 Fannie Mae? |
| What is the difference between Fannie Mae and Freddie Mac in terms of their purposes and in terms of the assets they hold? Are these two essentially identical?... |
|
 I need 4 lakhs after 3 years? |
hi hey i need 4 lakh rs after 3 years.how much should i save each month and whr should i invest this money?
Is SIP beneficial to me?If yes which plan?
plz guide me..... |
|
 When all is said and done, how much can I expect to pay Edward Jones to manage a $10,000 account per year? |
Let's assume I invest in the typical "moderate-risk" portfolio with a mixture of bonds, stocks, and internationals.
Let's also assume that I don't flip the ... |
|
 What stocks should i buy? |
i am a high school senior and i have a part time job and i am trying to use 70% of my pay check to buy stocks every payday.
My question is what stocks shoul i buy?... |
|
 Investing options? |
i am sticking my big toe in to the pond of investing and do not have a clue
what are some safer options compared to stocks or mutual funds?... |
|
| When should I decide if my fund is performing badly,will it be after a consistent bad run of one year or more, |
| when should I sell it and reshuffle my portfolio or should I kept it even through the bad run of more then 2-3 years.... |
|
 New to Stocks? |
| I am looking for some advice on playing the stock market. I recently re-enlisted in Iraq and am well off financially for my age group. I have money in mulitple savings accounts that I continously ... |
|
 Investing in AIG a good idea? |
| Do you think that investing in AIG right now is a good idea?... |
|
 As a young adult, what should i invest in right now? |
| I am 20 yr old male attending college for accounting. I pay my way through college and have about $5000 in a savings account. However, i want to take some money out of my account and invest it in ... |
|
 Forex Trading? |
| Can anyone point me in the right direction to start? What's the best broker site? What are the best tracking programs and such?... |
|
 What one stock would be a good one to invest in? |
| This is strictly hypothetical. Suppose I had $10,000 to invest and I could invest it only in one stock. And I had to get out of that stock in the next two or three months. What one stock should it ... |
|
 In my highschool class we have to fake invest in 10 companies.. its a short term project, but what companies? |
| We're fake investing in 10 companies. There are about 10 groups of two, and who ever comes up with the most money by the end of the marking period wins. Any suggestions to what companies would ... |
|
 Should I sell my stock if the company might be deslisted from NASDAQ? |
| Because of stock option fraud? If the company continues to make good profits, can they fight the de-listing and bounce back, or should I sell before it's too late, although I will be losing ... |
|
 What Stocks should I buy? |
| I will be doing my home work this is just the beginning, I have about $5k I am thinking about getting in the Stock market. What companies should I invest, I am looking for both short term and long ... |
|
 Do you think is good idea to invest in China? |
I wanted to find is that a good idea to invest in China now? because of there so many people that become success after invest in China.
If yes on what I should be invested in.
If no why ... |
|
 Looking for some basic investment?? |
| I dont have a lot of money. No taxable income. Disabled on social security. Still young. I want to invest a set amount each month, maybe more if I can. I need some advice on where to go and what to ... |
|
|  |
sum_random_gal | What is capital growth in investing? |
apparently its some sort of strategy but does anyone know what it actually is?
Additional Details
i know the actual definition but apparently its also the name for doing something to try and get capital growth |
 |
 
gvih2g2
 |
I basically agree with AT but wouldn't class derivatives as having "capital growth" because the capital - the principal amount on the trade - is really only a fiction.
Basically, shares tend to be classed as "income stocks" - shares in old, reliable companies that generate plenty of cash but don't grow much, like utilities, where you make your money mostly in dividends - or "growth stocks" which pay little or no dividends but are in a market segment which is expected to expand in the future, such as technology companies, where you try to make your money by selling the shares for more than you paid for them.
For most of the last 20-30 years growth stocks have been more "fashionable", but on average income stocks have produced a better return. Sometimes people realise that, income stocks become the big thing for a while, then it settles back to the old pattern because people like to see their 100p share price turn into 200p, or 1000p.
There was a very interesting analysis (you can probably find it on the net somewhere) which compared a classic growth stock (I think it was IBM) against a classic income stock (Exxon, again from memory) over about 40 years. IBM's share price went through the roof while Exxon's plodded along - but if you looked at the effects of reinvesting your dividends, an investment in Exxon would have grown more over the time. |
|
AT
|
There are basically two ways to make money out of investing: by receiving income (often in the form of interest or dividends, usually paid on a periodic basis) or by an increase in the value of the asset you own (capital growth/gain, which is only realised when your asset is sold, although you might sell some of it to realise some of the growth/gain).
A growth strategy is one where you select assets in which to invest based on an expectation that their value will increase, and not based on an expectation of receiving a regular income. If you are investing in equities (shares) you might look for small start up companies which might grow rapidly or you might look for companies which are investing heavily in R&D. Such companies' shares may shoot up in value (if they are sucessful), but the dividend payments may not increase rapidly (at least in the short or medium term).
Some investments do not pay any income and therefore would be purely growth investments. An example is a derivative like a future or option. |
|
Deltic21
 |
No, it's not a startegy as such, nor is it a name for something other than "making your money grow". Everyone's strategy boils down to Capital Growth - it basically means you invest your money in such a way as to get back a larger amount than you put in, which is surely what everyone is aiming for. (eg if you buy a house for £100,000 and it becomes worth £120,000, then £20,000 is your Capital Growth. It has nothing to do with any interest or rental money you might also make). |
|
Andrew H
 |
Agree with Deltic21
Capital growth (some people call in principal gain) does not include any other income from rents, dividend yield, interest payments, etc. |
|
errant_hero
|
Capital growth (also called capital appreciation) should be everyone's investment strategy.
The goal of investing is to grow the original investment dollar.
For example, if I invested $1000 in a company's stock and the stock price goes up 10% in 1 year, then my original $1000 has grown to $1100. This $100 growth is the appreciated amount.
The actual percentage growth varies depending on the market conditions, type of investment (stock, bonds, mutual funds, money market, CD, etc.), etc.
Of course, you can also have a loss if you make a poor investment decision. |
|
clintonwee
|
you either invest for the capital growth ie you want the item to rise in price so you sell at a capital gain, or for regular income eg rental or dividend
Whichever someone chooses is usually dependent on their tax situation |
|
gt.schofield
 |
when the value of your investments increases |
|
whatnoduff
|
no its not a strategy, it is the difference between income accrual and capital growth. Imagine a dollar sitting on a shelf for 20 years, every year the dollar gets bigger, that is capital growth, in twenty years the dollar would be worth enough to buy you the same as it did 20 years ago.
Interest, however is 3what someone would give you for letting the dollar just sit there, perhaps 2 or 3% every year and the good news is you can keeop the interest, so 2 cents every year as income would take 50 years to make another dollar... get the idea? |
|
| |
|
| | |
| Questions List |
Answers | Last Post
| | | |
8 | 28 minutes(s) ago
| | | |
5 | 29 minutes(s) ago
| | | |
8 | 40 minutes(s) ago
| | | |
8 | 55 minutes(s) ago
| | | |
8 | 3 hour(s) ago
| | | |
8 | 7 hour(s) ago
| | | |
8 | 10 hour(s) ago
| | | |
8 | 2 day(s) ago
| | | |
7 | 2 week(s) ago
| | | |
6 | 2 month(s) ago
| |
|
Homepage 
Financial
Forum 
Investing 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
