Tax-loss harvesting is a strategic investment technique employed by investors to minimize their tax liabilities by realizing losses on investments. The basic idea is to offset capital gains by intentionally selling securities at a loss. This technique allows investors to turn temporary market downturns into potential tax advantages. In this article, we will delve into the concept of tax-loss harvesting, its benefits, and how it can be effectively utilized in a diversified investment portfolio. Understanding Tax-Loss Harvesting 1. How it Works: Tax-loss harvesting involves selling investments that have incurred losses to offset the gains realized from other investments. The losses…