Next-gen investors steer wealth in new directions
One of the most notable developments of the year was the acceleration of the generational wealth transfer, with more assets moving from older households to Gen X, millennials and early Gen Z inheritors.
A Reuters report, citing UBS data, said that 91 people joined the billionaire ranks through inheritance in 2025, together receiving about Rs 23,870 crore. The report added that heirs around the world could inherit as much as Rs 4,74,350 crore over the next 15 years. This multi‑decade wealth transfer is likely to shift how wealth is deployed, potentially creating demand for diversified, multi-asset, and globally oriented investment strategies among younger inheritors.
This new cohort of wealthy individuals demanded more digital engagement, analytical transparency and customised investment options. Their portfolios reflected a greater appetite for thematic investing from artificial intelligence and healthcare innovation to climate transition and green mobility, pushing wealth managers to rethink how they design and deliver advisory services.
Family offices strengthen their global footprint
Family offices saw a rapid expansion in size and sophistication through 2025, driven by broader structural changes in wealth management. In India in particular, the ecosystem has grown dramatically, with the number of family offices rising from only a handful in 2018 to over 300 by 2024, according to a TOI report quoting EY–Julius Baer data.
These offices are now diversifying beyond traditional assets, allocating capital into global equities, private equity, venture capital, real estate and other alternatives, signalling a shift toward a global, multi‑asset, long‑term investment mindset.
A growing number of families established global offices to tap international opportunities, especially in technology-led sectors. This shift made family offices powerful dealmakers in private markets and signalled a decisive move away from solely relying on public market returns.
Expert take
Akash Hariani, Joint Managing Director, Motilal Oswal Private Wealth said, “High traction was seen in alternative assets such as private equity, AI, blockchain, healthcare, infrastructure, data centres, crypto, and real estate, with HNIs increasingly shifting allocations towards these, as the interest in public markets, bonds, and traditional holdings softened amid bouts of volatility.”
“The number of millionaires has surged to 52 million, collectively holding around Rs 8,62,010 crore of wealth, driven by rising home values, buoyant capital markets, tech/fintech start-ups, the boom in tier-2 cities, and a looming wave of inheritances estimated at over Rs 6,44,000 crore. However, wealth inequality has also widened: the richest areas in the U.S. are now seven times wealthier than the poorest,” he added.
India emerges as one of the fastest-growing HNI markets
India continued its rise as one of the world’s most promising wealth hubs. The country saw strong expansion in its HNI and ultra-HNI population, driven by growth in manufacturing, digital services, financial markets and start-ups.
A media report quoting Knight Frank’s Wealth Report 2025 revealed that the global population of high‑net‑worth individuals rose 4.4%, reaching 2.34 million in 2024. Meanwhile, India emerged as a rising global wealth hub, with 85,698 HNWIs, placing it 4th globally, and 191 billionaires as of 2024.
The wealth surge translated into higher demand for luxury homes, premium automobiles, alternative investments and international travel. Unlike Western counterparts, Indian HNIs maintained a heavy reliance on real estate and business ownership, though interest in equities and sustainability-focused investments grew substantially. Energy transition, electric mobility and renewable infrastructure were among the preferred themes for affluent Indian families looking to back long-term growth stories.
US HNIs adjust strategies amid a changing market backdrop
The United States remained the world’s deepest and most influential wealth market, but 2025 brought a refined approach to investing among American HNIs. While public equities, especially technology and innovation-led companies, stayed central to portfolios, investors rebalanced toward private assets to hedge against market uncertainty.
Private credit gained popularity due to attractive yields, while real estate and infrastructure were viewed as effective inflation shields. Many HNIs embraced co-investments and direct growth deals, preferring structures that offer greater control and lower fees. The stability and scale of the US market ensured that it remained the anchor for global wealth strategies.
Alternative and luxury assets move mainstream
Another defining trend of 2025 was the growing role of unconventional assets in HNI portfolios. Luxury real estate, art, vintage cars, rare watches, collectables and vineyards saw rising demand as wealthy individuals sought tangible stores of value. Meanwhile, sustainable and transition-linked investments continued to attract long-term interest, reflecting both next-gen values and expanding global opportunities. With liquidity acceptable for a longer horizon, HNIs displayed a willingness to trade short-term flexibility for differentiated, high-quality assets.
“Rising incomes and wider financial awareness encouraged more households to look beyond traditional options. Net commitments in Alternative Investment Funds (AIF) grew from Rs 13.05 trillion in Dec’24 to Rs 15.05 trillion as of Sep’25 (source: SEBI). These investors are also increasingly exploring global investment opportunities, with total funds being remitted in CY25 (YTD Sep’25) at Rs 139.15 billion. Gift City is gaining acceptance, including from NRI investors looking to invest in India,” said Naval Kagalwala, COO & Head of Products, Shriram Wealth.
A transformative year for global wealth
Altogether, 2025 marked a decisive shift in how the wealthy deploy capital. The rise of next-gen investors, the professionalisation of family offices, India’s rapid wealth expansion and the global tilt toward private markets created a new architecture for wealth management. As 2026 begins, wealth advisors worldwide face a clear mandate: deliver global access, multi-asset capabilities, estate planning expertise and values-aligned investment strategies, all while ensuring the personalised touch that HNIs increasingly expect.
