Rakesh Jhunjhunwala rues the poor haven't gained from four decades of bull run but warns against wealth tax

In a departure from his earlier views, Rakesh Jhunjhunwala said the ruling BJP will not get a clear majority in the ongoing polls

Press Trust of India April 17, 2019 07:38:20 IST
Rakesh Jhunjhunwala rues the poor haven't gained from four decades of bull run but warns against wealth tax
  • Even as markets breach new highs, he advised investors that this is not the best time to invest and recommended a cautious outlook

  • In a departure from his earlier views, Jhunjhunwala said the ruling BJP will not get a clear majority in the ongoing polls

Mumbai: The poor have not benefited from the bull run in the markets in the past four decades and we need to stand guard against populist moves like wealth tax, veteran investor Rakesh Jhunjhunwala said Tuesday.

He said the poor, who have missed out on personal growth opportunities, decide governments through their votes and the leaders they choose serve the core constituency.

Citing the example of the US, where one of the nominees of the next presidential race has promised to impose a wealth tax, he said, similar moves will be implemented across the world if the trend continues. "We will have consequences which will not be good," Jhunjhunwala said, speaking at the launch of ITI Mutual Fund, the 41st AMC to have set up shop in the country.

American president Donald Trump is also a product of such tendencies and is talking of making America great again, he said.

Explaining the perils of wealth tax, he said in the absence of consistent dividends, he will have to sell down 2.5 percent of his holding every year to comply with the tax requirements. Domestically, even Congress president Rahul Gandhi is talking about a lot of populist policies, he said, underlining the need to be vigilant.

Rakesh Jhunjhunwala rues the poor havent gained from four decades of bull run but warns against wealth tax

File photo of Rakesh Jhunjhunwala. Reuters

In a departure from his earlier views, Jhunjhunwala said the ruling BJP will not get a clear majority in the ongoing polls. However, it will be a major partner in the next government, he said, adding from an economic perspective, there won't be any veering off the policies as they remained consistent with different governments since the 1990s.

Even as markets breach new highs, he advised investors that this is not the best time to invest and recommended a cautious outlook as always the gains are limited when the expectations are high.

"We shouldn't be aggressive till the election results," he said.

Jhunjhunwala said another factor he worries about is a possible nuclear attack by Pakistan, adding there are enough rogue elements in that country who may not hesitate to use the N-button.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

US Election 2020: Donald Trump, Joe Biden gearing up for final presidential debate; here's what to expect
World

US Election 2020: Donald Trump, Joe Biden gearing up for final presidential debate; here's what to expect

The debate comes 12 days before election day, as many Americans have already cast ballots, and as polls show the president trailing nationally and confronting close races even in states he won handily four years ago

People tired of hearing from Anthony Fauci about coronavirus, Donald Trump tells staff
World

People tired of hearing from Anthony Fauci about coronavirus, Donald Trump tells staff

Trump has needled Fauci over his advice on wearing face masks. Nearly 220,000 Americans have died from the disease the virus causes

US Election 2020: Joe Biden 'not good' for India, soft on China, says Donald Trump Jr
World

US Election 2020: Joe Biden 'not good' for India, soft on China, says Donald Trump Jr

'It is not just China, as they said China Inc with the Bidens, it as the Ukrainian, it was Russia and it was overwhelming because they know that he can be bought,' Trump Jr alleged