Asset Accumulation

AAA

DEFINITION of 'Asset Accumulation'

The increase in the value of financial property and investments over time through the process of saving money and earning returns. Asset accumulation is the goal of all savers and investors. It represents increasing portfolio values, net worth and savings account balances, as cash is saved or invested and then grows through interest earnings and investment gains.




INVESTOPEDIA EXPLAINS 'Asset Accumulation'

Asset accumulation is a powerful way for individuals to save for retirement and reach other aggressive goals as it works on the dual level of savings and investment gains. Assets that accumulate can be cash assets or real property. Its positive effect on net worth is offset by any debt that the investor or saver owes.

RELATED TERMS
  1. Realized Gain

    A gain resulting from selling an asset at a price higher than ...
  2. Return

    The gain or loss of a security in a particular period. The return ...
  3. Savings

    According to Keynesian economics, the amount left over when the ...
  4. Asset

    1. A resource with economic value that an individual, corporation ...
  5. Gain

    An increase in the value of an asset or property. A gain arises ...
  6. Unrealized Gain

    A profit that exists on paper, resulting from any type of investment. ...
Related Articles
  1. Investing Basics

    Online Portfolio Management, DIY or Fee-Based Financial Advisor: Which Is Right For You?

    Should you use an online financial planning service, or do professional, fee-based financial planners justify their higher costs?
  2. Chart Advisor

    A Total Stock Market ETF For Any Portfolio

    Utilizing index funds and ETFs, such as Vanguard's VTI, is one of the best ways for the average investor to track the broad markets and minimize fees.
  3. A Monte Carlo simulation allows analysts and advisors to convert investment chances into choices. The advantage of Monte Carlo is its ability to factor in a range of values for various inputs.
    Fundamental Analysis

    What Can The Monte Carlo Simulation Do For Your Portfolio?

    A Monte Carlo simulation allows analysts and advisors to convert investment chances into choices. The advantage of Monte Carlo is its ability to factor in a range of values for various inputs.
  4. Fundamental Analysis

    How do I judge a mutual fund's performance?

    Evaluate mutual fund performance utilizing resources such as Morningstar; compare the fund with others in its peer group to find the best mutual fund for you.
  5. Strategic asset allocation is a portfolio strategy that involves setting target allocations.
    Bonds & Fixed Income

    Strategic Asset Allocation

    Strategic asset allocation is a portfolio strategy that involves setting target allocations for various asset classes, then periodically rebalancing the portfolio back to the original allocations ...
  6. Investing Basics

    What's the difference between alpha and beta?

    Learn about alpha and beta, two very important technical risk ratios that investors use to evaluate relative performance, and their different interpretations.
  7. Investing

    How can I protect my portfolio from market corrections?

    Learn about some of the types of investment strategies designed to protect an investment portfolio from losing value during a market correction.
  8. From insurance and wildcatting, to licensing and pizza, Jerry Jones has rolled the dice and frequently won. Here's how the man remade the franchise.
    Entrepreneurship

    Building A Fortune: Jerry Jones And The Cowboys

    From insurance and wildcatting, to licensing and pizza, Jerry Jones has rolled the dice and frequently won. Here's how the man remade the franchise.
  9. Investing Basics

    Using Normal Distribution Formula To Optimize Your Portfolio

    Normal or bell curve distribution can be used in portfolio theory to help portfolio managers maximize return and minimize risk.
  10. Investing Basics

    Human Capital, An Important Asset For Portfolio Diversification

    An investor’s total wealth consists of two parts – financial capital and human capital. The latter should not be overlooked in investment strategies and portfolio management.

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center