Fund officials feel that the Budget 2015 was pragmatic and balanced.
While the Budget 2015 had no major announcements for the MF industry, the measures announced by FM to bring the economy on fast track was appreciated by the mutual fund industry.
Here is what they have to say:
Chandresh Kumar Nigam, MD & CEO, Axis MF
The 2015-16 is very progressive budget, which has measures on one hand to propel India to a new trajectory of growth, and on the other, seeks to provide support to the weaker sections of society. It also supports growth of the capital markets through its various measures like gold monetization, change in permanent establishment regulations and providing clarity on tax issues related to AIFs (Alternate investment fund) and REITs. The Finance Minister has also indicated significant regulatory changes, to address some of the long standing ills of the economy, like corruption and black money. Reduction in corporate tax from 30% to 25% over the next 4 years gives a strong message about the trend in taxation in India in the future and help to inspire confidence. The significant increase in outlays across the spectrum does however, create pressure on the fiscal, which is budgeted to be higher than expectations and may lead to a slower pace of interest rate reduction by the RBI.
Milind Barve, MD & CEO, HDFC Mutual Fund