Gain

Reviewed by Vineeth | Updated on Aug 26, 2020

Introduction

A gain is defined as the increase in the value of an asset class, such as shares and bonds over time.

Understanding Gain

If the current price of an asset class is higher than the purchase price, then it is known as gain. A gain can occur at any time. The investment should be redeemed by investors to realise gains.

Important tips

  1. Gain is a positive difference between the selling price and the purchasing price of an asset.

  2. A gain can be realised only if the investments are redeemed as unrealised gains can perish if the markets don't perform well.

  3. Gains are taxable, depending on the holding period.