Latest news with #HNI
Mint
20 hours ago
- Business
- Mint
How ultra HNIs can future-proof overseas education for their children
For ultra-high-net-worth families, a foreign education for their children is now a default milestone in their long-term planning. It is not just an academic decision but also a strategy for global mobility, wealth planning, and legacy building. Today, nearly every HNI family either has a child studying overseas or one preparing for it. This journey for a family is centred around numerous financial decisions and hence regulations. Following is a breakdown of Reserve Bank of India (RBI) regulations, key tax implications and strategic planning steps required to help families approach international education in a compliant and future-ready manner. As costs rise and global regulations evolve, a well-structured approach has become more essential than ever. The Indian regulatory framework For UHNI families with diverse portfolios, family offices or international holdings, funding their child's education can be a complex process. It includes coordinating multiple sources of funding, managing international bank accounts in the child's name and offshore investments. Navigating these complexities requires clarity on the regulatory framework set by the RBI. Under the Foreign Exchange Management Act (FEMA), governed by the RBI, students going abroad for education are classified as non-resident Indians (NRIs) from the time they leave India, provided their intention is to stay abroad for an uncertain period, even if the course has a defined duration. This decision was made considering that many students work part-time or receive scholarships, making them financially independent from their families in India. Once designated as NRIs, they are entitled to a range of benefits: Keeping these benefits in consideration, UHNI families can plan their wealth management and international mobility goals efficiently. Considerations for UHNI families UHNI families typically have more complex wealth structures and longer planning horizons. Here are a few ways in which they can ensure a smooth and compliant process, keeping all their goals in mind: These dynamics influence decisions such as long-term residency, making strategic education planning even more critical for UHNI families. Alternatively, families may choose to explore residency or citizenship by investment to reduce the impact of rising fees and visa limitations. Ensure that all the tax and foreign worker programs are clearly understood in the host country. Choosing the right country and leveraging tax-efficient funding structures can help optimize both educational outcomes and wealth preservation. For UHNI families, it is imperative that they work with experienced, multi-jurisdictional advisors like immigration consultants, private bankers and wealth managers, and cross-border tax experts to align their children's education journey with broader legacy, wealth transfer and mobility goals. This ensures long-term compliance in asset structuring across jurisdictions. Ashvini Chopra, head –family office solutions, Avendus Wealth Management. Views are personal.
Time of India
2 days ago
- Business
- Time of India
Retail participation in mutual funds surge from 26% in FY19 to 28% in FY25: 1Lattice Report
The retail participation in mutual funds increased from 26% in FY19 to 28% in FY25 and HNI participation also grew from 32% to 35%, showing rising trust across segments, according to a report from 1Lattice, a market intelligence firm. The report further highlights that India's mutual fund AUM hit Rs 65 trillion in FY25, growing at a 24% CAGR from FY20–FY25. The number of mutual fund folios jumped to 234 million, indicating widening retail participation. Explore courses from Top Institutes in Please select course: Select a Course Category Data Science Design Thinking Operations Management MBA Product Management Healthcare Data Science Artificial Intelligence Technology Project Management PGDM Public Policy MCA others Finance Digital Marketing CXO Leadership Degree Cybersecurity Data Analytics Management Others healthcare Skills you'll gain: Data Analysis & Interpretation Programming Proficiency Problem-Solving Skills Machine Learning & Artificial Intelligence Duration: 24 Months Vellore Institute of Technology VIT MSc in Data Science Starts on Aug 14, 2024 Get Details Skills you'll gain: Strategic Data-Analysis, including Data Mining & Preparation Predictive Modeling & Advanced Clustering Techniques Machine Learning Concepts & Regression Analysis Cutting-edge applications of AI, like NLP & Generative AI Duration: 8 Months IIM Kozhikode Professional Certificate in Data Science and Artificial Intelligence Starts on Jun 26, 2024 Get Details Also Read | The Wealth Company Mutual Fund files 4 draft documents with Sebi Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Man Intervenes as Child Jumps on Seats – Watch the Outcome Tips and Tricks Undo SIP contributions soared from Rs 0.4T in FY17 to Rs 2.9T in FY25, a 28% CAGR. Around 42% of 30 lakh new SIPs in Nov'23 were enabled by fintech platforms . Between Apr–Aug '24, Tier-2 & Tier-3 cities added 1.2 crore new mutual fund investor accounts, with 54% of all SIP accounts now coming from B-30 cities. Investing platforms like Groww, Paytm Money, ET Money revolutionized mutual fund access with Rs 500 SIPs, digital onboarding, and mobile-first investing. Adoption of robo-advisors is also streamlining portfolio curation and making investment advice affordable and accessible, the report said Live Events The equity-oriented AUM grew at a 28.7% CAGR (FY22–FY25), driven by bullish trends in small and midcap funds as these categories have delivered strong returns in FY25, encouraging investors to shift to equity-based investments. On the other hand, debt-oriented funds rebounded in FY25 with AUM reaching Rs 17T, showing stable investment preference. Despite equity dominance, debt MFs hold their ground, offering stability and predictable returns in uncertain rate environments Hybrid funds provide equity's growth potential with debt's stability, helping investors mitigate risks. Even in flat markets, balanced advantage funds have maintained stable returns of 8-10% annually. Also Read | 14 equity mutual funds lost over 5% in 9 months. Have you parked your savings in any of them? AMCs such as SBI MF, ICICI Prudential MF, HDFC MF, and Nippon MF together account for nearly 50% of the total AAuM in FY25. 'We have momentum on our side. Our product launches have been timely. Over the years, we've expanded our reach to newer corners of the country and bolstered our SIP book. Leveraging the parent SBI's network, along with collaborations with other distributors, has been instrumental in our growth,' said Joint CEO, SBI Mutual Fund.
Time of India
2 days ago
- Business
- Time of India
Ionic Wealth crosses Rs 5,000 crore AUM, unveils AI-powered agent for wealth managers
Synopsis Ionic Wealth's AUM surged 33.6% QoQ to Rs 5,070 crore in June 2025, driven by UHNI and HNI client growth. Backed by Angel One, the firm launched 'Ionic Agent', an AI-powered wealth advisory tool. With over 1,000 clients and 184 professionals, the company is expanding amid India's rising affluent population.
Mint
5 days ago
- Business
- Mint
India's rich don't seem to be saving enough. Here's why it makes perfect sense.
The recent Dun & Bradstreet India survey, conducted with Marcellus Investment Managers, has sparked considerable debate in wealth management circles. The numbers are striking: 43% of India's high-net-worth individuals (HNIs) save less than 20% of their post-tax income, and a significant portion don't have sufficient emergency cash. For those not familiar with HNI finances, these findings may appear counterintuitive—even troubling—given their wealth. But having worked closely with affluent families for years, I believe the data reflects a more nuanced reality than simple financial imprudence. Beyond traditional saving metrics To understand why HNIs appear to be 'under-saving", we must redefine what savings mean in the context of substantial wealth. Traditional saving advice, built around salaried individuals, is inadequate when applied to those with complex financial ecosystems. The definition of HNIs used in the many surveys and reports may differ from that used by wealth managers or multi-family offices. What sets HNIs apart Traditional personal finance frameworks—designed around salaried individuals—do not apply when portfolios spanoperating businesses, real estate, private equity, and public markets. HNIs operate in a fundamentally different financial landscape. Unlike traditional savers, who prioritise cash accumulation, HNIs focus on deploying capital efficiently. Every rupee sitting idle represents an opportunity cost, particularly given their sophisticated understanding of risk-adjusted returns. Another reason why traditional metrics under-represent HNI savings is that much of their wealth is held outside personal balance sheets, embedded in trusts, holding companies, limited liability partnerships (LLPs), and offshore entities. These structures are designed not just for tax efficiency but for succession planning, regulatory clarity, and investment agility. As a result, what may appear as low personal liquidity or savings is often capital strategically parked within investment vehicles that allow faster, tax-optimised decision-making. Wealth in these structures can be invested in private deals, real estate special purpose vehicles (SPVs), or pooled vehicles, offering both insulation and strategic advantage. Conventional savings thus take a backseat to more dynamic wealth management strategies. The strategic use of debt Perhaps the most misunderstood aspect of HNI financial behaviour is their relationship with debt. While most retail investors see debt as a financial liability but for the wealthy, debt is a strategic asset—used to amplify returns, manage liquidity, and unlock tax efficiency. Consider a successful entrepreneur operating in the highest tax brackets. For such individuals, interest-bearing debt can provide immediate tax benefits while preserving capital for higher-yielding opportunities. When their business generates substantial returns, or when private market investments offer superior risk-adjusted returns, servicing debt at prevailing market rates becomes a calculated arbitrage play. This leveraging strategy extends beyond simple tax optimisation. HNIs frequently use debt to maintain liquidity without disturbing their core investment positions. Rather than liquidating appreciating assets to meet cash requirements, they borrow against these holdings, preserving long-term wealth creation while addressing immediate needs. The idea is simple: borrow against appreciating assets while they continue compounding. What matters most is how this debt is structured and secured. HNIs typically take on debt against appreciating assets—real estate, securities or business equity—rather than unsecured consumer debt. This secured positioning, combined with multiple income streams, fundamentally alters the risk profile. Cash flow complexity and emergency fund realities Instead of traditional emergency funds, HNIs typically maintain emergency liquidity through credit facilities, securities-backed lines of credit, or quick-liquidation investment positions. These structures provide immediate access to substantial capital without the opportunity cost of holding large cash balances. The portfolio integration approach Debt is just another asset class, one that generates tax benefits and frees capital for higher-return opportunities. The optimisation occurs at the portfolio level, where the combined performance of assets, liabilities, and tax strategies creates superior risk-adjusted outcomes. For instance, an HNI might maintain a mortgage on their primary residence despite having enough cash to pay it off. The mortgage interest provides tax deductions, while the preserved capital is invested in appreciating assets or growth businesses, generating significantly higher returns. The net effect often exceeds what traditional debt reduction can achieve. Risk management in complexity HNIs must maintain full visibility into their financial ecosystem, understanding how various components interact during different market conditions. The real risk isn't leverage—it's misaligned liquidity. While leverage can enhance returns, mismatched liquidity profiles can force selling during market downturns. Successful HNIs maintain diversified liquidity sources and avoid concentration risks. This requires continuous monitoring and periodic rebalancing. HNI financial strategies must therefore remain adaptable while maintaining structural integrity. The path forward The D&B survey findings highlight important considerations for HNI wealth management. The key lies in distinguishing between strategic leverage and excessive risk-taking. The focus in this case should shift from traditional saving metrics to comprehensive wealth optimisation. Rahul Bhutoria is director and co-founder, Valtrust.
Business Standard
7 days ago
- Business
- Business Standard
Octanom Tech's Hedged.in Wins 'WealthTech of the Year' Two Times in a Row at the Business World Festival of FinTech 2025
NewsVoir Mumbai (Maharashtra) [India], July 17: Octanom Tech, a leading innovator in the WealthTech space, has been awarded the prestigious 'WealthTech of the Year' title at the Business World Festival of FinTech 2025. The award recognises Octanom Tech's commitment to redefining digital wealth management and making smart & safe investing accessible to India's underserved, first-time as well as savvy investors. The recognition was part of the 'India's Fintech Game Changers' showcase, which honoured 35 standout fintech leaders across key verticals including lending, insurance, infrastructure, and digital banking. Octanom Tech was acknowledged for its machine learning driven, behaviour-ally intelligent platform which offers investment solutions that are agnostic to market directions. Rahul Ghose, Founder and CEO, Octanom Tech & said, "Receiving this recognition is a significant milestone--not just for me, but for the mission we've set out to achieve at Octanom Tech. Our goal has always been to level the playing field by making financial planning truly inclusive, data-driven and customer-first. We believe every Indian should have the tools to create wealth without having the fear of market direction--no matter what capital size they start from." With its technology-led model, Octanom Tech is transforming the way retail investors, HNI's & Family offices engage with capital markets. They are one of the only firms in the country who offer Investing & structured products which are not direction dependent, meaning that the alpha generation process is not dependent on the markets going up. The 5th edition of the BW Festival of FinTech brought together leading fintech visionaries, investors, and regulators to explore the future of financial services and honour the trailblazers building a more inclusive financial ecosystem. Octanom Tech is a leading WealthTech firm based out of Bombay and Bangalore dedicated to leveraging advanced technology to create innovative investment solutions. The company's flagship platform, Hedged, is designed to empower investors with lower-risk solutions, AI-driven investment strategies, helping them navigate the financial markets with confidence.
