Think that gold necklace or designer handbag is a smart investment? Think again. Radhika Gupta, CEO of Edelweiss Mutual Fund, just dropped a reality check that’s making waves.

Key facts

  • Gold jewelry carries making charges and GST, eroding value
  • Luxury bags depreciate quickly after purchase
  • Traditional investments like mutual funds offer better returns

The hidden costs of sparkle

Gupta points out what many luxury shoppers overlook: that beautiful gold jewelry isn’t just metal—it’s craftsmanship taxed. Making charges and GST add layers of cost that pure gold investments avoid. You’re paying for artistry, not just asset value.

When luxury loses its luster

And those coveted designer bags? They might feel like treasures, but their value often nosedives the moment you walk out of the store. Unlike rare collectibles, most luxury items are consumption, not investment.

A better path to growth

Her advice rings with practical wisdom: if you’re serious about building wealth, look to financial instruments designed for growth. Mutual funds and other traditional options lack the glamour but deliver where it counts—returns.