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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.)

‘Zakir Bhai was a bridge who connected generations, genres

Updated: Feb 14

Pancham Nishad

There’s a treat awaiting music lovers on February 16 as 3 Sur 3 Taal – Sangeetmay Tihai will offer a day-long musical fiesta. Organised by Pancham Nishad and the Yashwantrao Chavan Centre, it’s a celebration of Indian classical music and a tribute to the legendary Ustad Zakir Hussain. In an interview with ‘The Perfect Voice’, Shashi Vyas, founder of Pancham Nishad, which organises music events across the city, talks about the event and whether classical music continues to enjoy popularity among the young audiences.


What is the concept of 3 Sur 3 Taal?

Teen Sur Teen Taal is a simple yet profound celebration of the essence of Indian classical music. The idea is to bring together three fundamental aspects—Kanthswars (vocal music), Swarvadyas (melodic instruments), and Taalvadyas (percussion)—and present them in a way that resonates with both seasoned listeners and new audiences.


Indian music has always been a confluence of melody, rhythm, and voice—each playing an integral role in shaping its beauty. This event is a heartfelt pranaam to Zakir Bhai, a musician who embodied the very soul of rhythm, yet always saw music as a seamless unity of all its elements. Through this, we wish to carry forward his vision—where the tradition remains strong, yet young talent is given the wings to take it forward.


It is believed that this idea was conceptualised by Zakir Husain and you.

The seed for 3 Sur 3 Taal was planted many years ago in one of my conversations with Zakir Bhai. We would often discuss the need for a space where emerging musicians could blossom while staying deeply connected to the roots of tradition. It was an idea we both cherished, but as life would have it, our schedules never allowed us to bring it to life together. Last year, when we lost Zakir Bhai, it left a void that can never truly be filled. But his music, his philosophy, his warmth—those remain. And so, I felt that this was the time to bring 3 Sur 3 Taal to fruition, not just remembering him, but as a continuation of his belief that young musicians are the future, and they must be nurtured with love and respect.


Who are the key artists performing in this day-long programme?

This event is a celebration of young musical brilliance, and we are blessed to have some of the most promising artists performing. Among the tabla soloists, we have Vivek Pandya, Ishaan Ghosh, and Yashwant Vaishnav—each one carrying forward the rich legacy of rhythm with incredible dedication. On the melodic side, we have the mesmerizing sitar of Mehtab Ali Niazi, the soulful flute of S. Akash, and the deeply evocative sarangi of Momin Khan, and in the vocal segment, we will be enchanted by the voices of Aniruddha Aithal, Armaan Khan, and Gandhar Deshpande, who are each bringing their own interpretation of our musical heritage. Guiding the spirit of this event, Yogesh Samsi will share his reflections on Zakir Bhai’s contributions, giving us all a deeper insight into not just the music, but the man behind it."


What was Ustad Zakir Hussain’s biggest contribution to Indian music?

Zakir Bhai was not just a tabla player—he was a bridge. He connected generations, genres, and geographies. He brought the tabla to the world stage, not by changing its essence, but by revealing its universality. His biggest contribution was his ability to make rhythm feel like a conversation—whether it was a complex tihai in a classical concert, a dynamic exchange with jazz legends, or a simple kaida that he would play with such joy that even a child would be drawn to it. But beyond the music, it was Zakir Bhai’s humility, his warmth, and his ability to make every artist—young or old—feel valued. That is his true legacy. He showed us that mastery is not about being the best, but about giving your best, with love and sincerity."*


How can we draw more young people to classical music?

The beauty of classical music is that it is timeless. The challenge is not in making it relevant, but in making it accessible. Zakir Bhai always believed that young minds must experience music, not just listen to it. If we create spaces where they can feel the energy of a live performance, interact with artists, and immerse themselves in the joy of sur and taal, they will naturally be drawn to it. We must also celebrate young talent, encourage new voices, and most importantly, present music in a way that speaks to today’s generation without compromising its depth. That is precisely what '3 Sur 3 Taal' – Sangeetmay Tihai aims to do—build a bridge where tradition and youth walk together, just as Zakir Bhai always envisioned.


The show starts at 9 AM on February 16 at the Yashwatrao Chavan Centre, Nariman Point and is free for all to attend.

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