Investors who prefer the cash now are called income investors or value investors. They want a steady flow of dividends. The second group are growth investors. Their perspective is different. They hope to get a capital gain for holding their shares for a long time.
In this module we’ll also explain the difference between:
- Dividend income and capital growth - the two main reasons why investors buy shares.
- We’ll see why diversification is a smart idea
- And how inflation can erode the value of your returns