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Old Money Rules Outdated, Says CA Nitin Kaushik - The Debate That Has Taken India by Storm

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  Published in Business and Finance on Saturday, November 29th 2025 at 5:52 GMT by Business Today

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Old Money Rules Are Outdated, Says CA Nitin Kaushik – The Debate That Has Taken India by Storm

The phrase “old money rules” is a shorthand for the conventional wisdom that has governed the way people save, invest, and plan for retirement in India for decades. The belief, rooted in a relatively risk‑averse, inflation‑persistence mindset, has long held that a balanced portfolio—split evenly between equities and debt, with a heavy tilt toward low‑cost index funds—offers the safest, most reliable path to wealth.

In late‑November, Chartered Accountant (CA) Nitin Kaushik, a well‑known financial influencer and former partner at a global consulting firm, posted a short clip on social media that re‑examined these assumptions. He asked a simple question that struck a chord: “Are the old money rules still relevant in a world where inflation, technology, and geopolitics are changing faster than we can predict?” The clip went viral in hours, and the discussion that followed has spread across the country, prompting the finance media to take a deeper look.

1. Kaushik’s Main Thesis

In his post, Kaushik highlighted three key challenges that the old money rules fail to address:

1. Surging Inflation and Low Real Returns
   Kaushik noted that the “real” returns (adjusted for inflation) on the traditional equity‑debt mix have deteriorated over the past decade. He cited a Bloomberg‑S&P report that showed the average real return on an equal‑weighted portfolio of Indian equities and bonds in 2020–21 was only 2.7 %, barely above the inflation rate.

2. The Rise of Passive Investing and AI‑Powered Portfolio Construction
   With the proliferation of robo‑advisors and AI‑driven asset allocation tools, Kaushik argued that investors can now access personalized strategies that outperform one‑size‑fits‑all portfolios. He mentioned that data from a leading robo‑advisor platform showed a 4.5 % out‑performance relative to the benchmark in 2024.

3. The Demographic Shift and Longer Life Expectancy
   The average retirement age in India is rising. Kaushik pointed out that the old rules do not account for the fact that retirees will need to draw down a larger corpus over a longer period, increasing the risk of a “drawdown disaster.”

2. A Call for a New Framework

Rather than discarding all old principles, Kaushik proposed a “four‑point playbook” that blends proven strategies with modern tools:

Kaushik illustrated his point with a hypothetical 40‑year‑old investor named Rahul. In the old rules scenario, Rahul would split his savings 50 % in equities and 50 % in debt. By the time Rahul reaches 65, the projected corpus would be around ₹5 crore. Under Kaushik’s dynamic model, with a 60 % equity tilt and a 25 % allocation to T‑ILBs, Rahul’s corpus would grow to ₹7.5 crore in the same period, assuming a 9 % annual return on equities and 6 % on T‑ILBs.

3. The National Response

The article noted that the viral post quickly sparked debate among financial advisors, bloggers, and ordinary investors. A few key reactions included:

• Supporters:
  - Amit Gupta, founder of the “Finance for All” community, applauded Kaushik for bringing “the future of investing into the conversation.”
  - Radhika Menon, a senior portfolio manager at a private equity firm, said, “The old rules are a good starting point, but they’re not enough. We need to embrace data and technology to fine‑tune strategies.”

• Critics:
  - Shivraj Patil, a seasoned mutual fund investor, warned against “over‑optimism.” He pointed out that AI tools are only as good as the data fed into them.
  - Sonal Kapoor, a tax consultant, argued that the “dynamic allocation” strategy might increase the tax burden, especially for those in the 30 % bracket.

• Neutral Observers:
  - Business Today columnist Kamal Sharma wrote that the debate underscores a generational shift in how Indians think about money. “We’re moving from a passive, long‑term “set it and forget it” mindset to a more active, data‑driven approach.”

4. Links to Deeper Context

The article follows a number of internal links to add nuance:

1. “2024 Global Economic Outlook” – Provides macro‑economic data that supports Kaushik’s inflation argument.
2. “Robo‑Advisor vs Traditional Wealth Management” – A comparative study that shows higher risk‑adjusted returns for AI‑driven portfolios.
3. “India’s Life Expectancy Trends” – Statistical insights from the World Bank showing life expectancy at birth has risen from 68 to 70 years in the last decade.
4. “Tax Implications of Dynamic Asset Allocation” – An in‑depth guide explaining how higher equity exposure may affect capital gains tax for Indian investors.

These linked resources help the reader understand the underlying data and policy environment that shapes the conversation.

5. Bottom Line

Kaushik’s viral post and the ensuing national debate illustrate a pivotal shift in Indian personal finance: the old money rules, while still relevant in a broad sense, are no longer sufficient on their own. They fail to account for:

• Rapidly rising inflation, which erodes purchasing power.
• The explosion of technology that enables more precise, data‑driven decision‑making.
• Demographic realities that prolong retirement and require a larger, more diversified income stream.

What the debate is ultimately about is not discarding tradition, but augmenting it with modern tools and a deeper understanding of the macro‑economic environment. The old rules are still a useful baseline, but the new generation of investors—and the advisers who guide them—must be prepared to adjust the mix of assets, incorporate inflation‑protected instruments, and continuously learn from the rapidly evolving financial landscape.

The dialogue sparked by Kaushik’s post is likely to continue for months, as both professionals and laypeople test new strategies and refine the “dynamic asset allocation” framework. For investors who wish to stay ahead, the takeaway is clear: start re‑examining your portfolio now, before the next market shift pushes your savings further from the safety of the old rules.