We categorise investments between three basic investment objectives: growth, income and income and growth.
For these the main investment return is from capital growth. For these the whole of the capital is used throughout the term or whilst the investment is held to generate a capital return that is paid at the end of the investment period. Generally no income will be paid during the term.
For these the main investment return is from regular income throughout the term. This is likely to be paid at least annually and such that the only return on maturity is the capital sum invested. Corporate bonds and similar fixed interest investments, unless the income is based on the value of the underlying assets, would fall under this category.
Income and growth
This is a mixture of income and growth where there is likely to be income payable during the term with the aim of making a capital return when the investment is sold or redeemed.