Investment and Funds

Saving money to invest in a long-term goal is a satisfying one. There are a lot of various investments to choose from – each one offers the potential for a return that will beat inflation. But it’s important to consider the various kinds of investments and how they are a good fit with your overall financial goals, particularly your tolerance for risk.

Funds and investments

A fund is a collective investment in which your and other investors’ money is pooled and placed in a variety assets. This spreads your risk because you don’t depend on the performance of a single type of asset. For example an UK equity fund will be comprised of shares of various British companies.

However, you may also find funds that https://highmark-funds.com/2021/12/23/value-at-risk-calculations-for-market-risk-management provide a variety of types of assets, or even more specific areas. There is a fund for all investors, regardless of how much experience they have, investment timeframe, or the risk tolerance.

Bond funds are a popular investment. They are comprised of IOUs (debt) usually from governments or companies – and can be a less volatile option than stocks. However, they may be affected by interest rate changes and the credit rating of the issuer.