NRIs Shift Investments: From Property to Global Financial Assets
By Business Desk
Non-Resident Indians are diversifying investments beyond real estate, increasingly favoring liquid global financial assets like equities, private markets, and structured solutions.
Non-Resident Indians (NRIs) are strategically expanding their investment horizons, moving past conventional property and family business holdings. You’re seeing a clear trend towards financial assets like global equities, private markets, fixed income, and even some digital assets.
This shift is largely driven by younger generations of Indian families in the Gulf, who are looking for more liquid investments. They want options that offer flexibility and can be managed easily across different countries and currencies.
Exploring New Avenues
Kunal Sumaya, Market Head for Global NRI at Julius Baer, confirms this growing trend. He notes a significant increase in allocations to various global investment types aimed at building more diversified portfolios.
- Global equities provide access to international companies and sectors.
- Private equity and venture capital offer exposure to businesses before they go public.
- Structured solutions and private credit are also gaining ground.
- Fixed income investments are becoming popular for their potential to offer regular income and lower volatility.
Key Numbers
- NRIs have an estimated ₹15 trillion invested in the Indian economy.
India Remains a Key Destination
Despite this global diversification, India continues to be a crucial investment hub for NRIs. The estimated ₹15 trillion invested includes substantial amounts in deposits, mutual funds, and alternative investments.
India’s long-term growth opportunities, its vibrant entrepreneurial ecosystem, and deep equity markets make it an attractive option. New investment avenues, such as Alternative Investment Funds and customized strategies, along with the development of GIFT City, are further enhancing access to the Indian economy.
A Structural Shift in Wealth Management
This move towards more global and liquid portfolios represents a fundamental change in how Global Indian families manage their wealth. It’s not just a temporary reaction to market ups and downs.
Dubai and the UAE remain vital centers for Global Indian wealth, given the concentration of entrepreneurs and family offices there. Beyond just investments, wealth planning for these families now includes succession planning, trusts, family governance, and multi-jurisdictional wealth structuring to protect and transfer wealth across generations.