1 week ago
India’s Rich Families Prepare for $1.5 Trillion Wealth Transfer
India’s richest families are preparing to pass a lot of money to younger generations.
The amount changing hands could be between $1.3 trillion and $1.5 trillion over the next ten years.
Families are creating clearer rules for how important decisions should be made.
They are also hiring professional managers and using family councils and investment committees.
Family offices, which help manage family money, are becoming much more common.
These offices are investing in areas such as technology, renewable energy and private companies.
They are also using tools like artificial intelligence, reporting systems and cybersecurity software.
The goal is to keep family wealth organized, protected and useful for future generations.
India is expected to see $1.3 trillion-$1.5 trillion in wealth transferred between generations over the next decade.
The country has more than 19,000 ultra-high-net-worth individuals, a figure projected to exceed 25,000 by 2031.
Family offices increased from about 45 in 2018 to nearly 300 in 2024-25, according to estimates cited in the report.
Around 40%-45% of many Indian family offices’ allocations now go to alternative assets such as private equity, venture capital and private credit.
Families are adopting constitutions, councils, investment committees, professional managers and technology systems to support succession and governance.
- Who
- Indian wealthy families, their next generations and the family offices managing their assets, as discussed in a Julius Baer-EY report.
- What
- An estimated $1.3 trillion-$1.5 trillion of wealth is expected to change hands between generations, prompting greater attention to succession, governance and professional management.
- Where
- India.
- When
- Over the coming decade; the report also projects India’s UHNI population will exceed 25,000 by 2031.
- Why
- The transfer, growing number of ultra-high-net-worth individuals and expanding investment activities of family offices are increasing the need for formal governance, specialist skills and long-term wealth management.
Key facts
- Projected wealth transfer
- $1.3 trillion-$1.5 trillion over the coming decade
- India’s UHNI population
- More than 19,000 individuals with assets above $30 million
- UHNI projection
- Expected to exceed 25,000 by 2031
- Family offices
- Nearly 300 in 2024-25, compared with around 45 in 2018
- Alternative-asset allocation
- About 40%-45% of allocations in many Indian family offices
- India’s alternative-assets market
- Estimated at $400 billion, including $156 billion in SEBI-registered AIFs
- 2034 market projection
- The broader alternative-assets market could exceed $2 trillion by 2034
Quotes
Kunal Sumaya
Ad Interim Country Head, India and Market Head, Global NRI at Julius Baer
“As India prepares for one of the most significant intergenerational wealth transfers in its history, families that strengthen governance, invest in technology and talent and take a long-term approach to wealth management would be better placed to manage the transition.”
CNBC TV 18
Sources
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