India is at an inflection point in its wealth journey. In 2024, the number of ultra-high-net-worth individuals (UHNIs)—those with assets above $30 million—grew 6% annually to 13,600, a number projected to increase by 50% by 2028. At the same time, the high-net-worth individual (HNI) population—those with assets above $1 million—has crossed 850,000 and is set to nearly double to 1.65 million by 2027.
This growth reflects a dramatic shift in HNI wealth trends in India, with 20% of millionaires now under 40, representing a younger, digital-first generation. Wealth creation is no longer limited to metros; Tier-II and Tier-III cities like Jaipur, Pune, and Indore are emerging as wealth hubs, powered by digital access and entrepreneurial growth.
Behind this surge are structural tailwinds such as the booming startup ecosystem, formalisation of the economy, and financialization of household savings. Flagship programs by the Indian government, like ‘Digital India’ and ‘Make in India’, as well as its PLI schemes have created fertile ground for sectors like tech, manufacturing, and financial services and are key drivers of the next-gen wealth India is experiencing.
Evolving Wealth Management Expectations
HNIs in India have built their wealth through a variety of means. Many are first-generation entrepreneurs who are risk-takers with an aggressive mindset toward capital growth. Others belong to legacy business families, often grappling with a more layered challenge: preserving and growing inherited wealth while staying relevant in a rapidly changing world.
A growing number are professionals, CXOs, and startup founders whose liquidity events have catapulted them into wealth categories once seen as reserved for industrialists. This proliferation of HNIs is amplified by a once-in-a-lifetime event: the Great Wealth Transfer. Globally, an estimated $84 trillion is expected to be passed down from baby boomer parents to their millennial and Gen Z children by 2045, signalling the emergence of next-gen inheritors.
Concurrently, the asset landscape is becoming more sophisticated. Private equity, venture capital, AIFs, REITs, global portfolios, and collectables are making asset allocation more nuanced. Add in tax regulations, ESG frameworks, and cross-border considerations, and it’s clear that modern wealth management in India requires far more than just product selection—it demands strategy, alignment, and deep understanding.
Against this backdrop, the models of engagement in wealth management are evolving. India’s wealth management industry, which stood at $1.1 trillion in AUM in FY24, is expected to more than double to $2.3 trillion by FY29.
The 3 wealth management models in India
The growth in the number of HNIs in India is paving the way for differentiated wealth management models. Each has its own appeal, depending on the investor’s needs, risk appetite, and stage in the wealth journey.
- Distribution-led models
The distributors-driven model and relationship managers at banks and large institutions represent the most traditional wealth management approach that operates on a commission-based structure. They focus on selling products that are suitable but not always optimal, raising concerns around bias and conflict of interest. While distribution models still command a significant share of the wallet, especially among older clients, trust is increasingly shifting toward those perceived as more aligned with investor outcomes.
- Fee-based advisory models
Pure advisory players offer unbiased, product-agnostic guidance in exchange for a flat fee. These could be boutique firms, specialised advisory firms or independent wealth advisors who prioritise transparent advice over product selling. This segment is growing rapidly as clients become more aware and seek alignment over incentives.
- Tech-only platforms
Platforms like Zerodha, Kuvera, Groww, and INDmoney are designed for the digitally native, cost-sensitive investor. They offer low-cost access, transparency, and convenience, with features like direct mutual fund investments, goal tracking, and tax optimisation. But for all their simplicity, they often lack the nuance and strategic foresight required for complex, multi-generational wealth management.
In India, the Securities and Exchange Board of India (SEBI) — particularly its Investment Advisors Regulations of 2013 — has been instrumental to the transformation of the country’s wealth management landscape. The regulations aimed to protect investors by providing a framework that regulates anyone offering investment advice and ensures that their advisory services are transparent, unbiased, and conflict-free. The framework brought structure and accountability to the advisory process and has served as an impetus that propelled the adoption of the advisory model in India.
Over the years, India’s HNIs have shown a growing preference for a fee-based wealth-advisory model over traditional approaches to wealth management. This shift signals the demand for not just sophisticated services aligned with global best practices but also a framework that instils trust and prioritises the client’s best interests.
From accumulation to alignment
As India’s wealth landscape evolves, there is a growing demand for more specialised advisory services that offer bespoke solutions for specific needs, risk appetites, and stages in the wealth journey. Distinct client segments have also emerged, where wealth management advice is tailored to the unique circumstances of each cohort, from entrepreneurs, first-gen HNIs, and next-gen inheritors to NRIs, women, and family businesses.
This evolution in India mirrors a broader global trend. In mature markets like the US, UK, and Australia, the dominance of product-push models has steadily given way to advisory-led engagement. A recent PwC survey points out that HNIs increasingly prioritise services beyond traditional investing, reinforcing this evolution. The most in-demand: tax and legal advice (31%)—especially succession planning—followed by real estate (23.1%) and M&A advisory (19.4%).
This shift marks a transition where advisory services prioritise meaningful, goal-based partnerships over transactional selling.
The future leads towards advisory-first
As it stands, customised advice encompassing various facets of financial wellbeing is now the bedrock of every high-net- worth client’s expectations from their wealth advisor. The success of wealth management will be determined by how well a wealth manager can build lasting trust through transparent, unbiased advice that prioritises client goals over product sales. Advisors who focus on understanding clients’ unique circumstances and delivering personalised, un-biased, goal-aligned strategies will outperform traditional, transaction-driven models.
