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Economic Times
2 days ago
- Business
- Economic Times
Not just you, even HNIs are struggling to save and invest
TIL Creatives India Wealth Survey 2025: The India Wealth Survey 2025 captured responses from 465 households across 28 Indian cities Mr. Kumar, a 44-year-old banking professional living in Mumbai's Kandivali suburb, earns Rs 50 lakh annually and holds assets worth Rs 3.5 crore. He dreams of buying a new car, funding his daughter's international education, walking her down the aisle, and retiring at 60 with a steady income. Yet, he saves just Rs 5 lakh a year. With a ballooning home loan EMI, school fees, and other lifestyle expenses, Kumar's financial plan, if one can call it that, secures only 62% of his long-term story is not unique. In fact, it's alarmingly typical. According to the India Wealth Survey 2025, jointly conducted by Marcellus Investment Managers and Dun & Bradstreet, India's high-net-worth individuals (HNIs) are increasingly aspirational but financially underprepared. Despite a decade-long bull market and swelling disposable incomes, nearly 43% of Indian HNIs save less than 20% of their post-tax income. For individuals earning more than Rs 20 lakh a year, like Kumar, this mismatch between ambition and financial action is a sobering reality check. The survey, conducted between February and March 2025, captured responses from 465 households across 28 Indian cities, including metros, Tier 1, and Tier 2 towns. These households span different age brackets, professions, and family setups, but a common thread emerged: while wealth may be growing, financial discipline is not keeping pace. India's affluent class is maturing in mindset. The survey found that 75% of HNIs prioritise funding their children's education and marriage, while 40% aim to buy homes, start businesses, or retire early. These aren't far-fetched goals for individuals with annual incomes exceeding Rs 20 lakh. However, many lack the financial clarity to achieve them. More than one-third of respondents aged 30–45, those typically in their prime earning years, reported having at least one active loan. Among these younger HNIs, half are servicing debt, and only 25% manage to save more than 30% of their income. As the survey puts it bluntly, 'Indian HNIs: So Near, Yet So Far.'Their challenges stem not just from consumption but from structural issues in how they plan, or fail to plan, their financial futures. A staggering 14% of HNIs surveyed do not maintain an emergency fund at all, leaving them vulnerable to even minor financial estate continues to dominate the Indian HNI's investment palette, despite its illiquidity and cyclical risks. The survey found that more than 50% of HNIs allocate over 20% of their wealth to real estate, excluding their primary residences. By contrast, only one in three HNIs allocates more than 20% to equities, a disparity that persists even among those who claim to be comfortable with market-linked fact, even ultra-HNIs, defined in the study as households with net worths exceeding Rs 10 crore, struggle with effective diversification. 63% of them save more than 30% of their income, yet only 17% allocate more than 30% to equities. Meanwhile, 65% of them continue to invest 10–20% in gold and silver, underscoring a lingering preference for traditional stores of value over globally diversified, higher-yielding options.'HNIs face challenges in achieving their goals,' the survey noted, citing low investment returns (40%), lack of savings discipline (29%), poor understanding of investment options (21%), and high debt burdens (9%) as the most common roadblocks. While nearly 87% of HNIs rely on external advisors, including wealth managers, bank RMs, chartered accountants, friends, or stock brokers, many feel let down. Two-thirds reported dissatisfaction with the quality of advice they receive. The complaints are telling: 'The advisor doesn't fully understand my needs, and their recommendations are not tailored to my unique situation,' one respondent said. Another added, 'My advisor recommends products to meet their commission targets, rather than advising products which are right for me.'The survey found 31% of respondents citing lack of personalisation, 17% citing conflict of interest, and 14% highlighting lack of transparency as key reasons for their demand for quality advice has never been stronger. A resounding 82% of respondents believe professional financial planning improves their odds of meeting long-term goals. Additionally, 51% want help with diversification, 38% want customised asset allocation, and 32% seek assistance in goal planning, clear signs that Indian HNIs are hungry for more than just investment products; they want frameworks, relationships, and long-term vision. The Marcellus–D&B Wealth Survey 2025 paints a nuanced portrait of India's affluent class: ambitious, aware, but adrift. The traditional model of passive investing, real estate accumulation, and informal advice is showing its age. What HNIs now demand is a more deliberate path, one that aligns their wealth with their purpose. From goal-linked planning and global diversification to conflict-free advisory relationships, the contours of this new roadmap are beginning to take shape. Yet, as the case of Mr. Kumar shows, the gap between intention and execution remains wide. Also read | 43% of Indian HNIs save less than 20% of their income, says Marcellus–D&B Wealth 2025 survey Marcellus proposes a three-pronged solution: no-cost personalised financial planning, access to diversified portfolios including global equities, and ongoing support and counselling. For those willing to trade DIY bravado for expert help, the promise is simple: security, clarity, and peace of until the broader shift occurs, until more Indian HNIs reframe money not just as an asset to accumulate, but as a means to achieve carefully mapped life goals, stories like Kumar's will continue to be the rule, not the exception.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
2 days ago
- Business
- Time of India
Not just you, even HNIs are struggling to save and invest
Aspirations are high, planning is low Live Events The portfolio puzzle: heavy on real estate, light on diversification A broken advisory model A moment of inflection in India's wealth journey (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mr. Kumar, a 44-year-old banking professional living in Mumbai's Kandivali suburb, earns Rs 50 lakh annually and holds assets worth Rs 3.5 crore. He dreams of buying a new car, funding his daughter's international education, walking her down the aisle, and retiring at 60 with a steady income. Yet, he saves just Rs 5 lakh a year. With a ballooning home loan EMI, school fees, and other lifestyle expenses, Kumar's financial plan, if one can call it that, secures only 62% of his long-term story is not unique. In fact, it's alarmingly to the India Wealth Survey 2025 , jointly conducted by Marcellus Investment Managers and Dun & Bradstreet, India's high-net-worth individuals (HNIs) are increasingly aspirational but financially underprepared. Despite a decade-long bull market and swelling disposable incomes, nearly 43% of Indian HNIs save less than 20% of their post-tax income. For individuals earning more than Rs 20 lakh a year, like Kumar, this mismatch between ambition and financial action is a sobering reality survey, conducted between February and March 2025, captured responses from 465 households across 28 Indian cities, including metros, Tier 1, and Tier 2 towns. These households span different age brackets, professions, and family setups, but a common thread emerged: while wealth may be growing, financial discipline is not keeping affluent class is maturing in mindset. The survey found that 75% of HNIs prioritise funding their children's education and marriage, while 40% aim to buy homes, start businesses, or retire early. These aren't far-fetched goals for individuals with annual incomes exceeding Rs 20 lakh. However, many lack the financial clarity to achieve than one-third of respondents aged 30–45, those typically in their prime earning years, reported having at least one active loan. Among these younger HNIs, half are servicing debt, and only 25% manage to save more than 30% of their income. As the survey puts it bluntly, 'Indian HNIs: So Near, Yet So Far.'Their challenges stem not just from consumption but from structural issues in how they plan, or fail to plan, their financial futures. A staggering 14% of HNIs surveyed do not maintain an emergency fund at all, leaving them vulnerable to even minor financial estate continues to dominate the Indian HNI's investment palette, despite its illiquidity and cyclical risks. The survey found that more than 50% of HNIs allocate over 20% of their wealth to real estate, excluding their primary residences. By contrast, only one in three HNIs allocates more than 20% to equities, a disparity that persists even among those who claim to be comfortable with market-linked fact, even ultra-HNIs, defined in the study as households with net worths exceeding Rs 10 crore, struggle with effective diversification. 63% of them save more than 30% of their income, yet only 17% allocate more than 30% to equities. Meanwhile, 65% of them continue to invest 10–20% in gold and silver, underscoring a lingering preference for traditional stores of value over globally diversified, higher-yielding options.'HNIs face challenges in achieving their goals,' the survey noted, citing low investment returns (40%), lack of savings discipline (29%), poor understanding of investment options (21%), and high debt burdens (9%) as the most common nearly 87% of HNIs rely on external advisors, including wealth managers, bank RMs, chartered accountants, friends, or stock brokers, many feel let down. Two-thirds reported dissatisfaction with the quality of advice they complaints are telling: 'The advisor doesn't fully understand my needs, and their recommendations are not tailored to my unique situation,' one respondent said. Another added, 'My advisor recommends products to meet their commission targets, rather than advising products which are right for me.'The survey found 31% of respondents citing lack of personalisation, 17% citing conflict of interest, and 14% highlighting lack of transparency as key reasons for their demand for quality advice has never been stronger. A resounding 82% of respondents believe professional financial planning improves their odds of meeting long-term goals. Additionally, 51% want help with diversification, 38% want customised asset allocation, and 32% seek assistance in goal planning, clear signs that Indian HNIs are hungry for more than just investment products; they want frameworks, relationships, and long-term Marcellus–D&B Wealth Survey 2025 paints a nuanced portrait of India's affluent class: ambitious, aware, but adrift. The traditional model of passive investing, real estate accumulation, and informal advice is showing its age. What HNIs now demand is a more deliberate path, one that aligns their wealth with their goal-linked planning and global diversification to conflict-free advisory relationships, the contours of this new roadmap are beginning to take shape. Yet, as the case of Mr. Kumar shows, the gap between intention and execution remains proposes a three-pronged solution: no-cost personalised financial planning, access to diversified portfolios including global equities, and ongoing support and counselling. For those willing to trade DIY bravado for expert help, the promise is simple: security, clarity, and peace of until the broader shift occurs, until more Indian HNIs reframe money not just as an asset to accumulate, but as a means to achieve carefully mapped life goals, stories like Kumar's will continue to be the rule, not the exception.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
2 days ago
- Business
- Time of India
Why are HNIs in India struggling to save and invest wisely?
Tired of too many ads? Remove Ads 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 & 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 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 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 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.
Economic Times
2 days ago
- Business
- Economic Times
Why are HNIs in India struggling to save and invest wisely?
Agencies Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel 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 & 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 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 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 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.
New Indian Express
2 days ago
- Business
- New Indian Express
Many high-net-worth individuals fall short of savings goals despite high incomes, reveals survey
A large percentage of high-net-worth individuals (HNIs) are not saving enough to achieve their financial goals, as per a survey by Marcellus Investment Managers. The survey highlighted that 43% of high HNIs save less than 20% of their post-tax income, while 14% do not maintain an emergency fund. Giving an example, the survey highlighted that a 44-year-old banking professional working in Mumbai only manages to save Rs 5 lakh per annum despite pocketing Rs 50 lakh as bulk as his/her income goes towards EMIs and children's education. Saurabh Mukherjea, Co-Founder, Marcellus Investment Managers, said that affluent Indians are living in a world of high aspirations and low savings, compounded by illiquid, tax-inefficient portfolios. He stated that without a clear financial roadmap and disciplined investing, their goals will remain out of reach. The survey said that HNIs prefer real estate more over other asset classes. More than half of the respondents have over 20% of their assets in property, even excluding their primary residence. Only 1/3rd of the respondents have more than 20% equity allocation.
