For a moment forget tax free aspect of long term gains
I find even blue chip nifty 50 behaving like a cyclical stocks up and down to a same point.
Take TCS for example. Last year it was around 1900 and went upto 2300 again to come back to 2000 levels in a year
Now a delivery investor if he had exited at many high points and re entered at low levels he would have made good gains .Rather than to wait to see a giant wheel reaching to starting place again.
I saw this pattern in bajaj fin India bulls house fin, TCS , Vedanta and many other nifty 50
So is the long term investment need strategy change? Pls share ur thoughts Even one can exit after receiving dividend every quarter and reenter it looks.
Ask this question to all long term successful investors who never had the mindset like you, with myopic vison nobody here can give you proper answer. To gain profit in long term first you have to change your mindset and don’t try to act unnecessarily.
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ON a long term basis say minimum investment of 4-5 years or more 4 out of 5 time you do earn and on trading basis from a long term view 5 out of 5 time you lose . this is my view.
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The example of TCS you gave here is called trading and not investing.
For selling at different highs and buying at lows is all about timing the market. if you have such skills of timing the market move, you can for sure do this with your long term investment.
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This is nothing new, it will happen everytime.
Nifty doubled in last 5 years, but there were 3 different time periods when Nifty was flat or negative over a period of 6 + months.
Basically you are talking about timing the market, and I think it can be done in the following order starting from easiest to hardest -> Mutual Fund -> Niftybees -> Stocks
So basically timing stocks is hardest and only very expert traders can do it.
For sure short term trading is probably even much easier and take a lot of micromanaging really and all other things, but it’s much easier to make some monies here and there that’s why probably you really need to pay taxes on top of that for sure.