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Types of investment fund

If you choose the Self-Select option there is a range of eighteen different funds within which your contributions can be invested

The decisions you make about the funds you would like to invest in probably depends on your attitude to risk. Equities and Property are seen as the most risky types of assets but can provide the biggest return over the longer term. Bonds and Cash are the least risky but typically provide smaller returns in the long run.

There is more information about the different types of funds below:

Equity funds – Equity funds invest in the shares of companies. Shares are traded on stock exchanges and the prices can go up and down.

Bond funds – Bond funds attempt to make money by investing in bonds. A bond is a record of a debt and is a way for companies, local authorities and national governments to raise money. Bonds are traded on stock exchanges so they vary in price. Bonds provide an income for the owner of the bond.

Property funds – Property funds attempt to make money by buying, selling and leasing property.

Cash funds - In general terms, cash funds invest in short-term investments such as cash deposits. Such funds offer protection against stock market falls rather than long term growth. There are many different types of cash funds.

Multi-asset funds - Multi-asset funds are funds that can be invested in a wide range of different investments. They can include investments in:

• Active equities.

• Global bonds.

• Property.

• Alternative assets (things like private equity, currency and commodities such as gold).

• Cash.

Each asset class has a different level of risk attached. You can find out what type of funds may be suitable for you by using the risk profiler.