The latest cover story on funds
(Best Mutual Funds, June 2012) clearly shows that mutual funds are a must in every investor's portfolio, especially at a time when the equity market has been playing truant. Funds are the best route for investors to tap the equity market, especially those who are not savvy stock selectors. That several funds of various sizes and categories outperformed their benchmark indices during the market slump in 2011 stand testimony to the fact that investors' money is best left with professional fund managers. However, one needs to be careful while selecting funds for investment. As you have rightly said, merely looking at a high star rating may not be enough. One should also study the fund manager's track record or if there has been any change in the person manning the funds. Investors should also look at the financial strength of the fund house and its track record in generating returns.
JAGMOHAN BHARDWAJ, New Delhi
While most investors look at the equity market, few are willing to take commodities bets. However, as your story (After Scaling New Peaks, June 2012) points out, investing a part of one's funds in commodities would have helped in balancing out the negative impact of equities on one's overall portfolio. While the equity market slumped during 2011, several farm commodities continued to rise with many of them hitting fresh peaks. As you have pointed out the dream run of agri-commodities is likely to continue due to continued demand. Investors who have missed out till now should consider diversifying into these commodities.
ABHISHEK SAHAY, Patna
The story on real estate
(Realty Check, May 2012) did a great job of bringing to light the role that speculators are playing in pushing up realty prices. In view of the impact on scores of ordinary hard-working individuals, it is the government's duty to put an end to such heavy speculation. Irrational increase in property prices is an additional tax on citizens.
NOEL GEORGE, Mumbai
The story on changing lenders after the removal of pre-payment penalty (Hopping Over, June 2012) did cover the options people who have taken home loans have very well. But, it failed to give information on a very important point-why should banks and other lenders be allowed to charge a higher rate from their existing customers? Both the options that the borrowers have-switching their loan account or shifting to a lower rate-entail a heavy fee that is enriching lenders. It's time the Reserve Bank of India put an end to this practice as well.
ANADAKRISHNA MURTHY, Chennai
