Recent volatility in the Indian equity market has once again shown that investors, particularly small investors, cannot rely on the equity market for long-term gains. Even for a passive investor, the market has only given negative returns between January 2008 and August 2011. This has raised questions on two critical aspects related to equity investment.

Votaries of equity market investment always point out that areas such as pension fund should be opened for equity investment. Doesn't this kind of volatility expose the investments to risk?

Also, most experts argue that for long-term sustainable development, equity should be a part of an investor's portfolio. These experts also create an impression that equity investment is a panacea for an investor looking forward to wealth creation. Looking at what has happened in the last three-and-a-half years in the equity market, experts need to reconsider this.

Vivek Sharma

Sanpada

Air India revamp

This has reference to “Top moves coming in Air India revamp” ( Business Line , August 11). This is a classical case of a monumental failure in successfully managing the merger of two state-owned airlines.

The Aviation Minister concerned has perhaps long since been rewarded; one CEO left and another is likely to be axed.

Almost every other day, there is news of the airline being refused supply of fuel; it is being killed in doses.

The least the Prime Minister can do is to assuage public anger by revamping the management, alongside easing out the current CEO!

That will, at least to some extent, go to show that its accountability has been discharged, even if not the revival of the airlines.

S. Subramanyan

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