Finance Dictionary : Capital Growth

Capital Growth


Explore Capital Growth, the augmentation in an asset's value over time, essential in investments and wealth accumulation.



Capital growth is the augmentation in the worth of an asset.


Capital growth denotes the expansion in the value of an asset over a designated period. It represents a financial metric that underscores an asset’s ability to appreciate, resulting in an increase in its market or intrinsic worth.


This gain in value can be influenced by a multitude of factors, including market dynamics, economic conditions, and the inherent characteristics of the asset. Capital growth is a fundamental component of investment strategies, as it contributes to the potential for asset appreciation and the accrual of wealth. It is particularly prominent in investments such as real estate, stocks, and financial instruments.


Understanding and predicting capital growth is integral to informed investment decisions and financial planning.


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