Tax is the cost of doing business. Both LT and ST taxes have gone up, ST sightly more than LT. Directionally, we have to be prepared for higher taxes overall in the coming years.
My point is simply that instead of thinking about taxes, we should be focused on getting the returns first. Even as you say, in breakout trading, if you are a profitable trader, you will still make a lot of money.
Sir, what you say makes sense for a profitable trader (good percentage of wins). For less profitable traders, margin for underperformance has reduced. They should probably lean towards long term investing. Your other two points are well taken:
1) focus on first generating capital gains.
2) directionally we expect higher taxes anyways (so stop whining and deal with it)
Sir, I respectfully disagree with your assessment on stcg, ltcg. I think the 33% increase in stcg is substantial (from 15% to 20%). Your short term services like quiver, quantamental, hitpicks, pms vriddhi have done extraordinarily well the last 2 years. I think all of them will straightaway lose post-tax performance of 5% on absolute basis (and 2.5% relative to long-term plans). This is significant. I would be more selective in breakout trading for example.
Put another way, the post-tax performance gap between Sri Lakshmi and Sri Vriddhi PMS schemes is smaller than it appears optically because of the ltcg vs stcg difference of 20 - 12.5= 7.5% which is huge. It certainly makes short term services less attractive relative to long term services.
Tax is the cost of doing business. Both LT and ST taxes have gone up, ST sightly more than LT. Directionally, we have to be prepared for higher taxes overall in the coming years.
My point is simply that instead of thinking about taxes, we should be focused on getting the returns first. Even as you say, in breakout trading, if you are a profitable trader, you will still make a lot of money.
Sir, what you say makes sense for a profitable trader (good percentage of wins). For less profitable traders, margin for underperformance has reduced. They should probably lean towards long term investing. Your other two points are well taken:
1) focus on first generating capital gains.
2) directionally we expect higher taxes anyways (so stop whining and deal with it)
Sir, I respectfully disagree with your assessment on stcg, ltcg. I think the 33% increase in stcg is substantial (from 15% to 20%). Your short term services like quiver, quantamental, hitpicks, pms vriddhi have done extraordinarily well the last 2 years. I think all of them will straightaway lose post-tax performance of 5% on absolute basis (and 2.5% relative to long-term plans). This is significant. I would be more selective in breakout trading for example.
Put another way, the post-tax performance gap between Sri Lakshmi and Sri Vriddhi PMS schemes is smaller than it appears optically because of the ltcg vs stcg difference of 20 - 12.5= 7.5% which is huge. It certainly makes short term services less attractive relative to long term services.