Affluent Indians shift gears as interest rises in alternatives, gold, global investing: HSBC report

Economic Times

5 days ago

Wealthy Indian investors are signaling a notable shift in their investment strategy, with a rising preference for alternative assets, managed solutions, and overseas diversification, according to the HSBC 2025 Affluent Investor Snapshot.
ADVERTISEMENT The report, based on a survey of 10,797 affluent investors across 12 global markets, reveals a growing appetite for diversified portfolios, especially among Indian investors who are increasingly looking beyond traditional holdings.
HSBC notes that affluent Indians are now leaning toward multi-asset strategies, alternative investments, and managed products like mutual funds, reflecting a broader evolution in wealth management goals.
According to Sandeep Batra, Head of International Wealth and Personal Banking at HSBC India, 'There is a notable shift among affluent individuals in India toward a more strategic approach to portfolio management. There is a growing emphasis on making money work harder over extended time horizons.' He added that Indian investors are 'actively diversifying across various asset classes, including alternatives, and exploring opportunities beyond their domestic markets.'Within Indian portfolios, gold has seen the highest increase in allocation over the past year, rising from 8% to 15%, followed by alternative investments. Managed investments, equities, and gold remain the dominant holdings. Indian investors also maintain the lowest average cash allocation in Asia at just 15%, indicating a higher willingness to deploy capital into growth-oriented assets.Globally, Gen Z and millennial investors are leading this trend, cutting down cash allocations from 31% to 17% on average. In India, while affluent investors have already reduced cash allocations, their global peers remain divided: 30% plan to increase cash allocations, 20% plan to reduce them, and half intend to keep them unchanged over the next 12 months.
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Affluent investors in India and globally are also showing rising interest in international diversification. The US ranks as the top destination for overseas investments, while markets like Singapore, Hong Kong, UAE, and the UK also remain attractive. HSBC's findings show that 4 in 10 global affluent investors plan to invest internationally in the next 12 months, with the highest intent reported in the UAE (56%) and Singapore (50%).
ADVERTISEMENT Notably, investors in key wealth hubs not only look abroad but also show strong preferences for investments within their own regions. The report also notes increasing interest in opening overseas investment accounts, with the US, Singapore, and Hong Kong ranking highest in preference.Despite macroeconomic headwinds, Indian investors remain significantly more optimistic than their global counterparts. According to HSBC's findings, over 90% of Indian respondents are confident in achieving their short-term goals, more than 80% in medium-term goals, and 86% in long-term financial objectives.
ADVERTISEMENT Globally, 8 in 10 affluent investors remain confident in meeting their financial goals, with retirement planning emerging as the most important long-term priority across generations.In India, property investment, financial support for family, and personal well-being savings top the list of financial priorities. Additionally, 85% of Indian respondents expressed satisfaction with their quality of life, underscoring both financial confidence and lifestyle security despite rising living costs and broader economic concerns.
ADVERTISEMENT The report highlights a growing trend of portfolio evolution, where affluent Indian investors are increasingly turning toward alternatives, reducing idle cash, adding gold, and exploring international markets, with confidence and strategic clarity driving the shift.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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