India’s wealth management market set to grow 2.5 times to $436 billion by 2034: Emkay Wealth

New business data points to the fact that India’s wealth-management market is anticipated to grow 2.5 times to $436 billion by 2034 from around $171 billion in 2025, fuelled by rising incomes, financialisation of household savings and greater participation in capital markets, Emkay Wealth Management stated.

The market is estimated to grow at a compound annual expansion rate of 10.6% over the period, with demand for wealth-management services expanding beyond traditional high-net-worth individuals (HNIs) to include mass-affluent, affluent, HNI, ultra-HNI, family-office and institutional clients.

“India is at an inflection point where wealth creation is increasingly giving way to the need for professional wealth stewardship,” Parag Morey, CEO, Emkay Wealth Management, stated.

He stated clients are increasingly looking beyond individual products and seeking an integrated approach covering wealth accumulation, preservation and transmission.

Financialisation widens wealth-management opportunity

Indian households are gradually moving savings away from physical assets and traditional bank deposits towards mutual funds, equities and professionally managed financial products, Emkay Wealth stated.

SIP-led investing is additionally bringing more market participants into financial markets. Mutual funds stay a key driver, with quarterly average industry AUM at around Rs 77.98 lakh crore in FY26.

HNIs at present account for an estimated 62.8% of the wealth-management market, making them the largest segment. That stated, demand is increasingly coming from mass-affluent and affluent market participants, alongside family offices and institutional clients.

At the elevated end of the market, market participants are seeking customised solutions through PMS, AIFs, private credit, pre-IPO opportunities and structured products. Family offices are additionally expanding their role beyond investment management to governance, succession, philanthropy and intergenerational wealth transfer.

The market is becoming increasingly competitive, with banks benefiting from existing customer relationships and distribution networks, while independent wealth managers and RIAs are competing through customised advice, open product choices and greater fee transparency.

Digital wealth-tech platforms are additionally expanding access among mass-affluent market participants through softer-cost products, automated portfolios and analytics.

Set income, gold gain importance

The investment environment is additionally making asset allocation increasingly important, Emkay Wealth stated.

India's domestic economy stays resilient despite global pressures, supported by consumption, investment and services exports. Full-year GROSS DOMESTIC PRODUCT expansion has been forecast at 6.7%, while first-quarter expansion stood at 7.8%. That stated, geopolitical developments, energy prices, supply-chain pressures and weather-related uncertainty stay risks. Changing global interest-rate expectations could additionally affect portfolio returns.

In set income, Emkay Wealth stays wary on the longer end of the yield curve. With the domestic 10-year benchmark yield around 6.8%, the scope for a significant slide appears limited, while yields could move towards 7.1%.

The firm as a result prefers accrual-oriented and performing-credit strategies over taking large duration exposure.

“The objective should not simply be to predict the next rate cycle or market movement, but to construct portfolios that stay resilient across different scenarios,” stated Joseph Thomas, Head of Research, Emkay Wealth Management.

Precious metals are additionally gaining importance in diversified portfolios. Gold was around $4,328 at the time of the presentation, while silver was around $62. Continued central-bank buying and diversification of reserves away from the US dollar are supporting demand, Emkay Wealth stated.

Overseas diversification upside traction

Emkay Wealth anticipates global diversification to become increasingly important for Indian HNIs and family offices as market participants look beyond domestic markets.

Markets such as Taiwan, the Nasdaq 100, MSCI Emerging Markets, Japan and the S&P 500 have delivered firm returns during the past three years, while indian rupee depreciation has further boosted overseas returns for Indian market participants in indian rupee terms, it stated.

“The structural story of India keeps stay firm… At the same time, as a wealth manager, I shouldn’t additionally only be looking at the Indian market,” Ashish Ranawade stated.

GIFT IFSC is additionally anticipated to become an important platform for HNIs seeking overseas diversification, with wealth managers, PMS, AIFs and family offices able to use the platform to access global investment opportunities.

Emkay Wealth stated the longer-term expansion opportunity in India stays supported by localisation and indigenisation across electronics, defence, aerospace, specialty chemicals, precision engineering and space technology, along with infrastructure spending, industrial demand and the financialisation of savings.