It was very irresitable for me to not talk about it today.
We are talking of the PF, pension fund and EPF together which make a corpus of around Rs 3 lakh crore (Rs 3 trillion).
As we all are aware, these funds currently can only invest in Government backed securities which do not beat inflation. So the general cry and the right dirction was to invest portions of the money (5% as suggested by Indian Govenment) in equities based on their risk appetite ( read it simply as age ).
As usual our communist friends saw RED.
It has been established that EQUITIES over long term not only beat inflation but actually makes the pensioner live with some luxury. In fact economists say that these are the fund catagories which are best suited for long haul investment.
Who cares all that mathamatics mumbo-jumbo. We are Indians. Those numbers are for white collored, AC roomed probably IT fellow.
Dasgupta is proposing to utilize these money in infrastructure and Government to gaurantee 9% per annum.
So its my money, your money and our money that is being talked about. What say?