After recording a landslide victory in the Lok Sabha Elections 2019,\nMr Narendra Modi has secured his position as the Prime Minister for one more\nterm. In fact, there were no other strong contenders for his position. <\/p>\n\n\n\n
But that isn\u2019t the case for the finance minister\u2019s job. <\/p>\n\n\n\n
There were many contenders for the role of finance minister. <\/p>\n\n\n\n
The appointment of Nirmala Sitharaman has raised many eyebrows. However,\nher academic qualifications and her vast experience in different departments\nranging from the Ministry of Commerce to Ministry of Defence might have cleared\nher way to the Ministry of Finance. <\/p>\n\n\n\n
It\u2019s crucial to see how Mrs. Sitharaman handles one of the toughest\nroles with her just 5 years of experience as a Member of Parliament. Mutual\nfund industry has high expectations from Mrs. Sitharaman. <\/p>\n\n\n\n
The government had decided to avoid a pro-rich stance in the Interim Budget 2019<\/a> perhaps because it was presented only a few weeks ahead of Lok Sabha Elections 2019. <\/p>\n\n\n\n This left the mutual fund industry high and dry. <\/p>\n\n\n\n Although not entirely pro-rich, many of the mutual fund industry\u2019s demands would have primarily benefited the middle class and the rich class. <\/p>\n\n\n\n Now that the election mayhem is out of the way, can we expect the government\nto change its stance, or at least soften it and give in to some mutual fund\nindustry\u2019s long-standing demands?<\/p>\n\n\n\n [Read:<\/strong> Why Consider Quantum Equity Fund Of Funds To Build Your Portfolio<\/a>]\u00a0 <\/p>\n\n\n\n Apart from the above, the mutual fund industry expects Modi 2.0 to\nintroduce more reforms and continue to invest in infrastructure development. <\/p>\n\n\n\n The government\u2019s investments in the infrastructure and the higher\nsupport to the agricultural sector will not only boost the demand in certain\nsectors but can also lead to higher job creation and wage growth. <\/p>\n\n\n\n As you would know, market valuations appear extremely stretched at\nthis juncture as corporate earnings aren\u2019t growing at an anticipated pace.<\/p>\n\n\n\n Right now, mutual fund advisers and investors should avoid getting\nswayed by the Modi-led-NDA government\u2019s landslide victory in 2019 Lok Sabha\nelections. The year 2019 is not going to be easy; it could test the patience of\nseveral investors. An economic slowdown could weigh on the corporate earnings\nand consequentially on the performance of mutual fund schemes. <\/p>\n\n\n\n Therefore, it would be sensible to stagger investments instead of going gung-ho. SIP-ping into mutual funds<\/a> would help you mitigate the volatility (with the rupee-cost averaging feature of SIPs) while you endeavour to compound your wealth and accomplish the envisioned financial goals<\/a>. <\/p>\n\n\n\n While, the new finance minister crafts the full year Budget 2019, you too make a conscious effort to craft yours, so that it can facilitate you to save and invest more and benefit from Modi 2.0.\u00a0 <\/p>\n\n\n\n After recording a landslide victory in the Lok Sabha Elections 2019, Mr Narendra Modi has secured his position as the Prime Minister for one more term. In fact, there were no other strong contenders for his position. But that isn\u2019t the case for the finance minister\u2019s job. There were many contenders for the role of…<\/p>\n","protected":false},"author":3,"featured_media":435,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/433"}],"collection":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/comments?post=433"}],"version-history":[{"count":2,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/433\/revisions"}],"predecessor-version":[{"id":436,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/433\/revisions\/436"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/media\/435"}],"wp:attachment":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/media?parent=433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/categories?post=433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/tags?post=433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nThe industry has been arguing that DLSS will help deepen the bond market. It proposes to keep a lock-in period of five years for DLSS, which will be at par with most other fixed-income assets allowed under Section 80C.<\/a><\/ul>\n\n\n\n
So far, the government hasn\u2019t permitted mutual funds to tap this market. The industry expects to get the green signal this time and claims that such a move will help channelise domestic savings into capital markets.<\/ul>\n\n\n\n
If the government approves this demand, mutual fund houses may aggressively roll out and push equity FOF products, as these will be at par with other equity funds for taxation purpose.<\/ul>\n\n\n\n
<\/li>
\n","protected":false},"excerpt":{"rendered":"