The market of global music has a new blue-chip stock. Ilaiyaraaja, the Indian composer who has turned ragas into revenue for 50 years, is proof that cultural assets can outperform sovereign bonds.
This week, the maestro's orchestral works were performed at the Royal Albert Hall, merging Carnatic traditions with Western symphonic structures. The sell-out crowd wasn't just buying nostalgia; they were investing in a portfolio of melodies that have consistently delivered emotional dividends.
Ilaiyaraaja's output is staggering: over 7,000 songs across 1,000 films. That's a production line that would make a factory manager weep with envy. But it's the quality that matters. Each composition is a hedge against creative bankruptcy. In an industry where pop stars default on artistic promise, Ilaiyaraaja maintains a AAA credit rating.
The fusion of symphonies and ragas is not merely aesthetic. It's a merger of two distinct asset classes: the disciplined structure of Western classical music and the improvisational liquidity of Indian raga. The result is a derivative that generates alpha for the soul.
Contrast this with the UK's cultural sector, which has seen government grants slashed and inflation eating into real returns. The Ilaiyaraaja catalogue, by contrast, requires no bailouts. It is self-funding, generating royalties that compound year after year.
Some might call this cultural imperialism. I call it a superior investment thesis. When the Bank of England is debasing the currency with quantitative easing, Ilaiyaraaja's legacy retains its purchasing power. The notes are not printed; they are performed.
His 50-year career is a lesson in fiscal responsibility. No excessive remuneration for executives. No shareholder revolts. Just a steady stream of musical dividends paid in full. The market has already priced in future growth: his concerts are oversubscribed, his back catalogue is in high demand from streaming platforms.
Central banks could learn from him. Instead of manipulating interest rates, they should study how Ilaiyaraaja manages his asset allocation: heavy on melody, balanced by rhythm, with a small allocation to silence. That's a portfolio that beats any gilt-edged security.
As the City tightens its belt, perhaps we should look to Chennai for guidance. Ilaiyaraaja's symphonies and ragas are not just musical forms. They are a model of sustainable growth in a world of short-termism. Buy and hold, for life.
