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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.)

BJP Boost

Correspondent
Oct 9, 2024
2 min read

Updated: Oct 22, 2024

As the dust settles over the recent Assembly elections, the BJP, defying anti-incumbency prediction of political Cassandras and exit polls, is set for a historic third term in Haryana. This will buoy the party after its underwhelming performance in the Lok Sabha polls. The Haryana outcome not only reinforces the BJP’s foothold in national politics but also presents a counter-narrative to the INDIA bloc’s post-election fervour.

Despite the bogey stoked by lingering farmer protests and discontent surrounding the controversial Agniveer scheme, the BJP strategically diversified its approach, relying not solely on Prime Minister Narendra Modi’s star power—evidenced by his reduced number of rallies—but also on a ground-level consolidation of anti-Jat votes. The Congress’s over-reliance on the Jat community backfired, rallying other groups against it. Interestingly, the Dalit vote, which the Congress anticipated would tilt in its favour, has not completely abandoned the BJP.


At the forefront of the BJP's campaign was Chief Minister Nayab Singh Saini, whose relatively short tenure allowed him to distance himself from the decade-long rule of the previous administration. By introducing measures to benefit the backward classes, including a significant income limit increase for OBC employment from Rs. 6 lakh to Rs. 8 lakh, the BJP effectively shifted the narrative in its favour. Their mantra of ‘bina parchi, bina kharchi Naukri (promising jobs without bribes) resonated with voters.


The BJP’s rejuvenated team, led by key figures such as Union Minister Dharmendra Pradhan and state leaders, has seemingly addressed concerns that arose following its poor showing in the Lok Sabha elections. The incorporation of new candidates in place of established leaders provided a fresh face that contrasted sharply with the Congress’s decision to recycle incumbents.


In contrast, in Jammu and Kashmir, the National Conference, in alliance with the Congress, having crossed the majority threshold, reclaimed its historic dominance and is set to form the government. Here, the BJP’s performance in the first Assembly election held after the abrogation of Article 370, fell short despite its strenuous attempt to position itself as a proponent of development.


The electorate’s apparent rejection of hardline factions like the PDP reflects a nuanced response and win for democracy. Notably, the results have shown a significant rejection of separatist candidates, including those from Engineer Rashid-led Awami Ittehad Party and Jamaat-e-Islami, who failed to make a meaningful impact in the polls.


The BJP’s emphatic victory in Haryana redeems its Lok Sabha misstep but also signals a broader political resurgence, giving the party renewed vigour to march into future contests like the crucial Maharashtra Assembly election.

 
 
 

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