Asset allocation of affluent households skewed towards real estate, finds Marcellus India Wealth Survey; equities rank second

Asset allocation of affluent households skewed towards real estate, finds Marcellus India Wealth Survey; equities rank second

The asset allocation of affluent households remains skewed towards real estate with equities coming second. Further, a significant chunk of high net worth Indian households say they are dissatisfied with their investment returns.

These are some of the findings of the latest Marcellus India Wealth Survey conducted by the financial services firm in collaboration with Dun & Bradstreet. The survey analysed responses from 465 affluent individuals across metros and Tier 1/2 cities.

According to the survey findings, 40 percent of high net worth Indian households said they are dissatisfied with their investment returns even after a historic five-year bull market.

Further, the asset allocation of affluent households remains skewed towards real estate, with half of respondents holding over 20 percent of their portfolio in property beyond their primary residence. While equities ranked second, 14 percent of households said they maintained no emergency funds at all. Further, diversification remains limited, with 23 percent saying they were unfamiliar with global investment options.

Manish Hemnani, COO of Marcellus Wealth, explained that despite strong market performance, nearly half of affluent Indians aged 30-45 save less than 20 percent of their post-tax income. This contrasts starkly with their high financial aspirations, including early retirement, purchasing homes, funding children’s education and marriage, and starting businesses.

The significant challenges faced by this demographic includes 40 percent being dissatisfied with investment returns as a major barrier to achieving their goals. Thirty percent pointed to a lack of saving discipline, while 20 percent admitted limited understanding of investment options. Another 40 percent of respondents carry at least one open loan, predominantly home loans, and 10 percent reported high debt burdens.

Marcellus co-founder, Saurabh Mukherjee underscored the disconnect between aspirations and savings, emphasizing the unique Indian context where parents commonly save for their children’s marriages — something less prevalent in the West.

When it comes to financial advice, 87 percent said they rely on external advisors such as wealth managers, family, or bank relationship managers, yet two-thirds are dissatisfied with the guidance they receive. The main complaints include advice that is one-sided, lacks personalization, and is not aligned with individual goals.

Manish Hemnani pointed out that many investors prioritize wealth preservation over growth, leading to overexposure in real estate and underutilization of financial instruments that could offer better long-term returns.

Saurabh Mukherjea underscored the importance of understanding the evolving investor mindset -- highlighting that many affluent households are still adjusting to balancing risk and liquidity needs, especially in an environment of rising interest rates and economic uncertainty.