Wealth Inequality in India: Top 1% Hold 60% of Assets in Real Estate and Gold
The top 1% of India's wealthiest citizens have invested 60% of their wealth in real estate and gold, according to a recent report by Bernstein. This segment, comprising Ultra High Net Worth Individuals (UHNI) and High Net Worth Individuals (HNI), controls nearly 60% of the country's total assets.
Wealth InequalityReal EstateGoldAsset ManagementIndiaReal EstateAug 04, 2025
This segment holds $11.6 trillion in total wealth and 70% of India’s financial assets, the report stated. India’s total household wealth is estimated at $19.6 trillion, out of which $11.6 trillion, or 59%, is held by this wealthy segment of the population.
Out of this, only $2.7 trillion is invested in serviceable financial assets that can be actively managed or reallocated, such as mutual funds, equities, insurance, and bank or government deposits. The remaining $8.9 trillion is held in non-serviceable assets, including gold, cash holdings, promoter equity, and physical real estate, according to the report.
The report indicates huge growth potential for asset management firms to grow their assets under management (AUM) over the next decade, as India’s affluent class is looking for avenues to diversify their portfolios beyond gold and real estate. The report highlighted how this wealth segment remains largely underpenetrated by formal wealth management services, with a considerable portion of financial wealth unmanaged. In a previous report, Bernstein had mentioned that specialized wealth managers currently hold only 11% share in the liquid financial asset pool of India.
The findings also underscore a broader structural trend in India: while income inequality is high, wealth inequality is even starker. “The top 1% earns 40% of all income, while the ‘Rest of India’ holds only a small fraction of both income and assets,” the report said.
There are approximately 35,000 UHNI households whose net worth surpassed $12 million (Rs 100 crore). These households have an average asset value of $54 million (Rs 472.5 crore), including $24 million (Rs 210 crore) in financial assets. According to the report, this affluent segment collectively held $4.5 trillion in financial assets, which amounts to 70% of the country’s total financial wealth.
The report's findings highlight the need for more sophisticated wealth management services to cater to this segment, which is increasingly seeking diversified investment options. This could present significant opportunities for financial institutions and asset managers to tap into this underpenetrated market and help these individuals manage and grow their wealth more effectively.
Frequently Asked Questions
What percentage of India's total assets does the top 1% hold?
The top 1% of India's wealthiest citizens control nearly 60% of the country’s total assets.
How much of their wealth do the top 1% invest in real estate and gold?
The top 1% of India's wealthiest citizens have invested 60% of their wealth in real estate and gold.
What is the total household wealth of India estimated to be?
India’s total household wealth is estimated at $19.6 trillion.
How much of India's financial assets do the top 1% hold?
The top 1% hold $11.6 trillion in total wealth and 70% of India’s financial assets.
What is the potential for asset management firms in India?
There is significant growth potential for asset management firms to grow their assets under management (AUM) over the next decade, as India’s affluent class is looking for avenues to diversify their portfolios beyond gold and real estate.
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