Strategic investments make your money multiply. However, there are different approaches to investing. It isn’t one size fits all. Once you’ve decided to invest your money, you still need to decide what type of investment you want.
What are Growth and Income Investing?
Growth investors want all earnings kept in the asset since this allows the investment to grow faster while income investors want profits returned as a form of income.
→ Growth Investors
Growth investing is focused on buying appreciating assets, meaning you obtain assets you expect to increase in value.
→ Income Investors
The goal of income investing is to design a portfolio of income-generating assets that provides dependable cash payouts. These payouts can be reinvested or used for current living expenses.
Can You Invest for Growth and Income?
You can diversify your portfolio with various stocks, bonds, and alternative investments to ensure you have a combination of growth investments and income investments.
How Can I Invest Money for Growth?
The most common type of growth investment comes from investing in stocks because they are the most universally-accessible asset class thanks to the advent of apps like Robinhood.
Growth vs. Value Investing
Growth and value are the two basic styles when choosing stocks or stock mutual fund investments. Growth investors look for fast-growing companies they expect to continue to grow at above-average rates. These are often, but not always, young companies.