The wealth management industry in India is poised for significant shifts as 2025 approaches, according to Sumegh Bhatia, CEO for India at Lighthouse Canton, who spoke with LC IDEAs: Views & Insights in a recent conversation on the themes shaping 2025
Bhatia provided an overview of key themes driving the transformation of the asset and wealth management in the country, particularly the burgeoning high net worth individual (HNWI) and ultra-high-net-worth individual (UHNWI) segments.
THE RISING TIDE
"India's wealth landscape is undergoing a seismic shift, with rapid growth in both the HNWI and UHNWI segments," observed Bhatia. He explained that while UHNWIs—those with net worth exceeding USD 30 million—have traditionally been the focal point for wealth management firms, the burgeoning HNWI segment, comprising individuals with net worths between USD 1 million and USD 30 million, is now gaining momentum.
Bhatia noted, "The HNWI segment constitutes only 0.99% of the Indian population, while the UHNWI segment makes up just 0.02%. However, these numbers are growing rapidly."
According to Knight Frank’s flagship study, ‘The Wealth Report 2024’, the number of ultra-rich Indians will rise by 50.1% to 19,908 in 2028 from 13,263 in 2023. This is the highest growth for any country in the number of UHNWIs.
This rapid growth ( highlighted in the numbers above) underscores a key trend in India’s wealth landscape. As HNWIs accumulate and grow their wealth, their financial needs are becoming increasingly sophisticated, requiring access to solutions that not only preserve and grow wealth but also support their transition into the UHNWI segment. Additionally, as more Indian cities emerge as wealth hubs, catering to this segment will require wider distribution networks and a deeper understanding of these evolving priorities.
“India’s wealth management ecosystem is at a turning point,” Bhatia observed. “ Wealth managers who align with these trends and offer a personalised, forward-looking approach stand to capture the growing demand.”
Also Read: Winning together - Lighthouse Canton’s playbook for the fast growing India market
Also Read: Unpacking India’s wealth market boom
The growth is across both UHNWI and HNWI and the numbers again tell the story. Data from Knight Frank indicates a sharp rise in affluence: the number of individuals filing income tax returns for earnings between ₹50 lakh and ₹1 crore has quadrupled in recent years. This growing demographic is reshaping the financial services sector, driving innovation in wealth management strategies and solutions.
EMERGING OPPORTUNITIES IN TIER 2 AND TIER 3 CITIES OF INDIA
Beyond the big cities in India, tier 2 and tier 3 cities are becoming hotbeds of wealth creation and financial sophistication.
According to a report by the National Stock Exchange of India (NSE),, there has been rapid growth and penetration of India’s asset management industry, with increasing participation from tier 2 and 3 cities. In the last 6 years, AUM in mutual funds from investors in tier 2 and 3 cities has grown by 13%.
Source: 2024 NSE Report Indian Capital Markets
Bhatia remarked, "The theme is the emergence of sophisticated clients in tier 2 and tier 3 cities who want to understand more about what they can do with their wealth."
These regions are seeing increasing demand for family office services and investment structuring. Bhatia elaborated, "We’re seeing more interest from clients in these cities seeking advice to put structures in place, educating them about asset diversification, and introducing them to previously unfamiliar options like hedge funds and offshore investments."
Risk management is another critical area of focus. "We are talking about drawdowns and risk adjusted returns, something that wasn’t a priority for investors before because India has historically been such a growth-oriented market," Bhatia said. He highlighted that these conversations are now more relevant as investors aim to mitigate market volatility while pursuing growth.
NUANCES IN INVESTMENT CUSTOMISATION
Moving to how these UHNWI and HNWI individuals are investing and what to expect ahead.
“There’s no one-size-fits-all answer to wealth management in India,” Bhatia said. “You need to understand the client’s stage of evolution with respect to investments and their exposure to various asset classes. For instance, UHNWIs or family offices typically operate with a different mindset and set of aspirations compared to HNWIs who are just beginning to accumulate sizable wealth.”
HNWIs, often professionals, CXOs, or business owners in India, are predominantly focused on domestic investments. They prefer to invest in India’s growth story through equity, fixed income, or quasi-instruments, as they see the country as a high-growth market.
“These clients are not yet looking at significant global diversification or complex derivative structures,” the spokesperson added. “What they value is understanding global developments and how they impact India. That’s where the global reach and expertise of your wealth management provider becomes instrumental.”
However, there is a gradual shift even within this segment. More HNWIs are starting to explore late-stage pre-IPO investments and are comfortable taking on such exposures. Yet, a large portion of their portfolio remains in traditional asset classes they are familiar with.
In contrast, the UHNWI and family office segment exhibits much greater complexity and diversity in needs. Family structures, aspirations, and investment strategies vary widely. Some are deeply focused on global diversification and dollarization, while others are grappling with inter-generational wealth transfer, governance, or structuring their portfolios for future generations.
“Each family office is unique, reflecting the family’s stage, structure, and aspirations” Bhatia noted.
Also read: Why do we need a family office?
NEW FRONTIERS OF TECHNOLOGY AND SOCIAL MEDIA
Technology is becoming indispensable in wealth management as client portfolios grow more complex and sophisticated. "Technology is becoming a massive differentiator. Clients are becoming more tech savvy and sophisticated as digital penetration grows across the country and in tier 2 and 3 cities. Firms that fail to build robust tech stacks will struggle as wealth grows," Bhatia remarked.
For UHNWIs and family offices, the focus is increasingly on using analytics and maintaining control over decisions. "These clients want tools to analyse their portfolios in real time, apply custom filters and mandates, and benchmark their advisors' performance not just on returns but on risk-adjusted metrics," Bhatia explained. This shift reflects the growing demand for transparency and risk management, signaling a broader trend toward accountability in wealth management—something that was virtually non-existent in India’s landscape just a few years ago.
Social media is also reshaping how financial brands engage with their audiences but remains more of an industry-focused shift than a direct concern for investors. "The battle for financial companies will also be fought on social media," Bhatia asserted, pointing to how the democratisation of information has disrupted traditional hierarchies. Fintech influencers and digital platforms are shaping narratives, educating consumers, and eroding the once-centralized control of legacy institutions. For wealth managers, this highlights the importance of a strong digital presence and credibility in a competitive market.
Beyond the digitization of wealth management, investors are increasingly drawn to new-age opportunities in artificial intelligence, pre-IPO investments, digital and crypto assets, and secondary markets. “We’re seeing significant interest in sectors like AI, where innovation is driving outsized returns,” Bhatia said. Similarly, the startup ecosystem offers compelling opportunities for diversification and long-term growth, as investors move beyond traditional asset classes to explore high-growth, tech-enabled sectors.
Also read: Where are the opportunities in India’s secondary market surge?
Also read: How Lighthouse Canton is building its venture debt playbook
Also read: How to get involved in the GenAI frenzy?
As India’s wealth management landscape evolves, firms are recalibrating their strategies to cater to the nuanced needs of different investor segments. From enhancing portfolio analytics and risk management tools to leveraging technology and addressing the rising demand for access to emerging sectors, the industry is undergoing a paradigm shift. This dynamic market presents a significant opportunity for wealth managers to innovate and deliver tailored value.
Also Read Outlook 2025: A brave new world in the wealth management industry
.jpg)
.jpg)
.png)
.png)