There’s something very satisfying about saving money over time to save for a long-term goal. There are plenty of various blog here investments to choose from – each one offers an opportunity to earn a return that could beat inflation. However, it is crucial to consider the various types of investments and how they are a good fit with your financial goals overall, particularly your tolerance for risk.

Investments and funds

A fund is an investment that pools your funds and the money of other investors and invests it in various assets. This spreads your risk because you don’t depend on the performance of one type of asset. For instance the UK Equity Fund will consist of shares from several British companies.

However, you can also find funds that offer a variety of kinds of assets or specific industries. That means there’s a fund that is suitable for every investor no matter their level of experience, investment timeframe or approach to risk.

Bond funds are a well-known option for investing. They are a combination of IOUs or debt, generally from companies or governments. They are less volatile than stocks. They can be affected by changes in interest rates and the credit rating.