Wealthy Indian investors prefer gold, global markets to cash reserves: HSBC

HSBC's 2025 report reveals affluent Indian investors are moving away from cash holdings in favour of gold, alternatives, and global markets to meet long-term financial goals

Affluent Indian investors are increasingly moving away from cash-heavy portfolios and turning instead to gold, alternative investments, and international markets. The change reflects a growing appetite for diversification, long-term returns, and a smarter use of capital, according to HSBC’s 2025 Affluent Investor Snapshot.

 

Gold gains, cash declines

The report, based on a survey of 10,797 affluent individuals across 12 global markets, shows Indian investors leading the way in reducing idle cash. On average, Indians now keep just 15 per cent of their portfolios in cash — the lowest in Asia. A year ago, their gold allocation was also 8 per cent. That number has now nearly doubled to 15 per cent, the biggest jump among all asset classes.

 

This move toward gold reflects growing caution about inflation and a desire to hold assets that can protect wealth over time.

 

“There’s a clear shift among affluent Indians towards a more strategic, long-term view of wealth,” said Sandeep Batra, head of international wealth and premier banking at HSBC India. “They want their money to work harder, and that means thinking beyond traditional savings or short-term plays.”

 

Alternatives and multi-asset solutions gain popularity

Alongside gold, Indian investors are warming up to alternative assets such as private markets, hedge funds, and real estate investment trusts, as well as multi-asset strategies like managed funds.

 

Gen Z, millennials driving investment trend

Globally, this trend is being driven by younger investors, especially Gen Z and millennials, who have tripled their exposure to alternatives in the last year. In total, half of all affluent investors worldwide now say they expect to hold alternatives in the next 12 months, up from just one in four today. Around 30 per cent also plan to include private market investments.

 

In India, while gold saw the largest increase, alternatives were close behind, pointing to a stronger appetite for risk-managed, growth-focused strategies.

 

Investors turn to international markets

The interest in overseas investments is also growing, with nearly 40 per cent of global affluent investors planning to allocate funds internationally in the coming year. Indian investors especially showed a strong preference for the United States as a key destination, despite political uncertainties.

 

Globally, four out of ten affluent investors plan to invest internationally over the next year. That number climbs to 56 per cent in the UAE and 50 per cent in Singapore, according to the report.

 

While looking abroad, investors in key financial hubs like Hong Kong, the UK, and Singapore aren’t abandoning home markets — instead, they’re blending local confidence with global diversification.

 

Global confidence remains high

Despite global concerns around inflation and rising costs, confidence among affluent investors remains strong. Worldwide, 80 per cent believe they’re on track to meet long-term financial goals.

 

In India, that confidence is even stronger:

• 90 per cent are confident about meeting short-term goals (within 3 years)
• Over 80 per cent feel on track for medium-term targets (3–5 years)
• 86 per cent are confident about achieving long-term financial goals (beyond 5 years).

In terms of lifestyle, too, 85 per cent of Indian respondents expressed optimism. Their top financial priorities showed a focus on property investment, supporting family members, and saving for personal well-being.