There’s something very satisfying about saving money over time to put aside for a future goal. There are a variety of investments that are available, each of which offers an opportunity to earn a profit that could beat inflation. However, it is crucial to consider the various types of investments and how they are a good fit with your overall financial goals especially your tolerance for risk.

Investment and funds

A fund is an investment which pools your money as well as the money of other investors and invests it into different types of assets. This spreads the risk as you don’t rely on the performance of a single asset type. For instance, a UK equity fund will be composed of shares from different British companies.

But, you can also find funds that offer various kinds of more assets or specific sectors. There is a fund that will suit each investor, no matter the level of their expertise and investment timeframe or risk tolerance.

Bond funds are a popular investment. They are made up of IOUs (debt) generally from governments or companies – and can be an investment that is less volatile than stocks. They are affected by changes in interest rates as well as the credit rating.