SEBI RA Nikhil Gangil aims to provide an age-adjusted framework to calculate a person’s net worth.

SEBI-registered analyst Nikhil Gangil has developed a tool to assess an individual’s net worth more meaningfully. 

Called the GAWP (Gangil Age Wealth Parity) index, it aims to provide an age-adjusted framework to calculate a person’s net worth.

Gangil said that the tool is designed to prevent unhealthy comparisons between age groups, encourage younger individuals who feel they’re falling behind, and provide older adults with a clearer picture of their actual financial preparedness.

 

The GAWP Index values your net worth based on your age, recognizing that money held at 25 is worth more than at 75 due to compounding.

Methodology

The GAWP Index is based on the idea that the value of a rupee changes depending on the age of the person who holds it.

The methodology assumes a 15% CAGR until age 80 and then calculates backwards the future wealth at 80 using the formula Net Worth × (1 + 0.15) ^ (80 - Current Age). 

The projected wealth determines a person’s “badge” or category.

Key rules: Net worth = Assets – Liabilities. 

The primary residence isn’t counted as an asset, but any loan on it is included as a liability since the home doesn’t contribute to wealth building, but the loan must still be repaid. 

For example, if a person owns a home worth ₹1 crore, has loans worth ₹70 lakhs and liquid assets worth ₹80 lakhs, their net worth is ₹10 lakhs.

Benefits and practical applications

The analyst said that the rule will help individuals gain a clearer perspective on financial standing and focus on long-term compounding over quick wins. It will also aid financial advisors set age-appropriate goals.

The index can also be used to address financial anxiety or overconfidence rooted in unrealistic comparisons, Gangil said.

Fintech platforms will be able to integrate the index into dashboards to help users view their net worth in age-adjusted context, and not just raw numbers.

Gangil said that he plans include launching an interactive web tool, adding AI-powered benchmarking by Indian cities and career groups and offering custom CAGR simulations for advanced users,

He is also looking to publish the GAWP whitepaper on global platforms and within IIT communities.