How Ultra-HNIs Spend

With a growing population and a burgeoning middle class with increased personal wealth and disposable income, India’s household consumption has been on an upward trajectory, growing at a CAGR of 7% since the pandemic. [12]

Generational shifts redefine priorities as growing affluence, coupled with evolving personal values, blur the line between luxury and necessity. Infrastructure developments and technological breakthroughs, such as luxury online stores, sophisticated logistics networks and cutting-edge secure payment systems, have improved access to goods and services, further bolstering consumer spending. The upswing in consumer spending is not confined to the masses alone; it is mirrored in the lives of Ultra-HNIs, signalling a sweeping transformation in the way wealth is being used.

Essential vs
Non-Essential
Spending (%)

Base: 150

  • Essential
  • Non-essential
  • Unlikely to spend
  • Not stated

Investment into the Primary Business

83%5%1%12%

Household Expenses

98%1%1%0%

Health and Wellness

91%4%1%4%

Loan Repayments

69%11%1%19%

Children’s Education

86%3%1%9%

Foreign Leisure Travel

45%43%4%9%

Cars & Automobiles

63%21%5%11%

Ad hoc/Leisure Expenditure

33%52%3%11%

Specific Interests/Hobbies

56%25%2%17%

Charity/Philanthropy

63%15%7%15%

Luxury Purchases

26%52%7%15%

Home Décor/Upgrades

43%33%5%19%

Elite/Private Club Membership

41%29%3%27%

Curated Experiences

26%29%3%43%

Collectibles

14%29%3%53%

Luxury Assets

7%3%1%89%

Others

3%0%1%97%

Spending on philanthropy also stands out, with 63% of Ultra-HNIs classifying them as essential spending

Investment into primary business is considered essential by 83% of Ultra-HNIs

Spending on automobiles with 63% of Ultra-HNIs classifying them as essential spending

TOPIC 1

Highest Allocation to Business Re-investment and Household Expenses

01. Highest Allocation to Business Re-investment and Household Expenses

On average, 18% of the Ultra-HNIs outflows are re-investments into their businesses, prioritising it to ensure long-term financial security and build sustainable wealth.

The government’s ease-of-doing-business initiatives have played a key role in creating a business-friendly environment in India. A robust tax regime, infrastructure spending, enhanced governance and business-friendly policies are all factors that foster innovation and ensure business stability, encouraging Ultra-HNIs to reinvest in their businesses.

>60% consider spend essential
< 60% consider spend essential

Spending Allocation (%) Base: 150

  • a.Investment into the Primary Business
  • b.Household Expenses
  • c.Health and Wellness
  • d.Loan Repayments
  • e.Children’s Education
  • f.Foreign Leisure Travel
  • g.Cars & Automobiles
  • h.Ad hoc/Leisure Expenditure
  • i.Specific Interests/Hobbies
  • j.Charity/Philanthropy
  • k.Luxury Purchases
  • l.Home Décor/Upgrades
  • m.Elite/Private Club Membership
  • n.Curated Experiences
  • o.Collectibles
  • p.Luxury Assets
  • q.Others

TOPIC 2

Ultra-HNIs Prioritise Children’s Education

02. Ultra-HNIs Prioritise Children’s Education

Most Ultra-HNIs consider children’s education essential and allocate, on average, 8% of their total spending to it. The cost of education in India has risen 84% over the last twelve years, rising 4% over the previous year alone.[13]

Moreover, Ultra-HNIs opt for premium international schools in India and foreign institutions for tertiary education.

The desire for holistic development, specialised coaching and investment in advanced learning technologies add to these expenses. These factors have significantly increased the financial commitment needed to provide a world-class education for their children.

02. Ultra-HNIs Prioritise Children’s Education

Change in
Spending
Patterns

Base: 150

  • Increased
  • Decreased
  • No Change
  • Not stated

Investment into the Primary Business

77%6%5%12%

Household Expenses

91%2%7%0%

Health and Wellness

81%5%11%4%

Loan Repayments

53%11%17%19%

Children’s Education

83%3%4%9%

Foreign Leisure Travel

54%13%24%9%

Cars & Automobiles

59%12%19%11%

Ad hoc/Leisure Expenditure

36%15%37%11%

Specific Interests/Hobbies

54%12%19%15%

Charity/Philanthropy

43%15%28%14%

Luxury Purchases

37%13%35%15%

Home Décor/Upgrades

43%11%26%20%

Elite/Private Club Membership

20%15%37%27%

Curated Experiences

27%6%25%42%

Collectibles

13%25%9%53%

Luxury Assets

5%3%3%89%

Others

2%0%1%97%

TOPIC 3

Health and Wellness Emerges as a Key Spending Area

03. Health and Wellness Emerges as a Key Spending Area

Post-pandemic, Ultra-HNIs are placing a greater emphasis on their comprehensive well-being – both physical and mental. Over 90% of the Ultra-HNIs surveyed classify it as essential spending, underscoring its importance today.

There has been an acceleration of health and wellness travel plans, as affluent travellers across the globe increasingly seek to rejuvenate both mentally and physically.

Onsens are natural hot springs found near volcanic regions of Japan and are believed to offer physical and mental benefits due to their mineral content

03. Health and Wellness Emerges as a Key Spending Area

Indian Ultra-HNIs are also investing in home fitness solutions to maintain their fitness routines, contributing to the increased demand for high-end gym equipment.

Organically grown foods and custom diets crafted by nutritionists are appealing due to their promise of environmental sustainability and health benefits. Mental well-being too has come into focus.

The shift towards a wellness-centric lifestyle underscores a broader trend to not only live longer, but also to live better, healthier lives.

The Paleo Diet consists of foods that humans consumed in the Palaeolithic Era such as fruits, vegetables, nuts and lean meats

TOPIC 4

Foreign Travel for Leisure also Emerged as a Key Spending Category

04. Foreign Travel for Leisure also Emerged as a Key Spending Category

Ultra-HNIs dedicate 7% of their expenses to foreign travel for leisure. Nearly 60% of Entrepreneurs consider foreign travel as an essential spend, while it is a non-essential spend for Inheritors and Professionals.

Travel and tourism in India have reached unprecedented levels, with travellers focusing on private and exclusive experiences and opting for upscale hotel brands. In the Kotak Private TOP 2024 survey, more than half of the Ultra-HNIs surveyed say that their spending on foreign travel for leisure has increased. Entrepreneurs are at the forefront, with 69% having increased their spending, while Inheritors and Professionals trail at 44% and 43%, respectively.

04. Foreign Travel for Leisure also Emerged as a Key Spending Category

Curated experiences are a hallmark of Ultra-HNI travel, with bespoke itineraries including after-hours access to renowned museums, exclusive cooking classes with Michelin-starred chefs and VIP experiences at global events like the Monaco Grand Prix.

This reflects a shift towards a growing preference for personalised, experiential and curated travel among Ultra-HNIs, emphasising unique and often transformative experiences across the globe.

There is a growing preference for personalised experiences and curated travel
Chamonix, a premium skiing destination in the south of France, was also the first to host the Winter Olympics in 1924
Space tourism, private-island rentals in the Maldives or the Caribbean, dining inside an Icelandic volcano, and indulging in a 20-course dinner at the world’s most expensive restaurant are just some exclusive experiences gaining popularity around the world

TOPIC 5

Exclusive is Chic

05. Exclusive is Chic

According to the survey, membership of private members’ clubs is considered essential by more than 40% of Entrepreneurs and Professionals but by only 25% of Inheritors.

Private members’ clubs are crucial for Entrepreneurs and Professionals because these clubs provide essential networking and professional growth opportunities that allow them to expand their businesses or advance their careers.

40%

Entrepreneurs and Professionals consider membership of exclusive private clubs as essential

TOPIC 6

The Enchanting World of Collectibles

06. The Enchanting World of Collectibles

For Ultra-HNIs, the world of collectibles represents more than just a hobby; it is a passionate pursuit that intertwines personal interest, cultural appreciation and strategic investment. The items’ rarity, historical significance and emotional value they hold make them desirable.

Collectibles range from jewellery, fine art, vintage wines and antique/classic automobiles to rare coins, stamps and even high-end luxury bags and now, the burgeoning world of NFTs.

One-third of all Ultra-HNIs that spend on collectibles own an NFT with one in every four stating that they intend to purchase more
Amrita Sher-Gil’s ‘The Story Teller’ was sold for ₹61.8 Crore in 2023, making it India’s most expensive art piece

06. The Enchanting World of Collectibles

Do You Own or Plan to Buy Collectibles?

Base: 70

Jewellery beats all other collectibles, with 94% of Ultra-HNIs that own collectibles already owning jewellery and 79% stating that they intend to buy more. Art comes in second with 73% owning collectible art.

  • Own
  • Plan to Buy
94% | 79%
Jewellery
73% | 46%
Art/Paintings
33% | 24%
NFTs
31% | 15%
Handbags
27% | 17%
Rare Wines/Whiskey
26% | 14%
Antiques
23% | 14%
Bikes
21% | 20%
Antique/Classic Automobiles
20% | 20%
Currency (Coins)
14% | 7%
Stamps
10% | 7%
Memorabilia
3% | 4%
Others

TOPIC 7

Essential Spending Areas

07. Essential Spending Areas

1

Investments back into the Primary Business and Household Expenses and Health and Wellness are the top three spends categories

2

Nearly 60% of Entrepreneurs consider Foreign Travel as an essential spend

3

Membership of Private Members’ Clubs is considered essential by more than 40% of Entrepreneurs and Professionals

4

94% of Inheritors consider Children’s Education as essential

07. Essential Spending Areas

Base: 150

Investment into the Primary Business

  • 83%
  • 72%
  • 88%
  • 95%

Household Expenses

  • 98%
  • 99%
  • 94%
  • 98%

Health and Wellness

  • 91%
  • 89%
  • 88%
  • 95%

Children’s Education

  • 86%
  • 88%
  • 94%
  • 84%

Foreign Leisure Travel

  • 45%
  • 36%
  • 38%
  • 57%

Cars & Automobiles

  • 63%
  • 61%
  • 56%
  • 69%

Specific Interests/Hobbies

  • 56%
  • 50%
  • 75%
  • 59%

Charity/Philanthropy

  • 63%
  • 65%
  • 50%
  • 64%

Luxury Purchases

  • 26%
  • 19%
  • 13%
  • 38%

Elte-Private Club Membership

  • 41%
  • 44%
  • 25%
  • 41%

Curated Experiences

  • 26%
  • 17%
  • 31%
  • 36%

Collectibles

  • 14%
  • 4%
  • 13%
  • 26%

Loan Repayments

  • 69%
  • 67%
  • 69%
  • 74%

Ad hoc/Leisure Expenditure

  • 33%
  • 28%
  • 38%
  • 38%

Home Décor/Upgrades

  • 43%
  • 26%
  • 50%
  • 61%

Luxury Assets

  • 7%
  • 4%
  • 6%
  • 10%
Overall Professional Inheritor Entrepreneur

TOPIC 8

Increase in Spending Areas

08. Increase in Spending Areas

1

Increased spends were highlighted in Investments back into the Primary Business, Household Expenses and Health and Wellness category

2

Inheritors increased spends for Children’s Education with over 90% highlighting this trend

3

More than 50% of the Ultra-HNIs said that their spending on Foreign Travel for Leisure had increased with Entrepreneurs leading this trend

4

More than 60% Entrepreneurs also increased their spendings in Cars and Automobiles

08. Increase in Spending Areas

Base: 150

Investment into the Primary Business

  • 77%
  • 68%
  • 75%
  • 89%

Household Expenses

  • 91%
  • 90%
  • 94%
  • 92%

Health and Wellness

  • 81%
  • 78%
  • 88%
  • 84%

Children’s Education

  • 83%
  • 83%
  • 94%
  • 82%

Foreign Leisure Travel

  • 54%
  • 43%
  • 44%
  • 69%

Cars and Automobiles

  • 59%
  • 56%
  • 50%
  • 66%

Specific Interest/Hobbies

  • 54%
  • 50%
  • 56%
  • 59%

Charity/Philanthropy

  • 43%
  • 40%
  • 38%
  • 49%

Luxury Purchases

  • 37%
  • 28%
  • 31%
  • 51%

Elite/Private Club Membership

  • 20%
  • 17%
  • 6%
  • 28%

Curated Experiences

  • 26%
  • 24%
  • 25%
  • 33%

Collectibles

  • 14%
  • 10%
  • 0%
  • 20%

Loan Repayments

  • 53%
  • 51%
  • 69%
  • 51%

Ad Hoc/Leisure Expenditure

  • 36%
  • 25%
  • 50%
  • 46%

Home Decor/Upgrades

  • 43%
  • 33%
  • 44%
  • 54%

Luxury Assets

  • 7%
  • 3%
  • 6%
  • 7%
Overall Professional Inheritor Entrepreneur

NEXT

Ultra-HNI Investment Patterns

Discover More