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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.)

Great Expectations

Correspondent
Feb 17
2 min read

Tarique Rahman’s swearing-in as Bangladesh’s Prime Minister comes at a time when the country’s relations with India have never been more brittle. His ascent as PM marks the return of the Bangladesh Nationalist Party (BNP) after years in the wilderness and the re-entry of a dynastic heir after 17 years in exile. Of all the nations in region, India’s eyes will particularly be on Rahman, given that Bangladesh has drifted strategically, politically and economically since the collapse of the old order in 2024.


At 60, Rahman becomes Bangladesh’s first male prime minister in over three decades, inheriting a political lineage forged by his parents - Khaleda Zia and the late Ziaur Rahman - but facing a landscape far less forgiving than the one they once dominated. The BNP’s landslide victory in February’s elections, securing a majority on its own and 212 seats with allies, masks a deeper unease in form of the rise of radical Islamist Jamaat-e-Islami as the second-largest force in parliament. This, coupled with the barring of the Awami League following Sheikh Hasina’s ouster, have narrowed Bangladesh’s political centre at precisely the wrong time.


Rahman’s first challenge is to urgently reset Bangladesh’s relations with India. Bangladesh’s prosperity, connectivity and security are inseparable from India’s goodwill, whether in trade, transit, power-sharing or counter-terrorism. Resetting ties is not merely a favour to New Delhi but an act of self-interest for Dhaka as well.


That reset must begin with a frank recognition of history. Bangladesh’s independence in 1971 was secured with decisive Indian military and diplomatic support. While gratitude need not mean subservience, Bangladesh’s amnesia – as has been seen in the rise of radical Islamist forces and the daily atrocities against the Hindu minority there - would be strategic folly. A BNP leadership that signals maturity by dampening the reflexive anti-India rhetoric and institutionalising cooperation – both absent during the caretaker Mohd. Yunus regime - would reassure investors and neighbours alike that Bangladesh is stepping back from the brink.


The second challenge is internal, and more delicate. Jamaat-e-Islami’s parliamentary strength gives it leverage, but not a mandate to reshape the republic. Rahman cannot afford the ambiguities that plagued earlier BNP governments, when tolerance of Islamist allies bled into indulgence of extremism. Containing Jamaat firmly, legally and visibly will be the clearest test of whether his government is a conservative nationalist one, or a vehicle for ideological drift.


The period under the Yunus caretaker regime has left Bangladesh’s economy weaker, its institutions in tatters and its politics unresolved. Regulatory drift, policy hesitation and a vacuum of authority have eroded confidence. Rahman thus inherits a downward slide that must be arrested quickly.


Rahman has been handed power at a moment when choices, not slogans, will define the country’s trajectory. If he resets Bangladesh’s ties with India, reins in the extremists and restores economic direction, then the country may yet reclaim its promise. But any equivocation or ideological indulgence would squander it.

 
 
 

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