top of page

By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

Four Methods to Choose Investment

One of the most common questions investors ask is: “Which investment should I choose?” The real answer is that no investment is good or bad in isolation. A simple way to judge any investment is the RRLT framework - Risk, Return, Liquidity and Time Period. Before investing in any product, all four factors should be seen together. 1. Return Return is the reward you expect from the investment. It may come in the form of interest, dividend, capital appreciation or regular income. Naturally, every...

Four Methods to Choose Investment

One of the most common questions investors ask is: “Which investment should I choose?” The real answer is that no investment is good or bad in isolation. A simple way to judge any investment is the RRLT framework - Risk, Return, Liquidity and Time Period. Before investing in any product, all four factors should be seen together. 1. Return Return is the reward you expect from the investment. It may come in the form of interest, dividend, capital appreciation or regular income. Naturally, every investor wants good returns. However, return should be understood properly. It is important to look at the real intrinsic / internal rate of return (IRR) of every investment, especially when cash flows happen at different points of time. A product may sound attractive on the surface, but the actual return may be very different when calculated correctly. 2. Risk Risk is the possibility of losing money whether partially, fully, temporarily or permanently. In some investments, the risk is very low. In others, the value may fluctuate significantly in the short term. Direct stocks, equity mutual funds, gold and real estate can create wealth over time, but they need patience and the ability to tolerate ups and downs. On the other hand, fixed income products may offer stability, but they may not beat inflation over the long term. 3. Liquidity Liquidity means how easily you can convert your investment back into money when required. A savings account is highly liquid. Fixed deposits, mutual funds and stocks are reasonably liquid. Real estate may take time to sell. Liquidity matters because emergencies do not come with advance notice. Before chasing returns, every investor must ensure that enough money is available in liquid instruments for short-term needs and emergencies. 4. Time Period Time Period is the most important filter. The investment product should be selected based on when you need the money. If the money is needed within a few months or one to two years, safety and liquidity matter more than high returns. If the goal is ten, fifteen or twenty years away, growth-oriented assets like equity mutual funds, direct stocks and gold-related instruments can play a larger role. The longer the time horizon, the better your ability to handle short-term volatility. Goal-Based Planning This is where proper financial planning becomes useful. Make a table of your financial goals - home purchase, car, vacation, child education, child’s marriage and retirement. Write the amount required, adjust it for inflation and mention the time left for each goal. Once this is clear, choosing the right investment becomes easier. Investment Avenues Broadly, investment avenues can be divided into two categories - those that help beat inflation and those that mainly provide stability. Equities, equity mutual funds, gold and real estate help in long-term wealth creation by beating inflation. Your long-term financial goals should ideally be invested in this bucket - the one that helps your money grow faster than inflation. For your short-term goals, rely more on bank fixed deposits, recurring deposits, and debt mutual funds. Here, safety and availability of money are more important than high returns. A good investment is not the one that sounds exciting. A good investment is the one that fits your goal. So before investing anywhere, remember RRLT - Risk, Return, Liquidity and Time Period. When these four are aligned with your financial goal, investment decisions become much clearer. (The writer is Chartered Accountant and CFA (USA). Financial advisor. Views personal. He could be reached on 9833133605)

Singing diva passes into eternity

Mumbai: Veteran playback singer Asha Bhosle - of the legendary Mangeshkar clan - passed away following cardiac complications and multi-organ failure at the Breach Candy Hospital on Sunday morning, her son Anand Bhosle announced.

 

She was 92. She is survived by her children and grandchildren, as well as her siblings Hridaynath Mangeshkar, Usha Mangeshkar and Meena Khadikar, and other family members, many of whom are associated with the entertainment industry. Her elder son Hemant Bhosle succumbed to cancer in 2015 while a daughter Varsha died by suicide in 2012.

 

Decorated with the Padma Vibhushan, Dadasaheb Phalke Award and Maharashtra Bhushan Award, besides two National Awards and numerous other domestic and international honours, Bhosle’s last rites will be performed on Monday afternoon at the Chhatrapati Shivaji Maharaj Park crematorium.

 

Her mortal remains will be kept for public darshan at her Lower Parel residence for three hours before being taken in a procession to the crematorium. She will be accorded a funeral with full state honours, Chief Minister Devendra Fadnavis said.

 

Singing Record

In a singing career spanning over seven decades, Ashatai - as she was reverentially known - recorded more than 12,000 songs in Hindi, Marathi and nearly two dozen other Indian and foreign languages.

 

Born on September 8, 1933 in a remote hamlet of Goar in Sangli, Ashatai began her singing career at the age of 10 with the Marathi song “Chala Chala Nav Bala” from the film ‘Majha Bal’ (1943), to support her family, alongside her elder sister, the late Lata Mangeshkar who died in February 2022.

 

When barely 16, she defied her family to elope and marry 31-year-old Ganpatrao Bhosle, her personal secretary, but the alliance ended in separation in 1960. Later she married legendary music director R. D. who passed away in January 1994.

 

After singing many songs in Marathi for five years, Asha got her first break in Hindi cinema with the song “Sawan Aaya” from the film ‘Chunariya’ (1948), as part of a trio, followed by her first solo number ‘Raat Ki Rani’ (1949). Over the decades, she continued to experiment with her voice and musical styles, building an extraordinary and enduring legacy.

 

Distinct Identity

Initially overshadowed by Lata Mangeshkar’s ethereal voice, Asha crooned on to carve out a distinct identity helped by her husky voice with a nasal timbre, versatility, expressive and wide-ranging vocal style - capable of traversing silky melodies to powerful crescendos, disco, pop, rock, classical and adapting effortlessly to diverse genres.

 

Her repertoire ranged from soft songs, romantic melodies, peppy cabaret numbers to disco, rock, pop to exhilarating qawwalis, soulful ghazals, divine bhajans and classical compositions. She remained a favourite of masters of the baton like O.P. Nayyar, R. D. Burman, and worked extensively with Ghulam Mohammed, S. D. Burman, Ravi, Shankar-Jaikishen, Madan Mohan, Kalyanji-Anandji, Laxmikant-Pyarelal, and the younger crop of Anu Malik, Jatin-Lalit, A. R. Rahman, and others.

 

Ashatai went on to explore private albums, fusion projects and international collaborations with leading artists, constantly reinventing herself to remain relevant across changing musical eras. Her prolific output and sheer body of musical works earned her a place in the Guinness World Records (2011).

 

News of her passing triggered a tsunami of grief with tributes from across the country with top ruling and opposition political leaders, Union and state ministers, film personalities, corporate figures and millions of fans, mourning the loss of a voice that defined generations of Indian music.

Comments

bottom of page