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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.)

Igniting Young Minds for a Scientific India

Vidyarthi Vigyan Manthan is a nationwide movement to cultivate a scientific temperament.

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India’s progress in science and technology rests upon sparking curiosity and nurturing creativity among its young people. To achieve the ambitious target of becoming a 50-trillion-dollar economy by 2047—marking a century of Independence—the nation is expected to allocate more than 6.5% of its GDP towards Research and Development. Such a transformation will only be possible if strong, inquisitive young minds develop a scientific outlook and demonstrate the willingness to contribute meaningfully through innovation, discovery, and action.


In this context, Vidyarthi Vigyan Manthan (VVM)—India’s largest app-based science talent search—has emerged as a dynamic platform that identifies promising students, nurtures their abilities, and inspires them to grow into the next generation of scientific leaders.


Vidyarthi Vigyan Manthan (VVM) is a joint initiative of Vijnana Bharati (VIBHA), NCERT, and NCSM, supported by the Ministry of Education. Conducted in 14 Indian languages and open to students from Classes 6 to 11, it is much more than an examination – it is a nationwide movement to cultivate scientific temperament and a spirit of inquiry among the youth.


The inspiration

Inspired by the vision of Dr A. P. J. Abdul Kalam and his dream of Ignited Minds, VVM seeks to evaluate not only academic knowledge but also a wider set of skills and awareness, including:

  • India’s rich scientific heritage

  • Awareness of modern research and discoveries

  • Logical reasoning and keen observational ability

  • Creativity, leadership, and teamwork


Building on this vision, VVM follows a carefully structured process to identify and nurture talent at every stage of a student’s journey.


Selection levels

  • School-Level Online Examination – A multiple-choice test of 100 questions designed to assess students’ understanding of India’s scientific contributions alongside fundamental concepts of science.

  • Advanced Online Examination – A more challenging assessment that emphasises analytical reasoning, with negative marking.

  • State-Level Camp – An engaging programme featuring hands-on experiments, group activities, and creativity-based tasks.

  • National Camp – A two-day event where top performers are awarded scholarships and internships at premier institutions such as ISRO, DRDO, CSIR, IITs, and IISERs. Those who excel at this stage are recognised as Himalayan Winners.


Success story

In 2024–25, more than 21,000 students from Maharashtra registered for VVM. Out of these, over 480 advanced to the State Camp, 48 went on to qualify for the National Camp, and 6 distinguished themselves as Himalayan Winners from Mumbai, Pune, Akola, and Buldhana. This outstanding achievement highlights the growing enthusiasm for science among young learners and the effectiveness of VVM in nurturing their potential.


Examination schedule

The Vidyarthi Vigyan Manthan (VVM) has announced the schedule for its 2025 school-level online examinations. The Level I exams will be conducted towards the end of October and the beginning of November, with separate dates allotted for different classes. Students of Classes VI and VII will take the test on 28 or 31 October, while those in Classes VIII and IX will appear on 29 October or 1 November. For Classes X and XI, the exam is slated for 30 October or 2 November. All Level I exams will be held online, with a 90-minute duration, between 10:00 am and 6:00 pm. The Level II School-Level Online Examination, open to Classes VI to XI, will follow in November. Scheduled for 19 or 23 November, it will also be conducted within the same time window but will be shorter in duration, lasting 45 minutes.


Unique VVM

The Vidyarthi Vigyan Manthan (VVM) stands apart for several reasons. Its stress-free online examination format, coupled with a curriculum that balances modern science with India’s rich scientific heritage, makes it both engaging and meaningful. For registration and more information, please visit the website: www.vvm.org.in


(The writer is an innovator, environmentalist, freelance Science journalist. Views personal.)

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