Risk
What is tax loss harvesting?
Selling a losing investment on purpose to reduce the tax on your gains.
Explained in more detail
Realised losses can be set off against realised gains, lowering the taxable amount. It only helps if you actually have gains to offset, and it should never drive you to sell something you would otherwise keep.
An example
For instanceA ₹40,000 loss booked against a ₹1 lakh gain leaves ₹60,000 taxable.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time tax loss harvesting appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.