Returns & Performance
Capital Gain
Definition
What is Capital Gain?
The profit made when an asset or fund unit is sold for more than its cost.
Example in practice
How This Looks in Practice
Units bought for $100,000 are redeemed for $118,000, creating an $18,000 capital gain before costs and tax.
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Related Terms
Returns & Performance
Total Return
The complete investment result from price changes plus income, assuming distributions are included.
Returns & PerformanceDividend
A payment made from a company's profits to eligible shareholders.
Returns & PerformanceDistribution
Income or realised gains paid by a fund to its unitholders.
Costs & FeesManagement Fee
The recurring fee paid from fund assets to the fund manager for managing the portfolio.