Investing for growth
There are several things to take into account when planning an investment strategy but the two main factors to consider are, the risk you are willing to take with your cash and, what you need from the investment – growth or income.
If you are investing for growth your main aim is to turn your cash into a sizeable lump sum. Generally this means taking no income from your savings and investments – reinvesting all interest and dividends. Managers of investment growth funds, for instance, tend to look for undervalued shares which are likely to experience an upturn at some point. Your money is likely to be invested in small companies with potential, up and coming sectors like technology or countries with an emerging economy.
