There’s something gratifying about accumulating money over time to invest for a future goal. There are plenty of different investment options available and each has an opportunity to earn a return that could beat inflation. But it’s important to consider the various types of investment and how they fit with your financial goals overall including your tolerance to risk.

Funds and investment

A fund is an investment which pools your money as well as the money of other investors and invests it in diverse assets. This spreads more the risk since you don’t have to rely on the performance of only one asset type. For instance the UK Equity Fund would consist of shares from a variety of British companies.

You can also find funds that cover a variety of different asset types, or specific areas. This means that there’s a fund for every investor no matter their level of experience, investment timeframe or approach to risk.

Bond funds are a popular choice of investment. They are comprised of IOUs (debt) – typically from governments or companies and can be more stable than stocks. They can be affected by changes in interest rates and the credit rating.