What are Growth and Income Investing?

Some people focus on growing money they already have, while others want more money coming in passively, and still others desire a hybrid method. Once you’ve decided how you’re investing, you need to choose a strategy for picking specific investments.

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.

What are Growth and Income Investing?

This is often a long-term strategy that occurs gradually, without much further action from the investor. It works best for investors that don’t need extra money immediately, but want substantial returns in the future.

→ Growth Investors

This type of investment works well for people who don’t want to wait to start making their money back. Mutual funds, bonds, and stocks that pay dividends are all examples of income investments.

→ Income Investors

You can diversify your portfolio with various stocks, bonds, and alternative investments to ensure you have a combination of growth investments and income investments.

Can You Invest for Growth and Income?

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. 

How Can I Invest Money for Growth?

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