This refers to Debashis Basu's article "Are mutual funds relevant?" (Irrational Choice, July 1). I am wary of mutual funds (MFs) after some initial experience and fall into the category of people that the author has so well described in the piece - the urban savers.
I used to think I am the only one who is afraid of taking risks with MFs.
I now know that I am justified in my cautiousness. With little time (or inclination - let me be honest here) available to spend on educating myself into the nitty-gritty of complex investments, I stick to the simple, good-old, fixed deposits. I know what I earn might be less than what I lose due to inflation. But at least I am not losing as MFs are doing.
I understand that debt-linked MFs might be a better option in which to invest. But again, I don't know enough of that either.
Namita Waikar Pune
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