India’s Wealthiest 1% Hold 60% of Their Assets in Real Estate and Gold: Report

New Delhi: India's top 1% of wealthy individuals are investing heavily in non-financial assets, with 60% of their wealth tied up in real estate and gold, according to a new report released on Monday by US-based wealth management firm Bernstein.

This elite group, which includes Ultra High Net Worth Individuals (UHNIs), High Net Worth Individuals (HNIs), and the affluent class, comprises just 1% of Indian households but controls nearly 60% of the country’s total assets. The report estimates that this group collectively holds $11.6 trillion of the country's $19.6 trillion in total household wealth—about 59%.

Of the $11.6 trillion in wealth, only $2.7 trillion is invested in serviceable financial assets like mutual funds, stocks, insurance, and bank/government deposits. The remaining $8.9 trillion is concentrated in non-serviceable assets such as real estate, gold, cash, and promoter-held equity in private companies.

Bernstein’s analysis highlights the massive potential for asset management and wealth advisory services to expand in India, particularly as wealthy individuals increasingly seek to diversify their holdings beyond traditional stores of wealth like gold and property.

The report also points to a glaring gap in formal wealth management. Despite the growing wealth of this segment, a significant portion remains outside the reach of professional management. In an earlier study, Bernstein noted that dedicated wealth managers currently manage only 11% of the country’s liquid financial asset pool.

The findings also emphasize India’s pronounced wealth inequality. While the top 1% of earners take home 40% of all income, they command an even greater share of total wealth, leaving the rest of the population with a disproportionately small stake in both income and assets.

According to the report, India is home to approximately 35,000 UHNI households, each with a net worth exceeding $12 million (Rs 100 crore). On average, these households hold assets worth $54 million (Rs 472.5 crore), including $24 million (Rs 210 crore) in financial assets alone.

In total, this affluent segment holds $4.5 trillion in financial assets, which accounts for a remarkable 70% of India’s total financial wealth.

With inputs from IANS