Long-Term Capital Gains Tax May Trigger 5-10% Correction, Andrew Holland Says

The reintroduction of the long-term capital gain tax in Budget 2018 has come as a shock to the market, which may see a correction of 5-10 percent.

That’s what Andrew Holland, chief executive officer of Avendus Capital had to say on the current selloff in the markets.

“I think that clients and investors are now re-aligning to the kind of returns or lower returns they should be expecting from the markets going forward,” Holland told BloombergQuint in an interview. Bonds can now be considered as an alternative to equities after the proposed 10 percent tax on long term capital gains in excess of Rs 1 lakh.

Watch the full interaction here: