To help you better understand the difference between our funds, we explain below what income and growth assets are.
What are income assets?
Cash and fixed interest (or bond) securities are referred to as income assets because they generate income in the form of interest payments. Income assets are generally considered less volatile than growth assets, so while the values will go up and down, they won’t usually move to the same extent as growth assets. Over the long term, income assets will typically provide lower returns than growth assets.
What are growth assets?
Shares and listed property are referred to as growth assets because they have greater potential to achieve capital growth over the medium to long term when compared to income assets. The value of growth assets will fluctuate more than income assets. Over the long term, growth assets typically provide higher but more volatile returns than income assets.
Select Growth Fund
Aims to provide a high level of capital growth over the medium to long term (at least 7 years). The fund invests mostly in growth assets, with a modest allocation to income assets.
Select Balanced Fund
Aims to provide a medium level of capital growth over the medium to long term (at least 5 years). The fund invests similar proportions in income and growth assets.
Select Conservative Fund
Aims to protect capital and provide a moderate return over the medium term (at least 3 years). The fund invests mostly in income assets, with a modest allocation to growth assets.