Nithin Kamath’s advise for investors for better portfolio returns in long run


Zerodha co-founder and CEO Nithin Kamath has an advice for investors. Taking to Twitter on Wednesday, Kamath advised investors to consider tax-loss harvesting for better portfolio returns in the long run.

“Successful investing is about doing boring things well. One of them is tax-loss harvesting. Booking a loss can be painful because we are all loss averse, & we instinctively try to avoid losses. But reducing taxes can add up in the long run & lead to better portfolio returns,” Kamath said.

Kamath urged investors to check if they have realized short-term capital gains on which they have to pay 15% tax. If yes, investors told to further check any holdings with unrealised short-term loss. If that is the case, then investors were told to sell the holdings in less than 365 days, book the loss and reduce the short-term captial gains and hence taxes

“This is also a nice way to get rid of duds in your portfolio,” Kamath added.

In a separate twitter post, Zerodha said, if investors have realized capital gains on which they have to pay taxes, they can reduce your tax outgo by selling any holdings which are in losses before March 31, which is also known as “Tax-Loss Harvesting.”

The stock broking platform further said it has a report on Console that shows the losses that can be harvested.

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