High-Net-Worth Individuals Struggle with Savings and Diversification, Survey Finds
A recent survey by Marcellus Investment Managers reveals that many high-net-worth individuals (HNIs) are not saving enough to meet their financial goals, with a significant portion of their wealth tied up in real estate.
Highnetworth IndividualsFinancial PlanningSavingsReal EstateDiversificationReal Estate NewsJun 04, 2025
According to the survey, 43% of high HNIs save less than 20% of their post-tax income, and 14% do not maintain an emergency fund. For example, a 44-year-old banking professional in Mumbai, earning Rs 50 lakh annually, manages to save only Rs 5 lakh per year. The majority of their income goes towards EMIs and children's education, leaving little room for savings.
Saurabh Mukherjea, Co-Founder of Marcellus Investment Managers, highlighted that affluent Indians are living in a world of high aspirations and low savings, further complicated by illiquid, tax-inefficient portfolios. Without a clear financial roadmap and disciplined investing, their financial goals remain unattainable.
The survey also revealed that HNIs have a strong preference for real estate over other asset classes. More than half of the respondents have over 20% of their assets in property, excluding their primary residence. In contrast, only one-third of the respondents have more than 20% of their assets allocated to equities.
Mukherjea noted that Indians have too much real estate, too much exposure to small-cap stocks, and very little global equity. Diversified portfolios are rare, even among the HNI community. This lack of diversification can be a significant risk, as it limits the potential for growth and increases vulnerability to market fluctuations.
The survey found that 76% of ultra-HNIs are aware of the investment corpus required for a comfortable retirement. However, diversification remains low, with 82% of respondents believing that professional financial planning is crucial for achieving long-term financial goals. Additionally, 51% of HNIs seek more guidance on diversification, and 38% want customized asset allocation aligned with their risk-return appetite.
Despite aspirations such as early retirement, home ownership, entrepreneurship, and children’s education, many HNIs lack personalized financial planning and the discipline needed to turn these goals into reality. The survey highlights a growing appetite for expert advice, with 82% of respondents believing that professional financial planning can improve their chances of achieving long-term goals.
The survey was conducted across 465 households in 28 cities, with all respondents aged above 30 years and having a post-tax income of Rs 20 lakh. The insights from this survey underscore the importance of financial education and professional guidance in helping HNIs achieve their financial objectives.
In conclusion, while HNIs have the financial means to achieve their goals, the lack of savings, poor diversification, and a need for better financial planning are significant hurdles. Professional financial advice can play a crucial role in helping HNIs navigate these challenges and secure their financial future.
Frequently Asked Questions
What percentage of high HNIs save less than 20% of their post-tax income?
According to the survey, 43% of high HNIs save less than 20% of their post-tax income.
How many HNIs do not maintain an emergency fund?
14% of HNIs do not maintain an emergency fund.
What is the main asset class preferred by HNIs?
HNIs prefer real estate more than other asset classes, with more than half of the respondents having over 20% of their assets in property.
How many HNIs are aware of the investment corpus needed for a comfortable retirement?
76% of ultra-HNIs are aware of the investment corpus required for a comfortable retirement.
What percentage of HNIs seek more guidance on diversification?
51% of HNIs seek more guidance on diversification.
Related News Articles
Rajkot Land Scam: Man Impersonates Landowner, Sells Property Worth Rs 30 Crore
A man impersonated a landowner and deceived a buyer into finalizing a Rs 30 crore land deal in Rajkot. The scam was uncovered when the real landowner approached the police.
55th FIR Registered Against Mohali Real Estate Developer Bajwa
A fresh case of property fraud has been registered against Mohali-based realtor Jarnail Singh Bajwa, bringing the total number of FIRs against him to 55. Kharar resident Manjit Kaur accused Bajwa of cheating her of ₹15.75 lakh for the purchase of a shop-c
Why NRIs are Investing in Indian Real Estate: Key Reasons
India's robust economic growth and urbanization are fuelling demand for residential and commercial properties. Cities like Mumbai, Bengaluru, and Hyderabad have emerged as real estate hotspots.
Real Estate Investments in India Surge to $8.9 Billion in 2024: JLL Report
The Indian real estate market has witnessed a historic high with investments reaching $8.9 billion in 2024, according to a report by JLL. The market is expected to continue its growth trajectory, driven by favorable government policies and increasing urba
Zaheer Khan and Sagarika Ghatge's ₹11 Crore Luxury Apartment in Mumbai
This luxurious residence is part of a broader trend in Mumbai's high-end real estate market, where the average resale price of properties is on the rise. The apartment, owned by former Indian cricketer Zaheer Khan and his wife, Sagarika Ghatge, is a testa
RBI's 25 bps Repo Rate Cut: A Boon for the Sluggish Real Estate Sector
The Reserve Bank of India's (RBI) decision to reduce the repo rate by 25 basis points has been enthusiastically welcomed by the real estate industry. This move is expected to breathe new life into the sector, which has been experiencing a slowdown in demand.