Investors may see returns in long term

Moneycontrol.com

Finance Minister Arun Jaitley in his first full fledged union budget avoided all sorts of populist measures and delivered a balanced budget. Investors may see the impact of this budget only in the long term.

Cut in corporate taxation, commitment to fiscal targets are some of the positive steps for the investors, which will deliver over a period of time for investors. Finance Minister also unveiled many measures that would promote ‘Make in India’ in a direct or an indirect way. Finance Minister also gave hints that GST is round the corner. These steps should improve corporate profitability and in turn reward equity shareholders over long period of time.

The commitment to fiscal discipline should offer more headroom to Reserve Bank of India to cut the interest rates further. This should augur well for fixed income investors.

Alternate Investment Funds have been granted pass through tax status. REIT too has been offered tax sops. This should open up more investment avenues for investors. Finance Minister has proposed tax free bonds in railways, infrastructure and roads sector.

Though there is lot for long term investors, the finance minister avoided being populist by increasing investment limit under section 80C of the Income Tax Act.