The finance minister’s main focus in the budget was on long-term reforms in the economy. The finance minister has spoken of abolishing dividend distribution tax. After this change, investors looking for regular income through equity investment should look at the Systematic Withdrawal Plan from the perspective of tax. The growth option may still prove to be the best option for long-term investing. There is disappointment in the equity market as long-term capital gains are not cut. The government has simplified the process of corporate and personal tax. In particular, the alternative slab of personal tax may increase demand from low-income groups.
Focus on high quality companies as well
As a fund house, we have not made any significant changes in our selection process neither before the budget nor after the budget. Our selection process and portfolio construction are still taking into consideration high quality growth companies.