Letters to the Editor

Money Today readers give their feedback on the magazine's November, 2014 coverage and more -

The cover story of November issue (Taming the Bull) was an insightful article which looked beyond all the hype that has surrounded the markets since May 2014. While there is little doubt that the markets have seen massive improvement in sentiments and performances, the hype is clearly a marketing gimmick. Soon, you will see various AMCs launching obscure mutual fund schemes, companies with dubious financials coming out with IPOs, etc. In such a scenario, investors will do well to sift real information from mere hype, and the ones who can do that will enjoy the bull run. For retail investors, investing via SIPs in mutual funds with proven track records remains the best way to gain from the current market situation. Also, given how well the Sensex is doing, it may not be a bad idea to invest in Index funds.
Vijay Pandit, Delhi

The story on stock splits (In Smaller Parts, November 2014) was informative and provided a complete understanding of the subject. A little more analysis of similar stock splits in the past and their subsequent performance would have added more edge to the story. I own shares of Mahindra & Mahindra and after the company announced a stock split last year, I was unsure about my plan of action. I held on to the stock because the company looked promising and a year later my decision has been handsomely rewarded. The essentials for holding or selling a stock remain the same and that should not change because of a stock split. For example, a company like NMDC is not performing poorly due to a stock split; the macro issues for the company are far more at fault for its underperformance.
Siva Kesavan, Cochin

The story on bank accounts for children (No Child's Play, November 2014) was a good read. I believe that the RBI's directive is a step in the right direction. It is time we educate our kids about understanding the various aspects of money from a young age. Helping them manage a bank account is one of the best ways to teach them about money. Also, it will bring in a sense of responsibility in children. It would be a good idea for banks to introduce cheaper education loans in future for kids who open an account at least three-four years before they turn 18. This will act as a likely incentive for parents to open accounts for their kids.
JitesSh Oberoi, Thane

The story on gold (Losing its Grip, November 2014) provided a good outlook on the yellow metal. After reaching dizzying heights in the past, gold prices are on a steady decline, proving again that it is an extremely risky investment. People who bought it at sky-high valuations last year will now have to wait a couple of years to return to those levels. I believe that no retail investor should invest more than 5% in gold. Given how volatile its prices are, it does not warrant more space in a portfolio.
Harinath Singh, Pune