Tips to save IPO listing gains tax!
In the years 2023 and 2024, many IPOs brought huge earnings for the investors. But tax also has to be paid on this! What is the tax rule on booking listing gains from IPO? How can tax liability on listing gains be reduced? How will the tax be calculated on selling IPO shares?
As the markets are at all-time highs, and many investors are cautious about investing, preferring to wait for a correction. However, it is also true that if you are a long-term investor investing in a mutual fund, the concept of undervaluation or overvaluation is irrelevant. For them, the abrupt rise and fall of the market permit investments to compound more quickly. However, there are few things you should consider during the bull market while investing in mutual funds. Let’s take a look:
Re-examine your investment portfolio
Receive a second opinion on your portfolio from a reputable financial expert. You may be concerned about current market conditions or tempted to sell your investments. If you only invest in equities, you may want to consider investing in high-quality debt funds instead. In the event of market turbulence, your assets will be safeguarded.
Know your goals
In the past, if you invested aggressively, you may now adopt a more conservative approach. Newer objectives can be established to assist you in moving your money more efficiently. This will aid you in avoiding the pitfalls of greed and fear.
Don’t stop your SIP
Rupee cost averaging is the greatest advantage of the Systematic Investment Plan (SIP). Investing at the top of the market, even if the markets go down, is possible using SIP. Long-term wealth accumulation is the key to success. As a result, do not interrupt your SIP in any way. Markets historically go through a dip for one to two years before beginning to rise again.
Diversification matters
Instead of taking your money out, you can put it in debt funds, international funds, or ETFs, which can help diversify your portfolio. As a result, you won’t have to worry about your portfolio. A balanced portfolio will safeguard you from value degradation so that you can continue your SIP.
Do not attempt to time the market
This is a common blunder made by new investors. These mistakes not only waste valuable time and money, but they can also lead to poor choices and a stagnant portfolio.
To sum it up, don’t be afraid to put money into the market. Ups and downs are unavoidable in a stock market. You can build money over the long term with the guidance of an experienced financial advisor.