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....

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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.)

Four Steps to Financial Success

Kaustubh Kale

Jul 19, 2025

2 min read

Achieving financial success may seem like a complicated journey, but it does not have to be. While there are countless products available, the truth is that just four simple, disciplined steps can set you on the right track. Whether you are planning for your future, protecting your family, or building wealth, here is a practical 4-point checklist to help you reach your financial goals.

1. Short-Term Investments: Stay Liquid and Safe

The first step in your plan is to secure your short-term needs. This includes your emergency fund and any expenses planned within the next three years. Here, the focus should be on safety and liquidity, not high returns.

Options like bank fixed deposits (FDs), recurring deposits (RDs), or debt mutual funds are ideal for such goals. They offer stable, predictable returns and allow you to access your money whenever required.

2. Long-Term Investments: Beat Inflation and Grow Your Wealth

To beat inflation and build a sizeable corpus for retirement, children’s education or marriage, or buying a home, you need growth-oriented investments.

Invest regularly in equity mutual funds, direct stocks (if you have the expertise), and gold for diversification. Equities tend to deliver better returns over long periods, while gold acts as a hedge during uncertain times. The simplest way to get started is through a Systematic Investment Plan (SIP) in mutual funds or stocks. Do sufficient SIPs, increase your SIPs every year as income increases, do lumpsum investments besides SIPs frequently, and stay invested. Let compounding work its magic.

3. Health Insurance: Protect Your Savings

Rising healthcare costs make it critical to have adequate health insurance for yourself and your family. This ensures you do not have to dip into your investments during a medical emergency.

Even if your employer offers a policy, treat it as an added benefit and still buy a personal plan with sufficient coverage. Ensure that the plan is comprehensive and includes all necessary product features. The sum insured should be adequate for your lifetime, keeping in mind medical inflation and the rising cost of healthcare. It is important to choose a high enough cover to handle serious illnesses or hospitalisations.

4. Life Insurance: Secure Your Family’s Future

If you have children or outstanding loans, a term life insurance policy is a must-have. It is the most affordable way to ensure your family’s financial security in case of your untimely demise.

Calculate the cover based on your liabilities and the future needs of your dependents, and review it as your responsibilities grow.

To Conclude:

By following these four steps with discipline and focus, you can build a secure financial foundation and move confidently toward your goals. Remember: the journey to financial success begins with one simple step - and today is the best day to take it.

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

Views personal. He could be reached on 9833133605.)