What is the meaning of Capital Growth?

Capital growth is defined as the increase in the value of assets over a period of time. It is measured as per the current value of the asset under consideration as compared to the original investment. It is one of the primary reason for investment by most investors. It can be categorised as moderate growth or high growth. Assets which have a high ownership stake in equities or real estate are the ones which have the highest prospects of capital growth.

Capital growth is applicable to both companies and individual persons who have assets like equities or their own property. The growth in capital becomes taxable on the sale of assets.

Tags: , ,