Why primary homes should not be treated as investment? Edelweiss MF's Radhika Gupta explains

'If investing was logical, very few of us would buy a home'


Radhika Gupta, CEO of Edelweiss Mutual Fund, recently took to social media to explain why one should not consider one's primary home as an investment.

She observed that investments are those that you can treat with a true unemotional lens. When it comes to things like primary home or jewellery, it is not possible to do this.

If investing was logical, very few of us would buy a home because the rental yield math never justifies it, she said. "But it isn’t … and many of us, including professional asset managers like me, buy homes."

Gupta noted that emotional value is "hard to argue with" and said, "You can't live in an NAV (net asset value) and do up a folio to your liking."

She said the important thing is to accept that primary homes have this (emotional) component and not treat them as investments. "The same is true for many of us with jewellery. In some cases angel investing as well," she added.

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