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
Indian Giants Shine: TCS, Infosys, and Airtel Make it to the Top 100 Most Valuable Brands Globally
TCS, Infosys, and Airtel have been named among the top 100 most valuable brands in the world, according to a recent report by Kantar BrandZ.
Diversifying Realty Investments: How Small and Medium REITs Can Expand the Investor Base
Small and medium REITs are poised to democratize real estate investing in India, offering investors a wider range of options and increasing transparency in the market.
Discover Dirt Cheap European Real Estate with a Catch
Get ready to own a piece of European real estate for a steal, but there's a catch. From Sweden to Italy and Germany, find out how you can own a home or plot of land for pennies on the dollar, but be prepared for some strings attached.
Mumbai Real Estate Market Sees Flexi Payment Plans Take Center Stage This Festive Season
Flexi payment plans are the flavour this Ganesh Chaturthi in Mumbai. Prices remain steady as demand softens in Mumbai real estate market?
India's Real Estate Sector: The Next Big Employment Hub
The Indian real estate market is experiencing a significant surge in both value and volume, driven by a robust value chain of residential and commercial developers.
RBI's CRR Cut: A Boost for the Real Estate Sector
Despite the RBI's decision to maintain the repo rate at 6.5%, the cut in the Cash Reserve Ratio (CRR) has brought a wave of optimism among real estate developers. This move is expected to infuse much-needed liquidity into the sector.