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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.)

Less Water Leads to Anger

Suyash Padate
Nov 5, 2024
2 min read

Updated: Nov 7, 2024

Anger

First the deputy chief minister Devendra Fadnavis and after him actor Aamir Khan vowed for drought free Maharashtra. “Our mission is to create a drought-free and prosperous Maharashtra, by fostering social unity and providing scale to proven solutions and technologies,” this pledge unfortunately went in vain. Many tehsils in Vidarbha and Marathwada are reeling under drought like situation that too in November.


In April 2016, Maharashtra operated the water train to supply drinking water to drought-affected Latur. In the same year, the state government embarked on its Jalyukt Shivar Abhiyan to become drought free by 2019. Despite the ambitious plan, 40 percent of the state is reeling from drought and its water tanker economy is booming. All the schemes were aimed at making Maharashtra a drought-free state by deepening and widening streams as well as constructing cement and earthen stop dams, nullahs and digging farm ponds. But, as of February 2019, the state government declared drought in 151 of the 358 talukas. In these talukas, 28,524 villages have been declared drought-affected. Of this, 112 are severely drought hit. Opposition members and activists targeted the government for the situation. However, the ruling party and the government officials defended their work, claiming that the year prior rainfall was extremely low.


Nevertheless, Devendra Fadnavis ordered a survey on the linking of rivers in the Krishna and Bhima sub-basins. This project aims to divert the excess water from the flood-prone rivers of Kolhapur, Sangli and Satara districts to the drought-prone regions of Marathwada, Solapur and Pune. This idea has not gone down well among the experts. They have questioned this kind of statistical or mathematical hydrology that calculates surplus and deficit basins on two grounds. They straightaway pointed out that environmental hydrology is more relevant in the age of climate change, which says there is nothing like surplus and deficit basins and natural course of rivers should not be meddled with. Secondly, experts have also argued that these water calculations are often dated and proven to be unreliable.


As no water to the tap and even wells run dry people start to extract groundwater, perpetuating water scarcity. As there is no option left before the people, they start extracting groundwater even if the dry spell extends for 10 days.


The BJP-led government came to power in Maharashtra in October 2014 riding on the back of a multi-crore irrigation scam. Chief Minister Devendra Fadnavis had then not just promised the state that those found guilty in the scam would be punished but also that the state would turn away from non-performing large dams and lift irrigation schemes to more smaller water conservation projects. Five years later neither of these promises seem to have held any good. The inquiries by the Anti Corruption Bureau have netted some officials and a couple of contractors, the main accused in the scam is still at large.

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