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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.)

SCO Aims to Unite Regional Powers for Trade and Security Gains

Oct 30, 2024
3 min read
Trade and Security Gains

Indian scholar and political commentator, Sudheendra Kulkarni, founder of the Forum for a New South Asia, has underscored the potential of the Shanghai Cooperation Organisation (SCO) to break the ice between India and Pakistan. Although bilateral talks between the two countries did not occur during the meeting, Kulkarni highlighted that the SCO’s first article calls for “mutual trust, friendship, good neighbourliness, and cooperation.” By adhering to these principles, the SCO could serve as a catalyst for renewed dialogue between India and Pakistan, he argued.


Kulkarni’s remarks come at a time when global trade and cooperation face significant hurdles because of rising protectionism, sanctions, and geopolitical conflicts. The SCO, which includes India, Pakistan, China, and Russia as key members, stands as a multilateral platform that can counter these challenges by promoting cooperation rather than competition. With India and Pakistan already members, the SCO provides a rare platform for the two nations to engage in regional trade, technology, and security, potentially overriding political differences.


One of the critical points that Kulkarni raised is the growing trade between India and China, which reached over $136 billion last year. Kulkarni believes that India and Pakistan could similarly benefit within the SCO framework. “We hope this will break the ice and open up India-Pakistan dialogue, even though no formal talks took place during this meeting,” he said. The SCO’s mandate to foster good neighbourly relations between member states could be instrumental.


According to Kulkarni, developing countries, particularly those in the SCO and BRICS (another multilateral group that includes India and China), should leverage these platforms to foster trade and technological cooperation that bypasses Western-dominated financial systems. In doing so, these nations can shield themselves from the adverse impacts of Western-imposed sanctions and protectionist policies, which have disrupted global markets and harmed developing economies.


Kulkarni’s critique of Western sanctions goes hand in hand with his call for a more equitable form of globalisation. “The illegitimate, dividing sanctions of Western powers go against the spirit of globalisation, starving developing countries of finance, investment, and access to markets,” he said. For countries like India and Pakistan, which face significant economic challenges, the focus should be on poverty alleviation and sustainable development—not on becoming pawns in the geopolitical games of global powers.


The SCO brings together nations from Eurasia and beyond, offering a framework for cooperation that sidesteps the entrenched political divisions seen in other international forums. Indian External Affairs Minister S. Jaishankar, who described the recent SCO meeting as “productive,” highlighted key areas of cooperation, including business, medicine, food security, and climate action. These are precisely the kinds of issues that transcend borders and political differences, offering a path forward for India and Pakistan to work together under the SCO umbrella.


Moreover, Kulkarni emphasised China’s role in sharing its technological and infrastructural advancements with the world, particularly through initiatives like the Belt and Road Initiative (BRI). If India and Pakistan can set aside their hostilities and engage with China constructively, the entire region could benefit from increased connectivity, technological innovation, and economic growth. The SCO’s emphasis on mutual benefit and regional cooperation aligns well with this vision, providing a framework for India, Pakistan, and China to collaborate on shared goals.


However, the long-standing rivalry between India and Pakistan, fuelled by border disputes, terrorism, and historical animosities, has often overshadowed efforts at regional cooperation. While the SCO provides a platform for dialogue, real progress will require sustained political will from both sides. Nonetheless, Kulkarni’s optimism offers a glimmer of hope that the SCO could be the venue where India and Pakistan start to re-engage, if not directly, then at least through shared multilateral objectives.


By participating actively in the SCO, India and Pakistan can diversify their economic and political alliances, reducing their dependence on Western-dominated institutions like the World Bank and the International Monetary Fund. For Pakistan, which has been grappling with economic instability and political unrest, such engagement could offer a way out of its current crises. For India, it provides an avenue to assert itself as a major player in Eurasian geopolitics, independent of Western influence.


Ultimately, Kulkarni’s call for India and Pakistan to embrace the SCO’s potential is a timely reminder that in a world beset by conflict and division, multilateralism remains a viable path forward. The challenges of trade protectionism, sanctions, and geopolitical tensions are too complex for any one country to solve alone. As part of the SCO, India and Pakistan can work together—if not as allies, then at least as partners in the pursuit of shared regional stability and economic growth. If they can seize this moment, the SCO may become the platform where one of the world’s most enduring rivalries finally begins to thaw.


(The author is a senior journalist based in Islamabad. Views personal.)

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