Insight

Don't fear capital gains tax

Is the fear of capital gains tax holding you back from making the much-needed changes to your investments? You must read this

Is the fear of capital gains tax holding you back from making the much-needed changes to your investments? You must read this

"In this world, nothing can be said to be certain, except death and taxes", goes the famous quote from Benjamin Franklin. While death is beyond the control of us mortals, one should certainly minimise the tax outgo to the extent possible using legitimate means. However, there are situations when trying to avoid taxes can turn counter-productive. In the context of investing, people hate capital gains tax and therefore hesitate to make changes in the investments that will attract a tax incidence. But in some cases, it's not such a bad idea to bear a one-time tax for your long-term good. In our Premium service, we suggest investors switch from regular plans to direct plans or exit poor funds in favour of better alternatives. Some of them write back, sharing their tax-induced anxieties, which keep them from making the suggested changes. Here we address them. Switching

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