Types of fund: income funds and growth funds

There are various types of fund, and you will often see reference to income and growth funds. It is important to know what both of these are so that you can understand the differences and then pick the type of fund that is most suitable to your risk profile and the purpose as to why you are deciding to invest in a fund in the first place.

Income funds are less aggressive, and the aim of them is to make regular payments to those that invest in the income fund. However, the growth funds are more aggressive in the sense that they are very much looking to actually increase in value.

That said, within a fund there will often be two different types of unit that you are able to choose from, which are the accumulation unit and the income unit, so it is worth bearing this in mind and being clear on what the difference is, so that you can accordingly make an informed choice that best suits your requirements.

If you are thinking about buying into a fund, then you should read up on the fund and do as much research as you can on it. There are lots of statistics out there - as with anything financial these days - and you should look at past performance of the fund (assuming it is not brand new!) and understand what each of the figures mean. The management company will usually have useful literature that outlines the fund and its purpose, possibly with notes about each fund and how it is performing and expectations for the fund in future. This is all useful information to take a look at and digest to help you make an informed decision if you do choose to invest in a fund.

Buying Property

Mortgages

Buying Overseas

Tools and Resources

Types of fund: income funds and growth funds

House Prices