India’s Budget: A Game Changer for Consumers and Investors

In the recent budget, the Indian government decided to help people spend more money, especially those earning between 12 to 50 lakh rupees a year. By changing tax rates, many households will have more money to spend—about 1 trillion rupees extra! This is great news for the consumption sector, meaning businesses that sell things like food and clothes might earn more. Experts are excited because they believe this boost will improve how much money these businesses can make (called “earnings visibility”). They recommend investing in these types of companies now since their prices are reasonable compared to the past five years.

The budget also plans to build more infrastructure, helping the economy grow overall. Some experts suggest that around 25% of people who file taxes could benefit from the new tax rules. For those interested in investing, a mixed strategy (including large, medium, and small companies) is a wise choice.

In the past year, funds that invest in consumption have returned around 13.36%. For instance, the Kotak Consumption Fund did even better, with a 21.35% return. However, it’s good to stay focused on long-term growth and not just recent spikes in the market.

Overall, the government’s moves in the budget are promising, but it’s important to keep an eye on how companies perform in the future before making investment decisions. Be sure to think about your own risk level and goals when investing!