Budget expectation: Want rationalisation between ULIPs & MFs, says AMFI

Flows into equity mutual funds have improved after falling to a 3.5 year low in the previous month. NS Venkatesh, CEO of AMFI is of the view that MF flows will pick up more after the union budget.

“It is a little bit of a green shoot that you are seeing there where essentially small improvements are being noticed aided by the budget expectations. So if the budget comes out the way the investors have thought, you will see more money coming into the equity markets, and consequently more money coming into the equity funds as well," said Venkatesh in an interview with CNBC-TV18.

The flows are expected to pick up after February, he said.

When asked about their wish-list from the budget, he said, “Industry essentially wants rationalisation between ULIPs & MFs - it should be on the common front."

"Our expectation is that just like equity linked savings schemes, we should also have a debt linked savings schemes, which will help funding the infrastructure projects of this country," he added.

Thirdly, like 54EC specified assets,  maybe you can make mutual fund units as specified asset, so the capital gains that people get out of the markets they can reinvest it in to their 54EC specified assets, which is a mutual fund. ”