The Global Investor

As India’s economy burgeons, so does the cohort of Ultra-HNIs. Poised to transcend geographical confines and embrace a cosmopolitan identity, Indian Ultra-HNIs are increasingly embracing the label of Global Citizens.

Motivated by diverse factors like business opportunities, educational pursuits or lifestyle preferences, they navigate international landscapes with ease. Their financial prowess enables investments in global ventures, leveraging resources and networks in search of value while at the same time fostering cultural exchange across continents.

TOPIC 1

Global Horizons: Investing beyond Borders

01. Global Horizons: Investing beyond Borders

A third of all Ultra-HNIs surveyed have global investments in their portfolio

Ultra-HNIs of India today transcend geographical boundaries in search of pragmatic and savvy capital investments. An interplay of a variety of factors such as increased LRS limits, favourable regulations and policymaking, an overall increase in household wealth and other global developments, have created conditions conducive for investing in global markets.

58%

Global Investors say ‘expectation of better returns’ is a key driver for investing in foreign markets

Drivers of Global Investing (%) Base: 150

  • a.Expectation of better returns
  • b.Diversify portfolio with both domestic and international investments
  • c.Ease of doing business
  • d.Higher security in investments
  • e.Tax laws
  • f.Robustness of the economy
  • g.A potential migration destination
  • h.Others

01. Global Horizons: Investing beyond Borders

Preferred Global Assets (%) Base: 43

  • a.Real Estate (Residential)
  • b.Direct Equity
  • c.Mutual Funds
  • d.Bonds
  • e.Real Estate (Commercial)
  • f.Exchange Traded Funds
  • g.Crypto Currency
  • h.Investment in Local Businesses (Non-traded Business Entity)
  • i.Private Equity & Venture Capital
  • j.Investment in Permanent Residency

There are a variety of reasons global investments are attractive for Ultra-HNIs. The individual motivations that drive them to invest globally range from favourable business environments to taxation to portfolio diversification. Of the Ultra-HNI Global Investors, 58% cited ‘expectation of better returns’ as a key driver for investing in foreign markets. 49% cited ‘portfolio diversification’ as a key driver, potentially to mitigate risk and hedge against currency devaluation.

47%

Global Investors prefer to invest in residential real estate, while direct equities and mutual funds follow suit with 42% each

42%

Global Investors prefer direct equities and mutual funds

01. Global Horizons: Investing beyond Borders

The US is the preferred destination for most global investors, followed by the UK for nearly all asset classes

Global real estate investments may see an increase in the coming years, owing to RBI’s new guidelines mentioned earlier. 60% of Global Investors that own global residential real estate plan adding more to their portfolio.

72% of Global Investors that invest in global equity invest in the US markets, a market that has shown returns for both long-term and short-term investors.

Preferred
Destinations (%)

  • US
  • UK
  • Europe
  • China
  • Others

Real Estate (Residential) - Base 20

55% 15% 15% 20%

Direct Equity - Base 18

72% 11% 22% 28%

Mutual Funds - Base 18

67% 22% 11% 6% 17%

Bonds - Base 15

80% 33% 13% 7%

Real Estate (Commercial) - Base 15

40% 13% 20% 33%

Exchange Traded Funds - Base 12

67% 25% 8% 33%

Crypto Currency - Base 11

55% 27% 27%

Investment in Local Business (Non-traded Business Entity) - Base 11

73% 9% 36%

Private Equity & Venture Capital - Base 10

60% 30% 20% 10%

Investment in Permanent Residency - Base 9

43% 44% 33%

TOPIC 2

Unravelling Ultra-HNI Migration

02. Unravelling Ultra-HNI Migration

Global Migration Base: 150

Drivers of Global Investing Base: 150

78%

I plan to retain my Indian citizenship and continue to reside only in India

16%

I plan to/already have set up a secondary residence abroad, while continuing to retain my Indian citizenship

4%

I plan to avail/already have a secondary passport via citizenship programs through investments

1%

I plan to/am in the process of migrating and settling down abroad permanently in a country of my choice

1%

Others

In 2021, the Ministry of External Affairs reported that over 2.5 Million Indians migrate to other countries every year. The Indian diaspora, one of the largest in the world, with over 32 Million NRIs and Persons of Indian Origin (PIOs) across the globe[24], are excelling in their respective fields and enriching their adopted societies with their expertise and diverse perspectives. Whether through entrepreneurship, innovation or leadership, they contribute significantly to the global economy.

1 in 5

Ultra-HNIs surveyed are currently in the process of or plan to migrate abroad

02. Unravelling Ultra-HNIs Migration

Among those Ultra-HNIs that are looking for alternatives to India, 69% consider ‘smoothening of business operations’ as a key driver

Residency through investment programmes offered by countries across the globe, also known as Golden Visa programmes, allow Ultra-HNIs to move, work and live in the host country. It grants individuals and their families long-term residency status in lieu of passive investments, with low physical requirements in the host country. Popular ‘Residency through Investment’ programmes are the United States of America’s EB-5 Visa, Portugal’s Golden Visa and Canada’s Start-up visa.

Drivers of Global MigrationBase: 32

  • a.To smoothen current business operations & expand globally
  • b.To enable smart tax planning based on friendlier tax policies
  • c.For better education opportunities for me and my family
  • d.To avail better employment opportunities
  • e.Others

02. Unravelling Ultra-HNIs Migration

Preferred Migration Destinations Base: 31

  • a.United States of America
  • b.Canada
  • c.United Kingdom
  • d.Germany
  • e.UAE
  • f.Singapore
  • g.Australia
  • h.Italy
  • i.New Zealand
  • j.Others

The most prominent of these programmes amongst Indian Ultra-HNIs is the ‘Golden Visa’ offered by the United Arab Emirates that bundles residency with attractive tax benefits, a booming property market and ease of movement, making it a pragmatic investment while being close to home.

Although less common, certain Ultra-HNIs also opt for ‘Citizenship by Investment’ programmes. These programmes grant Ultra-HNIs full citizenship of the host country, along with a passport and complete voting rights. Nevertheless, acquiring citizenship in another nation necessitates relinquishing Indian citizenship, thus diminishing the popularity of these programmes.

A critical element in propelling affluent families to extend their horizons beyond India’s borders is the educational aspirations they hold for their children. The act of migration is an investment in the future, where the advantages of international residency go hand in hand with the pursuit of excellent higher education.

TOPIC 3

Inculcating a Global Outlook in the Next Gen

03. Inculcating a Global Outlook in the Next Gen

In 2024, a staggering 13,33,000 students embarked from India to pursue educational opportunities overseas.[25]

44% of Ultra-HNIs that plan to migrate highlighted ‘better education opportunities’ as a driver for migration, emphasising the critical role that education standards and access to international opportunities play in migration. Among the preferred destinations, North America, particularly the United States, remains a dominant choice. Despite the steep costs associated with studying in the USA, its reputation for excellence in STEM education continues to attract students in large numbers. Canada, offering a more affordable alternative, has witnessed a slight decline in appeal due to recent diplomatic tensions. Additionally, countries like the UK, Canada and Australia have implemented stricter policies for international students, impacting the overall demand.

1.33 Million

Indian students went abroad for education in 2024

TOPIC 4

Family Offices Go International

04. Family Offices Go International

International Wealth Management Base: 43

  • a. My primary wealth management firm handles all global investments/remittances
  • b. My primary bank handles all global investments/ remittances
  • c. I have appointed an international wealth management firm/private bank that handles my global investments and remittance
  • d. My Family Office handles all global investments/ remittances and other requirements
  • e. I have set up a family office overseas to handle all global investments / remittances and other requirements
  • f. Others
Foreign Family Offices help Ultra-HNIs navigate the intricacies of global investing, offering expertise in tax optimisation, estate planning and evolving regulations

As Ultra-HNIs increasingly diversify their wealth and investment portfolios beyond domestic markets and as their income streams transition from rupees to dollars, they are engaging the services of foreign Family Offices to facilitate the management of their business and investments overseas.

The primary allure of using foreign Family Offices for Indian Ultra-HNIs lies in the vast international exposure and expertise these institutions bring to the table. Foreign Family Offices often come with a deep understanding of varied investment landscapes, regulatory frameworks and tax environments across the world, which can significantly benefit Ultra-HNI families with assets and interests overseas.

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