A recent correction in Stock market has left many investors in a panic. Especially new investors who started investing in Equity markets within last few years and have only seen the greens in the market are not used to witness such big hole in their portfolio kitty. Such investors are in a shock to see the market correction. The correction in the equity market is breath-out stage and it creates room for new fresh airs to inhale.
The reason for the fall in indices are more of the sentimental effects rather than the introduction of the tax in LTCG.
The other reason is Investors are booking profits on their long term assets before the end of current financial year. As the tax on LTCG will be effective from April 1st, 2018.
We advice investors to stay calm. don’t panic and sell. If you have cash in hand, and risk taking capacity this is an opportunity so keep buying gradually.