India's Top 1% Invest 60% of Wealth in Real Estate and Gold
A report by Bernstein reveals that the top 1% of India's richest individuals, controlling $11.6 trillion of the country's total wealth, have heavily invested in real estate and gold. The report highlights the potential for wealth management firms as this affluent class seeks to diversify their portfolios.
Real EstateWealth ManagementGoldAffluent ClassIndiaReal Estate NewsAug 05, 2025
The report states that this class has a total wealth of $11.6 trillion. India's total household wealth is estimated at $19.6 trillion, of which $11.6 trillion or 59% is held by this class of population. Of this, only $2.7 trillion is invested in serviceable financial assets that can be actively managed or reallocated, such as mutual funds, equity, insurance, and bank or government deposits. The remaining $8.9 trillion is invested in non-serviceable assets, which include gold, cash holdings, promoter equity, and physical real estate.
The report highlights the immense potential for asset management firms to grow their Assets Under Management (AUM) over the next decade as India's affluent class seeks ways to diversify their portfolios beyond gold and real estate. The report notes that this wealth segment has low access to formal wealth management services, and a large portion of financial assets remain unmanaged. In its previous report, Bernstein had observed that specialized wealth managers currently account for just 11% of India's liquid financial asset pool.
There are about 35,000 UHNIs in India whose net worth is more than $12 million (Rs 100 crore). The average wealth value of these households is $54 million (Rs 472.5 crore), including financial assets worth $24 million (Rs 210 crore). This underscores the significant wealth concentration and the potential for wealth management firms to tap into this market.
As the Indian economy continues to grow, the affluent class is increasingly looking for ways to diversify their investments to ensure long-term wealth preservation and growth. This trend presents a golden opportunity for wealth management firms to offer tailored solutions and services that can help these individuals manage and grow their wealth more effectively.
In conclusion, the report by Bernstein provides valuable insights into the investment patterns of India's wealthiest individuals and the untapped potential for wealth management services. As the country's economic landscape evolves, the demand for professional wealth management is likely to increase, benefiting both the affluent class and the financial services industry.
Frequently Asked Questions
What percentage of India's total wealth is controlled by the top 1%?
The top 1% of India's richest people control about 59% of the country's total wealth, which is estimated at $11.6 trillion.
How much of their wealth is invested in real estate and gold?
The top 1% of India's richest people have invested 60% of their wealth in real estate and gold.
What are serviceable financial assets?
Serviceable financial assets are those that can be actively managed or reallocated, such as mutual funds, equity, insurance, and bank or government deposits.
What is the potential for asset management firms in India?
The potential for asset management firms is significant as India's affluent class seeks to diversify their portfolios beyond gold and real estate, with a large portion of financial assets currently unmanaged.
How many Ultra High Net Worth Individuals (UHNIs) are there in India?
There are about 35,000 UHNIs in India whose net worth is more than $12 million (Rs 100 crore).
Related News Articles
Elevating Civil Aviation: Mohol's Pioneering Role in Pune
Discover how Mohol is driving growth in Pune's civil aviation sector, with insights from Hemant Rasne, former Mayor and BJP leader.
Budget 2024: A Boost to Sustainable Growth in Real Estate
The Union Budget 2024 focuses on MSMEs, employment, skilling, youth, and middle-class, with indirect benefits to the real estate sector through job creation, infrastructure, and urban redevelopment.
Dubai Real Estate Market Sets AED 141.9 Billion Quarterly Sales Record in Q3 2024
Dubai’s real estate market achieved a significant milestone in Q3 2024, with total sales reaching AED 141.9 billion, marking a new all-time high for a single quarter. This achievement surpassed the previous record of AED 124.07 billion set in Q2 2024, ref
Elan Group Gets a Boost with Rs 1200 Crore from Kotak Real Estate Fund
The investment will serve as growth capital, helping Elan Group cement its position in the thriving real estate market of Gurugram. This strategic move is expected to accelerate the company's expansion and development projects in the region.
Delhi-NCR: The Metro City Witnessing a Massive Surge in Housing Prices
The report suggests that the price appreciation in Delhi-NCR is attributed to rising demand for high-end properties. Read more to know the details.
Radisson Resort Khopoli Launches as a Luxurious Getaway Near Mumbai and Pune
Radisson Hotel Group has expanded its footprint in Maharashtra with the opening of Radisson Resort Khopoli, offering a premium retreat for travelers near Mumbai and Pune.