Well rounded expectation mangement

Lakshmi Iyer, CIO (Debt) & Head – Products, Kotak Mutual Fund: ''Union Budget was largely well rounded given the expectations that were built up around it. The fiscal deficit has not been allowed to run away materially , and the lower estimate for FY19 suggests that government intends to by and large stay on the path of consolidation. The government's proposal to bring down the regulatory investment grade category band from AA rating level to A rating, will boost the bond market and provide depth and higher participation.

From the mutual fund's industry point of view, the introduction of Long Term Capital Gains tax and dividend distribution tax on dividend on equities funds could cause some volatility in the short term, though temporary. While the tax proposals have eroded off some gains on the edges, equities as an asset class remains one of the best performing investment categories. 

We believe that the market would soon begin to factor in the larger developing macro-economic story and growth variables will come into play to determine future momentum.''