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Showing posts from February, 2018

Long Term Capital Gain Tax – a Blessing in Disguise

The Finance Minister, Mr. Arun Jaitley shocked the investor community when he re-introduced Long Term Capital Gain Tax in his Budget speech on 1 st  February, 2018. Over the years, one of the major drivers for flows into equities was the tax free status of the gains after 1 year. However with the re-introduction of the taxation, that benefit will not be there from 1 st  April, 2018. Though, it is a bitter truth for the equity investors, it can actually be a blessing in disguise for your personal finances. This has given a chance to all the investors to relook at their portfolio and rebalance the same towards optimal asset allocation. Equity mutual funds are generally held in the portfolio for long term. Thus, most of the times, the portfolio gets flooded with a number of schemes, where either the underlying stock portfolio is common leading to portfolio overlap, higher allocation towards a particular asset class, some non-performing scheme dilute the performance of bette...

6 tips for a fresher to start investing in stocks

Equity Trading is not a game.When you start reading and learning about it, you will see that it is a profession in itself. Before investing, an individual needs to know a few basics and risks associated with it. This has to be done before you start to trade on real time stock markets. This requirement of knowledge about stocks and stock markets make it seem like a daunting task for beginners. Here are 6 tips to give you a better idea about stock markets and get you started on this investment journey: Don’t Invest Your Savings : Stock markets are known to be high-risk investments where there is no guarantee of receiving your principal investment back. Hence, it is wise to not get sucked into the lure of higher returns. It is advised to invest in the stock market only once you have other savings that are more secure. Having fairly secured your future, you can then afford risks and make a move towards the stock market. Maintain Investment Discipline : Fluctuations in prices are not...