Investing in assets to achieve capital growth can be affected by the capital itself as well as the investor's own timing and tax needs.
Working with professionals with high market knowledge, such as Lucent, helps to maximise capital growth.
Any increase in value of an asset of any kind amounts to capital growth. A fund, individual stock or property can all experience capital growth as well as capital loss.
The key to achieving capital growth is consistent with the age-old advice to buy low and sell high. If enough people see (or at least believe) that an asset is set to achieve capital growth, the value of that asset increases.
From that, it is relatively easy to conclude that projecting capital growth requires close study of the asset. The simplest example is when you purchase a piece of property that you know is near a proposed transportation hub such as a new airport. For the investor who studies the factors affecting the establishment of that airport – zoning, the market demand for the airport, regional growth patterns, etc – the risks and potential returns on that purchase of land are better defined. Because such local knowledge is vital in making sound investment decisions, it is best to work with the professionals at Lucent, who know the market and what's going on in it.
How a person chooses to invest is also affected by timing. For some, a need for a quicker return will dictate making a capital investment with a quicker turnaround. Agricultural commodities are a good example, where a growing season might be the single largest variable and the returns (or losses) are realised in a few months. Capital growth on real estate involved in protracted zoning negotiations, however, might achieve solid capital growth but over a longer time frame (capital growth in land is subject to market demand, often driven by population shifts and growth, tax structure changes and many variables in the global markets). That may be time well spent, though, if the property achieves a significant increase in value from a zoning change.