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Radhika Gupta. (File Photo)
Every time I think about buying one with a bonus, I remind myself that a car is a depreciating asset, says Radhika Gupta, MD & CEO of Edelweiss Mutual Fund.
Radhika Gupta, MD & CEO of Edelweiss Mutual Fund and a judge on Shark Tank India, has explained why she avoids purchasing luxury cars, despite being able to afford them. Even though she appreciates premium vehicles, her decision stems from their rapid depreciation in value, leading her to prefer more practical options like the Innova.
Reflecting on her middle-class upbringing, Gupta shared how she once felt pressured by societal expectations to own designer goods. However, as one of India’s youngest CEOs, she now feels no need to validate her success through luxury items.
“I can’t bring myself to buy a luxury car. I can afford it, but I just can’t. Every time I think about buying one with a bonus, I remind myself that a car is a depreciating asset. I don’t even drive, and the moment I take it out, 30 per cent of its value is gone,” Gupta said.
Eighteen years ago, Gupta felt insecure when people noticed her lack of expensive belongings, but now, she confidently brushes off such judgments. “If someone asks why I drive an Innova, I can confidently say, ‘My life, my choice.’ I no longer feel the need to prove anything.”
Gupta also shared concerns on social media about young people funding luxurious lifestyles through risky investments. She wrote about seeing “people in their 20s saying they don’t need to work because they are busy doing F&O” and “young women who say their lifestyle and handbags are funded by trading gains.”
In her post, she highlighted the Economic Survey 2023-24, which warned against this kind of risky liquidity. “The Economic Survey highlights this in some very strong language. Other regulators have also rightly and repeatedly warned us about this,” she wrote, stressing that such trends are dangerous not only for individuals but for the economy as a whole.
