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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.)

Growing Risks Of Cyber Warfare

Sep 22, 2024
3 min read

Updated: Oct 21, 2024

In a shocking series of events, multiple coordinated explosions have rocked Lebanon and parts of Syria, killing dozens of people and injuring thousands. The blasts occurred after explosive devices, hidden inside pagers and other radio communication devices, were detonated. The targeted individuals were primarily members of Hezbollah, with the explosions taking place in densely populated areas, resulting in widespread injuries to civilians, including children.

The devices, mainly pagers, walkie-talkies, and radios, had been in the possession of Hezbollah operatives, who had acquired them months prior, under the assumption they were secure. However, Hezbollah has accused Israel’s intelligence agency, Shin Bet, of tampering with the devices during transit.

According to security experts, Israel’s elite secret cyber warfare unit was behind the attack. This unit, known for its global cyber operations, is also linked to the creation of the STUXnet malware, which was responsible for the failure of Iran’s nuclear power plant. The pagers were rigged with explosive materials in place of a battery, and a relay switch was installed, allowing the explosions to be triggered remotely in a synchronized manner. The result was devastating injuries to the eyes, face, hands, and legs of those carrying the devices.

The incident occurred in Hezbollah-stronghold areas, including the Dahieh suburb of Beirut, southern Lebanon, and parts of the Beqaa Valley, with some explosions also reported across the border in Syria. The blasts overwhelmed hospitals, as hundreds of victims sought medical help for injuries ranging from severe burns to shattered limbs. The intensity of the explosions, far beyond that of ordinary battery malfunctions, indicates a highly sophisticated sabotage operation.

These explosions have not only deepened the crisis in Lebanon but have also raised critical questions about supply chain security, intelligence tactics, and the legality of using booby-trapped electronics in conflict zones.


What Are Pagers, and Why Are They Still Preferred?

Despite being old-school tele communication technology, pagers or beepers are still used in many countries, particularly in critical sectors and organizations. Pagers primarily facilitate one-way communication, pager uses higher frequencies than car radios i.e. 400 MHz band frequency. It also used a very basic type of VHF spectrum. These devices operate in restricted areas to transfer messages, alerts, and information. These devices are considered more secure and harder to trace or track compared to mobile phones, as they only receive messages, similar to a car radio that receives signals without revealing the listener’s identity or location. Additionally, pagers lack features like Bluetooth or GPS, making them more difficult to hack or compromise.

Among their many advantages, pagers are known for their long battery life and durability, making them ideal for continuous use in specific industries. There are an estimated two million active pager users worldwide. Hezbollah began using pagers after Israel successfully assassinated a high-ranking Hezbollah target by hacking his cellphone and precisely targeting him with a missile. Since then, many Hezbollah members have switched to more primitive communication devices, like pagers, to avoid being tracked via the internet.


Are Mobile Phones and Smartphones Similarly Vulnerable?

American and European security agencies suggest that, theoretically, it is possible to alter mobile phones and other smart devices to turn them into explosive devices. However, practically, it is more difficult due to the advanced security systems in modern smartphones. A hacked smartphone may exhibit various signs, such as abnormal temperature changes, slower system performance, unexpected reboots, odd sounds during calls, hung applications, or irrelevant messages and pop-ups, all of which could indicate tampering. These security systems make it more challenging to modify smartphones in the same manner as simpler devices like pagers.


New Security Challenges

The Hezbollah pager explosion serves as a wake-up call for sectors involving critical infrastructure and aviation. In an era where smartphones are network-connected and can be charged wirelessly, the possibility of tampering with batteries or embedding explosives, like HMX, PETN and other type of plastic explosives pose significant risks. During flights, even a minor explosion could result in catastrophic consequences. On the ground, the threat extends to damaging nearby aircraft, equipment, and infrastructure. Airport security may soon impose stricter regulations, potentially banning pagers, walkie-talkies, and radios, much like power banks, which are now restricted on flights. In the future, mobile phones may only be allowed in switched-off modes, placed in lithium-safe bags during flights. Suspicious devices could be handled separately in Faraday-sheet bags to block any network or signal connections.

This incident highlights the growing risks of cyber warfare and the dangers posed by everyday communication devices being exploited for sabotage. It is an alarming call for a nation’s security as the treat of such critical infrastructure being handled by terrorist organisations can compromise the use of day-to-day electronics for malicious activities. As technology advances, so must the protocols for ensuring public safety, particularly in high-risk environments where even the smallest vulnerability could lead to devastating consequences.

(The writer is an eminent cyber and explosives forensic expert. Views personal.)

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