In 2024, India’s ultra-high-net-worth (UHNW) investors stood out for their resilience, strategic foresight, and adaptability in navigating a rapidly evolving financial landscape. This select group, which constitutes the pinnacle of the nation’s economic pyramid, embraced innovative strategies to align with global investment trends while tailoring them to India’s unique economic nuances. The past year’s developments paint a vivid picture of optimism, innovation, and diversification, offering a preview of what’s to come in 2025.
One of the standout stories of 2024 was the robust confidence displayed by India’s wealthiest in equity markets. Equity-oriented mutual funds recorded a remarkable 55% growth, taking their assets under management (AUM) to an impressive ₹23.5 lakh crore.
This surge played a significant role in pushing the mutual fund industry’s total AUM to ₹53.4 lakh crore, a 35% year-on-year increase. India’s dominance in the global equity derivatives market was another highlight, with over 36.8 billion equity index options traded in Q2 2024, more than doubling the volumes from the previous year.
Adding further momentum was a buoyant IPO market, where marquee listings like Mobikwik, Ola Electric, Swiggy, and Hyundai captivated UHNW investors, reinforcing their faith in India’s growth story and creating deeper liquidity in the markets.
While public markets remained a significant focus, UHNW investors increasingly turned to private markets in search of stability and enhanced returns. Private credit emerged as a key area of interest, with projections indicating that this market will grow to ₹15 lakh crore by 2026, driven by an annual growth rate of 20%.
Investments in private equity also saw a notable uptick, rising to ₹2.5 lakh crore in 2023 from ₹1.4 lakh crore the previous year. These shifts highlight an evolving risk appetite among UHNW individuals, with many drawn to sectors like healthcare and technology that promise strong long-term returns. Surveys reveal that 70% of investors are now keen on private credit, while private equity firms express overwhelming optimism about India’s investment climate.
The rise of single-family offices (SFOs) marked another significant trend in 2024. More than 150 SFOs have been established in India over the past five years, a testament to the growing sophistication of wealth management among the ultra-rich. These offices cater to the unique needs of wealthy families, offering bespoke solutions that combine investment strategy, risk management, and succession planning.
With 75% of high-net-worth individuals reportedly exploring SFO setups, this model has emerged as a preferred approach for those seeking control, transparency, and a structured approach to managing generational wealth.
India’s wealthiest families also increasingly sought international diversification in 2024. Spurred by opportunities for higher returns and portfolio diversification, 75% of Indian UHNW individuals expressed interest in global investments. Real estate, equities, and private equity were the most favoured asset classes, with the United States, United Kingdom, Singapore, and Dubai standing out as top destinations.
However, international investing comes with its challenges, including regulatory hurdles and currency risks. To address these, UHNW investors leaned on strategic asset allocation, robust tax planning, and effective risk management. This trend of global diversification is expected to gain further momentum in 2025 as Indian investors deepen their integration with international markets.
In addition to diversification, technology played a transformative role in reshaping wealth management practices in 2024. Platforms like Zerodha, Groww, and 5paisa revolutionized access to real-time portfolio tracking and AI-powered insights, enabling investors to make more informed decisions.
Blockchain technology also began to gain traction, streamlining private market transactions and enhancing due diligence processes. According to a PwC report, there was a 25% increase in digital tool adoption among UHNW clients, underscoring a shift toward tech-driven efficiency and transparency in wealth management.
Looking forward to 2025, several emerging trends are poised to shape the investment landscape. Equity markets are expected to remain a cornerstone of UHNW portfolios, supported by India’s economic resilience and favourable market conditions.
Sustainability and ESG (environmental, social, and governance) factors are set to take centre stage, with growing interest in renewable energy projects, green bonds, and electric vehicles aligning with India’s ambitious net-zero targets.
Alternative assets will also capture greater attention. UHNW individuals are broadening their horizons beyond traditional investments from fine art and rare collectibles to structured products.
Meanwhile, philanthropy is becoming an increasingly important part of wealth strategies, with many families directing funds toward sectors like education, healthcare, and rural development. This integration of social impact with financial goals reflects a maturing approach to wealth stewardship.
International diversification will continue to grow as a key theme, supported by policy reforms and stronger partnerships with global asset managers. By leveraging these opportunities, India’s UHNW investors are likely to further solidify their presence in global markets, creating a balanced and resilient portfolio.
The investment strategies of India’s ultra-rich in 2024 offer a powerful narrative of adaptability and forward-thinking. As we step into 2025, their focus on sustainability, technological innovation, and global integration will not only shape their financial futures but also set a benchmark for the broader investment community. These trends underscore the evolving role of wealth in fostering innovation, driving economic growth, and contributing to societal well-being.
Our Managing Partner, Mr. Dhruv Chopra & Mr. Tushar Sharma-Director, Multi Family Office written the above article which has been featured in the Economic Times. The link of the Economic Times is as below:- https://economictimes.indiatimes.com/markets/stocks/news/investment-playbook-how-indias-uhnw-investors-are-shaping-wealth-strategies/articleshow/117366806.cms?from=mdr
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