We would advise harvesting taxes as early in the Financial Year as possible.
There are two opposing forces –
1. If I wait and the markets go up, I can harvest more taxes (something like 2017).
2. If I wait and the markets go down, I would have lost the opportunity to harvest the gains I had (something like 2018). And since tax harvesting is tied to the calendar year, once that opportunity goes, it won’t come back.
We run an optimization that solves for the above to ensure that you can harvest the optimal level of taxes as soon as possible. Waiting after the optimal condition is met only increases the likelihood that the LTCG may not be there in the future to harvest.
