Mutual fund growth
Mutual fund assets reaching a milestone of ₹50-lakh crore shows the confidence of the investing public in this form of investment. It is encouraging to note that SIP (Systematic Investment Plan) contribution is consistently growing, implying the participation of retail individuals. As the Indian economy is on a growth trajectory, it makes sense for the public to grow their wealth. Of course, it is not without its risks of ups and down. However, if the investment is done with long-term goals of not less than five years, then the risk is minimised.
Also, the expectation of growth should not be based on the performance in one year, say 2023, where the markets gave more than 20 per cent return. So, if investment is done cautiously and with the understanding of the risk, retail investors can benefit from their investment in mutual funds.
Kasiraman Ramachandran
Chennai
Red Sea challenges
The ongoing Houthi rebel attacks on commercial vessels is a matter of concern. The issue involves complex geopolitical dynamics, and responses from international organisations like the UN, World Bank, and IMF may vary based on their policies, member states’ positions, and the nature of the conflict. Addressing such challenges typically requires diplomatic efforts, collaboration among nations, and adherence to international law. It’s essential for the involved parties to engage in dialogue and seek peaceful resolutions to prevent further destabilisation and economic impact on countries like India, the US, and the UK. The effectiveness of economic and financial sanctions depends on various factors, including the willingness of the international community to enforce them and the specific circumstances surrounding the conflict.
Addressing the challenges in the Red Sea requires a comprehensive and coordinated international approach, and it’s essential to closely monitor diplomatic efforts in the region.
Srinivasan Velamur
Chennai
Sports governance
This is with reference to ‘Governance in sports needs a leg-up’ (January 9). The integrity of sport has been subject to significant challenges in recent years.
The following may be considered by sports organisations to enhance transparency, accountability and tackle corruption: the government should establish good accountability standards, performance indicators, internal control measures, flow of financial information, distribution of funds, external and internal communication and professional development of staff and volunteers.
Consistent with the sporting culture, it is important that good governance principles are embraced voluntarily by sports bodies in the wider interest of promoting effective sporting regulation and development.
P Sundara Pandian
Virudhunagar, TN
Income inequality
It’s really heartening that individual income inequality has significantly declined during FY 14-22 and that the lowest income group has shifted upwards, according to SBI’s economic research department (January 9). Reducing inequalities of income and wealth has been one of the primary objectives of our economic planning since 1951. One feels, the direct tax compliance is good these days leading to a fall in income of the rich and the salaried class. Using the proceeds for the betterment of society has helped lessen the gap between the rich and the poor. That there is 21.1 per cent increase in income of the lowest income group is a case in point.
S Ramakrishnasayee
Chennai