Where are India's ultra-rich families investing in 2025?

India Today

3 days ago

India's ultra-wealthy aren't just sitting on their fortunes anymore. In 2025, they're stepping out, investing boldly, and thinking globally. A new EY–Julius Baer report, The Indian Family Office Playbook, reveals that many family offices are moving away from traditional wealth preservation and diving into global markets, private credit, and real assets.Family offices, typically set up by high-net-worth individuals (HNIs) or ultra-high-net-worth individuals (UHNWIs), help manage everything from global investing and succession to philanthropy and compliance.advertisementIndia is now home to over 300 family offices—up from just 45 in 2018. And while 25% of them still put capital preservation front and centre, the big picture is clear: diversification is in, and legacy-building is taking centre stage.
'Families now seek efficiency, transparency, and global access—all of which require a more structured approach,' said Surabhi Marwah, Co-leader of Private Tax and Partner at EY India. 'The Indian family office ecosystem is at an inflection point where wealth preservation alone is no longer enough.'So what does this new playbook look like? For starters, family offices are investing across borders, with interest rising in global equities, private equity, venture capital, and real estate. Private credit—once a niche space—is quickly gaining popularity for its steady returns and built-in downside protection. And this global hunger is backed by numbers: under the Liberalised Remittance Scheme, outbound flows jumped from $18.8 billion in 2019–20 to $31.7 billion in 2023–24.advertisementBut it's not just about chasing returns. Global investing brings its own headaches. The report shows 48% of family offices are worried about shifting tax laws, and 37% are grappling with cross-border rules. These concerns are shaping strategy just as much as the returns themselves.'Family offices are increasingly catering to first-generation entrepreneurs who are more risk-tolerant and open to emerging sectors,' said Umang Papneja, CEO of Julius Baer India. 'As the scale and complexity of wealth grow, there's a stronger focus on strengthening governance, growing asset value and planning for legacy succession.'Interestingly, despite the enthusiasm for alternatives, private markets are still approached with caution. About 57% of family offices allocate less than 10% of their portfolios to private equity or venture capital, often due to limited access or a conservative approach.Another big area of focus is governance and succession. While 59% of families have created wills or constitutions, only 19% have adopted formal structures like private trusts or LLPs. That leaves many still flying blind when it comes to long-term continuity.'Preserving and enhancing generational wealth lies at the heart of every family office,' said KT Chandy, Partner and Co-leader of Private Tax at EY India. 'In the process, they enable seamless succession through structures like private trusts, aligned shareholder agreements, and defined governance roles.'advertisementLooking ahead, family offices in India are expected to double down on global diversification, formal governance, and smarter portfolio tools. GIFT City is fast becoming a favourite for cross-border structuring and tax efficiency. ESG investing is also on the rise, aligning with the values of next-generation wealth holders.The big takeaway is that India's family offices are no longer just quiet keepers of wealth. They're becoming agile, global institutions—built not just for returns, but for long-term impact.- Ends