Lux Investing
What is Short term and Long Term Investment?
I am beginer to share market.I just want to know when we say,I have to buy shares for short term(invest for short term) it means how much time?How many months or years,similarly for long terms means how many years. thanx in advance.
Public Comments
- Completely relative to the individual clients concept of short and long term!
- you can do investment for a short period of from 1hour to 1 month, long term investments means you will be investing amount more than 6 months to 10 years. it purely depends upon ur availability of funds and your investment type. this can be done by investing in equity shares to mutual funds. various types of investments are available in market, opt as per ur requirements. be cautious before investing, by looking the market moments
- If u invest for a short time like buying in morning and sell it in afternoon to a period of 6 to 12 months is short term investment where the goal is to have some profit however small it is in the short time, investments above 1 year duration is called long term where the aim is to have more gain waiting for the invested amount to rise. for more details visit moneycontrol.com, economictimes.com
- Most of these terms are relative and subject to the parties involved. But in general terms, short term can vary from 2-3 days to 2-3 months. Long term would generally range from 6months - 1-2 yrs and beyond
- As per Indian Income Tax Act, any investment is stock for less than a year, is subject to tax as it is considered short term investment whereas profit derivedfrom stock after holding for one year and above is free from income tax. Any investment in properties or mutual funds below two years is considered short term investment and above two years, long terms allowing tax benifit. In stock market, investment below six months is considered as short term investment and beyond six months- long term investment.
