Where are India's millionaires investing? Experts discuss at BFSI event

From private equity to investment in digital infra, India's HNIs and ultra-rich are driving the next wave of wealth creation, said wealth managers at the Business Standard BFSI Insight Summit 2025

As India’s economy expands and affluence deepens, its wealth management industry is entering a new phase of growth. The number of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) is rising at a pace unmatched by previous decades, reflecting both the country’s maturing markets and a broader appetite for diversified investments, said wealth managers at the Business Standard BFSI Insight Summit 2025 in Mumbai today.

 

According to Anas Rahman Junaid, founder and chief researcher of Hurun India, the number of millionaire households in India has nearly doubled in just four years.

“Between 2021 and 2025, the number of Indian billionaires climbed from 220 to 360, while those with a net worth of ₹5,000 crore or more rose from 324 to 581,” he said, citing data from the latest Hurun Wealth Report. “If India’s GDP expands to $6–7 trillion by 2030, we estimate that the number of millionaire households will double again.”

 

“From wealth creation standpoint, or from a wealth improvement standpoint, India is on steroids,” he added.

 

According to Rajesh Saluja, MD, ASK Private Wealth, while India’s wealth management sector currently counts 25–30 firms, the US hosts around 250 comparable players, highlighting the vast potential for scale.

 

Changing investment patterns

Rahul Jain, president and head of Nuvama Wealth, said India’s wealthy are steadily shifting from traditional to financial assets.

“The older generation, once focused on gold, real estate and fixed deposits, is now moving into financial instruments. This shift has accelerated wealth creation and broadened participation,” he said.

Saluja of ASK Private Wealth added that asset allocation remains the cornerstone of investing. “Equities continue to be the best long-term asset class, but we’re seeing strong traction in commercial real estate, REITs, InvITs, and alternatives like private equity, private credit, and pre-IPO deals,” he said. “Newer themes such as data centres and digital infrastructure are also emerging.”

 

Jain believes Indian HNIs and ultra-HNIs are favouring diversification. “Over the next couple of years, gold, silver and commercial real estate will stay in focus. REITs in infrastructure and power too offer promising opportunities,” he said. Wealth managers at the Business Standard BFSI summit agreed that disciplined asset allocation remains key to managing risk and generating sustainable returns.

 

Wealth tech and democratisation of advice

Technology is also increasingly redefining how wealth management firms operate and scale. Srikanth Subramanian, CEO and co-founder, Ionic Wealth, said the combination of domain expertise and digital tools is expanding access beyond metro cities. “Investors in tier II and III cities are now better served through technology-driven models,” he said. “Our focus is on reducing information asymmetry and ensuring that smaller investors receive the same experience and advice quality as larger ones.”

 

ASK Private Wealth, for instance, has integrated AI tools such as Microsoft Copilot into its advisory process. “We’re using AI to train systems on product data across asset classes so both clients and relationship managers can make faster, more informed decisions,” the company’s managing director Saluja said.

 

Wealth management fee and regulations

Despite India being a cost-sensitive market, captains of the industry said fees are no longer a major differentiator. “We’re a cost-conscious nation, but if clients see tangible value, they’re willing to pay,” said Subramanian. “What’s changing is the transparency, firms must now justify their fees based on service quality and returns.”

Saluja believes regulation will eventually formalise fee structures. “Globally, wealth managers earn 30–70 basis points. In India, we average around 50–60. Over time, regulation will bring accountability and standardisation,” he said, also calling for mandatory certifications for relationship managers.

 

The panel agreed that improving the quality and training of relationship managers is critical to building trust. “It’s our duty to clients,” said Jain. “Learning and governance must be prioritised over short-term revenue targets. Technology can support this by improving product knowledge and process discipline.”

 

A peek into the rise of regional wealth

Wealth creation in India is no longer limited to Mumbai or Delhi. According to Hurun data, India’s “rich list” now spans 113 towns and cities of the country, up from just 25 in 2015.

“Total wealth beyond metros has more than doubled to $1.6 trillion,” Junaid of Hurun India said. “Manufacturing, construction and regional real estate are driving this trend.”

Jain added that in the coming years, assets such as gold, silver, and commercial real estate, along with REITs in infrastructure and power, are likely to be key focus areas for HNIs and UHNIs.