'Portfolio Doctor is my favourite section'

Portfolio Doctor has been my favourite section in the magazine. The clarity with which patients’ portfolios, goals, recommendations and reasoning have been presented has been laudable. However, I do not like the new format (September 2009). While it is a good idea to cover more readers and encourage comparisons, each financial plan should be complete. Currently, it is not easy to correlate the advice to each patient and his goals, and the solutions too are not clear. I suggest you review the format and formulate a method that makes it easier to understand the recommendations for each patient.
- Shankar Srinivasan, e-mail

Thank you for the critical input. Many readers have conveyed to us the difficulty they faced in navigating through three case studies. In keeping with this feedback, we have decided to restructure the section. We hope that the revised format will allow you, as much as the patient, to benefit from the recommendations and advice offered. Do write in to tell us whether you like the revamped Portfolio Doctor.

The idea proposed in the article on pretend buying (Profit from Pretending, October 2009) is very interesting. Often, the greed to own a product or invest in an instrument is so overpowering that people throw caution to the winds and are saddled with heavy loans. Those who set aside money periodically to check the viability of a bigticket purchase can be more at peace with the decision.
- Sandeep Kumar, Amritsar

In the story on real estate bargains in the suburbs of big cities (Buy in Suburbia, October 2009), you identified Sectors 70-88 in Faridabad as good buys. A year ago, I bought an apartment in Sector 89 in this city. The reason for choosing this sector over others is its proximity to the planned Taj Expressway and the Kalindi Kunj by-pass. However, as your story does not mention Sector 89, I am unsure of my decision. Is there a specific reason for not including Sector 89?
- Aruna Singh, e-mail

The locations mentioned in the story were indicative and were based on inputs from experts. Real estate investments are locationspecific and you can get good deals in over-priced markets as well. So if you have done the homework, stick to your decision.

The story on small- and midcap stocks (Earn more than the Sensex, October 2009) argued that it is beneficial to invest in them. Doesn’t this translate into taking too much risk as smaller companies are more prone to business pressures and have a checkered record of growth and dividend payouts?
- Kirat Nath, Chandigarh

You are right, but blue chips do not enjoy premium status forever. Also, today’s large-caps were smaller companies at some point. The trick is to identify companies that have the potential to outgrow their larger peers in two-three years, thereby creating wealth for their investors. The story attempted to identify such potential winners.