Affluent Indian Households Prefer Real Estate Over Equities, Marcellus India Wealth Survey Reveals
Despite a strong market performance, many affluent Indian households remain dissatisfied with their investment returns. The Marcellus India Wealth Survey highlights a significant skew towards real estate investments and a lack of diversification.
Real EstateEquitiesInvestment ReturnsWealth ManagementFinancial AdviceReal Estate NewsJun 04, 2025
According to the survey, 40 percent of high net worth Indian households expressed dissatisfaction with their investment returns, even after a historic five-year bull market. The data reveals that real estate remains the top choice for investments, with half of the respondents holding over 20 percent of their portfolio in property beyond their primary residence.
While equities are the second most popular asset class, the survey also noted that 14 percent of households do not maintain any emergency funds. Additionally, diversification remains limited, with 23 percent of respondents unfamiliar with global investment options.
Manish Hemnani, COO of Marcellus Wealth, explained that despite strong market performance, nearly half of affluent Indians aged 30-45 save less than 20 percent of their post-tax income. This contrasts sharply with their high financial aspirations, which include early retirement, purchasing homes, funding children’s education and marriage, and starting businesses.
The significant challenges faced by this demographic include 40 percent being dissatisfied with investment returns, 30 percent lacking saving discipline, and 20 percent having limited understanding of investment options. Another 40 percent of respondents carry at least one open loan, predominantly home loans, and 10 percent reported high debt burdens.
Marcellus co-founder, Saurabh Mukherjea, highlighted the disconnect between aspirations and savings, emphasizing the unique Indian context where parents commonly save for their children’s marriages—something less prevalent in the West.
When it comes to financial advice, 87 percent of respondents rely on external advisors such as wealth managers, family, or bank relationship managers. However, two-thirds are dissatisfied with the guidance they receive, citing complaints about advice that is one-sided, lacks personalization, and is not aligned with individual goals.
Manish Hemnani pointed out that many investors prioritize wealth preservation over growth, leading to overexposure in real estate and underutilization of financial instruments that could offer better long-term returns. Saurabh Mukherjea underscored the importance of understanding the evolving investor mindset, highlighting that many affluent households are still adjusting to balancing risk and liquidity needs, especially in an environment of rising interest rates and economic uncertainty.
Frequently Asked Questions
What is the main investment preference of affluent Indian households?
Affluent Indian households prefer real estate as their primary investment, followed by equities.
What percentage of high net worth Indian households are dissatisfied with their investment returns?
40 percent of high net worth Indian households are dissatisfied with their investment returns, even after a historic five-year bull market.
What are the main challenges faced by affluent households in achieving their financial goals?
The main challenges include dissatisfaction with investment returns, lack of saving discipline, and limited understanding of investment options.
How many affluent households maintain no emergency funds?
14 percent of affluent households do not maintain any emergency funds.
What is the main complaint about financial advice from external advisors?
The main complaint is that the advice is one-sided, lacks personalization, and is not aligned with individual goals.
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