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Capital Appreciation

Capital appreciation is an increase in the value of an asset or investment over time. For example, if an asset is purchased for $100,000 and later becomes worth $120,000, the increase in value represents capital appreciation before considering costs or taxes.

Why it matters to you

Not every investment return comes from income. An RWA may generate yield, increase in value, or potentially do both. Investors should understand which source of return they are expecting rather than treating them as the same thing.

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