There’s something very satisfying about saving money over time to put aside for a future goal. There are a myriad of investment options that are available, each of which offers a potential return which can beat inflation. It is important to think about the different types of investment and how they align with your overall financial goals and your level of tolerance for risk.

Investment and funds

A fund is an investment that pools your funds and the money of other investors and invests it in a variety of assets. This spreads your risk, since you aren’t relying on the performance of one type of asset. For example the UK Equity Fund would consist of shares from several British companies.

You can also find funds with a variety of asset types, or specific areas. This means that there is a fund to suit every investor no matter their level of experience, timeframe for investment or risk-taking approach.

Bond funds are a well-known option for investing. They are comprised of IOUs (debt) typically from companies or governments – and are a less volatile option than stocks. However, they can be affected by interest rate changes and the credit rating of the issuer.