Why are HNIs in India struggling to save and invest wisely?
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Mumbai: Many high-net-worth individuals (HNIs) in India may be falling short of meeting their financial goals , according to a survey conducted by Marcellus Investment Managers and Dun & Bradstreet.The survey, conducted in February-March 2025, covering 465 respondents across metros and tier 1 and 2 cities, all with post-tax household incomes of over ₹20 lakh per annum, said these affluent individuals might not be saving enough.While 43% of HNIs surveyed save less than 20% of their post-tax income, HNIs face challenges in achieving their goals because of low investment returns , lack of savings discipline , poor understanding of investment options and high debt burden.Four in 10 respondents have at least one open loan. While real estate dominates portfolios - with half allocating more than 20% of their wealth to it, excluding their primary residence - only one in three HNIs has more than 20% allocated to equities. The survey said 14% of respondents have no emergency funds at all. Three-quarters of HNIs are saving for children's education and marriage, while 40% aspire to start a business or buy a house. An equal number hope to retire early.In the survey, 30% of respondents said they are not very comfortable investing in equities. Global diversification is still limited. While 21% have begun investing overseas, nearly a quarter say they are unfamiliar with the concept. Trust in financial advice is also shaky. While 87% of HNIs rely on external help such as wealth advisors, chartered accountants, family or friends, stockbrokers and bank relationship managers for investment decisions, two-thirds are dissatisfied with the advice they receive.
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