Q&A with Apricot: How Do People Make Money with Investing? Example 3: Capital Growth

In our previous posts, we talked about how investments can help preserve your capital against inflation or generate an additional income stream. Now, let’s explore another key way people make money with investments – capital growth.

What is capital growth?

Simply put, capital growth is the increase in the value of an asset (like stocks, real estate, gold, collection items, etc.) over time. Think of it like this: you buy a house for $100,000. A few years later, the area becomes more popular, and your house is now worth $150,000. That $50,000 increase? That’s capital growth!

How does it work in investing?

When you invest in assets like stocks and ETFs, you’re hoping their value will increase over time. The price of assets like stocks and ETFs rarely stays the same after you buy them. They fluctuate constantly, both increasing and decreasing. Many factors influence these price movements, including market trends, economic conditions, the company’s financial performance, announcements of future plans, and more.

If you buy a stock at $50 and it rises to $75, you’ve experienced capital growth. To actually earn money from this growth, you would sell the stock at a higher price. This is called realizing your capital growth. In Armenia, capital growth is not taxed.

Interested in generating income from your investments?

Learn more about investing in Apricot Academy. 

Open a brokerage account  for free and download our Apricot app from the App Store or Google Play.

It’s important to remember that investments are subject to market fluctuations and carry inherent risks. Consider your financial goals and risk tolerance before investing.

Apricot Capital is regulated by the Central bank of Armenia.

*The examples in this text are for illustrative purposes only. This does not constitute investment advice or a recommendation to buy or sell any specific investment instrument. The past performance mentioned in this text is not indicative of future results.