Why you should wait until 40 to buy a house? Edelweiss's Radhika Gupta on smart investing vs emotional calls

Radhika Gupta, MD & CEO of Edelweiss AMC, shares her practical insights on money and life decisions, emphasizing that buying a house should ideally wait until 40. “A home is an emotional decision, not necessarily an investment,” she says. In India, property yields are low, and early home purchases can be a huge capital drain. Gupta recommends accumulating capital first, investing systematically through SIPs and equities, and ensuring that any EMIs are manageable and don’t cause mental stress. Only once mobility and financial stability are sorted should one consider home ownership.

Gupta stresses that building a healthy financial journey is about discipline and good habits. “I save a fixed portion of my post-tax salary every month and increase it with every increment. Living within your means and purposefully managing money and work really differentiates people who are financially sorted,” she explains. She advocates a 10-30-50 savings rule: save 10% of post-tax income in your 20s, 30% in your 30s, and 50% in your 40s. Even saving a modest 5–10% consistently can make a significant difference over time.

For young investors, Gupta advises focusing on time and talent as primary assets. “Stock picking is a full-time job and should be considered only after building substantial capital. In your 20s, maximize learning, upskilling, and multiple income streams rather than chasing high-risk investments.” She recommends a simple, diversified portfolio including equity, gold, and fixed income, which she calls the “basic thali” of investing. She cautions against unregulated products, high leverage, or locking money in illiquid assets prematurely.

Gupta also highlights financial and career planning for women. She encourages women to continue working after childbirth and stresses that fertility and career planning should be choices, not decisions driven by fear. Parenting, she adds, has been a joyful learning experience for her, shaping priorities and sharpening her sense of focus.

Her approach to investing and leadership mirrors her frugal, calibrated growth philosophy. At Edelweiss AMC, expansion has been steady and measured, ensuring sustainability without layoffs or undue pressure. She applies the same mindset to personal finance—balancing lifestyle spending, parenting, investments, and long-term planning.

Gupta further advises investors to avoid common pitfalls in markets. Liquidity, patience, and understanding are critical. Many investors lose money by acting on FOMO, rushing into unknown assets, or investing in highly illiquid instruments. She underscores the importance of building financial literacy, starting with understanding attitudes toward money, managing debt, and planning for long-term goals.

Ultimately, Gupta’s message is clear: invest with discipline, build assets before emotional decisions like home buying, maintain a balanced portfolio, and focus on time and talent in your early years. Financial stability is less about chasing returns and more about creating habits, structures, and a sustainable middle path that allows growth at home and at work.