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By:

Kaustubh Kale

10 September 2024 at 11:37:15 pm

Nine Financial Tips for a Prosperous Navratri

As Navratri draws to a close, I wish you and your family happiness, prosperity, and continued success. Festivals are a time of celebration, but they also serve as a valuable reminder to reflect on our financial habits and strengthen our financial discipline. In the spirit of the nine days of Navratri, here are nine essential financial tips to help you stay on track with your financial goals and make your journey towards financial freedom smoother and more secure. Build an Emergency Fund Make...

Nine Financial Tips for a Prosperous Navratri

As Navratri draws to a close, I wish you and your family happiness, prosperity, and continued success. Festivals are a time of celebration, but they also serve as a valuable reminder to reflect on our financial habits and strengthen our financial discipline. In the spirit of the nine days of Navratri, here are nine essential financial tips to help you stay on track with your financial goals and make your journey towards financial freedom smoother and more secure. Build an Emergency Fund Make sure you have at least six months of living expenses saved in a bank fixed deposit or a debt mutual fund. This reserve will serve as your emergency fund for unforeseen situations and ensures you are prepared for any rainy days. Review Your Asset Allocation Revisit your investments to ensure they align with your goals. For short-term goals within three years, bank fixed deposits, recurring deposits, or debt mutual funds are appropriate. For long-term goals beyond three years, a diversified combination of hybrid/equity mutual funds, direct equities, and gold should be preferred. Do Sufficient SIPs Systematic Investment Plans (SIPs) are the backbone of disciplined investing. At least 25-30 percent of your in-hand monthly income should ideally be invested through SIPs in mutual funds, equities, and gold. This consistent approach will steadily build wealth over time. Make Lumpsum Investments Along with SIPs, voluntary lumpsum contributions into long-term assets whenever you have surplus funds can accelerate wealth creation. Even occasional lumpsum additions make a significant difference to the overall corpus. Increase Your SIPs Annually As your income increases, make sure your investments grow as well. Increasing your SIP amounts every year helps your wealth stay in line with inflation and your rising lifestyle needs. Increase your SIPs yearly and anchor them to at least 30 percent of your monthly income. Stay Invested Remain invested until your financial goals are achieved. Avoid redeeming investments unnecessarily. Frequent withdrawals disrupt compounding. If liquidity is required, consider taking an overdraft loan against your investments rather than breaking them prematurely. Health Insurance Safeguard your family with adequate health insurance. Opt for a minimum cover of 25 lakhs per family member with comprehensive features. Remember that relying only on employer-provided insurance is risky. Independent health insurance is essential. Term Life Insurance Protect your loved ones with a pure term life insurance policy. Ensure a cover of at least ten times your annual income, along with provisions for any outstanding loans. Stay away from mixing insurance with investments. A simple term plan is the most effective solution. Consult a Financial Advisor A full-time, well-qualified financial advisor can simplify your financial journey. Professional guidance ensures disciplined planning, correct product selection, and proper execution of your financial strategy. May this festive season bring abundance and lasting financial peace. (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

From Lahore to the Stars: The Genius of Subrahmanyan Chandrasekhar

Sep 22, 2024
3 min read

Updated: Oct 21, 2024

Subrahmanyan Chandrasekhar

In the autumn of 1983, browsing through a university bookshop, I stumbled upon ‘An Introduction to the Study of Stellar Structure’ by S. Chandrasekhar. The name rolled off my tongue with intrigue. Little did I know that just months later, the man behind the name, Subrahmanyan Chandrasekhar, would win the Nobel Prize for the insightful mathematics he done in 1930 — at the tender age of 19, while sailing from India to England to take up a scholarship at the University of Cambridge. His revolutionary discovery would forever change our understanding of the cosmos, even if it took the world many years to catch up with his brilliance.

Born on October 19, 1910 in Lahore to a family of Shaivite Brahmans, Chandra was a precocious if mischievous child. Tutored at home as his father distrusted the quality of the local schools – his mother taught him Tamil, his father English and mathematics – he did not enter formal schooling until he was eleven. By the time he was 15, at the Presidency College in Chennai, he was considered a maths prodigy. He was so devoted to his studies that his father used to admonish him, telling him to stop reading so much and get some fresh air. Then, at the age of 17, he spent the summer working in Kolkata, at his uncle’s laboratory, where he broke some of the apparatus, confirming for him that he was not destined to be an experimentalist. That uncle of his was C.V. Raman, famous for his work in the physics of light scattering, winner of the Nobel Prize in 1930, the first non-White person to do so in any branch of the sciences.

It was in his uncle’s laboratory that Chandra was introduced to the mathematics of the new quantum mechanics that was then transforming the world of physics, actually meeting such eminences as Arnold Sommerfeld and Werner Heisenberg. In 1929, with the help of Ralph Howard Fowler, Chandra published his first paper in the Proceedings of the Royal Society.

Fowler was to transform Chandra’s life. Fowler had been thinking about white dwarfs – small, hot, and very dense remnants of stars that have burned through all their nuclear fuel. Such stellar remnants did not make sense. Such stars should undergo total gravitational collapse. But, by applying the new quantum mechanics to white dwarfs, Fowler solved the problem of their existence.

On his voyage to England to become Fowler’s doctoral pupil at Cambridge, Chandra turned his mind to Fowler’s work on white dwarfs. Chandra’s insight was to realise that special relativistic effects must be taken into account within a white dwarf. Working out the mathematics, he demonstrated that Fowler’s explanation of the physics that stabilized white dwarfs would be true only up to a point, that there was an upper limit – now known as the Chandrasekhar Limit – to the mass of a star that could evolve into a white dwarf, about 1.4 times the mass of our sun. Any greater and the star would collapse into what we now know as a neutron star or even a black hole. Chandra’s insight has to be one of the greatest scientific discoveries of the 20th century.

However, at Cambridge, Chandra’s work on white dwarfs was to be ignored. As he completed his doctorate, he refined his calculations, and was pleasantly surprised when the great astronomer Sir Arthur Stanley Eddington, arranged for him to speak in 1935 at the Royal Astronomical Society in London. Expecting Eddington to support him, Chandra was shocked when Eddington spoke after him, ridiculing his conclusions, stating that something as large as a star could not simply disappear. Such was Eddington’s formidable prestige it would take many years for the Chandrasekhar Limit to be accepted. And it was not until 1972, when the first black hole, Cygnus X-1, was identified, that Chandra and his work would be fully vindicated.

Deciding that any future career path in England was now blighted by Eddington, Chandra returned briefly to India in 1936, where he married Lalitha, a physics scholar herself. It was a rare love match in those days. They would share a passion for literature and classical music. Unhappy with the political situation in India, Chandra and Lalitha left for the United States where he took up a position at the University of Chicago. There, he would stay for the rest of his working life, conducting much more ground-breaking research, and achieving fame as both an inspiring and intimidating teacher.

Although his Nobel Prize in 1983 was awarded solely for his youthful discovery, Chandra’s contributions to astrophysics spanned decades of groundbreaking work. Perhaps feeling the sting of the long-delayed recognition, he ended his Nobel lecture with a poignant reflection:

“The simple is the seal of the true. And beauty is the splendour of truth.”

(The writer is a novelist and retired investigator with an abiding passion for Chinese history)

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