High-Net-Worth Individuals: Why are HNIs in India struggling to save and invest wisely?

Mumbai: Many high-net-worth individuals (HNIs) in India may be falling short of meeting their financial goals, according to a survey conducted by Marcellus Investment Managers and Dun & Bradstreet.

The survey, conducted in February-March 2025, covering 465 respondents across metros and tier 1 and 2 cities, all with post-tax household incomes of over ₹20 lakh per annum, said these affluent individuals might not be saving enough.

While 43% of HNIs surveyed save less than 20% of their post-tax income, HNIs face challenges in achieving their goals because of low investment returns, lack of savings discipline, poor understanding of investment options and high debt burden.

Four in 10 respondents have at least one open loan. While real estate dominates portfolios – with half allocating more than 20% of their wealth to it, excluding their primary residence – only one in three HNIs has more than 20% allocated to equities. The survey said 14% of respondents have no emergency funds at all. Three-quarters of HNIs are saving for children’s education and marriage, while 40% aspire to start a business or buy a house. An equal number hope to retire early.
In the survey, 30% of respondents said they are not very comfortable investing in equities. Global diversification is still limited. While 21% have begun investing overseas, nearly a quarter say they are unfamiliar with the concept. Trust in financial advice is also shaky. While 87% of HNIs rely on external help such as wealth advisors, chartered accountants, family or friends, stockbrokers and bank relationship managers for investment decisions, two-thirds are dissatisfied with the advice they receive.