In an interview to CNBC-TV18's Latha Venkatesh, Brian Jacobsen of Wells Fargo Asset Management, on Thursday said slightly higher tax might not be a deterrent for long-term investors.

He said, "Recent fall in markets is probably a normal correction. There has been a little bit of worry, little bit of anxiety over whether or not there is new strain of coronavirus that could dampen economic activity, there are some domestic issues in India that they have been struggling with as well."

"However these are all what we think as bumps in the road on the path to recovery. For us the big theme for 2021 is really about having more synchronised global growth. So we think that some of these setbacks that we see not just in India but even globally are really more buying opportunities for investors who are more focused on the long term."

Speaking about his Budget 2021 expectations, he said, "Investors this year are going to give lot of governments a pass as to reining in deficits. There is a big appetite for higher yielding debt and India has some of the higher yielding debt."

"So international investors might find that higher yield attractive. It also depends upon what the deficit spending would be done for, if it is to deal with the coronavirus crisis, investors would look at that as being temporary type of situation and not necessarily a prelude to ever increasing deficit. So, 2021 is a year in which governments might get a little bit of leeway from investors who otherwise would be very worried about excessive deficit spending."

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(Edited by : Bivekananda Biswas)