https://highmark-funds.com/2021/12/23/market-risk-management-and-risk-calculations/
Saving money to invest in a future goal is a rewarding experience. There are many different options to choose from and each has a potential return that can beat inflation. It is important to think about the various types of investments and how they relate to your financial goals overall, particularly your tolerance for risk.
Funds and investments
A fund is an investment that pools your money with the money of other investors and invests it in different types of assets. This spreads risk because you don’t depend on the performance of just one asset type. For example an UK Equity Fund will comprise of shares from various British companies.
However, you can also find funds that offer various types of assets or even specific sectors. This means that there’s a fund that is suitable for every investor no matter their level of experience, investment duration or risk-taking approach.
Bond funds are a popular 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 can still be affected by changes in interest rates and the credit rating of the issuer.
