Prioritizing Your Portfolio: Tax Harvesting or Long-Term Investment?
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Tax Harvesting vs. Long-Term Investing: What Matters More for Your Portfolio?
M
Moneycontrol•20-03-2026, 12:04
Tax Harvesting vs. Long-Term Investing: What Matters More for Your Portfolio?
•Investors balance minimizing taxes today with building future wealth through tax-loss harvesting and long-term investing.
•Tax harvesting is a strategy to lower capital gains tax by selling investments to book gains within exempt limits or realize losses.
•It includes tax-gain harvesting (selling to book LTCG within tax-exempt limit) and tax-loss harvesting (selling at a loss to offset gains).
•Tax harvesting is a supporting strategy, useful for offsetting taxable gains, during market corrections, or for portfolio rebalancing.
•Long-term investing remains the foundation of wealth creation, driven by compounding and riding out market volatility, with experts cautioning against excessive focus on short-term tax adjustments.
