Wealth Management industry AUM could hit $ 1.8 trillion in next 4-5 years; 360 ONE top pick
Wealth management in India is experiencing rapid expansion, becoming one of the fastest-growing sectors within the financial services industry.
This growth is fuelled by the country's robust economic development and a rising number of ultra-high-net-worth individuals (UHNWIs) and high-net-worth individuals (HNWIs).
In recent years, the assets under management (AUM) in this sector have been increasing at an annual rate of 15-20%, with projections suggesting that AUM could hit $ 1.8 trillion in the next 4-5 years, reflecting a compound annual growth rate (CAGR) of 13-14%.
This remarkable growth is accompanied by a shift in asset allocation strategies. Investors are moving away from traditional investments like fixed deposits, gold, and real estate towards more dynamic asset classes such as alternative investment funds (AIFs), real estate investment trusts (REITs), infrastructure investment trusts (INVITs), private equity, and cryptocurrencies.
The increasing allure of these emerging investment avenues underscores a growing appetite for higher returns and innovative financial instruments.
Additionally, foreign investments are gaining traction, particularly among UHNWIs, with the Gujarat International Finance Tec-City (GIFT City) playing a crucial role due to its favourable tax advantages.
The sector is also witnessing the emergence of new customer segments, including millennials and women, who have distinct financial needs compared to traditional clients.
Women, in particular, are increasingly taking control of
