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By:

C.S. Krishnamurthy

21 June 2025 at 2:15:51 pm

The power of investing

AI generated image Bengaluru: Imagine a young professional walking into a coffee shop every morning. He orders a cappuccino for Rs.120. It is a harmless indulgence, repeated almost without thought. Now imagine another young professional who skips that coffee and instead invests Rs.100 every day into an equity mutual fund through a Systematic Investment Plan (SIP). Twenty-five years later, the difference between the two decisions is transformational. The first professional has consumed...

The power of investing

AI generated image Bengaluru: Imagine a young professional walking into a coffee shop every morning. He orders a cappuccino for Rs.120. It is a harmless indulgence, repeated almost without thought. Now imagine another young professional who skips that coffee and instead invests Rs.100 every day into an equity mutual fund through a Systematic Investment Plan (SIP). Twenty-five years later, the difference between the two decisions is transformational. The first professional has consumed thousands of cups of coffee. The second may have quietly built a corpus worth more than a crore of rupees. Investors often spend enormous amounts of time chasing stock tips, market predictions and the next “multi-bagger” opportunity. Yet history repeatedly demonstrates that wealth is more often created through consistency than brilliance. The most successful investors are not necessarily those who make spectacular bets but those who remain disciplined for decades. A daily SIP of Rs. 100 may appear insignificant. Many people spend more than that on snacks, online subscriptions or impulse purchases. However, when invested regularly over long periods, even small sums can produce surprising outcomes. Consider the mathematics. An investor contributing Rs.100 a day for 25 years would invest a total of roughly Rs. 7.5 lakh. Assuming annualised returns of 12 percent, the corpus could grow to about Rs. 42 lakh. At 13 percent, it could approach Rs. 50 lakh. At 14 percent, the amount rises to nearly Rs. 58 lakh, while a 15 percent return could generate around Rs. 68 lakh. The impact becomes even more striking as the daily contribution increases. A Rs. 200 daily SIP, amounting to a total investment of Rs. 15 lakh over 25 years, could potentially grow to between Rs. 85 lakh and Rs. 1.37 crore depending on returns. A Rs. 500 daily SIP may create wealth of over Rs. 2 crore, while a Rs. 1,000 daily investment could potentially build a corpus ranging from Rs. 4 crore to nearly Rs. 7 crore over the same period. These estimates assume investments are made on roughly 300 days a year over 25 years. The exact figures may vary, but a modest increase in returns creates a disproportionately large increase in wealth when time is allowed to work its magic. In investing, time is often the most valuable asset. This is why young investors enjoy a tremendous advantage. When Warren Buffett was once asked about the secret of wealth creation, the answer was not merely intelligence. It was time. A 25-year-old investing Rs.100 daily has something more valuable than capital. He has a 25-year runway. Every year of delay diminishes the power of compounding. Investment Headstart Consider two friends. Ravi begins investing at 25, while Priya waits until 35. Both invest similar amounts and earn comparable returns. Yet Ravi’s ten-year head start often results in a substantially larger corpus, even if Priya later invests more aggressively. The lesson is simple. The best time to start investing is not when one becomes wealthy. It is when one begins earning. Unfortunately, many first-time investors postpone investing because they believe they need large sums of money to begin. That assumption often creates paralysis. A daily SIP changes the psychology of investing. Instead of asking, “Can I invest Rs. 50,000?” the question becomes, “Can I invest Rs.100 today?” The smaller question is far easier to answer. Behavioural finance has long shown that habits matter. People who begin with manageable amounts are more likely to remain invested through market cycles and periods of volatility. Small SIPs reduce emotional stress because the commitment feels affordable and sustainable. Investors are less likely to panic during market corrections. Over time, confidence grows alongside the corpus, and volatility gradually becomes less intimidating. This approach can benefit a wide range of people. Young professionals beginning their careers can cultivate financial discipline early. Students earning part-time income can learn the habit of investing before major financial responsibilities arise. Middle-income families can pursue long-term wealth creation without disrupting household budgets, while gig workers and freelancers may find small-ticket investments particularly suited to irregular income streams. The strategy is equally relevant for parents. A modest SIP started when a child is born can grow substantially over 15 or 20 years and help fund higher education, overseas studies, entrepreneurship or provide a financial head start in adulthood. Grandparents and guardians may also view such investments as a lasting legacy, allowing the power of compounding to become an inheritance in itself. Parents can gradually increase contributions as incomes rise, but the crucial step is often simply to begin. In investing, starting early frequently matters more than starting big. The objective is not merely wealth accumulation but habit formation. Disclaimer: Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.

Lingua Pragmatica

Updated: Mar 20, 2025

As Southern leaders like M.K. Stalin rage against Hindi, Andhra Pradesh’s Chief Minister Chandrababu Naidu offers a model of pragmatism over parochialism.

Chandrababu Naidu
Andhra Pradesh

Amid the cacophony of opposition in southern states to Hindi, Andhra Pradesh CM N. Chandrababu Naidu has taken a markedly pragmatic stance by remarking recently in the state Assembly that there was no harm in learning other languages. Hindi, Naidu noted, was useful for communication across India, particularly in political and commercial hubs like Delhi. His remarks, though avoiding explicit mention of the NEP, were widely seen as an endorsement of multilingualism and a rebuke to the linguistic chauvinism that has gripped parts of the South.


Few issues in India stir political passions quite like language. It is not merely a means of communication but a marker of identity, a relic of colonial resistance, and a source of political mobilization. In the southern states, where anti-Hindi sentiment has long been entrenched, the National Education Policy (NEP) 2020 and its three-language formula have reignited old tensions. No state embodies this defiance more than Tamil Nadu, where the ruling Dravida Munnetra Kazhagam (DMK) led by M.K. Stalin has framed the policy as an assault on its linguistic autonomy.


Naidu’s words, welcomed by his ally and Deputy Chief Minister Pawan Kalyan, mark a sharp contrast with the DMK’s position. Tamil Nadu’s hostility towards Hindi dates back to the 1930s, when C. Rajagopalachari’s attempt to introduce it in schools met with fierce resistance. The anti-Hindi agitations of the 1960s cemented the DMK’s ideological stance, with its first Chief Minister, C.N. Annadurai, famously warning that Hindi imposition could push Tamil Nadu towards secession.


The question, however, is whether this rigid opposition serves Tamil Nadu’s interests. While Stalin, with an eye to the upcoming Tamil Nadu Assembly polls, has been relentlessly portraying Hindi as a threat to his state’s regional identity, Naidu, a partner of the BJP-led Centre, is framing it as a tool for economic mobility. His argument is not that Hindi should replace Telugu or English but that it offers a competitive advantage.


The economic case for multilingualism is compelling. Indians who speak multiple languages tend to have better job prospects, higher earnings and greater geographic mobility. Andhra Pradesh’s Telugu-speaking diaspora is a case in point. Telugus make up a significant proportion of Indian-origin professionals in the United States, the Gulf, and Southeast Asia as Naidu pointed out, hinting that this success story was built not on linguistic rigidity but on adaptability.


In a country where inter-state migration is rising and where Hindi remains the most widely spoken language, refusing to learn it amounts to self-imposed isolation. Tamil Nadu’s approach, by contrast, risks limiting its youth. The DMK government has refused to implement the three-language policy, keeping schools strictly bilingual with Tamil and English. Its justification that Hindi is not necessary for global success could be true in a narrow sense but ignores the domestic context. If Tamil filmmakers can dub their movies into Hindi to expand their audience, why should Tamil students be denied access to the language that could open more doors for them within India?


The DMK has accused successive central governments, particularly under the Bharatiya Janata Party (BJP), of pushing Hindi at the expense of regional languages. Yet, rejecting Hindi outright is an overcorrection. The reality is that Hindi is an important language in India’s economic and political landscape. Naidu’s position, one of accommodation rather than confrontation, offers a middle ground that other Southern leaders would do well to consider.


Some states already recognize this. Karnataka, despite its own history of linguistic pride, has allowed Hindi to be taught as an optional language. Kerala, whose migrants work in Hindi-speaking regions and the Gulf, has been less hostile to Hindi education. Naidu’s model, balancing regional identity with practical necessity, offers a way forward. Languages should be embraced, not politicized. Southern leaders would do well to listen to him.

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