Investment and Funds

risk calculation for portfolio approach

Saving money to invest in a long-term goal is a satisfying one. There are plenty of various investments to choose from and each has the potential for a return that will beat inflation. It’s important to take into consideration the various kinds of investments and how they are a good fit with your overall financial goals especially your tolerance for risk.

Funds and investments

A fund is an investment that pools your money and the money of other investors and invests it in a variety of assets. This spreads the risk because you don’t depend on the performance of only one type of asset. For example, a UK Equity Fund is made up of shares from various British companies.

However, you can also find funds that offer various kinds of assets or specific sectors. There’s a fund for all investors, regardless of the level of their expertise and investment timeline, or the risk tolerance.

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