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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.)

Tracing the Legacy of the Alam in Moharram Observances

The alam symbolises both the eternal victory of Imam Hussain and the sorrow of martyrdom.


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The alam is a key feature of Moharram observances, displayed in processions and imambaras alongside tazias—replicas of Imam Hussain’s shrine in Karbala, Iraq. The word alam means flag or standard, or the colour assigned to a military unit in modern parlance.


In Moharram, the alam symbolises both the eternal victory of Imam Hussain and the sorrow of martyrdom, recalling how his head and those of his followers were raised on spears and paraded through cities.


The tragedy of Karbala occurred in 680 AD, fifty years after the Prophet Mohammad’s death, when the Umayyad ruler Yazid declared himself Caliph and demanded Imam Hussain’s allegiance. As was customary, he sought Hussain’s submission by asking for his hand under his own. Refusing to legitimise Yazid’s unjust and tyrannical rule, Imam Hussain chose martyrdom, sacrificing himself and his 72 followers in the battle of Karbala on the 10th of Moharram, 61 Hijri (10 October 680 AD).


The alam often features a metal hand atop a decorated wooden mace, symbolising Hussain’s hand raised above Yazid’s. This hand also represents faith in the holy five—Mohammad, Ali, Fatima, Hasan, and Hussain. The bearer of the alam is called the alambardar, and three legendary flag bearers in Islamic history are Maula Ali (father of Imam Hussain), his brother Hazrat Jafar, and another son, Hazrat Abbas.


Like Ali, Jafar and Abbas symbolised valour and victory. In the Battle of Maota, Jafar lost both arms. Islamic tradition holds that Allah granted him emerald wings in heaven, inspiring the entirely green alam adorned with wing-shaped emblems at the top. In the Battle of Karbala, Abbas, commander of Hussain’s small force, lost both arms while attempting to fetch water for Hussain’s thirsty children during Yazid’s blockade. His alam, known as Abbas ka alam, features a small fabric mashk (water bag), pierced by an enemy arrow and spilling water onto the sands of Karbala—a symbol preserved in the alam ever since.


Attached to the alam is a rectangular banner called a patka, embroidered with gold and silver. Originally, the alam bore a green faraira (flag), but today it is usually black or white with red marks symbolising Abbas’s blood. The use of embroidered banners likely derives from Muslim courts and royal processions, where similar rectangular banners inscribed with Quranic verses were common. Such banners also appear in Christian religious processions across Iraq, Syria, Central Asia, and Europe. For example, the tower atop Jaisalmer’s Badal Palace is known as the “Tazia Tower” for resembling the tazias carried during Moharram.


In India, Shia rulers of Awadh, Murshidabad, Bengal, Hyderabad, Rampur, Mahmudabad, and other principalities infused azadari (Moharram observances) with royal splendour. They organised majestic tazia processions and built palace-like imambaras adorned with glasswork, mirrors, carpets, and precious metals. The alams made of gold and silver, along with richly embroidered patkas, echoed royal banners. Indo-Islamic traditions enriched each other over time. The tower atop Jaisalmer’s Badal Palace is known as the “Tazia Tower” for its resemblance to tazias paraded during Moharram.


Today, these alams are displayed annually in public and private imambaras across the subcontinent. The symbolic hand atop the alam has evolved into many designs and sizes The Taimuri alam at Mahmudabad Fort is a rare antique. At the same time, full-length alams—now uncommon—are preserved in the imambaras of Nawab Luft Ali Khan and Badshah Nawab Sahab in Patna, and at four sites in Lucknow: Qasr-e-Hussaini, Naya Najaf, and the imambaras of Agha Baqar and Ghariyali. In Iraq and Iran, similar massive alams are carried on roller stands.


Exquisite Awazi alams, featuring precious stones dangling from the insignia, and finely embroidered patkas are found at Deputy Azeem Sahab’s imambara in Sultan Palace, Wazirganj, Lucknow.


Awadh historian Ammar-e-Yasir holds an enchanting collection of antique alams and provides insightful commentary on their variety. Each design bears a specific name—Par-e-Buraq, Jangi Alam, Doo Saifi, Naiza, Tughra (calligraphy), Mahi (fish), Taoos (peacock), Sher Daha (lion-headed), Zareechy (wooden patka), and Awazi. The Zulfiqari Alam is prominently displayed on the mimbar (pulpit) of Lucknow’s Kala Imambara.


The hand on the alam also has a participatory significance. During Moharram majlises, devotees raise both hands in unison, responding to the cry “Labbaik Ya Hussain” (“We are here, O Hussain!”).


In India, three major alam processions stand out: Bibi ka Alam in Hyderabad, and Fatah-e-Furat and Shab-e-Ashur in Lucknow. Significant Moharram gatherings also take place in Srinagar, Zadibal, Badgam, and Kargil in Jammu & Kashmir.


(The writer is a lawyer and an expert in history and culture. Views personal.)

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