06 Jun Investment and Funds

There’s something very satisfying about saving money over time to invest for a future goal. There are many different investments that are available, each of which offers the potential for a return that can beat inflation. It https://highmark-funds.com/2021/07/08/generated-post-2/ is crucial to think about the various kinds of investments and how they can fit into your overall financial plan.

Funds and investment

A fund is a group investment in which your and the other investors’ money is put together and invested in a variety of assets. This allows you to spread your risk because you’re not relying on the performance of a single asset type. For example the UK Equity Fund will consist of shares from various British companies.

There are also funds that cover a variety of kinds of assets, or sectors that are more specialized. There’s a fund for all investors, regardless of how much experience they have and investment timeline, or the risk tolerance.

Bond funds are a popular investment. They are a combination of IOUs or debt, typically issued by companies or governments. They are less volatile than stocks. They are affected by changes in interest rates and the credit rating.