s important to think about the various types of investments and how they’ll fit into your overall financial plan.

Investments and funds

A fund is a collective investment where you and other investors’ money is pooled and placed in a variety assets. This spreads https://highmark-funds.com/2021/12/23/market-risk-management-and-risk-calculations your risk, since you don’t have to rely on the performance of one type of asset. For instance an UK equity fund would be made up of shares from various British companies.

However, you may also find funds that offer an array of different kinds of assets or specialist sectors. This means there is a fund that is suitable for every investor regardless of their level of experience, investment timeframe or risk-taking approach.

Bond funds are popular investments. They are made up of IOUs (debt) typically from governments or companies and are an investment that is less volatile than stocks. They are impacted by changes in interest rates as well as the credit rating.