Stocks, gold, mutual funds: Where are wealthy Indians investing? HSBC decodes

Affluent Indian investors are poised to reshape their portfolios over the next 12 months by incorporating alternative investments and managed solutions. This shift is revealed in HSBC’s 2025 Affluent Investor Snapshot, which highlights a significant move towards diversification across asset classes and geographies.

The report, based on data from 10,797 individual investors across 12 markets, indicates a growing interest among affluent Indians in managed investments. In the past year, gold allocations saw the highest increase, followed by a growing interest in alternative investments.

“For affluent Indians, managed investments (such as mutual funds), stocks, and gold currently dominate their portfolios. Notably, over the past 12 months, gold witnessed the highest increase in allocation, followed by alternative investments,” HSBC said. 

Gen Z bets on alternative assets

Globally, younger investors, particularly from Gen Z, lead this transition, having tripled their allocations to alternative assets in the last 12 months. Five in ten affluent investors globally plan to include alternative investments in their portfolios in the coming year, with a notable interest in private markets exposure.

Sandeep Batra, Head of International Wealth and Personal Banking at HSBC India, commented, “There is a notable shift among affluent individuals in India toward a more strategic approach to portfolio management. There is a growing emphasis on making money work harder over extended time horizons. This evolving mindset is driving affluent investors to diversify actively across various asset classes, including alternatives, and to explore opportunities beyond their domestic markets to both grow and safeguard their wealth.”

Low cash levels

The report also reveals that Indian affluent investors tend to hold lower cash levels compared to their global counterparts. With an average cash allocation of just 15 per cent, Indian investors have the smallest cash holdings in Asia. This trend aligns with the global movement led by Gen Z and millennials, who have reduced average cash holdings from 31 per cent to 17 per cent.

Looking forward, there is no clear consensus on cash allocation changes among affluent investors. While half plan to keep their allocations unchanged, others expect variations, with some intending to increase and others to reduce their cash holdings. In particular, UAE investors are expected to deploy more cash.

Gold allocation jumps to 15%

For Indian investors, the previous year saw a significant rise in gold allocations, increasing from 8 per cent to 15 per cent. Globally, affluent investors show interest in gold, with nearly three in ten considering tokenized formats for accessing the metal.

International investing continues to gain traction, with the US remaining a top market for boosting exposure. Key international wealth hubs such as Hong Kong, Singapore, UAE, UK, and US show strong preferences for regional investments when diversifying globally.

Overall, 40 per cent of affluent investors globally plan to invest internationally within the next year. The UAE and Singapore exhibit the highest investment appetites, with 56 per cent and 50 per cent respectively planning international investments.

Property investment top priority

The report also highlights that 85 per cent of Indian respondents expressed satisfaction with their quality of life. A majority are confident in achieving financial goals across short, medium, and long-term horizons, with property investment and family financial support as top priorities.

Indian investors, despite concerns about cost of living and economic uncertainty, display greater confidence in achieving financial goals than their global counterparts. This confidence is indicative of the strategic shifts in investment behaviours reflected in the HSBC snapshot.

Globally, affluent investors maintain focus on retirement preparation as a primary financial goal. Even amid global uncertainty and rising living costs, 80 per cent of affluent investors remain confident in achieving long-term financial goals, notably among Gen Z and millennials.

The findings of HSBC’s Affluent Investor Snapshot underscore a strategic transformation in investment approaches, with affluent Indian investors leading a diversification charge that extends beyond traditional asset classes and domestic borders.