The current market crash has been very painful. Equity portfolios have taken deep cuts. During such times when we are so occupied with limiting losses in our equity portfolios, we might lose out on peculiar tax-saving opportunities that these times may throw up. I am talking about tax-loss harvesting, where you can use losses from one capital asset to set off capital … [Read more...] about Market Crash: Use Tax Loss Harvesting to Reduce your Tax Liability
For many of us, when we think about investments, the focus is mostly on returns. Not unfair. Everybody wants an adequate reward for the risk taken. However, when you think in terms of financial goals or financial planning, return is not the only part of the equation. Let’s look at the equation for compounding. A = P * (1+r)^n Where P is the amount invested, r is … [Read more...] about Financial Planning and Investing more
You start with a certain asset allocation mix. At regular intervals, you bring your portfolio to original asset allocation mix. Let’s say you have Rs 20 lacs to invest. You have two asset classes Equity and Debt. You invest Rs 10 lacs in Equity and Rs 10 lacs in Debt. Asset allocation of 50:50. During the next 1 year, Equity gives 20% returns while Debt gives 5% … [Read more...] about What is Portfolio Rebalancing? How it helps?