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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.)

Axis of Pretence

Jan 6
3 min read

When Beijing and Islamabad lecture the world on bullying, the joke is not lost on Asia.

China and Pakistan have discovered a new cause in jointly opposing “hegemonism,” “bullying behaviours” and the formation of “small circles.” Their joint communiqué, issued after the seventh round of their foreign ministers’ strategic dialogue in Beijing, was a sermon on multilateral virtue aimed squarely at India and its partners in the Quad. It was also a masterclass in geopolitical hypocrisy.


Both sides reaffirmed their devotion to the UN Charter, free trade and sovereign equality, while denouncing bloc politics and violations of national sovereignty. The target was unmistakable: India’s expanding partnerships with Japan and Australia, and Washington’s open endorsement of India as a stabilising force in the Indian Ocean Region.


China’s moralising would be comical were it not so consequential. Few countries have done more to normalise coercion in Asia. From the South China Sea, where Vietnam and the Philippines face relentless pressure, to the Himalayas, where Bhutan’s claims are quietly eroded, China’s diplomacy often arrives backed by coastguard cutters, economic leverage or “salami-sliced” military facts on the ground. Even its trade policy has acquired a punitive edge, deployed to discipline smaller states that displease Beijing.


Pakistan, long the region’s most reliable exporter of instability, was no less brazen in its contribution to the lecture. Such bravado rings hollow from a state whose security doctrine has for decades rested on nurturing jihadist proxies, from the mountains of Kashmir to the massacre at Pahalgam, and then denying responsibility with ritualised indignation.


Pakistan’s refusal to abandon terror as an instrument of statecraft, or to explain why a country perpetually pleading victimhood abroad continues to depend on militancy at home and patrons abroad for relevance, shapes the communiqué’s most revealing passages.


Even as Beijing and Islamabad rail against “small circles,” they are busily assembling their own. The newly advertised trilaterals with Afghanistan and the China-Bangladesh-Pakistan framework echo a strategy that dates back to the Cold War, when China first embraced Pakistan as a useful southern flank against India after the 1962 war. Since then, exclusion has been policy, not accident. Regional architectures that sideline New Delhi have long appealed to a partnership built less on shared values than on a shared interest in hemming in Indian power. Bloc politics, it seems, are objectionable only when others practise them. When conducted under Chinese auspices, exclusion is rebranded as “regional cooperation.”


The double standard grows starker on terrorism. The two sides urged the world to avoid “selective approaches” and condemned “double standards,” even as China went one better on the hypocrisy scale by lavishing praise on Pakistan’s “significant contributions and huge sacrifices” in combating terrorism.


For years Beijing has shielded Islamabad at the United Nations, placing technical holds on the designation of Pakistan-based militants and treating terrorism less as a regional scourge than as a diplomatic inconvenience so long as its immediate interests are not threatened.


China’s engagement with Afghanistan has been narrowly instrumental: containing unrest in Xinjiang, preventing spillover into its western provinces and safeguarding prospective investments. Neither approach has been animated by any serious commitment to a rules-based regional order. Yet both now speak the language of accountability as though it were newly discovered.


The subtext of the communiqué is strategic insecurity. China bristles at a Quad that complicates its maritime ambitions and legitimises balancing behaviour across the Indo-Pacific. Pakistan, accustomed to defining itself in opposition to India, resents a neighbour whose partnerships amplify its influence far beyond South Asia and steadily erode Islamabad’s claim to strategic relevance. Together, they cloak their unease in the rhetoric of multilateralism, hoping to recast voluntary alignment as aggression and defensive cooperation as conspiracy.


India’s partnerships, by contrast, are neither coerced nor clandestine. They are transparent, issue-based and welcomed by countries that have learned, often the hard way, the costs of Chinese assertiveness and Pakistani adventurism. Beijing and Islamabad will continue to describe their relationship as “ironclad” and to set ever-new goals for their “all-weather” partnership. In Asia’s crowded theatre, hypocrisy is common. But rarely has it been so meticulously rehearsed or so conspicuously on display. 


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