‘If investing was logical, very few of us would buy a home because…’: Edelweiss MF’s Radhika Gupta on purchasing a house

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Edelweiss MF CEO Radhika Gupta said that purchasing a house is often driven more by emotional reasons than investment logic. She noted that many rational investors would not buy homes if not for the emotional attachment they provide.

“If investing was logical, very few of us would buy a home because the rental yield math never justifies it! But it isn’t … and many of us, including professional asset managers like me, buy homes,” she wrote on X. “Emotional value is hard to argue with and finally you can’t live in an NAV (net asset value) and do up a folio to your liking.”

Radhika Gupta emphasised that it’s crucial to recognize the emotional aspect of primary homes and not view them solely as investments. “The same is true for many of us with jewellery. In some cases angel investing as well. Investments are those that you can treat with a truly unemotional lens,” she said.

Author and social media content creator Ankur Warikoo responded to Radhika Gupta’s tweet, stating, “Buying a house is the most significant emotional financial decision one will make. And one should definitely make it. Just analyze the numbers first. Before emotions influence your decision, let objectivity have a say.”

“Every investment has some emotional value. I bought ITC,HDFC bank, some Random mutual funds because I am attached to them. I can’t have the emotional value remove from my assets. If I remove that, there will be no zeal left to buy them thereafter,” a user commented. Another one wrote, “Buying a home to live in makes sense more than anything.  But buying an additional one for the purpose of investment isn’t a good idea, that’s when investing in equity should sound logical.”

A third user Garima (@Cryptified_Soul) wrote, “I absolutely agree! Any emotional investment is to cater our primary need. The actual investment has to be logical and practical.”



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