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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)

India’s Amphibious Awakening

For decades, India’s navy has been a force defined as much by restraint as by reach. It has excelled in sea denial, in guarding chokepoints, and in projecting quiet deterrence across the Indian Ocean. However, it lacked the ability to decisively shape events ashore. That omission is being remedied.


Recently, India’s Defence Acquisition Council chaired by Defence Minister Rajnath Singh has granted a fresh Acceptance of Necessity for the procurement of four Landing Platform Docks (LPDs) at an estimated cost of Rs. 33,000 crore. The decision revives a long-stalled programme and, more importantly, signals a shift in how India intends to wield maritime power.


LPDs, which are amphibious assault ships capable of deploying troops, helicopters, and mechanised equipment, have traditionally been seen as auxiliary assets, useful but not decisive. That view is now obsolete. Modern LPDs have evolved into floating ecosystems of warfighting capability, integrating aviation, logistics, command-and-control, and medical support into a single, mobile platform.


Strategic Shift

India’s need for such platforms is hardly new. A previous attempt to procure four LPDs collapsed amid financial troubles at a participating private shipyard. A subsequent Request for Information in 2021 envisioned ambitious vessels - 200 metres long, electrically propelled, capable of carrying 900 troops and operating multiple helicopters, while being heavily armed. The revised requirements are more pragmatic but no less consequential. The new ships will displace roughly 29,000 tonnes, stretch to around 220 metres, and be equipped with multi-function radars, landing craft, unmanned systems, and integrated electric propulsion. They are to serve not just as troop carriers, but as motherships for a future fleet of drones and autonomous platforms.


This recalibration reflects a deeper doctrinal shift. For much of its history, the Indian Navy has prioritised sea control and deterrence by keeping adversaries at bay rather than projecting force onto land. The recast LPD programme suggests a move towards sustained expeditionary capability: the ability to insert, support, and sustain forces far from home shores.


The timing is significant. Across the Indo-Pacific, amphibious power has become a central pillar of military strategy. Nowhere is this more evident than in China’s rapid naval expansion. Over the past decade, Beijing has built the world’s fastest-growing amphibious fleet, centred on the Type-071 landing platform docks and the larger Type-075 helicopter assault ships. These vessels are explicitly designed for large-scale island seizure operations, a capability with obvious relevance to scenarios involving Taiwan Strait.


Contested Environment

China’s ambitions, however, are not confined to its immediate periphery. Through a network of ports, logistics hubs, and military facilities stretching from Gwadar in Pakistan to Djibouti in the Horn of Africa, it has steadily extended its operational reach into the Indian Ocean. The result is a maritime environment that is more crowded, more contested, and more uncertain than at any point in recent memory.


India, by contrast, has until now lacked the means to deploy large, mechanised forces rapidly into distant theatres. Its fleet of surface combatants and submarines is formidable, but its ability to translate naval presence into influence ashore has been limited. This constraint is increasingly untenable. India’s strategic geography, which straddles vital sea lanes and proximate to fragile littorals from East Africa to Southeast Asia, imposes responsibilities that go beyond mere surveillance.


Consider the range of contingencies that now define the region: the protection of energy routes, the security of undersea communication cables, the defence of island territories, and the management of crises in politically unstable coastal states. Add to this the growing frequency of natural disasters, from cyclones in the Bay of Bengal to humanitarian emergencies across the Indo-Pacific. In each case, speed, scale, and self-sufficiency are paramount. Few platforms offer that combination as effectively as LPDs.


The utility of such vessels extends well beyond war. They are, in effect, instruments of statecraft. Equipped with hospitals, helicopters, and command centres, LPDs can function as floating relief hubs, evacuation platforms, and symbols of reassurance. For a country with one of the world’s largest diasporas and an expanding diplomatic footprint, the ability to evacuate citizens from conflict zones or deliver aid in times of crisis is a necessity.


Other navies have already embraced this logic. Italy’s Trieste (LHD), commissioned in December 2024, exemplifies the modern conception of amphibious power. It is not merely a ship but a system capable of integrating air, sea, and land operations into a coherent whole. The Indian Navy’s new LPDs, while unlikely to match Trieste, are clearly inspired by the same philosophy.


India’s move towards amphibious capability does not imply an abandonment of traditional strengths in sea denial or deterrence. Rather, it complements them. Maritime supremacy in the 21st century will belong not to those who can merely control the seas, but to those who can seamlessly translate that control into influence ashore.


With four LPDs in service, India would gain the ability to conduct sustained amphibious operations, reinforce distant territories, and establish mobile command hubs in times of conflict. More subtly, it would acquire a capacity to shape events across the Indian Ocean rather than merely react to them.


Whether this ambition is realised will depend on execution. India’s defence procurement process is notoriously slow, and the integration of such complex platforms will test both industry and doctrine. Yet the strategic logic is compelling. In an era defined by grey-zone conflicts, contested commons, and fluid alliances, flexibility is power.


The revival of the LPD programme is a statement of intent. India, long a continental power with maritime aspirations, is beginning to act like a truly amphibious state that understands that the line between sea and land is no longer a boundary, but a bridge.


(The author is a retired naval aviation officer and a defence and geopolitical analyst. Views personal.)

1 Comment


Common men like us have really benefited with introduction to concept of LPD.

Its of great importance for our Naval power.

Electic propulsion for Ships is also new information for us. We are eagerly waiting for such conceptual articles not only about Navy but all about Defence and Geopolitcs.

Great! Thanks, Commodore S L Deshmukh. 👍👍🙏🙏🙏

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