A large percentage of high-net-worth individuals (HNIs) are not saving enough to achieve their financial goals, as per a survey by Marcellus Investment Managers. The survey highlighted that 43% of high HNIs save less than 20% of their post-tax income, while 14% do not maintain an emergency fund.
Giving an example, the survey highlighted that a 44-year-old banking professional working in Mumbai only manages to save Rs 5 lakh per annum despite pocketing Rs 50 lakh as bulk as his/her income goes towards EMIs and children's education.
Saurabh Mukherjea, Co-Founder, Marcellus Investment Managers, said that affluent Indians are living in a world of high aspirations and low savings, compounded by illiquid, tax-inefficient portfolios. He stated that without a clear financial roadmap and disciplined investing, their goals will remain out of reach.
The survey said that HNIs prefer real estate more over other asset classes. More than half of the respondents have over 20% of their assets in property, even excluding their primary residence. Only 1/3rd of the respondents have more than 20% equity allocation.
Mukherjee said that Indians have too much real estate, too much small cap, very little global equity, and diversified portfolios are hard to find even in the HNI community.
As per the survery, 76% of ultra-HNIs are aware of the investment corpus they need to retire comfortably, but diversification remains low. 82% believe professional financial planning is key to achieving long-term financial goals and 51% HNIs seek more guidance on diversification.
Despite aspirations like early retirement, home ownership, entrepreneurship, and children’s education, many lack the personalised planning and financial discipline to turn goals into reality, the survey said.
These insights point to a growing appetite for expert advice. A striking 82% believe professional financial planning improves their chances of achieving long-term goals, while 51% seek help with diversification, and 38% want customised asset allocation aligned to their risk-return appetite.
The survey spans over 465 households across 28 cities. All the respondents are aged above 30 years and have post tax income of Rs 20 lakh.