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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)

The Soul of Bharat on the Big Screen

Mumbai: April 4, 2025, my heart feels heavier than it ever has. The news hit me like a monsoon storm—Manoj Kumar, the towering legend of Bollywood, the man who painted patriotism across our screens, is no more. At 87, he slipped away at Mumbai’s Kokilaben Dhirubhai Ambani Hospital, leaving behind a reel of memories that flicker in my mind like a projector that won’t stop spinning. As a movie fan who grew up with his films, I’m not just mourning an actor—I’m grieving the loss of a piece of my soul, a piece of India itself. They called him "Bharat Kumar," and oh, how he earned that name.


I remember the first time I saw ‘Upkar’ (1967). I was a kid, sprawled on the living room floor, eyes glued to our old TV. Manoj ji played Bharat, the farmer who gave everything—his dreams, his love—for his country’s soil. That song, “Mere Desh Ki Dharti,” wasn’t just a tune; it was a heartbeat, pulsing with pride and sacrifice. I’d hum it walking to school, feeling like I, too, could be that noble, that selfless. He won a National Film Award for that one, and rightly so—it wasn’t acting; it was living.

Then there was ‘Shaheed’ (1965), where he brought Bhagat Singh back to life. I’d sit there, popcorn forgotten, as he roared defiance against the British, his eyes blazing with a fire that could’ve lit up the darkest colonial night. It wasn’t just a film—it was a revolution on celluloid, a call to remember the blood that bought our freedom. Manoj ji didn’t just play the martyr; he became him, and every time I watch it, I feel that lump in my throat, that sting in my eyes. It’s no wonder it snagged three National Awards—his passion was a gift to us all.


Oh, and ‘Purab Aur Paschim’ (1970)—how do I even begin? He directed and starred as Bharat again, this time wrestling with the clash of East and West, showing us the beauty of our roots while the world tried to pull us away. I’d laugh at Saira Banu’s antics, then choke up when Manoj ji stood tall, singing “Hai Preet Jahan Ki Reet Sada.” It was a blockbuster, sure, but it was more—it was a love letter to India, penned in his signature hand-over-face style. That move, mocked by some, was his shield, his quiet strength, and I adored it.

And who could forget ‘Roti Kapda Aur Makaan’ (1974)? He directed and starred as Bharat—again, because who else could?—tackling poverty, injustice, and the gut-wrenching struggle for the basics of life. I’d watch, fists clenched, as he fought for the everyman, his voice cracking with raw emotion. It wasn’t just a movie; it was a mirror to our society, a cry for change. Seven Filmfare Awards across his career, they say, but this one felt like it carried them all—his heart bled through every frame.


Then there’s ‘Kranti’ (1981), the epic that had me on the edge of my seat. Manoj ji as the freedom fighter, leading Dilip Kumar and Hema Malini through a storm of rebellion—it was grand, it was gritty, it was everything Bollywood could be. “Zindagi Ki Na Toote Ladi” still echoes in my ears, a reminder of the battles he fought on screen, battles that felt so real I’d dream of joining the fight. He didn’t just direct that film; he sculpted a monument to resilience, and I’d cheer like a fool every time he outsmarted the British.


As I sit here, flipping through these memories, I can’t help but feel cheated. Manoj Kumar wasn’t just an actor or director—he was family. Born Harikrishan Goswami in 1937, he carried the Partition’s scars from Abbottabad to Delhi, turning pain into purpose. He gave us over 50 films in a career spanning four decades, snagging the Padma Shri in 1992 and the Dadasaheb Phalke Award in 2015—honors that felt too small for a man who gave India its cinematic soul. His last role in ‘Jai Hind’ (1999) might’ve flopped, but it didn’t dim his light in my eyes.


I’d read how he met Bhagat Singh’s mother before ‘Shaheed’, seeking her blessing—can you imagine the weight of that? Or how PM Lal Bahadur Shastri urged him to make ‘Upkar’ after the 1965 war, handing him “Jai Jawan Jai Kisan” like a sacred torch? That’s who he was—a man who didn’t just entertain but carried a nation’s dreams.


Manoj ji, you weren’t just “Bharat Kumar” to me—you were the uncle who taught me pride, the friend who shared my anger, the poet who sang my hopes. Your films weren’t movies; they were my childhood, my rebellion, my tears. I’ll miss you like I miss the India you dreamed of—flawed, fierce, and forever ours. Rest in peace, sir. Om Shanti.

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