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Last Updated : Mar 22, 2012 12:45 PM IST | Source: Moneycontrol.com

Sell smart - 3 ways to maximise your Equity gains

Equity investments are known to have given the best returns over a longer term. Read this space to know how you can gain the most by selling your equity investment in an optimize way.

Equities are known to have given the best returns over a longer term. Sensex has provided a return of 18% over last 20 years. Despite the availability of historical data, investors are still wary of equity investment. This is surprising considering investors pay premium for their insurance for 20 years without making any fuss. If they can do the same in case of equity or a good equity oriented mutual fund, their returns will make them rich. Just to use the same example of Sensex returns, 18% growth over 20 years means 27 times returns. This means if investors had invested 1 lakh 20 years back in Sensex, the investment would have grown to 27 lakhs today.

Long term and short term investment

Investing for longer term requires patience because your investment may go down despite the company doing well in business. It also requires courage because you have to remain invested when everyone is leaving the market. In fact, you have to invest more and take advantage of a subdued market which enables prudent investors acquire sound stocks at inexpensive valuation.

While long term investment in equities does provide good returns, many of the investors are not equipped to deal with the patience and courage that long term investment demands. This is not a big problem however. There are cases where even short term investment can make you wealthy if you invest in sound stocks at cheaper price and maximize your gains using the stock market and taxation system. In this article, we will see 3 of the ways to maximize your gains when you liquidate your equity investment.

Remember you only make money when you liquidate your investment. Why to just liquidate, let

First Published on Mar 20, 2012 06:08 pm