1) Income Funds - usually are characterised as providing consistent income to investors. These Funds invests in income-producing stocks or bonds or combination of both. Bond funds, equity funds and money market funds are included into this category.

2) Growth funds - generally are more aggresive than income funds but have the possibility or earning higher returns by focusing on the objective of long-term capital appreciation rather than income producing or short - term gain. Example small caps funds, commodity funds, index funds and gold funds.

Before you start evaluate these type of funds there are 2 things you must considered :

1. your investment goal or objective.
2. risk level that you afford to take.

Certain investors invest for his own purpose, some invest for retirement and if you are already close to it than u should look at income funds that are more predictable. However if you are still younger (like me ) and you maybe married and want to save for your children which will be 10 or 15 more years you may look for growth funds that generate higher return but with higher level of risk.

Once you are clear on what you are looking than you can narrow down your selection to either income or growth category and you can move the next step of identifiying the most suitable funds within selected category.

Happy investings

Invest regularly with our performing funds for financial growth!!!

A sustainable and strategic Investment portfolio always has the right base, core funds with consistent performance. At CIMB-Principal, we recommend asset allocation solutions that properly balance your risk tolerance with your potential return expectations and optimise your hard-earned money.

• Stability : Funds do not follow trends, but focus strong fundamentals to deliver long-term results
• Security : Regular investment saving into these consistent performers will result in a solid retirement base
• Simpicity : Straightforward, diversified funds that are easy to understand and hence invest in
• Result : Consistent performance over the long term

Click to view the chart

source: Lipper & MorningstarDirect

• **3 Years - 29/07/2005 - 31/07/2008
• *** 5 Years - 31/07/2003 -31/07/2008

For more info kindly contact me at 019-3649613 or email murtaza@cimb-wealthadvisors.info