The number of High Net Worth Individuals (HNIs) in India is rapidly increasing, but a recent report reveals that most wealthy individuals are saving significantly less than their income would allow.
Business: The number of HNIs in India has grown at a record pace over the last decade. Millions in income, expensive homes, luxury cars, and foreign vacations define the HNI lifestyle… except for a robust financial security system. The recently released ‘India Wealth Survey 2025’ debunks the assumption that higher earners automatically practice better financial planning.
This survey, jointly conducted by Marcellus Investment Managers and Dun & Bradstreet, revealed surprising statistics regarding HNIs' investment habits, savings tendencies, and risk management practices.
High Earnings, Minimal Savings
The report found that many HNIs save less than 20% of their total income. 43% of HNIs admitted that after taxes, their savings are insufficient to secure future needs and financial independence. The survey also revealed that 14% of wealthy families lack any emergency fund. This indicates that despite high income levels, financial security preparedness remains weak.
Over-Reliance on Real Estate
According to the report, wealthy Indians are also failing to maintain a balanced investment portfolio. More than half of HNIs allocate over 20% of their assets to real estate. While this investment is considered safe, it lacks liquidity and is not suitable for short-term needs.
The survey indicated that among families with assets exceeding ₹10 crore, 63% save more than 30% of their income. Yet, only 17% allocate a significant portion to the stock market, typically considered beneficial for long-term wealth creation.
Need for Financial Advice, Lack of Initiative
Interestingly, 82% of respondents believe that seeking expert financial advice could help them achieve their goals. Despite this, a significant number of HNIs invest without a plan.
According to the Survey
- 51% of wealthy individuals desire comprehensive information on diverse investment options.
- 38% want guidance on asset allocation.
- 32% wish to create a personalized financial plan with an expert.
- This data suggests that a lack of information, expertise, and perhaps time, results in many wealthy individuals neglecting investment and financial planning.
Low Interest in Gold and Stocks
While 65% of respondents allocate 10-20% of their assets to gold and silver, equity investments are relatively low. The report also highlights a lack of diversification in investments—which could negatively impact long-term wealth building. 76% of Ultra-HNIs (individuals with extremely high net worth) know how much they need for a comfortable retirement, yet demonstrate limited efforts in planning and implementation.
