India's first full-time woman finance minister presented her maiden Union Budget on July 5. The highlight was a commitment to grow India's economy from $3 trillion this year to $5 trillion in five years i.e a growth of 10.75 percent in nominal USD terms every year. Historically, China was the fasted to become a $5 trillion economy from $3 trillion in 4 years from 2005 to 2008. Let us know if the growth is achievable for us in our online poll.

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Here are our top picks for investors on what is proposed in this budget:

Infrastructure spending of Rs 100 lakh crore over the next 5 years

Rs 70,000 crore allocated for public sector bank recapitalization

Increase the minimum public shareholding limit in listed companies to 35 percent from 25 percent

Customs duty on gold increased from 10 percent to 12.5 percent

Tax on buybacks by listed companies at 20 percent to bring parity with dividend distribution tax

The US economy has grown for 121 consecutive months, since June 2009, following the Great Recession, marking the longest economic expansion in American history. The US stock market has followed the economy with the S&P 500 and Nasdaq 100 both making new all-time highs this week.

We have had an international allocation since the start in our recommended portfolio through the ICICI Prudential US Bluechip Fund, and we reiterate the importance of international diversification.

The AUM of the mutual fund industry increased 11.4 percent YoY to Rs 23.79 lakh crore in March 2019, shows the Economic Survey of India 2019. However, mutual funds witnessed net inflows of Rs 1.1 lakh crore in FY 2018-19, down 60 percent YoY from the net inflows of Rs 2.7 lakh crore in the previous financial year.

Sundaram Mutual Fund will amend the minimum investment/redemption limit for all equity funds (excluding ELSS) to Rs 100. The proposed changes will come into effect from 8th July.

Index Returns

Source – Kuvera.in

Top 5 best performing funds

Source – Kuvera.in

Top 5 worst performing funds

Source – Kuvera.in

What investors bought

We saw the most inflows in these 5 Funds –

Source – Kuvera.in

What investors sold

We saw the most outflows in these 5 Funds –

Source – Kuvera.in

Movers & Shakers

1) Axis Mutual Fund has announced that Vijayalakshmi Rajaram Iyer has been appointed as an Independent Director on the board of Axis Mutual Fund Trustee Limited.

2) Union Mutual Fund has appointed Vinay Paharia as a Co-Fund Manager of Union Large-cap Fund and Union Tax Saver Schemes.

3) Principal Mutual Fund has announced that V S Mathur and H M Singh have ceased to be independent directors of the board of the Trustee Company. Raman Uberoi and Ameet Parikh have been appointed in their stead.

Quote of the week:

Budgeting has only one rule: Do not go over budget: Leslie Tayne

Gaurav Rastogi is the CEO of Kuvera.in: India’s first completely free Direct Mutual Fund investing platform.