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By:

Kaustubh Kale

10 September 2024 at 11:37:15 pm

Modak and the Art of Investing

As the aroma of freshly steamed Modaks fills homes during Ganesh Utsav, the festive spirit comes alive instantly. My mouth is already watering at the thought! The humble Modak, prepared with love to honour Lord Ganesha, may look simple from the outside. But anyone who has tried making one knows that a good Modak depends on several things coming together - the right ingredients, the right recipe, patience with the process, and finally, enjoying the result. Investing is surprisingly similar....

Modak and the Art of Investing

As the aroma of freshly steamed Modaks fills homes during Ganesh Utsav, the festive spirit comes alive instantly. My mouth is already watering at the thought! The humble Modak, prepared with love to honour Lord Ganesha, may look simple from the outside. But anyone who has tried making one knows that a good Modak depends on several things coming together - the right ingredients, the right recipe, patience with the process, and finally, enjoying the result. Investing is surprisingly similar. Choose the Right Ingredients A Modak is only as good as the ingredients that go into it. Fresh coconut, good-quality jaggery, properly prepared rice flour and the right flavours all contribute to the final result. Our investments and financial products are the ingredients of our financial plan. Equities, mutual funds, fixed income, gold and other investments each have a specific role to play. The objective is not to pick whatever appears most exciting at the moment, but to select suitable, good-quality investments that match our financial goals, time horizon and ability to take risks. Health and life insurance are equally important ingredients. Adequate coverage helps protect savings, the family, and their financial goals and dreams. Good ingredients provide the foundation. But ingredients alone are not enough. Get the Recipe Right You may have the finest ingredients in the kitchen, but if the proportions are wrong, the Modak may still not turn out well. The same applies to investing. Asset allocation is the recipe of a financial plan. Too much of one ingredient can spoil a Modak. Similarly, excessive concentration in one asset or too much money in low-return products can spoil a portfolio. Balance is key. A thoughtfully constructed portfolio brings different investments together in the right proportions. To keep asset allocation very simple - short-term goals can be planned through bank fixed deposits, recurring deposits and debt mutual funds. For long-term goals, one can consider hybrid mutual funds, equity mutual funds or direct stocks. Trust the Process Once the Modak is shaped and placed for steaming, constantly checking whether it is ready will not make it cook faster. Investors often make the same mistake. We keep checking markets, reacting to every correction, chasing recent performers or changing strategies because of short-term noise. Good investing requires patience and discipline. Invest regularly, review periodically and allow your financial plan enough time to work. Compounding is powerful precisely because it rewards those who remain invested for long periods. Sometimes, the best thing an investor can do is simply avoid unnecessary interference. Enjoy What You Have Created Finally comes the most important part - eating the Modak! The purpose of investing is not merely to accumulate the largest possible number on a statement. Wealth should eventually help us fulfil our goals, support our families, create financial security and enjoy life with greater peace of mind. A good Modak needs the right ingredients, the right recipe and trust in the process. A good investment journey needs exactly the same. This Ganesh Utsav, may Bappa bless us with the wisdom to make good financial choices, the patience to stay disciplined, and the prosperity to enjoy the fruits of our efforts. Ganpati Bappa Morya! (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

A Divisive Victory

Correspondent
Jan 14, 2025
3 min read

Zoran Milanović’s landslide re-election reflects Croatia’s fractured politics and casts uncertainty on the country’s trajectory within the EU and NATO.

Zoran Milanović

Croatia’s incumbent president, Zoran Milanović, has secured a resounding mandate for a second five-year term, defeating his rival Dragan Primorac by a landslide. With nearly three-quarters of the vote in Sunday’s runoff, Milanović, 58, cemented his position as a polarizing yet formidable figure in Croatian politics. His victory underscores deep divisions within the nation’s political landscape and the challenges awaiting a country straddling Western alliances and domestic turbulence.


Milanović’s re-election was quite extraordinary. Emerging as a fierce critic of NATO and the European Union, his positions have often placed him at odds with Croatia’s pro-Western establishment, particularly the governing Croatian Democratic Union (HDZ) party. This antagonism was on full display during the campaign, as his conservative opponent, Primorac, portrayed him as a “pro-Russian puppet.”


Primorac, a former science and education minister, struggled to mount a credible challenge with his campaign failing to resonate in a nation weary of political rhetoric and disillusioned with perceived corruption in the Plenković government.


Although Croatia’s presidency is largely ceremonial, it wields considerable influence in foreign policy, defence, and security. Milanović’s re-election signals potential friction in these domains, given his scepticism towards NATO and reluctance to align with Western military initiatives. His controversial decision to block the deployment of Croatian officers to NATO’s Ukraine mission highlights his divergence from the pro-Western stance championed by Plenković’s government.


This ideological clash reflects broader societal divides in Croatia, a country that joined the EU in 2013 but has struggled to reconcile its Western ambitions with the realities of domestic governance. While Milanović denounces NATO’s involvement in Ukraine, he has also condemned Russia’s invasion—walking a fine line that appeals to Croatia’s mixed sentiments on foreign policy.


Milanović’s confrontational style draws comparisons to figures like Donald Trump. His penchant for fiery rhetoric and unfiltered criticism has earned him both staunch supporters and fervent detractors. His critics argue that his populist tactics and inflammatory remarks exacerbate divisions rather than fostering solutions. His dismissal of NATO initiatives and criticism of Western allies risk isolating Croatia at a time when regional stability is increasingly fragile.


Milanović’s victory is part of a broader narrative of Croatian presidential politics since the nation declared independence in 1991. His predecessors, from FranjoTuđman to Kolinda Grabar-Kitarović, have reflected Croatia’s evolving identity as it transitioned from a war-torn post-Yugoslav republic to an EU member state.


Tuđman, the nation’s founding president, embodied the nationalist aspirations of a newly independent Croatia. Subsequent leaders navigated the challenges of post-war recovery, EU accession and economic modernization. Milanović’s ascent in 2019 marked a shift towards a more populist, combative presidency, reflecting global trends of discontent with traditional political elites.


Croatia’s presidency, with its limited executive powers, has often served as a platform for symbolic leadership rather than concrete policymaking. Milanović’s ability to leverage this platform for political battles underscores his skill as a shrewd strategist. His scepticism towards NATO and EU policies could complicate Croatia’s role in regional diplomacy and security, particularly as tensions simmer in the Balkans.


Domestically, his victory underscores the enduring appeal of anti-establishment rhetoric in a nation grappling with economic challenges and political disillusionment. Croatia’s economy, heavily reliant on tourism, has struggled to recover from the shocks of the COVID-19 pandemic and geopolitical instability. Milanović’s ability to address these issues will likely define his legacy. Internationally, Milanović’s re-election raises questions about Croatia’s trajectory within the EU and NATO.


While Milanović’s victory is decisive, it reflects a divided electorate. Voter turnout, at just 45 percent, suggests widespread apathy or disillusionment. The triumph of a polarizing figure like Milanović signals not only his personal appeal but also the absence of a compelling alternative. In this moment of triumph, Milanović’s greatest challenge lies in proving that his resounding mandate can translate into meaningful progress.

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