The cover package on the rupee movement
(The Rupee Impact, February 2012) and its impact on individual finances was very illuminating. This will help ordinary investors who do not understand how currency movements affect investments. This time round, the rupee fall has been sharp, taking most investors offguard. However, it does have a positive twist. It is perhaps the best time for NRIs, earning in dollars, to gain from the depreciation and higher interest rates on bank deposits.
JYOTI JAIRAM, AllahabadRegarding the story on unit-linked health plans (The Healthy Debate, February 2012), I agree it is not advisable to mix insurance and investment. This is not just true of unit-linked health plans. Insurance products should be viewed primarily as risk covers and not as investment. For investment gains, one should look at funds or other instruments that invest in equity and debt.
SUKDHEEP SINGH, New DelhiYour report on company FCCBs (Not the Best Bond, February 2012) clearly brings out the perils of taking on too much debt. Companies that tried to gain from the low interest rates prevailing abroad by issuing FCCBs when stock markets in India were at their peaks must have learned their lesson on how fickle markets can upset the best of calculations. Now, they are saddled with high debt, for which they will have to borrow at high interest rates. Hopefully they will now take all future stock market spikes with a pinch of salt and temper future expectations with a dose of healthy scepticism.
VISHAL MENON, MumbaiERRATA In the story Loans on Life (January 2012) Suresh Agarwal's designation is Executive Vice President, Kotak Mahindra Old Mutual Life Insurance. The ommision is regretted.
