When you make investments, you expect to earn from those investments. This earning comes to you in one of 2 different ways:
- Appreciation in value
Interest is the most widely understood kind. When you put our money into a savings bank account or FD, you earn interest income. The rate of interest is fixed and the amount gets paid out to you.
When you invest in an asset like property or gold, the value of it increases over time. This appreciation in the value of your asset is a gain (called capital gain) which is often irregular and unpredictable.