HSBC’s Global Entrepreneurial Wealth Report 2024 reveals that the richest Indian entrepreneurs are strategically channeling their fortunes into investment avenues like stocks, bonds, and real estate. This trend highlights the financial acumen of high-net-worth individuals (HNIs) in India as they prioritize robust asset classes to secure and grow their wealth. Discover how the Indian richest entrepreneurs are diversifying their portfolios with investments in stocks, bonds, real estate, and more—insights from HSBC’s 2024 report.
India Leads in Wealth Allocation to Investments
The report surveyed 1,798 wealthy business owners worldwide with at least $2 million in investable assets and found that 82% of Indian entrepreneurs favored investments in stocks, bonds, and real estate. This percentage is the highest among the 10 international markets studied, surpassing the global average of 51%.
Indian entrepreneurs also showed interest in other investment avenues:
- 41% invested in other businesses.
- 25% allocated wealth to precious metals and stones.
These preferences reflect a balanced approach to wealth management, where a mix of traditional and alternative assets forms a solid portfolio.
Profile of Surveyed Entrepreneurs
The report included responses from 583 ultra-high-net-worth individuals (UHNWIs) with over $100 million in net worth. Countries surveyed included India, France, Hong Kong, Mainland China, Singapore, Switzerland, Taiwan, the UAE, the UK, and the US.
Why Indian Entrepreneurs Are Optimistic
Sandeep Batra, Head of Wealth and Personal Banking at HSBC India, attributes this trend to India’s strong economic fundamentals and a thriving stock market. “The surge in the Indian stock market, robust macroeconomic indicators, and the growing number of ultra-high-net-worth individuals have enabled Indian business owners to remain optimistic. These factors are turning them into big spenders and investors,” Batra explained.
Beyond investments, Indian entrepreneurs value connections, mentorship, and contributing positively to society. This holistic outlook underscores their commitment to leveraging wealth for personal growth and societal benefit.
Lifestyle Spending Trends Among Indian Entrepreneurs
Indian business owners also allocate significant wealth to lifestyle purchases, with a marked preference for real estate and luxury goods:
- 61% spent on real estate for personal use, compared to the global average of 51%.
- 56% purchase luxury goods, exceeding the global average of 40%.
- 44% opt for luxury experiences, outpacing the global average of 35%.
Interestingly, fewer Indian entrepreneurs invest in art or collectibles, with only 14% choosing this avenue compared to a global average of 25%.
Business Opportunities and Challenges
The report also highlights India’s attractiveness as a business hub:
- 75% of Indian entrepreneurs operate domestically, reflecting confidence in the local market.
- Only 32% are considering expanding their business to international markets in the next 12 months, favoring destinations like Singapore, the UAE, the UK, and the US.
However, challenges remain. Key concerns include unemployment, corruption, inflation, and taxation. Despite these issues, 75% of respondents feel supported by the Indian government, while 86% believe society values business owners — the highest globally, alongside the UAE.
Conclusion
The HSBC Global Entrepreneurial Wealth Report 2024 clearly shows Indian entrepreneurs as strategic investors and optimistic economic contributors. Their preference for stocks, bonds, and real estate reflects a focus on sustainable growth, while spending on luxury and real estate signals confidence in their wealth. Coupled with domestic solid business activity and government support, these trends position India’s wealthy entrepreneurs as leaders in the global financial landscape.