<b>Your money:</b> Avoid knee-jerk responses to Budget proposals

Analyse the impact of proposals on your investment portfolio and make adjustments in days to come

Every year, when the finance minister (FM) presents the Union Budget, there are hopes and some fears that changes will have to be made in one’s investment or savings portfolio to avail of tax benefits. However, things don’t always pan out as expected. Proposals announced in the Budget that are perceived to be negative sometimes lead to sell-offs in the equity markets. The retail (small) investor should stay aloof from such frenzy and respond in a measured manner. 

Sometimes, even while the FM is delivering his speech, stocks are affected by the negative announcement tank. “Retail investors should not act