What mutual fund executives want to see in upcoming Union Budget

livemint.com:

MUMBAI : With the Union Budget expected in the second half of July, mutual fund executives are hoping for measures in four key areas that can boost their sector and invigorate the economy. From 1 April 2023, debt mutual funds have not got the benefit of indexation on long-term capital gains. Such gains are taxed at the slab rate of the investor.

“We expect that debt mutual funds will get some benefits to attract retail investors," said Nilesh Shah, managing director at Kotak Mutual Fund. “Changes in tax policy for debt funds in recent months might also be reconsidered, reflecting the government's adaptive approach to economic conditions. Overall, these measures aim to create a balanced, growth-oriented budget that supports both rural and urban sectors while simplifying tax obligations to enhance economic efficiency and consumer spending power," said A Balasubramanian, MD and chief executive officer at Aditya Birla Sun Life Mutual Fund.

Mutual fund executives expect continued and increased focus on infrastructure. Their view is that infrastructure development would serve as the foundation for sustained economic growth. “Infrastructure development will remain a priority, fostering the right ecosystem for progress and aiding in consumption growth.

This infrastructure focus includes not just traditional projects but also initiatives that stimulate consumer spending. There is noticeable growth in consumption across various sectors, reflecting improved economic conditions," said Balasubramanian. “Improved focus on rural development and infrastructure will have a rippling effect on employment and consumption.