Facts about funds
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Capital growth
Funds aiming for capital growth give you the opportunity to grow your money over the long term. Any profits earned are re-invested back into the fund each year and accumulated over time.
Both equity funds and bond funds can be used to generate capital growth. There are many different types of equity fund with some focusing on particular geographic markets (such as North America or Europe) and others on certain industry sectors across the whole world (such as Telecoms and Technology).
The managed or mixed asset funds can also be used for capital growth. These funds give the manager more freedom to vary the blend of equities and bonds.
They are split into three categories, based on the maximum equity exposure, the IMA sectors are called Cautious, Balanced and Active.