Invest Smart | Chairman & CEO of PPFAS on budget impact & investment strategies

Budget 2024 came with multipe changes on the taxation front, particularly a surprise hike of long -term capital gains tax from 10% to 12.5%. Meanwhile, despite the LTCG tax hike, the current bull run seems to be showing no signs of abating.

Avni Raja from Editorji spoke to Neil Parikh, Chairman & CEO of PPFAS Mutual Fund, about the budget's impact, market caution, and potential pockets of opportunity.

IMPACT OF LTCG TAX HIKE TO 12.5%

Speaking about the impact of the LTCG tax hike to 12.5%. Parikh stated, "I don't think the LTCG hike was out of the blue. The market absorbed the LTCG tax hike, and we've all taken it in our stride."

EVOLUTION OF INDIA'S RETAIL INVESTOR

Regarding the evolution of India's retail investor, Parikh said that investors have matured significantly. He further adds that investors now view equity as a means for achieving long-term goals, and the culture of systematic investment plans (SIPs) has really taken hold.

He expressed hope that SIP money remains consistent and committed. ''Although a bear market has not been seen for a long time, confidence in the bull market remains high'' Parikh added.

ADVICE FOR FIRST-TIME INVESTORS

Talking about for first-time investors, Parikh said that the advice is clear: don't invest with the intention of making a quick buck. ''We're currently in a market that isn't cheap, so be cautious about where you invest''. Additionally, He also said that it's important not to get jittery during short-term volatility.