The country’s Ultra High Net Worth Individuals (UHNIs) are channeling over 70% of their portfolios into high-growth assets like equities, alternative investments, and private markets, according to a new report from Nuvama Private. The report titled, The Exceptionals 2025, highlights a decisive shift from wealth preservation to optimization, driven by bold risk appetites and diversification strategies.
The report, based on in-depth interviews with UHNIs whose collective net worth exceeds Rs 2,00,000 crore, paints a picture of a sophisticated investor class steering India’s next growth phase. About 68% of respondents allocate more than 70% to growth-oriented assets, with 44% targeting annual returns of 13- 15.
Alok Saigal, President and Head of Nuvama Private, emphasized on Tier-2 cities emerging as hotspots for this stance. “UHNls there are more return-oriented, viewing wealth as a tool for social mobility and empowerment, though they trail metros in formal estate planning.”
While metro-based UHNls lead in succession vehicles like trusts (25%} and wills (21%),their tier-2 counterparts prioritize liquidity and performance, often engaging business coaches (12%) to navigate family dynamics and leadership gaps.
Generational differences add nuance. First-generation wealth creators emphasize freedom and legacy, while second-generation heirs adopt a more multidimensional approach, focusing on impact, global exposure, and tech-savvy strategies
Debt and Gold Exposure Signals Shift to Financial Assets
The report indicates low traditional safe-haven holdings, with debt Arnd gold exposures at the lower end, reflecting the broader financialization trend where savings migrate from physical assets to markets. This reduction aligns with the aggressive growth tilt, potentially freeing capital for equities and alternatives.
Tier-2 Boldness vs. Metro Prudence in Portfolios
54% allocate over 80% to growth, while it’s 23% in metros. Herein,67% hold over 10% direct equities and international assets at 49% (34% of them skew 10 to 30% to US, and China with just 3%). Wealth means “freedom” for 64% of the respondents, but Tier-2 sees it as empowerment with 25% citing it as “influence”. Second-gen amplifies, as 95% tilt 50to 90% growth while its 54%for the first-gen, prioritizing liquidity and benchmarks for “time freedom.” 67% of UHNls hold more than 10% in direct equities, while AIFs are cited as the preferred vehicle for alternative investments.
Tech Savants and Governance Tools Mark Maturity
Dubbing UHNls “new tech savants”,the study highlights Al/MLadoption for portfolio rebalancing and risk flagging, tempered by human judgment. Complementing this, 25%employ non-binding Family Charters as “constitutions” for values, disputes, hiring, and family meetings-crucial for multi-gen businesses. In tier-2 hubs, 12% tum to periodic business coaching, bridging ambition with structure amid 37% family office adoption (29% planning more).
On lifestyle, UHNIs favor international spending
Luxury cars and jewelry top categories,but with an eye on heritage craftsmanship over flash. Travel is a major indulgence, with 92% taking at least two overseas trips annually, favoring experiential European itineraries like Monaco’s Grand Prix or Tuscany wine trails.
Philanthropy and passion investments are also key pillars.Giving has evolved from charitable acts to strategic institution-building, with 67%supporting healthcare and 49% education via NGOs, trusts, and direct involvement.Meanwhile, 58% invest in passions like sports teams or boutique resorts, and 65% collect art and luxury items for aesthetic and legacy value.
Early Milestones and Resilience
The report delves into UHNIs’ origins, noting47% achieved their first major business milestone in under
two years, while 22% took over six years. Post-milestone, 55% felt “good but aware of more to do,” embodying a “just begun” mindset. Top hurdles included market penetration and regulatory barriers (both 36%), yet inspiration came from parents/grandparents and books like Bhagavad Gita, Atomic Habits, and Good to Great. This “fire in the belly” fuels their bold 68% growth allocations today
Art and Collectibles where Legacy Lies Beyond Returns
Beyond core assets, 65% curate collectibles (77% art, favoring Raza/Husain), driven by aesthetics (62%), returns (38%), rarity (19%}, and nostalgia (12%). Passion projects like sports teams (58%) blend uniqueness with compounding, signaling UHNI portfolios as holistic legacy vehicles in India’s financializing savings era (~30% GDP).
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