The type of investment you need depends on whether you require capital growth for the future, income from your investment for now, or a combination of both.

Some people, such as retirees or those with short investment timeframes, may choose to receive an income from their investment. Income is generated from the interest and dividends earned from the investment. Bonds and cash are examples of income producing investments, and they generally provide stable and regular returns.

Growth assets, such as shares and property, generally suit people who want to invest for five or more years. These types of assets grow your capital with moderate levels of income over time. Investors wanting to generate wealth over the long term should consider placing a greater portion of their investment into growth assets. While growth assets can be volatile over shorter periods, they have historically produced greater returns than income assets.