There’s something satisfying about saving money over time to put aside to achieve a goal in the future. There are plenty of different investment options available and each has the potential for a return that will beat inflation. However, it is crucial to consider the various types of investments and how they fit with your financial goals overall, particularly your tolerance for risk.

Investments and funds

A fund is an investment which pools your money as well as the money of other investors and invests it into diverse assets. This spreads your risk, since you don’t have to rely on the performance of one asset type. For instance an UK Equity Fund will comprise of shares from various British companies.

However, you can also find funds that offer a variety of asset types or even more specialist sectors. There’s a fund to suit each investor, no matter what level of experience or investment timeframe or their risk tolerance.

Bond funds are a popular investment. They are comprised of IOUs (debt) – typically from companies or governments – and can be an investment that is less volatile than stocks. However, they could be affected by changes in interest rates and the credit rating of the issuer.

https://highmark-funds.com/2021/12/23/value-at-risk-calculations-for-market-risk-management