This refers to the edit “Improvident Fund” (January 31). The fund contains the savings of the working class and its objective is to provide for a time when the worker is unable to earn an income. As such it is necessary to keep it safe and also not erode its worth by protecting it from inflation. Investments in the equity market are inherently risky, even in more developed countries, since it is pension funds that lost the most both in the Madoff Ponzi scheme as well as in the Lehman collapse. Even sophisticated hedge funds could not see through the Ponzi scheme of Madoff that is of recent vintage. It is for this reason that a sovereign guarantee is not unreasonable. Also it is well known that Indian investors still rely on gold and property, so the unions and board are going by the prevailing wisdom.
Hari Parmeshwar Mumbai
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