Which of the following statements about the ‘Asset Categories’ section of the lecture material are TRUE:

1. ‘Income’ asset categories mainly pay income whereas ‘Growth’ asset categories don’t pay income and so the returns are only from capital gains.
2. When investing in ‘Growth’ assets, it is best to make sure that you have an investment time horizon of at least 5 years. This is because ‘Growth’ assets usually have higher risk than ‘Income’ assets. Investing over longer periods of time can help to manage that risk.