Gold and Real Estate Still Rule India’s Wealthy; Richest 1% Control 60% of Assets

India’s wealthiest households the top 1% hold nearly 60% of the country’s total assets, with a large chunk invested in physical assets like real estate and gold, according to a new report by Bernstein, as cited by ANI.

The report highlights a major untapped opportunity for wealth managers in the country.

Physical Assets Still Dominate

Despite this immense wealth, around 60% of their assets are tied up in real estate and gold, according to the report cited by ANI.

This heavy reliance on physical investments highlights a substantial gap in the penetration of formal wealth management services across the country’s wealthiest segment.

Only $2.7 trillion of the Uber Rich’s total wealth is currently allocated to serviceable financial assets such as mutual funds, equities, insurance, and bank or government deposits according to ANI’s report on Bernstein’s findings.

The remaining $8.9 trillion is tied up in non-serviceable holdings, including physical real estate, gold, promoter equity, and cash reserves, which fall outside active financial management.

A $2.7 Trillion Opportunity for Wealth Managers

The report, as highlighted by ANI, describes this $2.7 trillion in actively investable assets as a “Serviceable Addressable Market (SAM)” for wealth managers and financial advisors.

This figure underscores a vast growth opportunity for India’s wealth management industry particularly as affluent households begin to explore diversified portfolios and structured advisory services.

Income and Wealth Inequality

The Bernstein report also brings attention to the stark wealth divide in the country. As per data reported by ANI, while India’s top 1% earns nearly 40% of all income, the remaining 99% of the population owns only a small portion of both national income and assets.

India’s Uber Rich by the Numbers

• Total wealth held by Uber Rich: $11.6 trillion
• Financial assets held: $4.5 trillion (70% of national financial wealth)
• Number of UHNI households: 35,000
• Average net worth per UHNI household: $54 million
• Average financial wealth per UHNI household: $24 million

Read More: Affordable Gold? 9K Jewellery Gains Popularity Amid Soaring Prices.

Conclusion

According to the Bernstein report, cited by ANI, India’s ultra-rich hold a disproportionately large share of national wealth, but remain under served by formal financial advisory services.

As financial literacy rises and wealth management services expand, this presents a massive growth runway for wealth firms. However, it also highlights the urgent need to address India’s widening wealth inequality.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.