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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.)

The AKKA Budget

Writer: Amey Chitale
Amey Chitale
Feb 1
3 min read

Nirmala Sitharaman opts for steadiness, backing manufacturing and infrastructure over headline-grabbing reform

Mumbai: The Union Budget, often tracked for bold announcements, strikes a steadier tone this year. Amid global uncertainty, it avoids dramatic policy shifts, favouring a measured path. Manufacturing and MSMEs remain at the core, with tourism, healthcare, and IT services positioned as growth drivers. True to its deregulation tradition, the government has opted for caution, carefully balancing fiscal priorities. Alongside industry, renewed emphasis on cultural heritage and medical tourism rounds out a balanced growth agenda.


As front loaded strategy Capex is expected to close at Rs. 10.95 trillion in current year and increases by 11 percent to Rs. 12.21 trillion next year. Railways, roadways, and defence together account for nearly two-thirds of the allocation. Grants-in-aid for capital asset creation have jumped from Rs. 3.08 trillion to Rs.4.92 trillion, largely benefiting states and reinforcing cooperative federalism. This underscores the strategy of driving productivity through renewed infrastructure.


Focus on MSMEs continues with launch a Rs. 10,000 crore SME Growth Fund, while the Self-Reliant India Fund will receive an additional Rs. 2,000 crore. Over Rs. 7 trillion will be made available through TREDS to ease liquidity stress. The government will enable professional institutes to create short-term courses for training ‘Corporate Mitras’ in Tier-II and Tier-III towns to support MSMEs with affordable compliance solutions.


On manufacturing front, the Rs. 10,000 crore Biopharma SHAKTI initiative will position India as a hub for biologics and biosimilars over next five years. Semiconductor Mission 2.0 expands into equipment, materials, and full-stack IP with industry-led R&D and training centres, while the Electronics Components Manufacturing Scheme has grown to Rs. 40,000 crore after surpassing targets.


Rare Earth Corridors and three new Chemical Parks will cut import dependence, complemented by Hi-Tech Tool Rooms, advanced construction equipment schemes, and a Rs.10,000 crore container manufacturing programme to strengthen logistics. Customs duty exemptions remain a lever, continuing for rare earth processing, battery manufacturing, and energy storage systems, with nuclear power project emptions extended till 2035 to reinforce clean energy growth.


Rural Prosperity

Targeting rural prosperity, the centre will develop 500 reservoirs and Amrit Sarovars to boost fisheries and promote animal husbandry for quality jobs. Coconut Promotion Scheme will benefit 30 million people, alongside cashew and cocoa programmes aiming for self-reliance by 2030. Bharat-VISTAAR, a multilingual AI advisory, will support smarter farming, while SHE-Marts will help rural women shift from credit-based livelihoods to business ownership.


Considering healthcare as a core of growth measures have taken to train and add 1 lakh Allied Health Professionals, train 1.5 lakh caregivers, and invest in Ayurveda, mental health, and medical tourism. Five Regional Medical Hubs will integrate healthcare, education, research, AYUSH centres, and tourism to drive jobs and value-based care. Traditional medicine will be strengthened through three new Ayurveda institutes, upgraded labs, and an expanded WHO Centre in Jamnagar to boost certification, research, and exports.


A High-Level standing Committee on Banking for Viksit Bharat will review the banking sector. Public sector NBFCs like PFC and REC will be restructured to improve efficiency. The hike in STT on futures and options has unsettled equity markets, but it comes against SEBI’s finding that 97 percent of traders lose money in F&O. The move signals the government’s intent to caution retail investors against excessive speculation in this segment.


The textile industry, hit by US tariffs, gets a major boost through support for natural and new-age fibres, cluster modernisation, and integrated backing for handloom and handicrafts. The Tex-Eco Initiative drives sustainability, while Samarth 2.0 enhances skilling through industry-academia partnerships. Mega Textile Parks will advance technical textiles, and the Mahatma Gandhi Gram Swaraj programme will strengthen khadi, handloom, and rural crafts, linking them to global markets and empowering artisans and rural youth.


Logistical connectivity is boosted with declaration of new east west Dedicated Freight Corridors, and 20 National Waterways to be operationalised over five years. Regional Centres of Excellence will train youth along these routes, while ship repair hubs in Varanasi and Patna will support maritime infrastructure.


Nirmala Sitharaman is fondly known as ‘Akka’ (elder sister) in her inner circles. While presenting her record ninth consecutive budget she has ensured that the acronym ‘Akka’ stood true. Here is the ‘Akka’ stands for her trust on the key areas – Ayush, Kartaya (duty), Kisan (farmer) and Avsar (opportunities).   


Record for Nirmala

Nirmala Sitharaman on Sunday made history as she presented a record ninth consecutive Budget. This took her closer to the record of 10 budgets that were presented by former Prime Minister Morarji Desai over different time periods. Desai presented six budgets during his tenure as finance minister from 1959 to 1964, and four budgets between 1967 and 1969. Former finance ministers P Chidambaram and Pranab Mukherjee had presented nine and eight budgets, respectively, under different prime ministers. Sitharaman, however, will continue to hold the record of presenting the maximum number of budgets on the trot -- nine straight budgets under Prime Minister Narendra Modi.

 

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