India seems to be on a fast track growth for next 10 years at least. So stock markets will keep booming. It is the right time may be we are already a bit late in entering stock market. Lets not delay it any longer. Over and above this, Mutual Fund Managers are very experienced in maximizing returns and minimizing risks. I think Govt should start investing 5% of PF corpus in to stocks through some good Fund managers like UTI, Fidelity, SBI Magnum and Reliance Mutual Fund. This percentage can be increated to 25% over next 5 years based on the experience in initial years and then kept constant. This seems to be the only way to beat inflation. Also when such a large corpus will be there in stock market, it will automatically reduce dependence of our markets on FII. Automatically this will serve as balanced fund as 75% of corpus will stay safe in debt instruments, govt securities etc while 25% will be in a bit risky but high return earning market.
