Why Do India’s Ultra-Rich Favor Investment in Growth Assets?
Synopsis
Discover the investment preferences of India's ultra-rich as they shift towards growth assets, particularly in tier 1 and tier 2 cities. This insightful report reveals how UHNIs are reallocating their portfolios in pursuit of higher returns and the evolving landscape of wealth management in India.
Key Takeaways
54% of UHNIs invest over 80% of their portfolios in growth capital.
Second-generation UHNIs expect returns over 16% .
Only 31% have frameworks for wealth transition.
Europe is the top luxury destination for 92% of UHNIs.
65% invest in art and luxury collectibles .
Mumbai, Dec 24 (NationPress) India’s ultra-high net worth individuals (UHNIs), with a total net worth exceeding Rs 2 lakh crore, are increasingly channeling their investments into growth assets, especially in tier 1 and tier 2 cities. Notably, 54% of these individuals allocate more than 80% of their portfolios to growth capital, in contrast to just 23% in metropolitan areas, as revealed by a recent report.
The report from Nuvama Private, which focuses on the UHNI sector of the Nuvama Group, indicates that second-generation UHNIs have heightened growth aspirations, with 40% aiming for returns exceeding 16%, compared to 33% among the first generation.
Furthermore, the transition of wealth between generations is still underway, as only 31% of UHNIs have established necessary frameworks, and merely 21% have set up formal trusts, according to the inaugural edition of the report titled 'The Exceptionals'.
“The narrative of wealth in India is evolving, moving from mere preservation to a purpose-driven investment strategy. At Nuvama Private, we view this as a pivotal moment in India’s financial evolution, where equity involvement, alternative investments, and tailored solutions are fostering a robust ecosystem that can enhance capital for subsequent generations,” stated Ashish Kehair, MD and CEO of Nuvama.
These insights illustrate this transformation, as India’s wealth creators confidently navigate the next growth phase.
Moreover, Europe remains the preferred luxury destination for Indian UHNIs, with 92% traveling abroad at least twice annually for curated, experiential trips.
Art and luxury collectibles entice 65% of UHNIs, with 58% investing in passion assets related to their favorite brands, hobbies, vintage, and luxury automobiles, as highlighted in the report.
The report chronicles the personal stories of India’s UHNIs, showcasing how they built their enterprises through resilience, emotional fortitude, and a long-term vision.
“The Exceptionals explores the multifaceted experiences of India's wealthy individuals, who have created lasting value for their families, communities, and the nation,” affirmed Alok Saigal, President and Head of Nuvama Private.
Point of View
It is crucial to highlight the shifting investment strategies among India's ultra-rich. Their focus on growth assets signifies a broader trend in wealth management, emphasizing resilience and strategic foresight. Such insights not only reflect the evolving landscape of investment but also underscore the importance of adapting to new opportunities in a rapidly changing economy.
NationPress
20 Jun 2026
Frequently Asked Questions
What are growth assets?
Growth assets are investments that are expected to increase in value over time, such as stocks, real estate, and venture capital.
Why do UHNIs prefer tier 1 and tier 2 cities?
Tier 1 and tier 2 cities present lucrative opportunities for growth investments, often with lower competition and higher potential returns.
What is the significance of the report 'The Exceptionals'?
The report highlights the investment trends among India's UHNIs and provides insights into the evolving landscape of wealth management.
How do second-generation UHNIs differ from the first generation?
Second-generation UHNIs generally have higher growth expectations, aiming for more significant returns compared to their predecessors.
What impact does intergenerational wealth transition have?
The transition of wealth affects investment strategies and the establishment of frameworks for future generations, ensuring sustained financial growth.
