Money Today readers write in to the Editor with their feedback

Money Today readers write in to the Editor with their feedback -

The union budget story on indirect taxes (Watch your Wallet Waltz, April 2012) is spot on while calculating the affect on the consumer. Despite RBI Deputy Governor Subir Gokarn acknowledging the move by Finance Minister Pranab Mukherjee to raise excess revenue from indirect taxes rather than touch direct taxes as being the 'smart' move, it is a definite burden on the consumer this financial year. Many would have had to rearrange their monthly finances, as I have had to do to accommodate the hike in prices, especially considering that quite a few companies have been frugal with increments this fiscal.
KIRAN KALIA, New Delhi

Your cover story on financial planning (For a Steady Cruise, May 2012) rightly pointed out the importance of taking into account one's age and position in life while planning one's finances. Obviously, a financial plan for a 23-year-old won't work for a person who is nearing retirement. Also helpful was the advice given for handling finances when faced with special situations, such as job loss, death of an earning family member and divorce. With life becoming more and more uncertain, it seems necessary to plan for adverse circumstances well in advance.
RAVINDRAN PILLAI, Thiruvananthapuram

The story on penny stocks (When One is Penny Wise, May 2012) gave a very balanced perspective. I have tried my hand at trading in penny stocks but have never been able to make a profit. I find the biggest disadvantage is the lack of research by established brokerage houses on penny stocks. Hence most of those who trade in these stocks rely on advice from unreliable sources, who are themselves speculating. The movement of penny stocks seem to be unrelated to their fundamentals and seem to be determined interest of speculators. After having burnt my fingers I have stopped trading in penny stocks. I feel retail investors who do not have an appetite for risk should stay away from such stocks and concentrate on the better known stocks in the mid- and large-cap categories.
VINAY KUMAR, Ahmedabad

The article on understanding stock calls by brokerage houses (Reading the Report Card, May 2012) made interesting reading. Financial dailies and stock market websites all carry these calls on a regular basis. However, it was surprising to see how stock calls differed from one brokerage to another. That a similar 'buy' call can mean widely different outlook came as news to me. Also, the fact that leading brokerages can come to such differing views on a stock like HDFC Bank within a short span of time shows that it is not pure math that determine such ratings. One should take such ratings with a pinch of salt and do their own study instead before investing.
DAVID D'COSTA, Pune