India's mutual fund industry is expecting an increase of Rs. 50,000 in basic income tax exemption limit to Rs. 3 lakh in the budget to be presented on Monday.
If done so, this can leave an additional liquidity of Rs. 50,000 crore in the hands of taxpayers, a part of which can go into investments.
The mutual funds industry also wants that money coming under capital gains be invested in infrastructure mutual fund products.
"We do hope that the finance minister will increase the basic I-T exemption limit to Rs. 3 lakh. If it happens, more fund is likely flow into the mutual fund industry which will help further increase the assets under management which stands around Rs. 13.4 trillion (Rs. 13.4 lakh crore)," LIC Nomura Mutual Fund chief investment officer Saravana Kumar told PTI.
How does inflation affect your savings & investments?
Read More