The financial distribution industry is likely to be a beneficiary of the budget 2017 as the government has proposed to reduce the income tax rates of individuals. Here’s what advisers have to say about the Union Budget 2017.
Nikhil Kothari, Etica Wealth Management
The proposed budget did not include any big bang reforms. However, small steps have been taken to boost the economy. The focus of the budget was mainly on agriculture and development of rural areas; such investments in the agricultural sector should be beneficial for investors. The decline in personal income tax rate is also a welcome move for the industry. This may give new investors to the mutual fund industry.
Kartik Jhaveri, Transcent Consultancy
The reforms initiated were expected. The budget 2017-18 has proposed exactly what was required to be done to bolster the economic growth. The new projects and initiatives will help the economy progress and generate more employment. In addition, the budget did not clearly specify post-demonetization road map.
Mimi Partha Sarathy, Sinhasi Consultants
In my view budget was simple, clean and focused. The Finance Minister has certainly set a positive mood for the year 2017. Post demonetization over a crore accounts received deposits. Still a lot of people have parked their money in FDs, opening a window of opportunity for advisers.
Suresh Sadagopan, Ladder7 Advisories
I wouldn’t say the budget has any wow factor but certainly there was nothing negative in it. In fact, most of us were thinking that FM would bring changes in long-term capital gain tax.
The budget also also emphasized infrastructure. It has made provision of more than two lakh crore for transportation that includes rail, roads, shipping. Hence, sectoral funds focussed on infrastructure might benefit. But again thematic funds have pros and cons.
Vinod Jain, Jain Investments
It was a growth-oriented budget for all. Equity investors were happy, as there was no tinkering with the tax rates. As the income tax rates get reduced, many people can save more on taxes. It provides a good opportunity for advisors.
Vishal Dhawan, Plan Ahead Wealth Advisors
The budget started on a good note by FM. He emphasized job creation and employment, which will subsequently boost the economy.
There is certainly no negative impact on the financial savings. Broadly, people will continue to hold financial assets as there is no change in long term capital gain tax. Also, measures taken to curb black money will definitely contribute to the stability of our financial system.
