Markets in Jan started on a good note and corrected in the later parts of the month, the big positive news is that there is reverse in trend in small cap and midcap funds they have delivered 7%- 5% returns this month, whereas largecap funds have delivered less.

We expect the following themes to deliver this calendar year

1. Mid and small cap funds
2. Short term debt funds
3.Gold may continue rally this year too due to geopolitical situations around the world

Markets are nervous due to corona virus scare and budget announcements. We anticipate Budget 2020 to be investor friendly 🙂

Probable budget announcements

1. Tax slabs may be tinkered so that tax payers get some benefit coming year

2. Long term capital gains tax and dividend distribution tax may be removed

3. Long term capital gains time line maybe revised from 12 to 24 months – discourages from early redemption in equity based funds

4. Dividends will be taxed as per investor tax slab rates like bank FD interests – bad for investors in higher income brackets

Lets hope for the best !