It is unlikely to retain its real value in the long term even if all after tax income is compounded, but is also unlikely to have negative returns over any period. Taxable income is likely to be high. This is for people who are prepared to accept a small level of risk in exchange for higher long term returns. The total portfolio value is unlikely to fluctuate very much. If all income is reinvested the portfolio should just maintain its value in real terms.
Taxable income is likely to be moderately high.
A portfolio expected to grow in excess of the rate of inflation but with moderate fluctuations in value. It will be suitable for many who are saving for retirement. Taxable income is likely to be modest. The equity component of this portfolio is large and will cause substantial fluctuations in portfolio value from time to time. It is suitable for those who want after tax returns well in excess of the rate of inflation and who have a high tolerance for risk.