Suraj Kaley - UTI

Mr. Suraj Kaeley joined UTI AMC in April 2014. He has over two decades of experience in Financial Services in Asset Management, Life Insurance and Distribution in India.

He has been a part of the Senior Leadership Teams at FIL Funds Management (India), FIL Funds Network (India), MetLife India Insurance Co. Pvt. Ltd. (India) and Franklin Templeton (India). Before joining UTI he has worked as Chief Executive, L & T Access Financial Advisory Services Ltd

1. Considering the current economic and financial environment, and post -budget scenario, should one alter his investment strategy?

The economic and financial environment keeps changing all the time. If you have gone through a thorough process to develop an appropriate investment strategy, then there is no need to alter the same with the changing scenario. After hitting a historic high of 36000 plus level, markets have seen a correction of around of 10% and with this it has offered reallocation opportunities to investors in equity segment. I always believe that corrections/ a bit of volatility has more of emotional risk than economic risk. Such corrections give flexibility to investors to average-out/bargainout to one’s advantage. Postbudget, I do not think there should be major realignment in equity investment through MFs. Though the Long Term Capital Gains is now taxable in respect of equity @10% (earlier Nil), I still believe equity still remains the most tax efficient asset class as compared to other asset classes though the tax arbitrage is reduced. Moreover, the tax incidence on Long Term Capital Gains occurs only when the long terms capital gains exceeds Rs. 1 lac in a financial year. The introduction of dividend distribution tax of 10% makes dividend option less tax efficient than the growth option for small investors hence, investors have to choose between dividend and SWP of growth option in tune with the quantum of his investment and tax liability.