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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.)

PR Stunts in Bollywood: Hits and Misses

Updated: Oct 21, 2024

PR Stunts in Bollywood: Hits and Misses

The film industry, like any other, is filled with both good and bad people. Recent incidents in Bollywood, however, have shown how public relations (PR) tactics can make or break a film. We’ve often seen actors promoting each other’s films and even rivals coming together, like the two Khans forgetting their past differences. But some recent PR moves have been disastrous for one film while working for another. Let’s talk about the contrasting fates of Jigra and Stree 2.


Karan Johar’s Jigra, starring Alia Bhatt, was a much-talked-about revenge drama. Despite the initial hype, it failed miserably at the box office, and many point to PR blunders as a reason. One of the key criticisms was the perception of nepotism, with Johar casting Alia Bhatt, a regular in his films. Adding fuel to the fire, the premiere show was cancelled, with Johar stating it was to “preserve the cinematic experience for all.” This raised eyebrows—why, then, wereprevious films shown to the media before release? Was it a PR strategy that backfired? It certainly didn’t work this time.


Another PR misstep came when director Vasan Bala said Jigra was never meant for Alia Bhatt, and that Karan Johar had sent her the script without his knowledge. Later, Johar clarified that Bala was only referring to grammatical errors in the script. Still, the damage was already done, and the PR gimmick fell flat.


To make matters worse, Divya Kumar Khosla, wife of T-Series head Bhushan Kumar, publicly attacked Jigra’s box office collections, even sharing pictures of empty theatres. This controversy allegedly stemmed from a story feud between Jigra and a film produced by Mukesh Bhatt called Saavi, where both films had similar themes—Jigra featuring a sister fighting for her brother, and Saavi about a wife fighting for her husband. The rivalry led to unnecessary public mudslinging, which only added to Jigra’s downfall.

On top of these issues, Manipur-based actor Bijou Thaangjam accused Jigra’s makers of unprofessionalism, claiming his dates were blocked for the film without confirmation of his role, resulting in the loss of other opportunities. He also raised concerns about how North-East actors are often treated by big production houses. This controversy added further negative PR for Jigra.


Despite all these PR attempts, the film’s fate could not be changed. In the end, as the Hindi saying goes, “Chura kharbuje par gire ya kharbuja chure par, katna toh kharbuja hi hai”—meaning, no matter what happens, the outcome was inevitable.


In contrast, Stree 2, another film that faced its own PR challenges, turned out to be a box office hit. Actor Aparshakti Khurana recently found himself caught in a controversy when he commented on the credits for the film’s success, which many interpreted as taking a jab at the lead actors. Fans of Rajkummar Rao and Shraddha Kapoor debated over who deserved more credit for the film’s success, overshadowing the contributions of others, including director Amar Kaushik.


Khurana later clarified that the success of the film should be celebrated, rather than getting entangled in debates about credit. Despite the PR blunders, Stree 2 was saved by its strong storyline, songs, and performances, proving that a film’s quality ultimately speaks louder than PR tactics.


At the end of the day, a film’s success depends on whether the common audience likes it. No amount of PR manipulation can change that. Filmmakers should remember that while they might try to sway public opinion, they cannot fool the aam aadmi.


(The author is a communication professional. Views personal.)

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