Speaking at the India Today Woman Summit 2026, Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, challenged common perceptions of what constitutes an investment. She emphasized that while many assets hold value, their ability to generate returns, the time it takes, and crucially, their liquidity, are what truly define an investment.
Jewellery vs. Financial Gold
Gupta, a self-professed lover of jewellery, stressed the importance of separating personal purchases from investment strategies. She noted that gold jewellery is rarely bought with the intention of being sold for quick cash, and it comes with additional concerns like storage, security, and significant making charges.
For those looking to invest in gold, Gupta recommended "financial gold" options such as gold funds or ETFs. These instruments provide exposure to gold prices without the practical drawbacks of physical jewellery, making them a more liquid and cost-effective investment vehicle.
Luxury Items: More Jackpot, Less Investment
The same logic, Gupta argued, applies to luxury goods like high-end handbags. While stories of certain Chanel or Hermes bags appreciating in value exist, she cautioned against treating them as reliable investments. Relying on such uncertain resale gains, she stated, is akin to "winning a jackpot" and should not form the basis of a dependable wealth-building plan.
Your Home: Asset or Investment?
A primary residence presents a similar dilemma. Gupta acknowledged the profound emotional and security value of owning a home, stressing that not every life decision needs to be purely numbers-driven. However, she warned against automatically including a primary residence in one's investment portfolio.
A home, while valuable, may not be easily convertible to cash, potentially leaving individuals "asset rich and cash poor," especially during retirement. Gupta clarified that while a home provides shelter, property bought specifically as an investment—beyond one's primary residence—must be rigorously measured on a financial spreadsheet, evaluating its actual returns and liquidity compared to other investment options.
Why Liquidity is Key for True Investments
For Gupta, financial security extends beyond mere ownership; it's about the ability to access funds when needed. She recalled her mother-in-law's appreciation for the quick accessibility of mutual funds, which offered the "dignity of money"—the independence to access one's own funds during a crisis without external reliance or delays.
Therefore, Gupta advises keeping emergency funds in safe, accessible investments rather than locking them away in illiquid assets. The fundamental distinction, she concluded, is whether an asset genuinely builds accessible wealth, considering its earnings over time and how readily that wealth can be accessed in times of need.