Union Budget 2017-18: Thrust on Financial Investments Continues..!

Union Budget 2017-18: Thrust on Financial Investments Continues..!

by Mr. SANKARAN NAREN, ICICI Pru. MF

Budget 2017-18 was one of the most keenly awaited budgets in recent years. And, surely, Finance Minister Mr. Arun Jaitley presented a well-rounded Budget that was both progrowth and prudent, maintaining the path of fiscal consolidation.

Since 2013, the government has consistently provided the much-needed thrust for financial savings over physical savings, and the intent has been visible this year as well. The reduction of income tax in the lowest tax bracket is likely to leave more money in the hands of the people, and it is a major positive for capital markets.

As a result, the equity market was buoyant as was visible in the trade. Given the balanced stance taken by the government when the FM could have been populist, we believe there is scope for equity markets to re-rate from here. 

Also, there is a possibility of increased inflows from domestic investors in the near-to-medium term and valuations are likely to expand.In terms of earnings of India Inc., there will be challenges in several sectors, but the low-interest-rate environment will prove to be a major positive.

SANKARAN NAREN, ICICI Pru. MF

Additionally, the government has provided impetus to the infrastructure sector, with enhanced funding for the transportation sector as a whole. We believe this is one sector that is likely to see increased interest from investors in the near-to medium term. To make the most of the infrastructure story, an investor can consider infrastructure funds.

For investors on the sidelines, my advice would be to invest right away. This is with an understanding that there may be a case for intermittent volatility in the near term, due to uncertainties in the world economy.

Hence, the best way to circumvent such volatility would be to invest in dynamic asset allocation funds.

About the author..

Mr. S. Naren  is Executive Director & Chief Investment Officer at ICICI Prudential AMC

Naren joined ICICI Prudential AMC in October 2004.

At ICICI Prudential AMC, Naren oversees the entire investment function across the Mutual Fund and the International Advisory Business. He is instrumental in overall investment strategy development and execution. He also directly manages the ICICI Prudential Dynamic Plan and the ICICI Prudential Top 100 Fund.

Naren has rich experience of around 23 years in almost all spectrum of the financial services industry ranging from investment banking, fund management, equity research, and stock broking operations. His core competency lies in being involved in the entire gamut of equity market space with extensive knowledge of Indian equities and the economy.

After obtaining a B. Tech degree from IIT Chennai, Naren finished MBA in finance from IIM Kolkota and worked with financial service organizations like Refco Sify Securities India Pvt. Ltd., HDFC Securities Ltd. and Yoha Securities in various positions prior to joining ICICI Prudential AMC.

Naren has many laurels to his credit. He is a leading voice on the Indian economy/ equity markets across the investment and financial services fraternity.

Src; ET

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