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'Story on inflation was well-timed and informing'

Everyone is concerned about inflation but few understand its real impact. For instance, though people know they spend more, not many realise how much more.

Print Edition: August 7, 2008

Your cover story on inflation (Rising Prices, Falling Wealth) was well-timed. Though most people know that inflation impacts our investments, very few realise the extent of the wealth erosion it causes. The "MT Basics" section was also well thought out as it will be handy for calculating inflation for individual household budgets.

— Bal Govind, Bareilly

Everyone is concerned about inflation but few understand its real impact. For instance, though people know they spend more, not many realise how much more. This ought to be clear when readers fill out the worksheet in the "MT Basics" section.

Your tips on fighting inflation were very useful (Rising Prices, Falling Wealth, 24 July). With returns from equity-oriented financial products like Ulips in the red, investors are keen to know where they should park their money to protect it from inflation. The story should have carried a list of such safe investments.

— Akhilesh Kumar Sah, Faizabad

It is a misconception that money is "safe" from inflation when invested in a particular financial product. The value of money depreciates uniformly. It helps only when the investment earns more than the rate of inflation. In the long term, equities have given the highest returns among all asset classes and have beaten inflation consistently. However, it will be incorrect to predict which investments will beat inflation in the short term as both interest rates and the rate of inflation keep changing.

Despite the facility of filing tax returns online, not all taxpayers want to do so (Tax Filing, July 10). Most people like to fill up the forms on their computers and submit the print-outs in the tax office. In fact, the government's Website is not user-friendly as the number of pages in the return forms are more than those in the physical forms.

— Mahesh Kapasi, Delhi

E-filing started only two years ago and is still evolving. So the wariness of tax-payers should abate with time. We agree that there is scope for improvement, but it doesn't take away much from the benefits it offers.

The story on financial planning for kids (Plan for your Child's Future, 10 July) was prejudiced in favour of the financial products of the ICICI Prudential. You should have addressed issues like choosing the right policy, calculating the future cost of child-related goals and the hidden costs of these investments.

Sandeep Kumar, Amritsar

The story did give details of plans offered by insurers other than the ICICI Prudential, such as the HDFC Young Star Policy. It also had tables for calculating the cost of raising children and advice on choosing the best policies. Look out for a bigger story on this subject.

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