Investment profit, also known as capital gain, is the increase in the value of an investment over a period of time. It is the difference between the purchase price of an investment and the sale price, minus any fees or costs associated with buying and selling the investment.

For example, if you buy a stock for £50 and sell it later for £60, you would have made £10, assuming that you did not incur any fees or commissions on the transaction.

Investment profit can be made on a variety of assets, including stocks, bonds, real estate, and other types of securities. The amount of profit that an investor makes will depend on the performance of the asset, as well as the investor’s ability to accurately predict market movements and make informed investment decisions.

It’s important to note that investment profit is not guaranteed and that investing carries some level of risk. It is possible to lose money on an investment if the value of the asset decreases or if the investor makes poor decisions.

Each month we’ll aim to bring a bit of humanity and common sense back into the world of finance.