In a significant shift, India's economic vigour is increasingly evident in its Tier 2 - Tier 4 cities. Ten years ago, the Indian HNI list was concentrated in 10-15 cities. Today, more than 60 cities contribute to the rapidly growing number. This geographical trend offers potential for a never- realised-before holistic economic growth of the country.

There are two distinct facets to this trend -

• Legacy wealth - India’s tier-2 and tier-3 cities have always had wealthy families. This wealth has been created by specialised sector focus and has been preserved for generations. In terms of investments, traditionally, legacy business owners are inclined towards real estate and gold. However, this wealth is now being diversified across more sophisticated financial instruments. Take the example of mutual funds, whose AUM share of smaller cities has grown from a mere 2.55% in 2014 to 17.44% in 2023, as per AMFI. Post–pandemic, this transition has been fueled by better access and growing fin…