Investment strategies usually focus on growth, income or a combination of the two.
Growth investing aims to achieve investment prices growing at a rate higher than inflation.
In case of share investment, it focuses on shares that are likely to see strong capital growth rather than paying dividends. A growth-based strategy is usually a long term investment and is not suitable for everyone.
On the other hand, income investing aims to provide regular income for the investor. In case of share investment, it focuses on shares that pay high dividends. Selecting shares that pay franking credits also increase the value of their dividends. An income-based strategy is suitable for someone who is looking to supplement, replace an income, or as an addition to a low income.
