Saving money to invest in a future goal is a satisfying one. And there are lots of various investments to choose from and each has a potential return that can beat inflation. But it’s important to consider the various kinds of investments and how they fit with your financial goals overall especially your tolerance for risk.
Funds and investments
A fund is an investment which pools your money as well as the money of other investors and invests it in various assets. This helps spread the risk as you are not relying on the performance of one asset type. For instance, a UK Equity Fund would consist of shares issued by various British companies.
There are also funds that have a variety asset types, or certain sectors that are more specific. This means that there’s an investment that will suit every investor no matter their level of experience, timeframe for investment or risk-taking approach.
Bond funds are a popular option for investing. They are comprised of IOUs (debt) usually from companies or governments – and can be more stable than stocks. They can be affected by changes in interest rates and the credit rating.
https://highmark-funds.com/2021/12/23/value-at-risk-calculations-for-market-risk-management