Investment and Funds

Saving money to invest in a long-term goal is a rewarding experience. There are many investments that are available, each of which offers the potential for a return that can beat inflation. It is important to think about the various types of investment and how they align with your overall financial goals including your https://highmark-funds.com/2021/12/23/value-at-risk-calculations-for-market-risk-management/ tolerance to risk.

Funds and investments

A fund is an investment that pools your money with the money of other investors and invests it into a variety of assets. This spreads your risk, since you don’t have to rely on the performance of just one asset type. For example an UK equity fund would be composed of shares from different British companies.

However, you can find funds that provide a variety of types of assets or even specific areas. This means there is a fund for every investor regardless of their level of experience, investment timeframe or risk-taking approach.

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

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