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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.)

Manufacturing Menace

Suyash Padate
Nov 10, 2024
2 min read

Updated: Nov 12, 2024

Manufacturing Menace

Every two in five workers employed in the formal manufacturing sector were on contract in Financial Year 2023, thus showing an increasing trend of contract-based employment in the country’s labour force. According to the additional Annual Survey of Industries (ASI) data released by the Ministry of Statistics and Programme Implementation (MoSPI), in 2023, a total of 14.61 million workers were employed by 2,53,000 factories across India. Of them, 5.95 million workers (40.7 per cent) were on contract the highest ever as compared to only 40.2 per cent in the preceding financial year. These workers are distinct from regular employees who have permanent or long-term employment status with social security benefits. Most of the contract labourers are underpaid and are being exploited in various ways. No government or political party has shown any interest to intervene in this grim issue.


Contract workers are employed by an industrial establishment through contractual agreements for a specified period or task. In the pre-Covid year, the share of contract workers stood at 38.4 per cent — only 5.02 million of the total 13.05 million workers were employed through contractors. Besides, data also showed that among the remaining directly employed workers in these factories, the share of women stagnated at 18.42 per cent.


But the government policies and the various amendments in to the Labour Law has made things more difficult for the working class. Centre as well as all the state governments including Maharashtra are taking advantage of the new laws. Employer friendly legislations are allowing the loot of the labourers.


As per the new labour laws notified on September 29, the Industrial Relations (IR) Code, 2020, companies can now convert permanent jobs into fixed-term contracts. The new guidelines have also permitted companies to hire contract workers directly through a fixed-term contract, which initially required companies to hire contract workers through a contractor. As mentioned above, according to the new labour law code of 2020, companies can omit the process of hiring fixed-term contract workers through a contractor. This will cut the middle man process, which was seen as an expensive and cumbersome process. According to industry experts, by eliminating the dependence of companies on contractors to hire fixed-term contract workers, permanent jobs in the market will be looked down upon. Under this enactment, contract workers will not only receive equal compensations as received by their permanent counterparts but also companies will hold the authority to hand out contractual jobs to their existing permanent workforce.


The amendments made by the government in the Act are favourable for employers. Employees are the most affected part of the economy, especially after the coronavirus outbreak. Most of the workers and labourers are at the receiving end. As no option is left before them, helpless employees have been pushed in a lurch.

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