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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.)

GM held for 'misappropriation' of Rs 122 crore

Correspondent
Feb 16, 2025
3 min read

Updated: Feb 18, 2025

New India Cooperative Bank

misappropriation

Mumbai: The Mumbai police on Saturday arrested Hitesh Mehta, General Manager and Head of Accounts of the New India Cooperative Bank, for allegedly misappropriating Rs 122 crore from the bank, officials said.


Mehta was placed under arrest by the Economic Offences Wing (EOW) of the city police after being questioned for more than three hours, an official said.


He was called to record his statement before the probe agency at its south Mumbai office in connection with the case registered against him and others, he said.


Mehta will be produced before a local court on Sunday, the police official added.


The Reserve Bank of India (RBI) on Friday superseded the cooperative bank's board for a year and appointed an administrator to manage its affairs. A day prior to that, it imposed several restrictions on the lender, including on withdrawal of funds by depositors, citing supervisory concerns emanating from the recent material developments in the bank, and to protect the interest of its depositors.


Acting Chief Executive Officer of the bank, Devarshi Ghosh, on Friday lodged a complaint against Mehta and others at the Dadar police station in central Mumbai for alleged misappropriation of the bank's funds, the police said.

"Based on the complaint, the police registered a case in the wee hours of Saturday, which was then transferred to the EOW for investigation," another official said.


As per the complaint, Mehta along with other associates hatched a conspiracy and embezzled Rs 122 crore from the safes of Prabhadevi and Goregaon offices of the bank, he said.


A case under the BNS sections 316 (5) (criminal breach of trust by public servants, bankers, and others in positions of trust), 61(2) (criminal conspiracy) was registered, he said. During the investigation, it came to light that the misappropriation of the funds had started soon after the COVID-19 pandemic broke out. While the accused embezzled Rs 112 crore from the safe in Prabhadevi, Rs 10 crore were siphoned off from the Goregaon branch, he said.


ED conducts searches in bank fraud case

The Enforcement Directorate has carried searches at 12 locations in Mumbai as part of its probe into a Rs 142-crore bank fraud case, the agency said on Saturday. ED has initiated a probe based on an FIR registered by the Central Bureau of Investigation (CBI) against M/s Rialto Exim Private Limited, M/s Pushpak Bullion Private Limited, Chandrakant Patel and others under the Indian Penal Code and Prevention of Corruption Act. According to a release by the agency, it carried out searches on Thursday and uncovered details of immovable assets and movable assets (bank funds) and various other “incriminating” documents that were seized or frozen. Those named in the case are accused of causing wrongful the Central Bank of India and Bank of India a loss of Rs 142.72 crore. M/s Rialto Exim Private Limited is linked with Pushpak Group and was involved in circular transactions with various related entities of Pushpak without any actual trade or business for financial manipulation, the release said.


ED has discovered transactions of over Rs 500 crore between M/s Rialto Exim and other Pushpak Group entities. Transactions with various Dubai-based dummy entities and the purchase of a mine in the US by Pushpak Group's foreign entity were also uncovered during the searches and investigation, the release said.


The anti-money laundering agency has also come across more than Rs 84 crore of cash deposits, during demonetisation, in entities related to Pushpak Group. Further investigation is underway, the release added.

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