The increase in an asset’s value over time due to market or economic factors.
Description
Appreciation refers to the rise in an asset’s market value, such as real estate, stocks, or collectibles, driven by demand, inflation, or improvements. Wealth managers monitor appreciation to assess portfolio growth, particularly for long-term holdings in family offices. Unlike income from dividends or interest, appreciation is unrealized until the asset is sold. Tax strategies, like capital gains deferral, often accompany appreciation-focused investments.
