From the Learn Hub
Learn Hub
Gain definition
An increase in an asset’s market value from its purchase price.
What is a gain in investing?
A gain is the increase in an asset’s market value from its purchase price. It’s the difference between what you paid for an asset (like a stock or fund) and its current market value.
There are two main types:
- Unrealised gain: when your investment has gone up in value, but you haven’t sold it yet.
- Realised gain: when you sell your investment for more than you paid and lock in the profit.
For example, if you buy a share for £50 and its price rises to £70, you have a £20 unrealised gain. If you sell it at £70, that gain becomes realised – but keep in mind, you may owe capital gains tax on your profit!
Investing glossary
It's important you know
Capital at risk. All investing should be for the longer term. The value of your investments can go up and down, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future.
A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Payments you make into your pension won’t be accessible until the minimum pension age (currently 55, increasing to age 57 from 2028). Tax treatment depends on individual circumstances and may be subject to change in the future.