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Great Budget expectations
This year the finance minister has once again promised a dream Budget. This will indeed be a tough job, since there is so little that he can do to deliver on this promise. Yet, I have immense faith that he will still spring some surprises.
This year the finance minister has once again promised a dream Budget. This will indeed be a tough job, since there is so little that he can do to deliver on this promise. Yet, I have immense faith that he will still spring some surprises.
Were I to really DREAM BIG, I would say that I hope he will address the concerns of Provident Fund investors and unions by stating that PFs should invest only in 'market neutral' funds and index funds. Market neutral or (in simple terms) 'arbitrage funds' are gaining favour internationally with pension investors while index funds have been their staple for ages.
The finance minister, I'm sure, will appreciate the merits of minimizing the exposure to market risk, while at the same time subserving the purpose of bringing long term money into the equity market. As it stands, the enabling provision on investing in equity could be a cause for concern. My second requirement for a dream Budget would be the introduction of 'Defined Contribution Plans' as an alternative for PF investors in the age-group of 21-45.
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