top of page

By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

Four Methods to Choose Investment

One of the most common questions investors ask is: “Which investment should I choose?” The real answer is that no investment is good or bad in isolation. A simple way to judge any investment is the RRLT framework - Risk, Return, Liquidity and Time Period. Before investing in any product, all four factors should be seen together. 1. Return Return is the reward you expect from the investment. It may come in the form of interest, dividend, capital appreciation or regular income. Naturally, every...

Four Methods to Choose Investment

One of the most common questions investors ask is: “Which investment should I choose?” The real answer is that no investment is good or bad in isolation. A simple way to judge any investment is the RRLT framework - Risk, Return, Liquidity and Time Period. Before investing in any product, all four factors should be seen together. 1. Return Return is the reward you expect from the investment. It may come in the form of interest, dividend, capital appreciation or regular income. Naturally, every investor wants good returns. However, return should be understood properly. It is important to look at the real intrinsic / internal rate of return (IRR) of every investment, especially when cash flows happen at different points of time. A product may sound attractive on the surface, but the actual return may be very different when calculated correctly. 2. Risk Risk is the possibility of losing money whether partially, fully, temporarily or permanently. In some investments, the risk is very low. In others, the value may fluctuate significantly in the short term. Direct stocks, equity mutual funds, gold and real estate can create wealth over time, but they need patience and the ability to tolerate ups and downs. On the other hand, fixed income products may offer stability, but they may not beat inflation over the long term. 3. Liquidity Liquidity means how easily you can convert your investment back into money when required. A savings account is highly liquid. Fixed deposits, mutual funds and stocks are reasonably liquid. Real estate may take time to sell. Liquidity matters because emergencies do not come with advance notice. Before chasing returns, every investor must ensure that enough money is available in liquid instruments for short-term needs and emergencies. 4. Time Period Time Period is the most important filter. The investment product should be selected based on when you need the money. If the money is needed within a few months or one to two years, safety and liquidity matter more than high returns. If the goal is ten, fifteen or twenty years away, growth-oriented assets like equity mutual funds, direct stocks and gold-related instruments can play a larger role. The longer the time horizon, the better your ability to handle short-term volatility. Goal-Based Planning This is where proper financial planning becomes useful. Make a table of your financial goals - home purchase, car, vacation, child education, child’s marriage and retirement. Write the amount required, adjust it for inflation and mention the time left for each goal. Once this is clear, choosing the right investment becomes easier. Investment Avenues Broadly, investment avenues can be divided into two categories - those that help beat inflation and those that mainly provide stability. Equities, equity mutual funds, gold and real estate help in long-term wealth creation by beating inflation. Your long-term financial goals should ideally be invested in this bucket - the one that helps your money grow faster than inflation. For your short-term goals, rely more on bank fixed deposits, recurring deposits, and debt mutual funds. Here, safety and availability of money are more important than high returns. A good investment is not the one that sounds exciting. A good investment is the one that fits your goal. So before investing anywhere, remember RRLT - Risk, Return, Liquidity and Time Period. When these four are aligned with your financial goal, investment decisions become much clearer. (The writer is Chartered Accountant and CFA (USA). Financial advisor. Views personal. He could be reached on 9833133605)

Eleven killed in van accident

Thane: In a tragic accident that claimed 11 lives within moments, a passenger van collided head-on with a cement mixer on the Kalyan–Ahilyanagar National Highway near Rayate village in Kalyan taluka, leaving the entire Thane district shaken. The impact was so severe that all passengers in the van died on the spot, turning multiple families’ lives upside down.

 

The accident took place on a bridge over the Ulhas River. The van was completely crushed, reduced to a mangled heap of metal. Despite immediate rescue attempts by local villagers, not a single life could be saved.

 

While speaking to, ‘The Perfect Voice’, Thane Civil Surgeon Dr. Kailash Pawar confirmed that all 11 victims died on the spot. The bodies were subsequently shifted to the rural hospital in Goveli for post-mortem examinations. Heart-wrenching scenes were witnessed at the hospital as a large number of relatives gathered, grieving the sudden and tragic loss of their loved ones.

 

Out of the deceased, nine have been identified while two remain unidentified. The victims include eight men and three women. Identified individuals include 

1) Prashant alias Bablu Rupesh Chandane - 21 years, Devgaon, Murbad.

2) Bhushan Ghorpade - 49 years, Andheri, Mumbai; Revenue Assistant at the Tehsildar Office, Murbad.

3) Jija Govinda Kembari - 50 years, Tembhare, Murbad.

4) Ananta Pawar - Sakhare, Murbad.

5) Deepak Gavali - Resident of Kalyan.

6) Ganpat Jainu Madhe - 32 years, Devaralwadi, Murbad.

7) Sneha Mohpe - approximately 22 years, Narayangaon, Murbad.

8) Mansi Mohpe - approximately 20 years, Narayangaon, Murbad.

9) Prathamesh Mohpe - approximately 17 years, Narayangaon, Murbad.

 

The tragedy has left behind grieving families, unanswered questions, and renewed concerns over road safety on this highway.

 

Three siblings among killed

What began as a simple journey ended in unimaginable tragedy. Three siblings who had left home saying, “We’ll be back in a few days, Mom,” lost their lives in the horrific accident near Rayate bridge, leaving their mother devastated and alone.

Sneha Mohpe (22), Mansi Mohpe (20), and Prathamesh Mohpe (17), residents of Diva, were among the 11 victims of the crash. The three were raised single-handedly by their mother, Anjana Mohpe, after their father passed away seven years ago.

Despite financial hardships, Anjana Mohpe worked tirelessly in household jobs to educate her children and build a better future for them. The siblings were studying in Diva and Thane and had recently left for Parhe village in Murbad taluka to visit their uncle during college holidays.

 

However, fate had other plans. Their journey ended abruptly when the passenger van they were travelling in collided head-on with a cement mixer near Rayate bridge, killing all on board instantly.

Comments

bottom of page