New LTCG tax on equity mutual funds. How to minimize in long run, say of regular SIP for 7 years? Harvesting the gain every year and reinvesting immediately in every year or doing nothing?
First thing, if you invested in equity just for the sake of tax savings, then stay away from equity. Second thing continues churning is not a solution. The best strategy is either to expect around 1% less returns or invest around 1% more than what you are investing.
if there are multiple eq mf with considerable investment, won’t the ‘1%’ be a significant sum?
I said this the maximum safety measure. Whether you have the meager amount or considerable investment, you can’t avoid tax.
I want not to avoid but to minimise LTCG in long term investments. Why churning isn’t a solution?