Investment and Funds
There’s something gratifying about accumulating money over time to save for a long-term goal. There are many investments that are available, each with an opportunity to earn returns that beat inflation. It is important maximizing value at risk to think about the different types of investment and how they align with your overall financial goals and your level of tolerance for risk.
Investment and funds
A fund is an investment that pools your money with the money of other investors and invests it in a variety of assets. This helps spread your risk because you’re not relying on the performance of a specific asset type. For instance the UK equity fund will be made up of shares from various British companies.
You can also find funds that cover a variety of kinds of assets, or sectors that are more specific. This means that there’s a fund to suit all investors, regardless of level of experience, investment timeframe or risk-taking approach.
Bond funds are a popular investment. They are a mixture of IOUs, or debt, typically from companies or governments. They can be less volatile than stocks. They can be affected by changes in interest rates and the credit rating.
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