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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.)

No significant benefits for real estate sector

Naresh Kamath
Feb 2, 2025
2 min read

Updated: Feb 3, 2025

real estate sector

Mumbai: The Union Budget unveiled on Saturday has hardly offered any significant benefits to the realty sector especially when affordable housing remains key issue among the citizens.


Though the real estate sector lobbied for various incentives like conferring industry status, increasing subsidy for the affordable housing as well as decreasing the interest rates for home loans, the government seems to have turned a blind eye to these demands.


Finance Minister Nirmala Sitaraman in her speech announced the second tranche of SWAMIH (Special Window for Affordable and Mid-income housing scheme) worth Rs 15,000 crore which aims to complete construction of one lakh housing units. The scheme funds the stressed housing projects and ensures their speedy completion so that the beneficiaries get their dwellings.


Anand Gupta, Vice President, Builders Association of India (BAI) said though money is allocated to SWAMIH and infrastructure projects, much needs to be done for the realty sector. “It is unfortunate that we did not get the industry status and even concessions as this sector plays a huge role both in boosting the economy as well as the generating employment,” said Gupta.


Similar is the view of Saransh Trehan, Managing Director, Trehan Group who said “The government’s continued push for affordable housing is a step in the right direction. However, key industry demands, such as industry status for the real estate sector and a streamlined single-window clearance system, remain unaddressed. These reforms are crucial to enhancing ease of doing business, expediting project approvals, and ensuring faster delivery of homes.”

Another proposal made by the Finance Minister is she has proposed a hike of Tax-deducted at source (TDS) for income tax for rental income to Rs 6 lakh annually from the present Rs 2.40 lakh. This benefits from those who own second homes and get rents from them.


Commenting on this issue, housing activist Ramesh Prabhu, Chairman, Maharashtra Societies Welfare Association (MSWA), which deals with cooperative housing societies issues, said though the TDS hike is welcome, home buying still remains a dream especially for majority citizens of metro cities. “The houses still are exorbitantly priced and on top of that taxes also remain high. We expected some relief in this budget but there is nothing per se,” rued Prabhu.


The real estate sector had created a wish list like revising the affordable housing price cap from Rs 45 lakhs to Rs 60 lakhs as prices have risen significantly ever since it was unveiled one decade back. Similarly increasing the income tax deduction limit on interest payments under Section 80C from Rs 2 lakhs to Rs 5 lakhs. There was also demanding for reduction of home loan interest rates. However nothing has been done on this front.

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