Crisis
Nobody cannot anything against emergencies that require
money to be solved. In such a case if you do not have an
emergency fund, it is better to sell one of the stocks
that is not performing so well. However, the selling of
a stock is recommended only if you do not have other
money to cover for the emergency. It is always better to
use other sources of money since by selling the stock
you may deprive yourself from the future potential
gains.
Other Good Stocks
Another reason to sell a stock is the when other stock
starts giving greater returns that are offered by your
stock. This implies that the stock you holding now do
not produce as much as another stock. However, one thing
should be kept in the mind that the selling of this
stock for purchasing another stock may lead to costs and
taxes. This in turn may decrease your profits. So, you
should think carefully before getting on active trading.
Solution: In order to reduce the taxes you should
pay, try to select stocks that you have hold more than
one year. This is required so that the capital gains
fall in the long-term category. Additionally, you should
be careful when selecting the stocks to sell so that the
diversification in your portfolio is not destroyed
Financial Goals Achievement
If you reached your retirement or educational goals then
time is to move the stock from your investment portfolio
and make the necessary adjustments to meet your new
lifestyle. In turn to reduce the taxes you are
predisposed to when selling the stock you should check
whether you have owned the stock for more than one year.
This will classify your capital gains as long-term,
which are treated more beneficially about taxes.
 |
| |
|
Amount in Rs. Crores
|
|
Nature
|
|
Gross Sale
|
Net
|
| Debt |
103.60
|
0.00
|
103.6
|
| Equity |
3440.20
|
3555.30
|
-115.1
|
| By MFs as
on Feb 12, 2008 |
Amount in Rs. Crores |
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