raaman
Valued Contributor
Capital growth as an investment objective is usually related to the sale of an asset held. For example, publicly traded stocks are capital assets. Therefore, outside of dividend payments, these investment instruments can only generate profits if you somehow manage to sell them. There are also other capital growth asset options, such as investing in gold, diamonds or real estate.
In all these cases of investments, the common factor is that they have a degree of risk for the investor. For example, buying a property at a prime location and then selling it later at a higher price can represent capital growth. But selling that property at a lower price can also represent the opposite, that is, a capital loss.
In all these cases of investments, the common factor is that they have a degree of risk for the investor. For example, buying a property at a prime location and then selling it later at a higher price can represent capital growth. But selling that property at a lower price can also represent the opposite, that is, a capital loss.
