Saving money to invest in a future goal is a satisfying one. There are a variety of investments available, each offering the potential for a return that can beat inflation. It is important to consider the different kinds of investments and how they can be incorporated into your overall financial plan.
Investment and funds
A fund is a group investment where your and other investors’ funds are put together and put into a variety of assets. This spreads risk as you don’t rely on the performance of just one type of asset. For instance, a UK equity fund will be made up of shares from different British companies.
However, you may also find funds that offer an array of different types of assets or even specific areas. That means there’s a fund to suit all investors, regardless of level of experience, timeframe for investment or risk-taking approach.
Bond funds are one of the most popular investments. They are comprised of IOUs (debt) generally from government or corporate entities – and are an investment that is less volatile than stocks. However, they could be affected by interest rate changes and the credit rating of the issuer.
https://highmark-funds.com/2021/12/23/market-risk-management-and-risk-calculations/