InvestorQ : Is it correct to say that returns and risk matter more than taxes while investing?
Nisha Chandani made post

Is it correct to say that returns and risk matter more than taxes while investing?

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Nisha Chandani answered.
3 years ago
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You are largely right in your thinking here. What is the crux of the matter? Investing always has been and always will be a trade-off between risk and return. Never, ever allow tax exemptions, tax breaks and tax liability to determine your investment decisions. In the process you expose yourself to the uncertainties of the market as well as a prohibitive opportunity cost.

As Jim Cramer put it, “it makes a lot of sense to make peace with the taxman”. At the end of the day, it makes more sense to make a gain and pay tax on it rather than try to save tax on a capital gain and end up with no gains in the final analysis. Stop fearing the tax man and start fearing missed gains and missed chances. That way you will never regret lost profits and lost opportunities in the stock markets!

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