Why HNIs in India are Shying Away from Stocks: Unveiling Their Investment Strategies
A recent survey reveals that despite high savings, India’s ultra-high-net-worth individuals (HNIs) are favoring gold and real estate over equities. Discover their investment strategies and the growing demand for professional financial advice.
Highnetworth IndividualsInvestment StrategiesFinancial PlanningReal EstateGoldReal Estate MumbaiJun 05, 2025
Instead, gold and real estate dominate their portfolios, with nearly half allocating more than 30% to property and the majority keeping a significant portion in gold or silver, according to India Wealth Survey 2025 by Marcellus Investment Managers, in collaboration with Dun & Bradstreet. While most ultra-HNIs understand the importance of financial planning for a comfortable retirement, true diversification and strategic asset allocation remain elusive for many, highlighting a growing demand for professional advice tailored to their unique goals.
The survey has captured the evolving financial behaviors, asset preferences, and retirement planning patterns among high-net-worth individuals (HNIs) across India. The survey spans over 465 households across 28 cities, cutting across age groups, occupations, income brackets, and city types, offering a comprehensive view of India’s growing affluent class.
According to the survey, 43% of HNIs save less than 20% of their post-tax income. Despite aspirations like early retirement, home ownership, entrepreneurship, and children’s education, many lack the personalized planning and financial discipline to turn goals into reality. Notably, 14% do not maintain an emergency fund, and more than half allocate over 20% of their wealth to real estate.
These insights point to a growing appetite for expert advice. A striking 82% believe professional financial planning improves their chances of achieving long-term goals, while 51% seek help with diversification, and 38% want customized asset allocation aligned to their risk-return appetite.
Key insights from the wealth survey include:
- 63% of Rs 10 crore+ households save over 30% of their income, yet only 17% allocate more than 30% to equities.
- 44% of these households say they are “very comfortable” with equity investing, but still 65% of them exclusively allocate 10% to 20% to gold/silver and 48% of them allocate more than 30% to real estate.
- 76% of ultra-HNIs are aware of the investment corpus they need to retire comfortably, but diversification remains low.
- 82% believe professional financial planning is key to achieving long-term financial goals.
- 51% HNIs seek more guidance on diversification.
- 32% seek goal planning, and 38% seek personalized asset allocation tailored to their goals and risk.
Saurabh Mukherjea, Co-Founder, Marcellus Investment Managers, said, “As India steps confidently onto the global economic stage, its wealthy households are embracing greater sophistication and clarity in their financial journeys. They are seeking expert guidance, not just to manage their wealth, but to bring structure, discipline, and purpose to their long-term financial aspirations. This signals a shift from transactional choices to intentional, goal-driven financial decisions.”
Pramod Gubbi, Co-Founder, Marcellus Investment Managers, added, “Financial discipline and thoughtful asset allocation are the cornerstones of a solid financial foundation, essential for fulfilling future goals. India’s HNIs are no longer passive; they’re seeking a structured approach and professional assistance to help realize their life goals.”
Frequently Asked Questions
What percentage of Rs 10 crore+ households save over 30% of their income?
63% of Rs 10 crore+ households save over 30% of their income.
Why are HNIs favoring real estate and gold over equities?
HNIs are favoring real estate and gold over equities due to a preference for tangible assets and a lack of diversification in their investment portfolios.
What percentage of HNIs do not maintain an emergency fund?
14% of HNIs do not maintain an emergency fund.
How many HNIs believe professional financial planning is key to achieving long-term goals?
82% of HNIs believe professional financial planning is key to achieving long-term goals.
What percentage of HNIs seek guidance on diversification?
51% of HNIs seek guidance on diversification.
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