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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)

Healing the Mind Beyond Medicine

In today's world, where many people feel both connected and lonely, mental health has become a major issue. The World Health Organization reports that depression and anxiety disorders are among the top causes of disability globally. While therapy, medication, and counselling are important for treatment, there is a growing understanding that healing the mind often requires something deeper, such as a sense of meaning, connection, and inner balance.


This is where spirituality comes in. Spirituality isn’t limited to rituals or religion. It is a personal journey to find purpose, values, and something greater than oneself. For some, spirituality may involve prayer in a temple, mosque, or church. For others, it can be meditation at dawn, silent gratitude before bed, or a solitary walk by the sea. At its heart, spirituality helps people make sense of suffering and uncertainty without being overwhelmed by them.


Modern psychology is increasingly recognizing this aspect. Psychiatrist Viktor Frankl, in his influential book Man's Search for Meaning, argued that the main human drive is not pleasure or power, but meaning. Even in the harsh conditions of Nazi concentration camps, Frankl noticed that those who could find a purpose—a loved one to return to, a task to complete, a belief to uphold—were more resilient. His observation still holds true in today’s struggles with stress, burnout, and despair. In India, spiritual practices have long been part of everyday life.


The ancient discipline of Yoga, now recognized worldwide on International Yoga Day, combines physical postures with breath control and meditation. Research indicates that regular yoga practice lowers cortisol levels, reduces anxiety, and improves emotional regulation. Likewise, mindfulness meditation, popularized in the West by Jon Kabat-Zinn, has been shown to lessen depression symptoms and boost overall mental well-being. So, how does spirituality support mental health?


First, it nurtures hope. When individuals see their lives as part of a bigger picture or moral order, temporary challenges don’t seem like permanent judgments. Faith traditions often highlight endurance, forgiveness, and renewal—powerful remedies for guilt and hopelessness. Second, spirituality builds community. Places of worship and spiritual gatherings provide social support, which psychologists recognize as a protective factor against mental illness. A grieving person surrounded by empathetic friends is less likely to withdraw into isolation.


Third, spiritual practices promote self-reflection. In a society focused on social media and constant comparison, embracing silence can be transformative. A few minutes of daily reflection can help individuals process their feelings instead of pushing them down. It allows anger to soften, fear to be acknowledged, and gratitude to arise.


However, it's important to make a clear distinction. Spirituality should enhance, not replace, professional help. Severe depression, bipolar disorder, or schizophrenia needs medical treatment. Romanticizing suffering as "karma" or "divine will" can delay necessary care and make situations worse. Mental health professionals increasingly support an integrated approach, where therapy honors the patient’s spiritual beliefs while sticking to evidence-based practices. Educational institutions and workplaces are starting to recognize this connection too.


Meditation rooms, wellness retreats, and value-driven workshops are slowly becoming part of corporate culture. Schools that incorporate mindfulness sessions notice better focus and fewer behavioral problems. When students learn about emotional awareness alongside math and science, they develop into balanced individuals, not just skilled workers.


Yet, spirituality must remain inclusive. It shouldn’t divide people or serve as a means for moral judgment. The essence of spirituality is compassion—for oneself and for others. A spiritually healthy mind is not rigid or judgmental; it is understanding and open.


As urban India faces rising cases of stress-related issues, revisiting ancient wisdom through a modern lens might offer solutions.


Simple acts like lighting a lamp, chanting a mantra, journaling thoughts, or just being conscious of breathing can help ground a restless mind. Ultimately, mental health isn’t just the absence of illness; it’s about finding harmony. Medicine can stabilize the brain, and counselling can help clarify thoughts. But spirituality often brings back meaning. In a world that constantly demands high performance, rediscovering our purpose may be the quiet change our minds need most.


(The author has 44 books to his credit in English literature. Views personal.)

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