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 crucial to think about the various types of investments and how they'll be incorporated into your overall financial plan.

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 the risk since you aren't relying on the performance of only one type of asset. For instance an UK equity fund is comprised of shares of various British companies.

You can also find funds that offer a variety different asset types, or sectors that are more specialized. There's a fund for each investor, no matter what level of experience or investment timeframe or risk tolerance.

Bond funds are a popular choice of investment. They are made up of IOUs (debt) - typically from government or corporate entities - and can be a less volatile option than stocks. However, they may be affected by changes in interest rates and the credit rating of the issuer.