Quote by Mr. Rajat Jain, Chief Investment Officer, Principal Mutual Fund on the Union Budget:

“The budget, as expected, focused on rural and social sector spending which is important given the stress in the farm sector. The proposal for health insurance for a large segment of the population is important given the lack of a social security net for the majority of the population. On the tax on long term capital gains on listed equity, while it will have a sentimental impact, the fact the gains till yesterday are protected (when the markets are close to long term highs) is a positive. I expect investors to adjust to this new tax regime and believe they decide on their asset allocation keeping in mind that equity investments have yielded good returns over the long term.”