top of page

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 IT Growth Continues

Suyash Padate
Nov 7, 2024
2 min read
IT Growth

The Government policies play a pivotal role in shaping the economic landscape of the state as well as the nation. Whether it’s fiscal, monetary, or from investment and consumption to employment. While the debate over the appropriate role of government in the economy persists, there’s a consensus on the positive impact well-designed policies can have on fostering economic growth. Here we will discuss government’s policy contributing to economic growth and creating opportunities of employment.


It is usually seen that the government policy gathers a lot of dust in Mantralaya due to rigid regulations and bureaucracy that hinder decision making and ultimately slows down the process. In this particular case it was a slightly different picture. Almost a year ago in a significant move to boost the state’s digital infrastructure, the Maharashtra government has approved the establishment of Green Integrated Data Centre Parks, with an expected investment of Rs 1.60 lakh crore. With this decision Maharashtra became the first state in India to introduce a special policy for Green Integrated Data Centre Parks, a sector that is attracting multinational corporations and global leaders. The project is expected to solidify the State’s position as a key player in the data centre industry. The initiative will not only strengthen Maharashtra’s data infrastructure, but also generate long-term revenue through direct and indirect taxes, following the completion of the promotion period. Furthermore, the project is set to create many jobs in both the categories, high-skilled jobs directly indirect jobs, especially in high-tech sectors.


Under this new policy, IT companies will have the freedom to establish tech parks anywhere within the state of Maharashtra. Additionally, the companies have been granted substantial subsidies, ranging from 50 to 100 percent on stamp duty, and electricity charges will be waived for a period of 10 to 15 years. So far, a total five projects have been given approval and five projects are under consideration before the Cabinet sub-committee. Through these projects, an investment of Rs 1.79 lakh crore will be made in the state and 60,000 jobs will be created. To provide additional support to the Green Integrated Data Centre Park initiative, the government has made amendments to the Information Technology and Information Technology Enabled Services (ITES) Policy, 2023. The policy allows special incentives, alongside regular benefits, for setting up three Green Integrated Data Centre Parks, subject to the conditions outlined in the proposal.


With the rapid rise of Artificial Intelligence (AI), the demand for data storage and processing has surged, leading to increased energy consumption by data centres. This has raised concerns over global warming. In light of India’s goal to achieve carbon neutrality by 2070, green technology has become crucial for the future. Maharashtra’s Green Integrated Data Centre Park will address these concerns by promoting eco-friendly practices in the sector. The special policy aims to create a conducive ecosystem for the data centre industry by encouraging global companies to establish a presence.

Comments

bottom of page