Congratulations on a wonderful story on corporate hive-offs (Divide and Prosper, 20 March). I had read about the same subject in a book by a professor from Wharton Business School but was unable to grasp the concept. Your story cleared my doubts. Thank you.
—Saumitra Bhardwaj, Marietta, Georgia (US)
We are glad you found the story useful. It explained how the real value of several diversified companies is greater than the current market price of the company's stock. We continuously endeavour to present our readers with stories which are thoroughly researched.
I am a regular subscriber of Money Today. The stories in your magazine are comprehensive and cover all financial issues. Keep up the good work. However, I would like to point out that your tax experts have provided conflicting answers to the same tax query in two consecutive issues. The question was whether withdrawal from provident funds after a change of job is taxable. In the first answer you say that it is not taxable. Next time you advise that the amount withdrawn will be taxable if the person left the job before five years. Also, the employer's contribution will be taxed. Please clarify.
—Amit Phatak, e-mail
Thank you for pointing out the contradiction. The second response is accurate. If an individual leaves a job before completing five years, withdrawal from provident fund with the previous employer will be taxed. We regret the error.
I have been reading your magazine since its launch. Your Portfolio Doctor section is very interesting. But you usually profile people with high incomes only. Please analyse the finances of people with low income levels too.
—Rhythm Gupta, e-mail
We have featured individuals with monthly income of Rs 17,000 as well. While selecting case studies we are careful to represent people from different income classes, age groups, etc. If you would like us to analyse the portfolio of a particular income group, let us know. It is a misconception that more money makes financial planning easier. In fact, it is simpler for those who earn less but have fewer responsibilities than those with handsome pay cheques and several obligations.
In the recent market downslide, small investors are the worst affected. To add to their woes, unscrupulous brokers use this opportunity to misuse their clients' money. There are many cases of brokers using investor money for intra-day trading without prior knowledge of the investor. Equity investors must be made aware of such unfair practices.
—Anjani Gupta, e-mail
Investor fraudulence is on the rise and our magazine has often highlighted this fact. We regularly carry stories on how investors are misled and also about those who are fighting against it. We will further explore the facts you have identified regarding broker misconduct in the coming weeks. Keep an eye on our forthcoming issues.
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