in addition to your examples not only Private companies but even govt is using hard earned money of honest tax payers in bailing out the Private firm .Recent example is , LIC and SBI are the largest PSU which hold most of the new pension deductions and retirement corpus and the tax saving schemes and the poor common man is thinking that he is investing in LIC policies thinking they are saving the income tax . The Bank is using public mob=ney to bail out the Private entity which was never worked out we have seen this in 2008 whne US govt try to backup the private entity But the Sh**t Happen and on top of that US were printing the money .
Any Govt can make money just with the click of the button by printing the money through the central banks but in long run this will create a bad economy
Portfolio change
: March is running and in order to offset the LT gain and ST gain I am selling of the following Old high cost Purchased Equitites
To offset Long Terms Tax gain : Today I sold Rain industries / Chaman Lal Setia & Kitex in small fraction and try to buy the same if the luck favours otherwise there are lots of other bargains available . I still hold above companies …
To offset Short Terms Tax gain :Today I Sold HEG / GRAPHITE / AVANTI / SRIPIPES / Bandhan Bank – All Touched the second threshold risk point 40% … so completely I chucked them out …
The companies are sold may have good long term prospects . why I sold . First the allocation of funds was small and even they were 40% down yet they have minimal efct on the portfolio as the weght of these are around 1% of portfolio Second my immediate aim is to avoid the incidence of income tax based n short term gain . Third . I will be able to retrieve the misallocated money because I may have not able to understand the unknown variable in the valuation of the equity which at this time played out and Mr market had punished me for the same … Fourth : I don’t want to be very cleaver and smart to stick in to the stock which I did in past and I hammered very hard and short term investment turned in to the long term investment
WHy I AM WRITING ABOVE … because if you are reading the simple sold or bought one must look out why the other fellow is selling … The company may be good or one just like me may not be able to understand the potential of the company in which he or she is invested .
one can visit MARCH END STRATEGY - TAX is coming SO be careful and make Decision
Wish you a safe health and investing