Saving money to invest in a long-term purpose is a satisfying experience. There are many different investments available, each offering an opportunity to earn returns that beat inflation. It is important to consider the various kinds of investments and how they will be incorporated into your overall financial plan.

Investments and funds

A fund is a collective investment in which your and other investors’ money is pooled together and then placed in a variety assets. This spreads your risk since you aren’t relying on the performance of just one asset type. For example the UK equity fund would be composed of shares from various British companies.

You can also find funds that cover a variety of kinds of assets, or specific areas. There’s a fund for each investor, no matter how much experience they have, investment timeframe, or risk tolerance.

Bond funds are a popular choice of investment. They are comprised of IOUs (debt) typically from governments or companies – 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 https://highmark-funds.com issuer.