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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.)

Rupee drops 19 paise to 85.63 against US dollar in early trade

PTI
Apr 7, 2025
2 min read


The rupee declined 19 paise to 85.63 against the U.S. dollar in early trade on Monday (April 7, 2025), facing the heat of the global trade war triggered by the U.S. reciprocal tariff and China’s retaliatory move that also crashed equity markets worldwide to their record lows.


According to forex traders, a steep decline in crude prices and a weaker American currency failed to support the domestic currency amid the incessant foreign fun outflows in line with the global sell-offs.


Meanwhile, they said that market participants remained concerned as the Reserve Bank of India’s monetary policy committee began its three-day deliberations on key interest rates. The decision of the six-member rate-setting panel will be announced on Wednesday (April 2, 2025).


At the interbank foreign exchange, the rupee opened at 85.79 and strengthened slightly to trade at 85.63 against the greenback, registering a loss of 19 paise from its previous closing level.


On Friday (April 4, 2025), the rupee settled 14 paise lower at 85.44 against the U.S. dollar, a day after gaining 22 paise on Thursday (April 3, 2025), following the implementation of the U.S.’ reciprocal tariff on about 60 countries.


Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05% lower at 102.71.


Analysts attributed the weakening dollar to disappointing services, PMI data and concerns over inflation and economic growth due to the global tariff war as China imposed 34% import duties in retaliation to the Donald Trump administration’s sweeping tariff move.


Brent crude, the global oil benchmark, fell 2.73% to $63.79 per barrel in futures trade, hit by twin shocks of Trump’s tariffs and an OPEC+ decision to increase output faster than previously announced.


In the domestic equity market, the 30-share BSE Sensex crashed 3014.32 points, or 4.00%, to 72,350.37, while the Nifty tanked 1,016.75 points, or 4.44%, to 21,887.70 points.


Foreign institutional investors (FIIs) offloaded equities worth ₹3,483.98 crore on a net basis on Friday (April 4, 2025), according to exchange data.


The Reserve Bank of India on Friday (April 4, 2025) said the country’s forex kitty jumped from $6.596 billion to $665.396 billion during the week ended March 28. In the previous reporting week, the overall reserves rose by $4.529 billion to $658.8 billion.


This is the fourth consecutive week of increase in the reserve, which was on a declining trend recently due to revaluation along with forex market interventions by RBI to help reduce volatilities in the rupee.


A monthly survey released on Friday (April 4, 2025) showed, India’s services sector activity eased slightly in March, weighed down by a marginal slowdown in sales amid softer demand conditions and easing inflationary pressures.


The seasonally adjusted HSBC India Services PMI Business Activity Index fell from February’s reading of 59.0 to 58.5 in March but remained above its long-run average of 54.2.

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