Investor Corner/Money matters beyond investing

4.3 Tax Planning

How capital gains are actually taxed on equity and debt funds, and the legitimate ways, tax-loss harvesting, asset location, to keep more of what you earn. Capital gains tax on equity and debt funds follows different rules depending on holding period and fund type, and getting this wrong is one of the more expensive mistakes an otherwise sound investor can make. This section covers how the tax actually works, and the legitimate ways, tax-loss harvesting, asset location, to reduce what is owed.