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  • News From Press Five equity mutual funds primed for alpha from FM's tax stimulus

    Five equity mutual funds primed for alpha from FM's tax stimulus

    The cut in corporate tax rate should boost earnings across companies resulting in improved earnings per share.
    Economic Times Sep 25, 2019

    The cut in corporate tax rate should boost earnings across companies resulting in improved earnings per share. This is due to three factors: One, pricing power or market share, which is related to the size of a company. Second, lower the tax outgo higher the savings, which will directly translate into earnings. Third, if such companies pass on the benefit of tax savings or increase prices of their products, their earnings would increase from present levels. The large-and-mid-cap universe has a l ..

     
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