Equity
Equity
Benefits of Equity
Benefits of Equity
Potential for Higher Returns
Investors become partial owners of companies when purchasing stocks. Long-term investors benefit from company growth and profitability reflected in stock appreciation and dividends.
Power of Compounding
Long-term equity investors gain from compounding. Reinvested returns amplify capital growth particularly with prolonged investment horizons enhancing overall returns.
Risk Diversification
Investors spread risk across sectors and companies by diversifying their portfolio with stocks or equity mutual funds, mitigating individual stock impact for consistent long-term returns.
Hedge Against Inflation
Equity investments have the potential to surpass inflation, safeguarding the purchasing power of invested capital and making them an attractive choice for wealth preservation.
Ownership Stake
Investors become partial owners of companies when purchasing stocks. Long-term investors benefit from company growth and profitability reflected in stock appreciation and dividends.
Potential for Higher Returns
Indian equity markets offer superior long-term returns due to the growth potential of local companies driven by economic, demographic, and technological advancements.
Power of Compounding
Long-term equity investors gain from compounding. Reinvested returns amplify capital growth particularly with prolonged investment horizons enhancing overall returns.
Risk Diversification
Bonds offer diversification within an investment portfolio, balancing the risk of equity investments.
Hedge Against Inflation
Equity investments have the potential to surpass inflation, safeguarding the purchasing power of invested capital and making them an attractive choice for wealth preservation.
Ownership Stake
Investors become partial owners of companies when purchasing stocks. Long-term investors benefit from company growth and profitability reflected in stock appreciation and dividends.
Investment Success Factors
Risk Tolerance
Monitoring and Rebalancing
Investment Goals
Tax Implications
Time Horizon
Professional Advice
Risk Tolerance
Investment Goals
Time Horizon
Monitoring and Rebalancing
Tax Implications
Professional Advice
Risk Tolerance
Time Horizon
Tax Implications
Investment Goals
Monitoring and Rebalancing
Professional Advice
Tax Guide for Investors
Long-term Capital Gains (LTCG)
- Tax Rate: LTCG exceeding ₹1 lakh in a financial year are taxed at 10%, without indexation. Gains up to ₹1 lakh are tax-exempt.
Exemption under Section 10(38)
- Historical Exemption: Until March 31, 2018, LTCG on equity shares and mutual funds were tax-exempt under Section 10(38) if subject to Securities Transaction Tax (STT).
- Post-Reintroduction: From April 1, 2018, LTCG exceeding ₹1 lakh became taxable at 10%, with gains till January 31, 2018, grandfathered.
Calculation of LTCG
- Indexed Cost of Acquisition: Cost of acquisition can be indexed using the Cost Inflation Index (CII) to adjust for inflation, except for securities acquired before April 1, 2001.
- Exclusions: Certain long-term capital gains, like those from unlisted equity shares, may not qualify for the concessional LTCG tax rate.
Reporting and Compliance
Investors must report LTCG from equity investments in their tax returns, ensuring proper documentation of transactions for tax planning and compliance.
Tax-Saving Equity Investments
Equity Linked Savings Schemes (ELSS) provide tax benefits under Section 80C of the Income Tax Act, allowing deductions up to ₹1.5 lakh annually.
Equity Partner
is the buying and selling of company stock shares for which one needs to open a demat account. Any market is a platform for in company shares. Buying and selling of shares in the secondary market with a view to profit from the difference in the buying price and selling price of the share, where it can be intraday or swing.
is the buying and selling of company stock shares for which one needs to open a demat account. Any market is a platform for in company shares. Buying and selling of shares in the secondary market with a view to profit from the difference in the buying price and selling price of the share, where it can be intraday or swing.
is the buying and selling of company stock shares for which one needs to open a demat account. Any market is a platform for in company shares. Buying and selling of shares in the secondary market with a view to profit from the difference in the buying price and selling price of the share, where it can be intraday or swing.
is the buying and selling of company stock shares for which one needs to open a demat account. Any market is a platform for in company shares. Buying and selling of shares in the secondary market with a view to profit from the difference in the buying price and selling price of the share, where it can be intraday or swing.
is the buying and selling of company stock shares for which one needs to open a demat account. Any market is a platform for in company shares. Buying and selling of shares in the secondary market with a view to profit from the difference in the buying price and selling price of the share, where it can be intraday or swing.
is the buying and selling of company stock shares for which one needs to open a demat account. Any market is a platform for in company shares. Buying and selling of shares in the secondary market with a view to profit from the difference in the buying price and selling price of the share, where it can be intraday or swing.