Why This Investor Keeps His Wealth Outside India: Lessons from Paritosh Mukhija on Currency, Taxes, and Smart Investing
In a recent episode of the popular YouTube channel Finance With Sharan, host Sharan Hegde interviews Paritosh Mukhija, a Partner at the global consulting firm Arthur D. Little in Dubai. Paritosh, an IIT Delhi alumnus with a top All India Rank in JEE and an MBA from IESE Business School in Barcelona, shares his journey from a small town in India to building substantial wealth in a tax-free environment abroad. Over the past 13+ years in Dubai, he has deliberately avoided investing in Indian markets, citing currency depreciation, tax implications, and superior risk-adjusted opportunities elsewhere.
Paritosh’s story begins in India, where he completed his schooling in a small town and Kota before excelling at IIT Delhi. After a few years in analytics roles, he pursued higher education in Europe and landed a consulting position that took him to Dubai in 2012—initially for just one year. He stayed, climbing the ranks to partner level. Today, he earns a high income (junior partners around $600–700K annually, seniors exceeding $1M) with zero personal income tax, allowing him to retain far more of his earnings compared to high-tax regimes.
A central theme of the discussion is currency depreciation and its silent erosion of wealth. Paritosh thinks and measures wealth in AED (UAE Dirham) or USD terms, as the Dirham is pegged to the dollar. Over 13 years, the Indian Rupee has depreciated roughly 60% against the Dirham (from around 15 INR to 25 INR per Dirham, or about 3–4% annually). He explains that even strong returns in India can result in a net loss when converted back to a stronger currency. For instance, an investment moved to Dubai years ago would require significant outperformance in INR just to break even after depreciation. “I do not put anything in Indian stock markets,” he states plainly, because his base currency makes Indian assets less attractive unless they deliver exceptionally high returns (e.g., needing 15%+ to match Dubai opportunities after currency adjustment).
This logic extends to real estate. Paritosh has sold off previous properties in Delhi and Mumbai and now focuses almost entirely on Dubai’s market. He treats real estate as a mathematical exercise rather than hype-driven speculation. Dubai’s population has surged from about 2.5 million to 4 million in the last decade, with projections reaching 8 million or more in the coming years. This demand, especially for family-oriented villas and townhouses (which face limited supply compared to apartments), has driven sharp appreciation—some properties doubling or tripling in value within a few years.
His strategy emphasizes timing and leverage:
- Buy off-plan or 18–24 months before handover from reputable developers like Emaar or DAMAC in prime locations with strong connectivity and amenities.
- Use mortgages (60–80% loan-to-value at around 4% interest) where rental yields (often 6% net) cover or exceed payments, creating positive cash flow.
- Employ equity release: As properties appreciate, refinance to pull out cash while retaining ownership, enabling repeated investments (similar to the BRRRR method—Buy, Rehab/Rent, Refinance, Repeat).
- Real examples include a property bought for 3.4 million AED now valued at 5.5 million AED (over 60% growth in a short period), with rental income supporting leverage and compounding.
Paritosh outlines his WISER asset allocation framework for structured wealth building:
- W — Will (estate planning for asset protection).
- I — Insurance (term life only, no investment-linked policies).
- S — Speculative bucket (under 10%, e.g., crypto, angel investments, or select stocks; he shares a case where a small edtech bet grew 40x before going to zero).
- E — ETFs (around 30%, focused on USD-denominated options like S&P 500 for long-term ~10% returns and safe withdrawal rates).
- R — Real Estate (about 17%, predominantly Dubai properties for higher yields and appreciation).
He remains conservative overall but allocates to speculative assets for potential multibaggers, accepting the risk of total loss.
Risks are not ignored. Dubai’s market is cyclical (prices dipped during COVID), over-supply can occur at handover stages, and leverage requires careful management (e.g., ensuring rent exceeds mortgage + expenses). Poor developer or location choices can lead to low yields, and transaction costs (around 6% on buying) add up. Paritosh stresses thorough research using tools like Property Finder, Bayut, Dubizzle, and market reports.
The episode stands out for its grounded, numbers-focused approach—no motivational shortcuts, just clear financial engineering. For Indians earning in INR or considering global moves, Paritosh’s insights highlight how base currency, taxes, and cross-border opportunities reshape wealth building. Earning more in absolute terms doesn’t always translate to getting richer if depreciation and taxes quietly diminish purchasing power. Instead, aligning investments with one’s lifestyle currency and leveraging strong markets thoughtfully can compound wealth more effectively over the long term.
About The Author
