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By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

Silent Money Killer: Loss of Buying Power

In personal finance, we often worry about losing money in the stock market, dislike the volatility associated with equities or mutual funds, or feel anxious about missing out on a hot investment tip. Yet the biggest threat to our wealth is far quieter and far more dangerous: loss of buying power. It is the invisible erosion of your money caused by inflation - a force that operates every single day, without pause, without headlines, and often without being noticed until it is too late....

Silent Money Killer: Loss of Buying Power

In personal finance, we often worry about losing money in the stock market, dislike the volatility associated with equities or mutual funds, or feel anxious about missing out on a hot investment tip. Yet the biggest threat to our wealth is far quieter and far more dangerous: loss of buying power. It is the invisible erosion of your money caused by inflation - a force that operates every single day, without pause, without headlines, and often without being noticed until it is too late.
Inflation does not take away your capital visibly. It does not reduce the number in your bank account. Instead, it reduces what that number can buy. A Rs 100 note today buys far less than what it did ten years ago. This gradual and relentless decline is what truly destroys long-term financial security. The real damage happens when people invest in financial products that earn less than 10 per cent returns, especially over long periods. India’s long-term inflation averages around 6 to 7 per cent. When you add lifestyle inflation - the rising cost of healthcare, education, housing, travel, and personal aspirations - your effective inflation rate is often much higher. So, if you are earning 5 to 8 per cent on your money, you are not growing your wealth. You are moving backward. This is why low-yield products, despite feeling safe, often end up becoming wealth destroyers. Your money appears protected, but its strength - its ability to buy goods, services, experiences, and opportunities - is weakening year after year. Fixed-income products like bank fixed deposits and recurring deposits are essential, but only for short-term goals within the next three years. Beyond that period, the returns simply do not keep pace with inflation. A few products are a financial mess - they are locked in for the long term with poor liquidity and still give less than 8 per cent returns, which creates major problems in your financial goals journey. To genuinely grow wealth, your investments must consistently outperform inflation and achieve more than 10 per cent returns. For long-term financial goals - whether 5, 10, or 20 years away - only a few asset classes have historically achieved this: Direct stocks Equities represent ownership in businesses. As companies grow their revenues and profits, shareholders participate in that growth. Over long horizons, equities remain one of the most reliable inflation-beating asset classes. Equity and hybrid mutual funds These funds offer equity-debt-gold diversification, professional management, and disciplined investment structures that are essential for long-term compounding. Gold Gold has been a time-tested hedge against inflation and periods of economic uncertainty. Ultimately, financial planning is not about protecting your principal. It is about protecting and enhancing your purchasing power. That is what funds your child’s education, your child’s marriage, your retirement lifestyle, and your long-term dreams. Inflation does not announce its arrival. It works silently. The only defense is intelligent asset allocation and a long-term investment mindset. Your money is supposed to work for you. Make sure it continues to do so - not just in numbers, but in real value. (The author is a Chartered Accountant and CFA (USA). Financial Advisor.Views personal. He could be reached on 9833133605.)

Art Beyond Spaces

Updated: Mar 6

Internationally acclaimed artist Sujata Bajaj’s exhibition of paintings revolving around the cosmos are a treat. The Perfect Voice deciphers the inspiration behind her works.

Sujata Bajaj
Nebula Magna 1- 150 x 300cm Acrylic on canvas with Silver Leaf 2023
Stellar Alchemy 2 Acrylic on canvas  with Gold & Silver
Stellar Alchemy 2 Acrylic on canvas with Gold & Silver

Mumbai is all set to welcome artist Sujata Bajaj back with an exhibition of her works Spacescapes at Jehangir Art Gallery that began on March 4. Taking inspiration from the cosmos, the art show is an ongoing series of abstract paintings that embrace colour in its unrestrained form.


The Europe based artist will be in Mumbai to showcase some brilliant paintings revolving around the cosmos and its beauty.


Artist Sujata Bajaj
Artist Sujata Bajaj

Seeking escape from the restrictions imposed by the Coronavirus, Bajaj returned to her longstanding childhood fascination with astronomy, when she would be pulled out of her bed before dawn and taken outside and introduced to stargazing.


Between the seen and the unseen, where dreams and constellations collide, Sujata creates worlds that shimmer with the essence of life itself. She is not just an artist; she is a voyager of the infinite, capturing the pulse of creation with a palette of fire, starlight, and cosmic whispers.


Her work flows like a river of memory—carrying fragments of her childhood skies, where her father’s quiet presence guided her eyes to the stars. Those stars became her first teachers, speaking to her of vastness, mystery, and the silent poetry of the universe. Years later, as the world stood still in the echoing silence of a pandemic, those early lessons resurfaced, igniting her soul with a fresh purpose. The stars called her again, and this time, she answered with brushes dipped in light.


“These are not maps of galaxies or scientific renderings of space—they are symphonies of color and movement, where nebulae unfurl like celestial dancers and black holes hum with the secrets of existence. I aim to bring my canvases alive, vibrating with energy, capturing the moment when the universe first dreamed itself into life,” she cites further adding that this is her first major showing of abstract works of 17 years!


“Spacescapes is also the title of my new book which will be launched simultaneously. They mark a significant and exciting departure from my earlier works. I have been completely immersed in this project for the last five years,” she says.


The series wields color like a poet wields words—bold, fearless, and with a sense of rhythm that defies gravity. The fiery blush of a nebula, the electric greens of auroras, the cool blues of infinite horizons—all dissolve into each other, creating a language that speaks directly to the soul. There are no boundaries here, no lines to confine the imagination. Sujata invites us to lose ourselves, to drift into the boundless, where the cosmos whispers secrets to those who dare to listen.


While her earlier works were contained, structured—bold lines harnessing the chaos of her thoughts, in the present paintings the lines have dissolved, and what remains is pure freedom. It is as though she has surrendered to the universe, allowing its vastness to flow through her.


Sujata’s art is not an escape from reality; it is an elevation of it. She reminds us that the universe is not just out there—it is within us. Every burst of light, every swirl of energy on her canvas mirrors the galaxies spinning in our souls. Through her work, we become stargazers again, looking not just at the heavens but into ourselves, rediscovering the infinite that resides in the heart of every being.


The exhibition opens at the Jehangir Art gallery on March 4, 2025 and will remain open till March 10.

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