The investment of money in assets such as stocks, real estate, or funds with the goal of achieving a financial return or profit.
example
Immobilien gelten als eine sichere, aber langfristige Kapitalanlage.
Real estate is considered a safe but long-term capital investment.
Usage tips
Word composition
This word is made up of 'Kapital' (capital, money, assets) and 'Anlage' (investment). Here, 'Anlage' comes from the verb 'anlegen' in the sense of 'investieren' (to invest).
EXAMPLE
Er sucht eine gute Kapitalanlage für sein Erspartes.
He is looking for a good capital investment for his savings.
Register: Technical language
'Kapitalanlage' (capital investment) is a term from the world of finance and economics. You often find it in the news, bank consultations, or business articles.
EXAMPLE
Die Bank berät ihre Kunden bei der Wahl der richtigen Kapitalanlage.
The bank advises its customers on choosing the right capital investment.
Typical collocations
Common adjectives are 'sicher' (safe), 'rentabel' (profitable), 'langfristig' (long-term), or 'kurzfristig' (short-term). The verb phrase 'eine Kapitalanlage tätigen' (to make a capital investment) is also often used.
EXAMPLE
Aktien sind eine risikoreiche, aber potenziell rentable Kapitalanlage.
Stocks are a risky but potentially profitable capital investment.
Compare with
near_synonym · confusable
Kapitalanlage vs Anlage
facility / attachment / investment
'die Anlage' and 'die Kapitalanlage' can both mean an investment of money. 'Anlage' is shorter and more general. It can occur in many meanings, for example also for technology or a file. In a financial context, however, it often means an investment of money. 'Kapitalanlage' is more precise and immediately makes clear that it is about invested money and financial returns. The words can be confused because 'Anlage' can refer to the same topic in the right context. If the financial connection is not clear, 'Kapitalanlage' is clearer.
Kapitalanlage
Noah kauft die kleine Wohnung als Kapitalanlage, weil er später Miete bekommen möchte.
Noah buys the small apartment as a capital investment because he wants to receive rent later.
Anlage
Vor der Anlage ihres Geldes lässt sich Sofia von der Bank beraten.
Before investing her money, Sofia gets advice from the bank.