# Capital Appreciation

*Saving & Investing — Finicade finance glossary*

Capital appreciation is the increase in an asset's price over time, as distinct from the income it pays. It's the growth half of total return, and it's tax-deferred: you owe nothing until you sell, unlike dividends and interest that are taxed as they arrive. That asymmetry is why appreciation-heavy assets suit taxable accounts and income-heavy assets suit sheltered ones.

**Also known as:** price appreciation, growth in value

**Related terms:** [Capital Gain](https://finicade.com/glossary/capital-gain), [Total Return](https://finicade.com/glossary/total-return), [Dividend](https://finicade.com/glossary/dividend), [Unrealized Gain](https://finicade.com/glossary/unrealized-gain), [Growth Investing](https://finicade.com/glossary/growth-investing)

Source: https://finicade.com/glossary/capital-appreciation