The portfolios of the ultra-high-net-worth individuals ( UHNWIs ) in India are becoming more diversified, with significant exposure across asset classes and regions, according to a recent report.

A significant 68% of the UHNWIs direct more than 70% of their portfolios to growth assets, while 44% seek returns in the range of 13% to 15%, indicating a bold, but careful, attitude towards risk and reward, finds Indian wealth management firm Nuvama Private’s wealth report, titled The Exceptionals, which is a comprehensive study of the attitudes, investment behaviours and changing aspirations of India’s UHNWIs in tier-1 and -2 cities.

The UHNWIs, the report notes, are seriously involved with passion investments; 58% have made investments as varied as sporting teams to boutique resorts, and 65% continue to collect art and other luxury collectibles. These are motivated by more than simply financial returns, according to the report; they are statements of aesthetic taste, legacy and uniqueness.

Philanthropy, the report points out, has become another key support of the UHNWI philosophy. Giving is more strategic, rather than merely charitable. UHNWIs are builders of institutions, the report details, providing healthcare access ( 67% ) and education ( 49% ) through active initiatives, infrastructure building and sustained funding. Channels for philanthropy are partnerships with NGOs, establishing personal trusts and active involvement – sometimes combined for best effect.

A significant deviation occurs, the report shares, when one compares the UHNWIs from different cities. UHNWIs in tier-2 cities show themselves to be more growth-biased and return-oriented compared with their metro-based counterparts.

Those in tier-2 cities are, the report adds, more likely to perceive wealth through a lens of personal significance – regarding it as a means of social mobility and empowerment – and they require more returns. But metro-based UHNWIs are leading the way in estate and succession planning with more of them already having wealth transfer vehicles in place.

The generational perspective adds another level of contrast. While the first generation, the report states, is looking at wealth in terms of primarily freedom and legacy, the second generation looks at it much more broadly and impactfully. They have slightly more aggressive growth plans, and a greater focus on liquidity and performance metrics. This change in generations is reflective of changing ambitions and a more global, multi-dimensional concept of wealth.

And, as families and businesses become increasingly complex, UHNWIs, the report finds, are recognizing the need for formal governance frameworks. Family charters, though not legally enforceable, are gaining traction as a means of formalizing values, dispute resolution and hiring practices in family businesses.

This is evidenced, according to the report, by the fact that 25% of the UHNWIs possess a formal charter. Likewise, business coaching is also on the rise, particularly in tier-2 cities, where 12% of the UHNWIs have used coaches to solve leadership deficiencies and intricate family relationships – with all of them having experienced real value.

In terms of lifestyle, India’s UHNWIs, the report notes, are intentional in their expenditures. Luxury cars and jewellery are among the top categories, but the key differentiator is their inclination towards heritage, artisanal craftsmanship and scarcity over ostentatious display.

As well, holidaying is another significant area of expenditure and self-rejuvenation, the report points out, with 92% of them taking at least two overseas trips a year. Europe predominates their travel itinerary, especially for carefully curated, experiential holidays, such as the Grand Prix in Monaco or wine trails in Tuscany.

“Essentially, India's super-rich are not just intent on generating and accumulating wealth,” adds Amit Saxena, Nuvama Private’s managing director. “They are redefining what it means to live, lead and leave behind. Their vision is broad, their aspirations multi-generational and their influence increasingly palpable in business, society and culture.”