I have been closely following the Money Today model portfolios for three months. I have observed that you heavily diversify investments to minimise risk. But with this strategy it is difficult to beat the Sensex. Why not use technical tools to identify the sectors which outperform the index? A top-down approach should be more rewarding. Currently, the Wealth Zoom portfolio is underperforming the Sensex. You should consider sectors like metals, consumer durables and healthcare which have been giving more returns than the Sensex.
—Makbul Patel, Johannesburg, South Africa
Our model portfolios’ fund manager, Dipen Sheth, takes buy or sell decisions based on a number of factors including fundamentals of the company, its current value (P/E ratio), management competence, sector outlook and macro-economic factors. A detailed rationale for introducing and operating these portfolios is explained in Money Today issue dated 12 July 2007 (Money today wealth tomorrow ).
In February this year, I lost my debit cards (Allahabad Bank and ICICI Bank), which were used to make unauthorised purchases. I know of the shops (via vouchers in banks) which permitted the transaction without verifying the signature. What relief can I get? Will I have to go to a consumer court?
—Tripti Gurha, e-mail
The first thing to do is get in touch with your bank, which makes it easier to prove the card’s unauthorised use. The bank can take up the case with the individual merchant establishments and if the matter is not resolved in 30 days of filing the complaint, you can approach the banking ombudsman (list available on RBI website). You can also approach the consumer court. But the bank’s response is essential to prove that you had approached them and that they failed to resolve the issue which is why you have taken the matter to court.
I work as an equity research analyst in a private firm and am a regular reader of Money Today. The data collated and analysis done by you is very informative and educative. Could you send me the list of analytical tools used by you for the mutual funds analysis?
—Harshita Jagwani, e-mail
We are glad to enhance your expertise and shall send you the information soon.
The chances of mis-selling increase when an investor buys a product from an agent rather than directly from financial institutions, which is not the norm in our country. So there is enough scope for mis-selling. Your cover story (Cheated by Mis-selling, 12 June) will help educate investors so that they are more careful in future.
—Bal Govind, Bareilly
As our story explained, an aware investor is the only solution to the problem of mis-selling.
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