Radhika Gupta believes investors must distinguish valuable possessions from sound financial investments. Something can retain value without becoming a suitable financial asset, according to the managing director and chief executive of Edelweiss Mutual Fund.
Radhika Gupta discussed this distinction at the India Today Woman Summit 2026. During her appearance, she distinguished between physical and financial investments. Investors should consider how easily assets can be converted into usable money. This ability becomes especially important during emergencies or financial difficulties.
Gupta used the example of gold jewellery to explain the difference. She personally loves jewellery and understands its emotional and cultural appeal. However, buying jewellery for consumption differs from investing in gold.
Most owners do not regularly sell their jewellery for money. Physical gold also creates storage and security concerns. Buyers also pay making charges when purchasing jewellery. These costs can reduce its effectiveness as an investment.
“If you are buying gold for your portfolio, please buy financial gold,” Gupta advised.
Financial gold provides exposure to gold price fluctuations. Investors can use products, such as gold funds, for this purpose. These funds avoid the physical storage of jewellery or gold.
However, Gupta does not recommend building an entire portfolio around gold. She considers gold a component of a diversified investment plan.
Her “Indian thali” comparison illustrates this approach. A balanced financial plate includes gold, equity and debt.
Equity is the engine of wealth creation and portfolio growth, according to her. Keeping all your money in a bank account yields only 4% to 5% after tax.
Since inflation in India is also around 4% to 5%, doing nothing means your money loses purchasing power every year. Equity is essential to beat inflation and grow wealth.
Debt represents fixed-income investments that provide stable, safe returns unaffected by sudden market shocks or political events. Then, Radhika Gupta identified the ‘joker’ in an investment portfolio.
“Gold is like that joker in your portfolio. It does well when no one does. So, most portfolios have 10% gold,” she said.
“So, you have to have equity, debt, and gold. One to create wealth, one to protect in a crisis, and one when you just need money,” Gupta added.
‘Food court’ of investment
Then, she gave another analogy about choosing the right stocks. It is especially difficult for those who are not ‘market experts’. Gupta gave the example of Biryani, the most-ordered dish on Zomato in India.
“Most people order biryani. Most people don’t cook biryani at home because biryani is a damn hard thing to cook. It takes 18 to 20 ingredients,” she said.
“Think of mutual funds. We are your financial food court, ladies. That’s all we are. We are just a food court. We provide reasonably cheap, reasonably tasty, and reasonably visible food,” Gupta said.
“Come to the food court and make the investment. Let the food court do the work for you, rather than doing it yourself,” she added.
“SIP, by the way, to simplify further, is like having a regular meal plan in the food court. So, you can do an equity SIP, a gold SIP, or a debt SIP,” she further said.
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