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 Glossary   >   C   >   "Capital growth" Definition   

        Capital growth

In general terms, the increase in value of an asset.As far as shares are concerned, capital growth is an increase in share price compared to what you paid, and is one of the elements of what investors called "total return", the other component being income through dividends.Research has shown that investing in shares over the last 50 years produced a better total return than investments in bonds or deposits, and capital growth has been a major part of that superior performance. There is certainly no guarantee that shares will continue to outperform other investments, but most observers believe that they will over the long term.

Capital growth


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Capital growth - In general terms, the increase in value of an asset.As far as shares are concerned, capital growth is an increase in share price compared to what you paid, and is one of the elements of what investors called "total return", the other component being income through dividends.Research has shown that investing in shares over the last 50 years produced a better total return than investments in bonds or deposits, and capital growth has been a major part of that superior performance. There is certainly no guarantee that shares will continue to outperform other investments, but most observers believe that they will over the long term.


Capital growth : in general terms, the increase in value of an asset.as far as shares are concerned, capital growth is an increase in share price compared to what you paid, and is one of the elements of what investors called "total return", the other component being income through dividends.research has shown that investing in shares over the last 50 years produced a better total return than investments in bonds or deposits, and capital growth has been a major part of that superior performance. there is certainly no guarantee that shares will continue to outperform other investments, but most observers believe that they will over the long term.