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By:

C.S. Krishnamurthy

21 June 2025 at 7:45:51 pm

Let Your SIP Fight Your EMI

When Ramesh bought his first home, he was delighted. The keys were finally in his hand, but another number immediately occupied his mind: the monthly EMI. “Now that I have some money left after paying my EMI, what should I do with it?” he asked his financial adviser. “Or should I start investing? And if I invest, won’t I be carrying a loan unnecessarily?” A home loan can run for 15, 20 or even 25 years, while the desire to become debt-free keeps growing. But does a borrower necessarily have...

Let Your SIP Fight Your EMI

When Ramesh bought his first home, he was delighted. The keys were finally in his hand, but another number immediately occupied his mind: the monthly EMI. “Now that I have some money left after paying my EMI, what should I do with it?” he asked his financial adviser. “Or should I start investing? And if I invest, won’t I be carrying a loan unnecessarily?” A home loan can run for 15, 20 or even 25 years, while the desire to become debt-free keeps growing. But does a borrower necessarily have to choose between repaying the loan faster and investing for the future? What if both could be pursued simultaneously? Could a Systematic Investment Plan (SIP) create a corpus that eventually helps reduce or even close the home loan? The idea merits consideration. A SIP is not a magic formula for becoming debt-free, but it can create a second financial track alongside the regular EMI. Two tracks, one objective Consider an illustration. Suppose a borrower takes a home loan of ₹50 lakh at an assumed interest rate of 8.5 pc for 20 years. The EMI would be around ₹43,400.
Instead of putting every available rupee into the loan, the borrower could consider investing ₹10,000 a month through a SIP, provided the household cash flow permits it. At an assumed annualised return of 12 pc, a ₹10,000 monthly SIP could grow to roughly ₹8.24 lakh in five years, ₹23.23 lakh in 10 years, ₹32.22 lakh in 12 years and ₹50.45 lakh in 15 years. While these are not guaranteed returns, the possibility of higher returns is also not ruled out. Meanwhile, the outstanding home loan would gradually decline through EMIs. Over eight to 10 years, the SIP corpus could become substantial enough to give the borrower an additional financial option. The important point is not to decide today exactly when the loan will be closed, but to review the position when the time comes. Why not simply prepay? Prepaying the home loan provides a relatively certain benefit because every rupee of principal repaid reduces future interest outgo, subject to the loan terms and applicable rules. The SIP serves a different purpose. It creates a financial asset and, over the long term, gives the investor an opportunity to participate in the growth potential of financial markets. The decision point comes later The strategy need not have a fixed finish line. After eight to 10 years, the borrower can review the situation rather than mechanically redeeming the SIP. What is the outstanding loan, the investment value and its performance? What are the prevailing market conditions? Is part-prepayment more appropriate than full repayment? These questions can guide the decision. If the corpus has grown sufficiently and circumstances are favourable, the borrower may consider using part of it to reduce the outstanding loan or, if appropriate, redeeming enough to close the loan completely. If the investment is better retained for the long term, there is no compulsion to exit merely because 10 years have passed. The strength of the strategy lies in this flexibility. Think beyond the loan A long-term SIP is not merely a future home-loan repayment fund. It can become a wealth-creation vehicle in its own right. Compounding rewards patience. A disciplined monthly investment held for the long term can help build a corpus for retirement, children’s education, other life goals or financial independence. Thus, while the home loan moves towards closure through the EMI, the investment has the opportunity to grow alongside it. Once the loan is eventually closed, the EMI disappears. Instead of allowing that money to quietly disappear into lifestyle expenses, the borrower can redirect some or all of the former EMI towards investments. A sensible balance This approach is not a universal prescription. Some borrowers may prefer aggressive loan prepayment, while others may find the combination of EMI and SIP more suitable. The SIP amount should also be comfortable. If ₹10,000 strains the monthly budget, start with less. The strategy should strengthen financial security, not create financial pressure. Adequate emergency savings and appropriate insurance should also form part of the overall financial plan. The larger lesson is simple: a home loan need not automatically put wealth creation on hold. With disciplined cash-flow management, a long-term investment approach and periodic reviews, the EMI can continue paying for today’s home while the SIP works towards tomorrow’s financial freedom. In the end, the question need not be, “Loan or investment?” It can be: “How can I use both wisely?” Disclaimer: “Mutual funds are subject to market risks. Read all scheme-related documents carefully.” (The writer is a retired banker and author. Views personal.)

From Reel to Real: Can Actor Vijay Rewrite Tamil Nadu’s Political Script?

Sep 16, 2025
5 min read

An icon’s fanfare is no substitute for political substance in the world’s most theatrically competitive state.

Cinema and politics have long shared a complicated romance in Tamil Nadu. The state’s political landscape, ever so vibrant, has historically been shaped by the intersection of mass appeal and ideological fervour. In the post-independence era, Tamil cinema did not just reflect society but actively shaped political narratives, with actors stepping into politics as charismatic protagonists of change. M.G. Ramachandran (MGR) and J. Jayalalithaa remain emblematic of this phenomenon as stars who became power brokers, blending celluloid heroism with political strategy to build enduring legacies. Their careers underscored that success was not guaranteed by screen presence alone but required a savvy mix of grassroots organisation, ideological commitment and strategic alliances.


Though whispers of political ambition first surfaced in 2020, Vijay’s formal foray came only in February 2024, with the TVK’s launch heralded as a potential game-changer. His inaugural public salvo in Vikravandi saw him sharply criticising both the DMK and the Bharatiya Janata Party (BJP), deriding their indecision on the National Education Policy as the behaviour of “kindergarten students.” While it was a bold remark, Tamil Nadu’s political theatre demands more than a few soundbites.


The political history of the state provides cautionary tales. MGR did not ascend overnight. His success was built on decades of association with the Dravidian movement, commitment to social justice, and shrewd organisational expansion. Jayalalithaa, too, transformed early scepticism about her political acumen into long-term dominance, combining grassroots connect with a highly disciplined party machine. Their genius lay in turning cinematic personas into political symbols while embedding themselves in the party apparatus and the popular imagination.


Tamil identity

The roots of this phenomenon trace back to the 1950s, when C.N. Annadurai’s DravidaMunnetraKazhagam (DMK) broke the Congress’s monopoly in the state, promoting Tamil identity, anti-Hindi agitation, and social justice as rallying causes. The DMK’s dramatic rise in 1967 came amid mounting opposition to perceived northern dominance, cultural imposition, and caste hierarchies. It was the first successful challenge to the national party after independence, reshaping Tamil Nadu’s politics into a battleground of regionalism and populism. By contrast, the AIADMK’s formation in 1972 was born of internal dissent within the DMK, led by MGR, himself an icon of popular culture and Dravidian ideology. His ability to merge mass appeal with political activism allowed the AIADMK to challenge and often supplant the DMK in subsequent decades, with Jayalalithaa emerging as a political titan in the 1990s. The rivalry between the two Dravidian giants has since defined Tamil Nadu’s political discourse, often eclipsing national parties like the Congress and BJP, which remain marginal forces in the state.


Conversely, the experiences of Sivaji Ganesan and Kamal Haasan offer stark warnings. Ganesan, lauded as one of Tamil cinema’s greatest actors, failed to convert public adulation into political influence. His political outings remained largely ceremonial, lacking sustained mass mobilisation. Kamal Haasan’sMakkalNeedhiMaiam (MNM), despite a high-profile launch and civic activism, has struggled electorally, unable to breach even the five per cent threshold in assembly polls. Today, MNM plays a marginal role, often reduced to aligning with the DMK rather than charting its own course.


Vijayakanth’s DesiyaMurpokku Dravida Kazhagam (DMDK) provides another sobering precedent. The party once looked promising, securing nearly 9 per cent of the vote in the 2006 assembly elections, challenging the established duopoly. Yet poor organisational depth, erratic alliances, and his eventual ill health led the party into political oblivion within a decade. The political arena, especially in Tamil Nadu, is unforgiving to those who mistake celebrity for strategy.


Vijay appears to have taken note of these historical lessons. His early political messaging emphasises Dravidian pride, social justice and anti-corruption - core themes that have long resonated in Tamil Nadu’s public discourse. But words, however well-crafted, must now be accompanied by action. The crux of TVK’s challenge is structural: transforming Vijay’s popularity into a disciplined political machine capable of sustained electoral engagement.


The paradox of Tamil Nadu’s political culture lies in its dual demand for star charisma and organisationalrigour. A fan base that fills auditoriums and floods social media is not automatically a political cadre. To contest and win, a party must build a presence at the booth level, nurture second-line leaders, and develop coherent policy positions that appeal beyond the spectacle of personal charisma. At present, Vijay remains the TVK’s singular political face which can be a potentially dangerous concentration of authority.


Speculation about a tie-up with the AIADMK persists, though such a move could undermine TVK’s claim of presenting a fresh alternative. Voters in Tamil Nadu, long accustomed to ideological battles between the Dravidian giants, will demand clarity: Is TVK a genuine political revolution or a repackaging of star power? Clear policy proposals on education, employment, industrial development, and social welfare will be essential to answer this question.


The Rajinikanth Factor

No discussion of Tamil cinema’s political ambitions is complete without the shadow of Rajinikanth. The superstar toyed with political plans for years, only to withdraw citing health concerns and the inherent unpredictability of the political process. His retreat highlighted a hard truth: Tamil Nadu’s electorate may revere stardom, but it does not easily forgive lack of substance or ideological direction.


Rajinikanth had toyed with the idea of ‘spiritual politics’ - a vision divorced from the deeply secular, anti-Brahmin, and social justice-oriented foundations of the Dravidian movement. His equivocation exposed the mismatch between celebrity persona and political ideology. Vijay now faces that same test. His challenge is not merely to represent nostalgia for cinematic greatness, but to ground his movement in tangible demands and ideological consistency.


Acid Test

The next assembly elections, scheduled for 2026, loom as Vijay’s first real political test. History shows that Tamil Nadu’s political shifts occurred when leaders created palpable waves—whether it was the DMK’s triumph in 1967, ousting the Congress on a wave of anti-Hindi sentiment, or the AIADMK’s spectacular entry in 1977, capitalising on the charisma and populism of MGR.


Yet, beyond electoral arithmetic lies the historical legacy of caste mobilisation and welfare politics.


The Dravidian movement itself was founded on anti-caste narratives, challenging Brahminical domination and uplifting backward castes. Welfare populism pioneered by MGR and later Jayalalithaa has redefined state-citizen relations, from subsidised food to social security schemes.


Vijay’s TVK will need to position itself within this historical trajectory else risk fading into irrelevance. For TVK to emulate such feats, it must first evolve from a one-man show into a party with institutional depth. This entails building local leadership, formulating credible policy platforms, and investing in organisational machinery that extends beyond flash-in-the-pan campaigns. The temptation to rely solely on Vijay’s star power will be a strategic folly.


Moreover, Tamil Nadu’s electorate has matured. Voters no longer respond simply to the cult of personality; they expect detailed positions on pressing issues: job creation in the face of a slowing economy, improving public education, reforming health infrastructure, and navigating caste dynamics that remain potent political fault lines.


As the curtain rises on this new chapter, the stakes are high. Will Vijay merely be a passing comet – bright and dazzling but ultimately ephemeral or will he succeed in crafting a political legacy that stands apart from those of his predecessors? The answer lies not in cinematic drama but in whether he can ensure discipline, a strong organisation and policy coherence.

(The writer is a Bengaluru-based political commentator. Views personal.)

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