Growth fund, also known as "long-term growth fund", is an investment fund that attaches importance to the long-term growth of the fund. In order to achieve the investment goal of long-term capital growth, such funds generally invest in companies with good reputation and long-term profitability, or companies with long-term growth prospects.
Income-oriented funds aim to obtain the maximum income in the current period and pursue the current income of the fund as the investment goal. Their investment targets are mainly those securities with relatively stable returns, such as blue chips, bonds and negotiable certificates of deposit.
What's the difference between income-oriented and growth funds?
Different investment objects: growth funds refers to the pursuit of capital appreciation as the basic goal, with stocks as the investment object; Income fund refers to a fund that mainly invests in stable income securities such as large-cap blue-chip stocks, corporate bonds and government bonds with the basic goal of pursuing stable recurring income.
The purpose of investment is different: growth funds aims to achieve long-term capital growth; Income-oriented funds aim at obtaining the maximum income in the current period.
Holding stocks is different: growth funds is relative to income-based funds. When defining growth funds, it is mainly divided according to the characteristics of stocks held by funds. Growth funds's stocks generally have a high performance growth record, but also have a high P/E ratio and P/B ratio.
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