Capital Growth
Capital growth, also called as capital appreciation is the increase of an investment or asset value over time.
Updated: November 2, 2023
Capital growth, also called as capital appreciation is the increase of an investment or asset value over time. An individual must subtract the original purchase price or cost basis of an asset from its current value or market value to measure capital growth.
Investors looking for capital growth may invest in various assets, including real estate, stocks, or commodities and the type of assets chosen by the investor may depend upon their investment goals and risk tolerance.
Investment portfolio management software are used for fund management, efficiency, and workflows. It can also be used for capital growth analysis and other performance metrics as well as tracking and managing investor portfolios.
Real estate, Equities, Funds, REITs, and Commodities are different types of capital growth investments. Investors can create wealth, delay tax bills and achieve long-term goals with capital growth. You can create wealth by buying assets for a low price and later selling them in higher price. Tax bills can be delayed as individuals do not have to pay taxes on their investment until they sell it. Investing for capital growth can help saving for retirement or passing down an inheritance with planning.
An individual or organization must do research, allocate investments, make improvements to properties, use financial management software and find an asset manager to set and achieve capital growth goals.
Benefits of capital growth
- Wealth Accumulation
- Improved Net Worth
- Higher Returns
- Inflation Hedge
- Financial Security
- Investment Diversification
- Wealth Transfer
- Improved Borrowing Capacity
- Portfolio Balance
- Opportunities for Reinvestment
