India Budget 2018

The Union India Budget was announced on Feb 1, 2018, a good month ahead of its historic schedule.

As investors, long term capital gains tax was imposed which caused some ruffle and disappointment. I must say the Rs 1 lac relief to the small investors was a welcome respite. 

Investors over a period of time will adjust to this new normal with a higher risk return ask to compensate for taxes. I personally believe taxes are part of life and it does not change the long term opportunity and potential of the Indian economy and promising companies. 

Having said that, overall valuations are remarkably higher than one can stomach and corrections would be healthy to keep everyone on their toes and accept volatility and risks as part of equity investments. I feel this has been forgotten due to the stellar returns of the past year. 

So what next from here? It’s going to be a bumpy ride full of volatility. This will indeed give some good bargain opportunities to the patient, curious and observant investors. 

Happy investing!!!