Key Financial and Economic Glossary in news:Pink tax, Realised vs unrealised profits
Realised vs Unrealised Gains in Mutual Funds
Meaning
Unrealised Gain: Profit only on paper, when the value of your investment has gone up but you haven’t sold it yet.
Example: Bought at ₹100, Net Asset Value (NAV) rises to ₹120 → extra ₹20 is unrealised until sold.Realised Gain: Profit actually booked when you sell the investment.
Example: Selling at ₹120 → extra ₹20 becomes realised.
Key Differences
Unrealised → Notional, fluctuates with the market, no tax until sold.
Realised → Locked-in, credited to your account, taxable.
Why It Matters
Taxes: Levied only on realised gains.
Market Risk: Unrealised profits can vanish with volatility.
Investment Strategy: Selling too early may reduce compounding; waiting too long may leave only “paper profits.”
Decision Point: Balance between booking profits and allowing growth.
GST 2.0 and the ‘Pink Tax’
What is the Pink Tax?
Not a real tax by government.
A pricing phenomenon where products marketed to women cost more than men’s variants (e.g., pink razors, women’s deodorants).
It’s a marketing practice, not an official levy.
Why GST 2.0 Can’t Reduce It
GST is a government tax, while Pink Tax is a private pricing issue.
Hence, GST reforms do not apply.