Even as the Indian economy flourishes and the stock market witnesses a bull run for the ages, many high net-worth individuals (HNIs) seem to be struggling to meet their financial aspirations, a new survey has found. In essence, the “India Wealth Survey 2025,” conducted by Marcellus Investment and Dun & Bradstreet, has revealed things that are hard to associate with the rich in an economy like India’s.
Limited savings, heavy debt
The survey highlights that a significant portion of HNIs are falling short when it comes to saving. Surprisingly, 43 per cent save less than 20 per cent of their post-tax income.
This becomes even more pronounced among those aged between 30 and 45, with half of this group saving insufficiently.
The survey also reported that nearly 40 per cent of HNIs have at least one active loan, placing financial strain on their ability to plan for crucial life events, such as retirement or children’s education.
High hopes, poor planning
Despite their wealth, many HNIs have ambitious goals. Seventy-five per cent express a desire to fund their children’s education or marriage, while 40 per cent aspire to purchase a home or start a business.However, the survey indicates that few of these individuals possess a structured financial plan to realise these dreams.Furthermore, over half of HNIs allocate more than 20 per cent of their wealth to real estate (excluding their primary residence), yet only a third invest similarly in equities.
Lack of useful advice
A concerning finding of the survey is that 14 per cent of HNIs do not maintain an emergency fund, and nearly a quarter are unfamiliar with global investing.
While 87 per cent of HNIs rely on external financial advisors, two-thirds express dissatisfaction with the advice they receive.
Many feel that their advisors promote products for commissions rather than providing tailored, insightful recommendations.
One respondent told the surveyor, “The advisor doesn’t fully understand my needs, and their recommendations are not tailored to my unique situation.”
A three-step solution
Despite these challenges, an encouraging 82 per cent of HNIs believe that professional financial planning could help them achieve their financial goals more effectively. They seek advisors who can offer personalised asset allocation reflecting their specific goals and risk tolerance, assist in planning major life events, and deliver unbiased advice.
To address the issues highlighted in the survey, a three-step solution has been proposed: free personalised goal planning and asset allocation, access to diversified portfolios that include global equities, and continuous support throughout the investment journey.
In a nutshell, the survey underscored the urgent need for HNIs in India to save more, diversify their investments, and seek reliable, personalised financial advice. Only by doing so can they hope to turn their aspirations into reality, it said.
Content Source: economictimes.indiatimes.com