The Clock Matters: STCG vs. LTCG The government uses a "timer" to decide how much tax you owe. For stocks and equity mutual funds, that timer is set at 12 months . Short-Term Capital Gains (STCG):  If you sell your investment before  12 months are up. The Tax:  A flat 20% . The Logic:  The government wants to discourage "gambling" or quick trading. If you’re in a hurry to exit, the "entry fee" is higher. Long-Term Capital Gains (LTCG):  If you hold your investment for more  t

Capital Gains (The "Appreciation" Way) A Capital Gain  is what happens when you sell a stock for more than you paid for it. The Buy:  You buy 1 share for ₹100. The Sell:  Two years later, you sell it for ₹150. The Gain:  You have a Capital Gain of ₹50 . The Catch:  This profit only exists "on paper" until you actually sell the stock. Unrealized Gain:  Your stock is worth ₹150, but you still own it. You are "up" by ₹50, but you don't have the cash in hand. Realized Gain:  You

What is Inflation? (The Vada Pav Test) Think back to 10 or 15 years ago. How much did a Vada Pav , a cup of coffee, or a cinema ticket cost? In 2010, you might have bought a Vada Pav for ₹5. Today, that same Vada Pav costs ₹15 or ₹20. The Vada Pav hasn't changed. It isn't bigger or tastier. What changed is the value of your money . Inflation is the rate at which the general level of prices for goods and services rises, and subsequently, your "buying power" falls. The Savings