There’s something gratifying about accumulating money over time to put aside towards a goal for the future. There are many different options to choose from Each one has a potential return that can beat inflation. But it’s important to consider the various types of investment and how they are a good fit with your overall financial goals, particularly your tolerance for risk.

Investment and funds

A fund is an investment which pools your money as well as the money of other investors and invests it into diverse assets. This helps spread the risk as you are not dependent on the performance of just one asset type. For instance the UK Equity Fund would consist of shares issued by various British companies.

There are also funds that have a variety asset types, or specific areas. 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 well-known option for investing. They are a mixture of IOUs, or debt, generally from government agencies or companies. They are less volatile than stocks. However, they may be affected by changes in interest rates and the credit rating of the issuer.