Final answer:
A growth fund is more risky than an income fund.
Step-by-step explanation:
A growth fund is more risky than an income fund. Growth funds invest in stocks of companies that are expected to grow at an above-average rate, which can be volatile and subject to market fluctuations. In contrast, an income fund primarily focuses on generating regular income through fixed-income investments such as bonds.
While a growth fund can offer potentially higher returns, it also carries a higher level of risk due to its focus on growth stocks. Bonds, on the other hand, are considered less risky than both growth and income funds as they offer fixed interest rates and typically have a lower risk of capital loss.
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