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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.)

Mayor by Lottery

Jan 24
4 min read

Maharashtra’s reservation draw has turned municipal politics into a high-stakes game, reshaping power at the grassroots.

The draw of lots for reservation of mayoral posts in Maharashtra’s municipal corporations, conducted this week has once again brought the spotlight on the importance of reservation in local self-government.


What appears on the surface as a routine administrative exercise has set off intense political activity across cities, especially in Mumbai and major urban centres like Kalyan-Dombivli, revealing how deeply reservation shapes power and political strategy at the grassroots level.


Municipal corporations are the closest tier of governance to citizens. Decisions taken here directly affect everyday life. The mayor, though largely ceremonial in some aspects, remains a powerful political symbol and a crucial coordinating authority. The reservation of these posts, therefore, is not merely about who gets the chair; it is about who gets a voice in shaping urban priorities.


Inclusive Democracy

Reservation in municipal bodies is rooted in the idea of inclusive democracy. For decades after Independence, urban local governance remained dominated by a narrow social and political elite. Women, Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC) were under-represented, despite forming a large share of the urban population. The constitutional mandate for reservation, strengthened through decentralisation reforms, aims to correct this imbalance. By reserving leadership positions, the system ensures that decision-making spaces are periodically opened to sections of society that historically had little access to power.


This is a deliberate effort to widen participation, nurture leadership from the margins, and make governance more responsive to diverse urban realities. Reservation also compels political parties to invest in leadership development beyond their traditional comfort zones. Parties cannot rely only on familiar faces; they must identify, promote, and support leaders from reserved categories. In theory, this strengthens democracy. In practice, it also makes politics more competitive and unpredictable.


The reservation draw held this week decided the category under which mayoral posts in Maharashtra’s municipal corporations will be filled for the upcoming term. Once the categories were announced, political equations shifted almost overnight. Mumbai, the country’s financial capital, remains the most coveted prize.


Control of the Brihanmumbai Municipal Corporation (BMC) has long been a marker of political dominance in Maharashtra. With the mayor’s post falling under reservation, parties have had to recalibrate their strategies, alliances, and candidate selections. For the ruling alliance, particularly the Shiv Sena (Eknath Shinde faction), the reservation draw is a critical opportunity. Since the party split, the Shinde-led Sena has been keen to demonstrate its organisational strength in urban bodies, especially in Mumbai, where the original Shiv Sena built its political legacy.


The Bharatiya Janata Party, despite being numerically strong in several corporations, must also operate within the constraints imposed by reservation. Numbers alone do not guarantee power when the eligibility to contest a post is category-specific. As a result, negotiations, support arrangements, and tactical adjustments become inevitable. Perhaps the most striking example of reservation’s political impact is visible in Kalyan-Dombivli. Here, the mayor’s post has been reserved for a Scheduled Tribe candidate. This single administrative decision has reshaped political behaviour. The Shinde-led Shiv Sena has chosen to extend support to the Maharashtra Navnirman Sena (MNS), a party it has historically opposed. The alliance is politically awkward but strategically necessary. Reservation, in this case, has overridden ideological rivalry. Such developments underline an important truth: reservation does not weaken democracy; it exposes its real dynamics. It forces parties to adapt, negotiate, and sometimes compromise, often in ways that would not occur in an unreserved system.


High Stakes

In Mumbai, the stakes are especially high. The mayoralty carries enormous symbolic weight. It represents control over India’s richest municipal body and sends a powerful political message across the state. With the reservation outcome now clear, political parties are actively lobbying corporators, reassessing alliances, and positioning candidates who fit both the reservation criteria and internal power equations.


These manoeuvres are not just about winning a post; they are about establishing legitimacy, visibility, and momentum ahead of future state and national elections. Opposition parties, too, view reservation as both a challenge and an opportunity.


While it may limit the pool of eligible candidates, it also allows newer leaders, especially women and those from marginalised communities, to emerge as consensus figures. For citizens, the reservation debate may appear distant from daily concerns. But its impact is real. Leaders from different social backgrounds often bring different priorities to governance. Issues such as affordable housing, basic services in informal settlements, women’s safety, and access to healthcare tend to receive greater attention when leadership reflects lived experience.


Reservation also normalises diversity in leadership. When citizens repeatedly see women, SC, ST, and OBC leaders occupying visible positions of authority, it reshapes public expectations about who can govern. Over time, this cultural shift may be as important as policy outcomes. Critics argue that reservation sometimes leads to political opportunism or proxy leadership. These concerns are not unfounded. However, they point to the need for stronger internal democracy within parties and not the dismantling of reservation itself.


The events following the draw demonstrate that reservation is a powerful democratic tool that tests the maturity of political parties. Those that treat it merely as an obstacle to be navigated miss its larger purpose.


Those that invest in genuine leadership development stand to gain long-term credibility. As Maharashtra prepares for a crucial phase of municipal governance, the current churn offers an important reminder: democracy does not function only through elections. It also depends on the rules that shape representation and on how political actors respond to them. In that sense, the reservation of mayoral posts is not just about who wears the chain of office. It is about who gets to shape the future of India’s cities.


(The writer is a political observer. Views personal.)

 
 
 

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