India`s wealth?management sector likely to surge over 2-fold to $436 billion by 2034
India’s wealth?management sector is expected to expand about 2.5 times to $436 billion by 2034 as financialisation, global diversification and rising demand for professional advice reshape investor needs, a report said on Friday.
"India is witnessing a structural shift towards comprehensive wealth management, with investors increasingly seeking advice across mutual funds, equities, PMS, AIFs, private credit, structured products, global assets, taxation, succession and estate planning," the report from Emkay Wealth Management said.
The opportunity is widening beyond traditional high?net?worth clients who currently account for an estimated 62.8 per cent of the market, as demand is growing among mass?affluent, affluent, UHNI, family?office and institutional clients.
PMS and alternative investments are gaining relevance, while AIFs, private credit, pre-IPO opportunities and structured products are being considered for diversification and differentiated returns, the report noted.
Family offices are also expanding their role beyond investment management to areas such as governance, succession, philanthropy and intergenerational wealth transfer.
“India is at an inflection point where wealth creation is increasingly giving way to the need for professional wealth stewardship. As financial assets become a larger part of household wealth, clients are looking beyond individual products and asking for a more integrated approach to accumulation, preservation and transmission," said Parag Morey, CEO, Emkay Wealth Management.
"The wealth managers in future have to combine investment expertise with technology, transparency and a deep understanding of the client’s family and long-term objectives,” Morey said.
Indian households are gradually moving savings away from physical assets and traditional bank deposits towards mutual funds, equities and professionally managed financial products.
SIP-led investing is also bringing more investors into financial markets. Mutual funds remain the largest scale driver, with quarterly average industry AUM reaching approximately Rs 77.98 lakh crore in FY26.
The report said India’s macro backdrop supports wealth creation, with full?year GDP growth forecast at 6.7 per cent and Q1 growth at 7.8 per cent.
The report cited caution on the longer end of the yield curve in the fixed income segment.
"With the domestic 10-year benchmark yield around 6.80 per cent, the scope for a significant decline appears limited, while yields could move towards 7.10 per cent, The preference is therefore shifting towards accrual and performing-credit strategies rather than taking large duration exposure," the report said.
