Real Estate Dominates Affluent Indian Households' Investment Portfolios: Marcellus India Wealth Survey
A recent survey by Marcellus India reveals that despite a historic bull market, 40% of high net worth Indian households are dissatisfied with their investment returns, with a significant skew towards real estate investments.
Real EstateAsset AllocationHigh Net WorthInvestment ReturnsMarcellus IndiaReal EstateJun 04, 2025
According to the survey findings, 40 percent of high net worth Indian households expressed dissatisfaction with their investment returns, even after a historic five-year bull market. This dissatisfaction highlights a significant gap between financial aspirations and actual investment performance.
Further, the asset allocation of these affluent households remains skewed towards real estate, with half of the respondents holding over 20 percent of their portfolio in property beyond their primary residence. While equities ranked second, 14 percent of households said they maintained no emergency funds at all. 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, including 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 as a major barrier to achieving their goals. Thirty percent pointed to a lack of saving discipline, while 20 percent admitted 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 Mukherjee, emphasized the disconnect between aspirations and savings, highlighting the unique Indian context where parents commonly save for their children’s marriages—a practice 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 finding of the Marcellus India Wealth Survey?
The main finding is that the asset allocation of affluent households is heavily skewed towards real estate, with 40% of high net worth Indian households expressing dissatisfaction with their investment returns despite a strong bull market.
How much of their portfolio do affluent households hold in real estate?
Half of the respondents hold over 20 percent of their portfolio in property beyond their primary residence.
What are the major challenges faced by affluent households in achieving their financial goals?
The major challenges include dissatisfaction with investment returns, lack of saving discipline, limited understanding of investment options, and high debt burdens.
What percentage of affluent households do not maintain emergency funds?
14 percent of households said they maintained no emergency funds at all.
Why do many investors prioritize wealth preservation over growth?
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.
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