They provide pretty modest monthly returns, so they're not your best choice for reaching long-term goals. But, they are a good spot to put your money while you decide how to invest it. Income funds usually hold bonds and mortgages and pay investors with interest. They're mostly used by older people to provide them with a steady source of income. If you're young and already have an income, it's best to re-invest your earnings so you can reach your goals that much faster.
Balanced funds are like the 'mixed nuts' of the mutual fund world.
They hold a mix of stocks, bonds, and cash, so they're diversified across the different categories. Some balanced funds lean more towards stocks, while other more conservative balanced funds carry more bonds and MMfs. It depends on what you want, and how the fund manager sees the economy. Canadian growth funds invest mostly in Canadian stocks. They're an excellent way to take part in the country's diverse and growing economy, while benefiting from long-term growth.