The share of women among wealthy individuals is growing fast, with over 40 per cent aged between 51 and 60 years favouring lower-risk, stable investment products while becoming increasingly engaged in wealth management decisions.
The 360 ONE Wealth Index report, launched in collaboration with Crisil, reveals that ESG investing is gaining momentum, with 68 per cent of wealthy investors considering ESG principles as critical to their investment strategy, reflecting a growing focus on sustainability and responsible investing.
The Wealth Index explores the myriad behaviours and investment preferences of high-networth individuals and ultra-high-networth individuals across India.
It also examines their awareness levels and responses to external triggers in the domestic and global economy, their engagement levels with wealth managers, their perception of succession planning, and philanthropy.
Diversifying portfolio
Interestingly, given the high equity valuations, the wealthy are diversifying beyond traditional assets. Alternatives such as Portfolio Management Services, Alternative Investment Funds and Real Estate Investment Trusts are gaining popularity.
About 77 per cent of respondents rely on professional wealth advisors, with UHNIs being the largest group seeking professional guidance.
While 82 per cent of wealthy individuals are either engaged in philanthropy or plan to in the next two years, UHNIs, especially those above 60, are more inclined towards charitable activities.
In a bid to avoid legal complications, 72 per cent of wealthy people believe that succession planning is critical. Among UHNIs, 86 per cent have started or completed their estate plans.
India is rapidly emerging as a global wealth hub, with the country now housing 334 billionaires in 2024. Mumbai has solidified its status as Asia’s billionaire capital and ranks third globally, racing ahead of the US and China. This economic momentum is expected to further fuel wealth creation across sectors like fintech, e-commerce, space, and defence.
Karan Bhagat, Founder, MD & CEO, 360 ONE said the index provides a comprehensive picture of India’s evolving wealth landscape and offers a strategic compass to navigate the evolving world of wealth management.
As the financial landscape evolves with new investment avenues and rising market participation, the wealthy must stay ahead by leveraging expert knowledge and seizing opportunities, he added.
Yatin Shah, Co-Founder, 360 ONE & CEO of 360 ONE Wealth, said the greatest transfer of wealth in history is underway and the focus has shifted to optimisation and preservation, ensuring that wealth is sustained and managed effectively for generations.
The study demonstrates the evolving priorities of the wealthy, who increasingly value professional advice for peace of mind and long-term security, he added.
Jiju Vidyadharan, Senior Director, CRISIL said the findings underscore the increasing complexity of wealth management needs in the backdrop of the country’s remarkable economic ascent.
The research reveals wealthy individuals are seeking more nuanced investment strategies, including alternatives and ESG-focused opportunities besides placing greater importance on professional wealth advisory services, succession planning and estate management, he said.