What is capital appreciation?

Capital appreciation refers to the rise in value, or price, of an investment in an investor’s portfolio. It’s paramount to the whole concept of investing, as most investors invest in an effort to generate returns, or appreciation, on their money. Capital appreciation is one part of a long-term wealth-building strategy.

Is capital appreciation a good idea?

If you own any investments, capital appreciation is probably your goal. Capital appreciation occurs when an investment asset gains value as reflected by its market price. When a stock’s price goes up, say, or when a home’s property value increases, these are examples of capital appreciation. What Is Capital Appreciation?

What is a capital appreciation fund?

Capital appreciation, also known as capital gains, refers to the increase of an investment's value. A capital appreciation fund is a fund that attempts to increase asset value primarily through investments in high-growth and value stocks. These funds may also be called aggressive growth funds, capital opportunity funds, or capital gain funds.