The
government had been dragging its feet on foreign direct investment (FDI)
in aviation, but it suddenly seems keen to fasttrack the same. The
reasons for this change of heart are manifold.
Given that deep down most Indian investors simply do not have the
stomach for a falling equity market, MIPs appear a
viable one as it combines relative safety with a slice equity.
The tax efficiency of debt mutual funds puts it at an
advantage, making it an appealing investment option as the tax levied by these
funds on capital gains is much lower than that of FDs.
Nearly half of issues that went public in 2010 are quoting
at a discount. The reason: Overpricing of IPOs and poor
corporate governance standards in some.
MF investing can be an important component of one's portfolio with
equity MFs being part of the overall equity allocation and debt mutual
funds being part of the overall debt- equity allocation.