Letters to the Editor

Print Edition: December 2012

Money Today readers give their feedback on the magazine's coverage of the personal finance sector -

I enjoyed reading your cover story on the stock market (Getting Set for Another Run, November 2012). In fact, the package gave a balanced picture on the stock market. You have listed out the factors that investors should watch out for even during this period when there is definite hope that the equity market might witness another rally in the next few months.

The fact is that, despite all the negative news on the economy and a difficult political environment, the equity market is close to its all-time high . With the government firm on reforms despite political opposition, there is scope for the market to go up even higher. If one selects good stocks and keeps adding to the portfolio, the investments are most likely to give good returns if held for a period of time. However, if one is looking for large gains in a short period, this is perhaps not the right time to invest. It's a risky market for aggressive investing.

The story on selecting a financial planner (Double Agent, November 2012) rightly says that an investor seeking help from financial advisors should be careful. Financial gain through additional sops should not be the principal motive for the person providing advice. There can be instances when the advisor stands to gain more by recommending the product of a particular company over another. Advisors should ideally take into consideration only the financial goals of the individual seeking advice and not be influenced by commissions on products.

One should be careful while investing based on guidance issued by companies (The Altered Landscape, November 2012) since predicting performance is a tricky affair. Moreover, there are companies that are conservative in their guidance and those that are aggressive. Since future performance is dependent on various factors, including the state of global and domestic economies, there is every possibility that the guidance may not match performance. Investors must look at longterm performance and invest in companies that have been consistent.

I was looking to invest in commercial real estate, including investing in mall space. In this context, your story (Not Much in Store, November 2012) was interesting. With such an oversupply, there is unlikely to be much gain from investing in commercial property unless the space is in a good location with high demand. I'm having second thoughts about making this move after reading your article and will probably limit my search to residential property. It seems a safer bet.

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