Stocks, FD or Mutual Funds? Radhika Gupta shares 3 basics to smart investing

Most people begin their investment journey by focusing on what to buy — stocks, FDs, or mutual funds. But understanding a few foundational principles first can make a big difference, says Radhika Gupta, CEO of Edelweiss Mutual Fund.

She compared impulsive investing to jumping into a pool without first learning how to float or breathe, stressing the importance of mastering the basics before diving in.

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According to Gupta, it is important to understand the difference between saving and investing, how to build good habits, and where debt can disrupt a plan. Additionally, one should grasp the fundamentals of risk and return, such as what they are, their significance, and how to adjust them to suit one's goals.

She emphasises the importance of distinguishing between protection and investing. Both are essential, but blending the two, she warns, can be a costly mistake, Gupta stressed.

In a post on social media platform X, the Edelweiss Mutual Fund CEO wrote, “Stocks, FD or MF? Which funds? Most people start their money journey by jumping too quickly into what to buy. A little bit like trying to swim without knowing how to breathe and float. I think there are 3 basics to understand before you make an investment:

1. The difference between saving and investing, how to create good habits, and where debt can mess a plan up. 2. The basics of risk and return - what they are, what they mean, and how to calibrate them for what you want. Every asset class finally is just a story of risk and return. 3. The importance of protection and separating it from investing. Both are needed but mixing them is deadly.

And it's for this reason that before we spoke about any products, we devoted the first part of Mango Millionaire to foundations. Good investing is built on strong foundations. Products can wait!”


Radhika further mentioned that in her latest book Mango Millionaire which is in collaboration with Niranjan Avasthi at Edelweiss Mutual Fund, they have first talked about foundation rather than speaking about any product.

She also believes that good investing is built on strong foundations, and products can wait.

In her recent post, Gupta shared her frustration after a well-informed individual asked whether to choose equities, mutual funds, or SIPs — highlighting how even today, many mistakenly believe SIPs and mutual funds are separate concepts, and that mutual funds only refer to equity investments.


In another post, she advised the investors to choose the investment options on their own for their respective portfolios. She said, "Suno sabki, portfolio apni."

Also Read | Suno sabki, portfolio apni: Radhika Gupta of Edelweiss Mutual Fund advises investors

“Your uncle buys smallcaps. Your friend loves crypto. Your neighbor can't think beyond FD. Your portfolio? Should be about you, not them. Suno sabki, portfolio apni," she wrote on X.

According to the CEO, your uncle may buy smallcaps for his portfolio, your friend is all-in on crypto and adds that in the portfolio or someone just sticks to fixed deposits but with so many voices around offering financial advice, it’s easy to get influenced and make decisions that may not be the best for your own financial journey.

So, one should always build their portfolio based on their respective risk tolerance, investment horizon, and goals.