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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.)

Everyday Is A Holiday with Smart Investing

Writer: Kaustubh Kale
Kaustubh Kale
Dec 28, 2024
2 min read

Updated: Jan 2, 2025

The beauty of investing is that, even during the holiday season, your investments can continue growing quietly in the background, ready to deliver rewards in the future.

Smart Investing

As the holiday season draws to a close and the new year approaches, many of us are reflecting on the year gone by and planning for the year ahead. It's a time filled with joy, celebration, and thoughtful giving.


But have you ever wondered why we need to escape from work to truly enjoy ourselves? Why can’t every day feel like a holiday season?


Well, it can. The secret lies in gifting your future self through investing.


One gift that keeps on giving, whether you're celebrating, partying, traveling, or simply relaxing, is the power of money working for you. The beauty of investing is that, even during the holiday season, your investments can continue growing quietly in the background, ready to deliver rewards in the future.


As we welcome the new year, it’s the perfect time to think about how to make your money work harder for you in 2025. Strategic investing allows your wealth to grow even while you take time off. The key, of course, is to invest sufficiently and wisely, ensuring that your money compounds while you enjoy life’s festivities.


Investing is a habit

Investing isn’t just for the ultra-wealthy or financial experts. It’s for anyone who wants to build a secure financial future. Saving and investing are habits. Start small if you need to, but start. Be consistent, invest sufficiently and frequently, and stay invested.


More importantly, make sure your investments align with your financial goals, and always make informed decisions.


Twenty years is enough

The ultimate goal? Achieve financial freedom in two decades of investing. For those first 20 years, you’ll look forward to holiday seasons as a time to relax, celebrate, and rejuvenate. But after 20 years of smart, consistent investing, your whole year should become your holiday season.


Take Action Now

As the new year approaches, it’s a great time to reassess your financial plans and set new goals. Whether you’re just starting or looking to refine your portfolio, now is the perfect time to position your money for growth in 2025. Consider it a gift to your future self — a way to ensure long-term success.

So, as you celebrate the season and look ahead to new beginnings, remember: with smart investing, your holiday season doesn’t have to be limited to just a few weeks. Here’s to a year of financial growth and endless possibilities!


(The author is a Chartered Accountant and CFA (USA). Financial Advisor.

Views personal. He could be reached on 9833133605. )

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