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By:

C.S. Krishnamurthy

21 June 2025 at 2:15:51 pm

Risk Refines Returns

An anxious investor entered his adviser’s office, clutching a file of stock charts. He was convinced he had found the perfect moment to enter the market. His plan was to wait for the precise dip, jump in, make quick gains and exit smartly. The adviser smiled gently, the way a teacher smiles at a student who thinks the syllabus ends with the first chapter, and began narrating a small tale that has stayed with me for long. He spoke of two farmers. One sowed seeds as the monsoon clouds gathered,...

Risk Refines Returns

An anxious investor entered his adviser’s office, clutching a file of stock charts. He was convinced he had found the perfect moment to enter the market. His plan was to wait for the precise dip, jump in, make quick gains and exit smartly. The adviser smiled gently, the way a teacher smiles at a student who thinks the syllabus ends with the first chapter, and began narrating a small tale that has stayed with me for long. He spoke of two farmers. One sowed seeds as the monsoon clouds gathered, tended the soil, and trusted sun, rain, and time. The other waited on a hilltop for the perfect cloud, believing precision mattered more than action. He kept climbing, analysing patterns. When the rains finally came, the first had green shoots breaking the earth. The second had only reasons. The adviser paused and said markets behave similarly: prepare early, stay invested, and let time do the real work. This simple story captures a truth that investors often forget. Most people desire higher returns, but very few want the risk that accompanies those returns. In wealth management, the principle remains constant across decades: high return requires high risk, low risk brings low return. What separates successful investors from frustrated ones is not luck or timing, but the ability to align risk, return and time horizon with the purpose of money. Risk Realities Consider a parent whose child’s college fees are due next year. A rising equity market may look attractive, but it is the wrong choice for such near-term needs. Even a small correction can upset careful plans. Here, safety matters more than growth because the goal is fixed and non-negotiable. Now contrast this with a young professional in her twenties avoiding equity due to fear of volatility. Ironically, she takes the bigger risk. By shunning growth assets, she risks losing future purchasing power. For her, time is a powerful ally that cushions volatility and rewards patience. Wealth planning begins with understanding three elements. The first is risk capacity. This is the financial ability to take risk. It depends on income, savings, liabilities and, most importantly, time horizon. A thirty-year window offers room for market ups and downs. A one-year window does not. When capacity is misunderstood, investors either become too aggressive or unduly conservative. The second is risk attitude. This has nothing to do with spreadsheets, and everything to do with psychology. Some investors can see their portfolio fall twenty pc and continue sleeping peacefully. Others panic if their units fall two pc. Knowing one’s emotional bandwidth is vital. A perfect portfolio is useless if the investor abandons it during the first storm. Behavioural finance teaches us that panic selling, not market decline, destroyed long-term wealth. Balancing fear and greed matter. The third is investment need. This is often ignored because investors chase returns without asking what return is actually required to achieve their goals. If a goal needs nine pc annual growth, why chase fourteen pc with twice the risk. When all three elements align, portfolios stop being products and begin to act as strategic tools that move families closer to their life outcomes. Purpose Planning Remember, risk is not a bad word, nor an enemy to fear, but a knife to be handled wisely. In skilled hands, it slices food, and in a surgeon’s care, heals bodies with precision. In careless use, it wounds deeply. When aligned with goals and time, risk builds wealth. Long-term investing lies in respecting its sharp edge and using it with patience and discipline. In the end, the adviser reminded the anxious investor that the greatest financial risk is not volatility, but a portfolio that does not match its purpose. Timing the market might offer a few lucky victories, but time in the market builds lasting wealth. Seeds grow not because the farmer predicts rain, but because he plants them early and let nature work. That lesson holds for every investor. Goal setting, disciplined risk alignment and the patience to let compounding work turn uncertainties into opportunities. Wealth is not created by chasing returns, but by respecting time.  If you are ready to follow discipline in investment, risk can turn into opportunity. (The writer is a retired banker and author of ‘Money Does Matter.’ Views personal.)

Made in India, Meant for the World

India’s scientific future lies in marrying local self-reliance with global collaboration.

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Can a nation advance through science while also welcoming the world? For India, the answer might be found not in choosing between nationalism and globalism in science, but in learning how to combine both. Scientific nationalism emphasizes developing local capabilities and aligning research with national goals, strategic interests and societal needs.

 

Scientific globalism, on the other hand, promotes open exchange and the shared pursuit of knowledge across borders. These are not mutually exclusive ideals. However, balancing them in practice requires careful planning, especially in a world shaped by geopolitics, pandemics and technology races.

 

A striking recent example is the successful launch on July 30, 2025, of the NASA–ISRO Synthetic Aperture Radar (NISAR) satellite. Carried into sun-synchronous polar orbit by ISRO’s GSLV-F16 rocket from Sriharikota, this $1.5 billion mission is a product of more than a decade of Indo–US scientific cooperation. NISAR will map subtle changes in the Earth’s surface every twelve days using dual-frequency radar, helping scientists monitor glaciers, earthquakes, wetlands, crop cycles, and coastal changes. It is a model of what can be achieved when national space agencies pool expertise for global benefit. The data will not only serve India’s planning and disaster response but will also contribute to planetary-scale climate science and ecosystem studies. NISAR embodies scientific globalism in service of national priorities. It represents a rare and valuable synthesis.

 

This spirit of collaboration stems from India’s long-standing tradition of blending scientific self-reliance with openness to global knowledge. The roots of scientific nationalism were established during the independence movement, with leaders like Jawaharlal Nehru viewing science as the driving force of progress in an independent country. Institutions such as the Council of Scientific and Industrial Research, Indian Council of Agricultural Research, and later, the Indian Space Research Organisation, were created to promote self-reliance. That legacy persists through initiatives like ‘Make in India’ and ‘Atmanirbhar Bharat,’ which focus on developing domestic technologies. The COVID-19 pandemic reaffirmed this approach. India created indigenous diagnostics, ventilators and the Covaxin vaccine, demonstrating both technological skill and the symbolic strength of self-sufficiency.

 

From the very beginning, India’s scientific identity has been closely linked to international collaboration. The Green Revolution benefited from global partnerships. Indian researchers have contributed to projects at CERN, the Square Kilometre Array, and the upcoming LIGO-India facility. Indian-origin scientists are among the most influential voices in global science today. Through the International Solar Alliance, climate change treaties, and space diplomacy, India has become a significant player in science-based global governance.

 

Simultaneously, the global environment is evolving. Countries are becoming more aware of technological sovereignty, intellectual property management, and the resilience of their domestic innovation ecosystems. Disruptions in supply chains, strategic dependencies, and geopolitical rivalries have prompted many nations, including India, to rethink their scientific strategies. There is a strong push for mission-driven research aligned with national priorities. For India, these priorities include groundwater purification in arsenic-contaminated areas, enhancing crop yield resilience amid unpredictable rainfall, affordable clean energy, and AI for social good. These are specific Indian challenges that might not garner international attention but require national-level solutions.

 

However, scientific self-reliance should not lead to scientific isolation. Modern science relies on shared data, international collaborations and co-authored knowledge. India cannot afford to isolate itself behind closed borders. Today’s major challenges like climate change, food security and cyber threats demand multilateral solutions. Our scientific diaspora, one of the largest in the world, serves as a bridge to this global effort. But to benefit from this network, the country must promote openness and easier engagement.

 

The true challenge is not choosing between scientific nationalism and globalism, but in skilfully blending them. It is essential to identify and invest in areas where national capability is crucial, such as semiconductors, quantum technologies, biotechnology, and space systems. At the same time, India should strengthen well-structured, rules-based international partnerships.

 

To support this dual approach, institutional reforms are necessary. Science funding should be flexible enough to support both nationally driven priorities and curiosity-led international collaborations. Streamlining bureaucratic procedures for international material transfer, researcher mobility and joint funding proposals will decrease friction and foster trust. The proposed Anusandhan National Research Foundation could become a platform for aligning domestic mission goals with international excellence if it adopts inclusive, transparent, and adaptive governance.

 

A cultural shift is equally vital. Scientists should be encouraged to pursue excellence without seeing global engagement as disloyalty or national service as narrow. Evaluation systems must reward originality, impact, and ethics, not just volume or institutional ties. India should also embrace diverse sources of knowledge including grassroots innovations and traditional practices while ensuring all claims are rigorously scientifically validated. This epistemological openness could become India’s unique contribution to global science.

 

There is also a moral duty. Indian science should not only seek global recognition but also promote equity and justice within the country. Innovations like the Jaipur Foot, developed in India and used in over 30 countries, show how affordable, inclusive technologies can make a difference worldwide. Solutions that serve the poorest often hold the most global value. In this way, scientific nationalism can become a path for global good, and scientific globalism can be a means of empowering the nation.

 

Scientific nationalism, when effectively guided, fosters confidence and purpose. Scientific globalism, rooted in mutual respect, facilitates scale and discovery. Together, they provide a framework for a safer, fairer, and more enlightened future. India, with its rich intellectual heritage, demographic edge, and strong institutional foundation, is ideally positioned to lead by example.

 

Finding the right balance is not about compromise; it is about vision. India should safeguard its strategic interests while keeping its scientific doors open. In science, as in diplomacy, clear purpose and flexible partnerships will determine the way forward. The world is watching. India is prepared.

 

(The author is the former Director of Agharkar Research Institute, Pune and a Visiting Professor, IIT Bombay. Views personal)

 

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