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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.)

Metronome of the Gods

19-year-old Devvrat Rekhe has revived one of Hinduism’s most forbidding oral rituals, proving Bharat’s ancient faith has not yet lost its voice in an age of consumption and constant noise.

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Earlier this week, as the winter light thinned over the Ghats of Varanasi, Prime Minister Narendra Modi paused from his usual duties of state to applaud a feat that belonged to a far older civilisation than the modern republic he governs. Modi, himself the Member of Parliament from the holy city, hailed the achievement of a 19-year-old Maharashtra-born Vedic scholar, Devvrat Mahesh Rekhe, who had just completed one of the most exacting oral disciplines known to Hindu tradition: the Dandakrama Parayanam of the Shukla Yajurveda, Madhyandina Shakha.


For fifty unbroken days from October 2 to November 30, the youthful Rekhe had recited nearly 2,000 mantras in a style so intricate and physically demanding that it has been attempted only a handful of times in recorded history. Scholars say that the Dandakrama, one of the eight vikrutis (complex recitational permutations of Vedic texts), tests not merely memory but breath control, tonal precision and absolute mental steadiness. A single slip breaks the chain. Across the centuries, very few have been judged equal to it.


That this ascetic marathon unfolded in modern Varanasi amid traffic horns and the rumble of mass tourism only deepened its improbability. The last known Dandakrama Parayanam in India was performed two centuries ago in Nashik. Now, against all odds, the ancient cadence has returned to Kashi.


The Vedas, composed more than three millennia ago, predate writing in the Indian subcontinent. They survived not by inscription but by sound, carried from teacher to student through unbroken chains of oral transmission, protected by elaborate mnemonic systems. Among these systems, the vikrutis function as intellectual fortresses. By rearranging word orders and reversals in mathematically precise ways, they ensure both perfect recall and protection against textual corruption.


Dandakrama is among the most severe of these fortifications. It demands continuous, errorless recitation in a highly regimented acoustic sequence, often accompanied by bodily austerities. Scholars at the Sringeri Sharada Peetham, the most prestigious of India’s classical monastic seats, certified Rekhe’s performance as flawless and “completed in the shortest known span.”


Rekhe was later honoured with a ceremonial procession through Varanasi and a gold ornament from the Jagadguru Shankaracharya of Sringeri, the spectacle fused two Indias: one of uninterrupted sacred tradition, the other of televised reverence and political symbolism.


Born in Maharashtra’s Ahilyanagar district into a modest Brahmin household, Rekhe’s father, Mahesh Chandrakant Rekhe, is both a respected scholar and his first guru. The boy began reciting mantras at the age of five. By nineteen, he had memorised the entire Shukla Yajurveda in its Madhyandina recension which, on its terms, is a feat rare enough.


Rekhe’s life more closely resembles that of a medieval gurukul student than a contemporary Indian teenager. He avoids mobile phones and social media. His days are structured around recitation, ritual precision and austere routine. Teachers describe his temperament as unusually focused, and his absorption near-total.


Rekhe’s Dandakrama Parayanam was conducted at the Vallabharam Shaligram Sangveda Vidyalaya near Ramghat, but it unfolded under national gaze. Over 500 Vedic students, musicians and devotees joined the celebratory procession that followed. He was presented with a golden bracelet worth Rs. 5 lakh and an honorarium of Rs. 1,11,116 in a modern ritual of valuation layered upon an ancient act of renunciation.


To admirers, Rekhe’s stupendous achievement is proof that India’s oral civilisation remains intact. When asked about the purpose of his undertaking, Rekhe’s said it was “for Sanatan Dharma…that the world may be blessed, Sanatan Dharma may progress, and our nation Bharat may become Vishwaguru.”


India often boasts of being an ancient civilisation, but antiquity survives only through repeated acts of renewal. The Vedas, unlike monuments, cannot be conserved by the modern state. They must be inhabited by human memory, breath and errorless endurance. Each generation, in effect, must rebuild them.


Dandakrama Parayanam is among the steepest of these rebuildings. The fact that a teenager could perform it in the age of algorithmic distraction unsettles standard assumptions about modernity’s erasures. It suggests that the old grammar of discipline still finds apprentices.


Two hundred years after it last echoed in public memory, the Dandakrama has once more passed through human breath in Kashi. Civilisations rarely announce their survival so audibly. But Devvrat Rekhe did that and much more. 


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