This is regarding your article on mutual funds (Banking on Mutual Funds, March 2011). While the story compares different fund schemes with similar banking products, it fails to address the bigger issue of how to minimise risks involved in investing in mutual funds-both equities and debts. Investors like me cannot forget what we went through when the markets collapsed in 2008. Even FMPs, which you likened to FDs, suffered defaults by real estate companies. I still remember bank FDs were giving returns of 7-8% at the time, while mutual funds were losing money. Most financial planners will recommend that one should go for SIPs in mutual funds but they don't tell you that SIPs need to complete a year so as not to attract exit loads and short-term capital gains tax. - REENU BHASIN, New Delhi
It is good to read that portability of health insurance policies will finally come into effect from July 1 (Spreading the Cover Wider, March 2011). This should have happened at least a few years ago. It would have made insurance companies more responsible and consumer-friendly since they stand to lose customers should they be treated shabbily during renewal of policies or during claims settlement. In the portability era only companies that offer the best services will survive. However, it will be interesting to see how companies react to the move, since it might result in active soliciting of each others' customers. The entire process should be done in a manner that the industry is not harmed. The Irda must come up with detailed guidelines for a smooth transition. - NEERAJ KUMAR, Mumbai
The analysis of monthly returns by BSE Sensex and CNX Nifty over the past decade was interesting (Follow the Pattern, February 2011). Even so, to base investments on these past trends seems risky, especially given the volatility in the market during recent months. - HEMANT SINGHAL, Panipat
Are education loans (Lessons on Credit, February 2011) available for part-time or correspondence courses and is the student's age a major consideration while applying? - HEMA PRAKASH, e-mail
The granting of a loan in both cases is at the discretion of the bank. Most banks will decline to fund parttime courses since the chances of getting a job after completion of such programmes are small. But there are also banks such as SBI, that do provide such loans. As for age considerations, most nationalised banks have varied procedures for students of different age groups. But this is not so with private and foreign banks.
This is regarding the story on borrowing (Be Worthy to Borrow, March 2011). Nothing has been mentioned of coapplication for a loan. Do banks evaluate the credit-worthiness of both applicants? - DINKAR SASI, Chennai
Yes, banks do check the creditworthiness of both co-applicants as it has been legally agreed that the responsibility for repayment of the loan will be shared between the two co-borrowers.
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