Growth investors put their money into securities, typically stocks, of firms that are growing in earnings. These stocks are expected to increase in value faster than the stock market average. The growth investor aims for big gains over the long term, but also faces risks as growth oriented companies go through their ups and downs. In fact, short term losses can be substantial during down cycles. Thus, value investors are betting that the company's stock will rise to reflect its true value.
Investors using an income style choose securities that produce regular but modest earnings.
Some examples include government issued bonds or money market mutual funds. Income investments don't bring as much potential for gain as growth investments, but they also carry less risk for loss. Thus, income investors aim for fairly stable earnings over time.