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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.)

Sculpting Maharashtra's cultural legacy for the world

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Mumbai: In a monumental recognition of a monumental career, eminent sculptor Ram Vanji Sutar was conferred with the ‘Maharashtra Bhushan Award’, the highest civilian honour of the state by Chief Minister Devendra Fadnavis on Friday.


Born on February 19, 1925, at Gondur village of Dhule in North Maharashtra Ram Sutar is one of India’s most celebrated and prolific sculptors. A Gold Medalist from the prestigious Sir J. J. School of Art, Mumbai, he is a master of realistic sculptures, working primarily in bronze. Over a career spanning more than seven decades, Sutar has created over 8,000 sculptures, including some of the world's largest and most significant monuments. He has been honored with India's third and fourth-highest civilian awards, the Padma Bhushan (2016) and Padma Shri (1999), and the Maharashtra Bhushan award for the year 2024, cementing his place as an icon of Maharashtra's artistic heritage.


While Sutar’s most famous work is the monumental Statue Of Unity (Sardar Vallabhbhai Patel) in Gujarat, his roots and several key projects directly connect him to Maharashtra, serving as global or national ambassadors for the region's culture and iconic figures like Chhatrapati Shivaji Maharaj.


Maratha pride

As a son of Maharashtra, Sutar has immortalized the state’s foremost historical hero, the Maratha warrior king Chhatrapati Shivaji Maharaj. An equestrian statue of Chhatrapati Shivaji Maharaj (21 ft. high Bronze) is installed at the Parliament House, New Delhi, making the symbol of Maratha pride a permanent feature in India's capital. He also created its replica for the Balewadi Stadium in Pune.


Furthermore, he is credited with the final design for the proposed monumental statue of the king in the Arabian Sea off the coast of Mumbai, which would be an internationally recognized landmark.


Sutar made 18-foot tall statue of Dr. Ambedkar is installed in the Parliament. He and his son, Anil Sutar, are currently working on the Statue of Equality at the Dr. Babasaheb Ambedkar Memorial at Indu Mills in Mumbai, a mammoth project that will cement Ambedkar's legacy on a global scale.


Global reach

Sutar's mastery in sculpting lifelike figures of national leaders, often drawing inspiration from his formative years studying art and restoring sculptures at the Ajanta and Ellora Caves (Maharashtra), has given his work immense international visibility. His bust of Mahatma Gandhi, praised for its realistic and dignified representation, has been selected for installation in over 450 cities worldwide across countries like the USA, France, Russia, Australia, and the UK. While Gandhi is a national figure, Sutar's unique artistic interpretation, honed by his training in Mumbai, represents the finesse of Indian, and by extension, Maharashtrian, sculpting excellence to a global audience. His ability to capture the subtle human emotion and realism in bronze, a quality developed from his early studies in Mumbai, is often compared to the masters like Rodin and Michelangelo, drawing international attention to a master artist born and trained in Maharashtra.


In essence, Ram Sutar's colossal and internationally placed sculptures of key leaders and historical figures, particularly those rooted in Maharashtra’s history have projected the state's cultural identity, history, and artistic excellence onto the world stage.

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