Small-value SIPs
This refers to ‘Democratising SIPs’ (February 20). The launch of Jan Nivesh SIPs is a commendable step towards promoting mutual fund investments among a broader investor base by reducing the minimum investment SIP limit to ₹250 without any fees.
However, while targeting economically less affluent investors, it is crucial to cultivate an investment mindset by ensuring they understand mutual fund products comprehensively to align with their expectations.
Unlike fixed-income instruments such as bank deposits, stock market-linked investments yield returns over the long term. The new set of investors must, therefore, develop a higher risk appetite and a long-term investment perspective compared to debt products. As Warren Buffett famously said, “Be fearful when others are greedy, and greedy when others are fearful.” Ordinary investors need a mature outlook to grasp stock market dynamics and the importance of patience during periods of volatility, as seen in the current scenario.
Srinivasan Velamur
Chennai
J&K’s apple crop
This has reference to J&K’s climate crisis (February 20). Kashmir produces about 75 per cent of the total apple crop in the country and is considered the backbone of its economy, contributing about 8.2 per cent to Jammu and Kashmir’s GDP. More than half of Kashmir’s population is directly or indirectly linked to the horticulture industry, which is said to be worth ₹10,000 crore. It is a matter of concern that the unusual weather patterns are hampering the two lifelines of agriculture and horticulture in J&K . Glacial melting and declining water levels in major rivers are creating drought-like situations, impacting the quality and the gross volume of the fruit. The Centre needs to run more goods trains to ferry the fruits from J&K to the markets of Punjab, Haryana and Delhi and then to down south.
RV Baskaran
Chennai
Tax audit responsibility
The Institute of Chartered Accountants of India ( ICAI) is correct in its argument that tax audits should remain solely under its purview. The demands from company secretaries and cost accountants to include them in the ‘accountant’ definition in the new Income Tax Bill, 2025, authorising them to do tax auditing, is by all means unreasonable.
The three statutory bodies have been doing their bit well (with correct demarcation of powers) for years. In fact, these are the only statutory bodies in the country that have never diluted their standards. They should ensure that ambiguities do not crop up while executing their responsibilities.
S Ramakrishnasayee
Chennai
