Where Are India’s Rich Investing Their Money? Inside Big Bets Of Ultra-Wealthy Families

India’s ultra-rich families are making bold and diversified investment moves as family offices evolve into powerful engines of wealth creation. According to an EY report, the number of family offices in India has surged from just 45 in 2018 to nearly 300 by 2024, managing an estimated $30 billion in assets.

This rapid growth reflects a new investment mindset—one that blends long-term legacy planning with a sharp eye for high-growth sectors.

So, where exactly are India’s richest investing their money?

Private Equity and Venture Capital (PE/VC)

PE and VC have become core areas of investment. More than 50% of family offices have allocated up to 10% of their portfolio to these high-growth opportunities, and 26% have gone beyond 20%.

Sectors like technology, infrastructure, financial services, and consumer/retail are attracting major interest. The appeal lies in higher returns, diversification, and low correlation with public markets.

Alternative Assets and AIFs

Indian family offices are embracing alternative investments like Alternative Investment Funds (AIFs) and Portfolio Management Services (PMS). These offer tailored strategies and potentially higher returns than traditional mutual funds. 

AIFs have become more attractive after SEBI eased investment norms and simplified tax rules. By 2030, AIF and PMS assets in India are expected to cross Rs 100 lakh crore, highlighting this massive shift.

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Real Assets: REITs and InvITs

Infrastructure and real estate trusts, such as REITs and InvITs, are also gaining traction. As of March 2024, InvITs in India managed Rs 5.39 lakh crore, a 29% year-on-year increase. These instruments offer predictable cash flows, inflation hedging, and long-term returns. Family offices use them for stability and passive income, especially in roads, telecom, and real estate.

Private Credit

A fast-emerging asset class, private credit is being used for its steady income and downside protection. Although it currently accounts for only 1% to 1.5% of wholesale credit in India, family offices are quickly increasing their exposure.

In global family offices, 15%–25% of portfolios are in alternatives, with 25%–30% of that in private credit. In India, these are structured through AIFs and cater to opportunities like acquisition finance and special situations lending.

Global Investments & GIFT City

With globalisation rising, family offices are investing more across borders. Tools like the Liberalised Remittance Scheme (LRS) and GIFT City AIFs are being used to channel funds into international equities, PE funds, and real estate. GIFT City, India’s IFSC (International Financial Services Centre), is emerging as a preferred route due to tax efficiency, ease of regulations, and lower costs.

Long-Short Equity Strategies

Family offices are also exploring long-short equity strategies via AIFs. These offer risk-adjusted returns and can generate profits in both rising and falling markets. Though still nascent in India, long-short strategies are being used to navigate volatility and protect portfolios during downturns.

ESG and Impact Investing

Next-gen investors from wealthy families are leaning toward sustainable and impact-oriented investments. These include ventures in renewable energy, women-led enterprises, and climate tech. Impact investing is seen as a way to blend financial returns with social purpose, especially among younger UHNIs.

Succession Planning and Wealth Structuring

Beyond financial investments, wealthy families are heavily investing in succession planning, wealth transfer, and governance structures. Tools like trusts, wills, and family constitutions are being used to ensure the smooth transition of wealth across generations. Over 59% of families have already created wills or formal agreements related to their assets.