ET Wealth Expo 2026| India's next investment mega trend is a $1.5 trillion

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The Economic Times daily newspaper is available online now. Read Today's Paper ET Wealth Expo 2026| India's next investment mega trend is a $1.5 trillion wealth transfer: Ganesh MohanBy Kshitij Anand, ETMarkets.comLast Updated: Nov 03, 2026, 09:19:00 AM ISTSynopsis

Speaking on the sidelines of ET Wealth Expo 2026 in Mumbai, Mohan identified intergenerational wealth transfer as one of the major socio-cultural mega trends unfolding in India. He believes the shift will go beyond the transfer of assets between family members and could trigger a fundamental change in investment preferences, with younger investors potentially moving towards financial assets, equities and more diversified portfolios.

India could be on the cusp of a significant shift in its investment landscape, with nearly $1.5 trillion of household wealth potentially changing hands and finding new investment destinations over the coming years.

The intergenerational transfer of wealth from older Indians to younger generations could reshape domestic capital flows, boost financialisation and alter how households allocate their money across asset classes, according to Ganesh Mohan, Managing Director of Bajaj Asset Management Limited.

Speaking on the sidelines of ET Wealth Expo 2026 in Mumbai, Mohan identified intergenerational wealth transfer as one of the major socio-cultural mega trends unfolding in India.

He believes the shift will go beyond the transfer of assets between family members and could trigger a fundamental change in investment preferences, with younger investors potentially moving towards financial assets, equities and more diversified portfolios.

Mohan estimates that India's total household wealth stands at approximately Rs 1,400 lakh crore, or around $15 trillion.

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Assuming that nearly 10% of this wealth changes direction in terms of its investment allocation over the coming years, the potential pool of wealth at play could be around $1.5 trillion.

This domestic pool could be significantly larger than foreign portfolio investor (FPI) investments in India, which Mohan estimated at around $800 billion.

Why India's wealth transfer could become a mega trend

Explaining the concept of mega trends, Mohan said investment opportunities should be identified by looking beyond short-term market cycles and focusing on structural changes that can influence economies, industries and businesses over several years or decades.

He identified six broad sources of mega trends: technology, regulatory changes, economic shifts, nature and environmental changes, demographics and social developments.

According to Mohan, identifying businesses that benefit from such long-term structural shifts can help investors reduce the risks associated with growth investing, where expected earnings growth may not always materialise.

Intergenerational wealth transfer is one such structural shift that could have far-reaching implications for India's financial markets.

Citing a study by India's Ministry of Statistics, Mohan highlighted the difference between the distribution of population and the distribution of wealth across age groups.

Nearly 50% of India's population is below 25 years of age, but this segment controls only around 4% of the country's wealth. In contrast, people above 50 account for approximately 13% of the population but control nearly 52% of the wealth.

Mohan believes that a significant portion of this wealth could start moving towards younger generations, particularly those currently in the 25-30 age group, over the next five to ten years.

The scale of this transfer is important because much of India's household wealth remains concentrated in physical assets.

According to the estimates shared by Mohan, nearly 60% of India's household wealth is held in physical assets such as real estate and gold. Around 7% is allocated to retirement products and insurance, while only 33% is invested in financial instruments.

This means nearly Rs 850 lakh crore of household wealth is currently held in physical assets. As ownership shifts between generations, the investment preferences of the new owners could influence where this capital is eventually deployed.

Read more: ETMarkets Smart Talk | Gold for ballast, silver for growth; avoid industrial commodities in core portfolios: Saish Sawant

Younger investors are changing the investment playbook

One of the key differences between the generations is their approach towards money, risk and wealth creation.

Mohan explained that the older generation, particularly those above 50, grew up in an environment where scarcity and financial security played a major role in shaping investment decisions.

For this generation, wealth preservation, physical ownership and domestic investments were important considerations. Real estate and gold offered a sense of security, while relationships with financial advisers played a significant role in investment decisions.

The younger generation, however, has grown up with greater access to information, technology and investment opportunities across geographies.

Mohan highlighted that younger investors are more comfortable with digital platforms, want greater flexibility in managing their investments and are increasingly looking beyond traditional asset classes.

For them, wealth creation is not limited to preservation. Growth, diversification and access to global investment opportunities are equally important.

The investment preferences of this generation are already becoming visible.

According to the data presented by Mohan, around 40% of younger investors invest in equities, 34% in mutual funds, 31% in fixed deposits and 23% in real estate. Interestingly, nearly 19% also have exposure to cryptocurrencies.

The comparable interest in real estate and cryptocurrencies reflects how differently younger investors are approaching asset allocation compared with older generations.

Mohan believes financial institutions, asset managers and wealth advisers cannot afford to wait until this generation inherits wealth to understand their preferences. Their investment behaviour and expectations need to be understood much earlier.

Read more: ETMarkets Smart Talk | Bond markets have priced in nearly four rate hikes. Where should investors invest now?

Wealth transfer could accelerate India's financialisation

The potential movement of $1.5 trillion in household wealth could have implications for India's capital markets and the broader financial services industry.

If younger generations gradually shift allocations away from physical assets towards financial instruments, mutual funds and equities could emerge as potential beneficiaries of this structural change.

Mohan pointed out that mutual fund assets under management as a percentage of India's GDP remain below 20%, compared with nearly 70% globally. This highlights the potential for greater financialisation of household savings over the coming years.

The shift could also change the way investors construct their portfolios.

Rather than concentrating wealth in a few physical assets, younger investors may prefer diversified allocations across equities, mutual funds, fixed income and international markets.

The objective of investing could also evolve from wealth preservation alone to a combination of capital protection and long-term growth.

Mohan highlighted that the potential $1.5 trillion wealth shift could be particularly significant when compared with foreign investment flows. While FPI movements often attract considerable market attention, a large domestic pool of wealth changing hands and investment direction could have a much wider and more enduring impact on India's capital markets.

What does this mean for wealth managers and asset managers?

The changing investment preferences of younger generations could require a fundamental rethink of how financial products are designed, distributed and advised.

Mohan believes wealth managers will need to build relationships with the next generation before the actual transfer of wealth takes place.

A relationship built exclusively with the first generation may not necessarily continue once the wealth changes hands.

Digital access, transparency and personalised investment solutions are likely to become increasingly important. Younger investors want seamless digital experiences, easy execution and clarity on the products they purchase, including fees and charges.

However, the role of human financial advice is unlikely to disappear.

Mohan believes investors will continue to require professional guidance when financial decisions become complicated, particularly when managing family wealth, succession and long-term investment goals.

The industry will therefore need to combine digital convenience with personalised human advice rather than rely on a one-size-fits-all approach.

For asset managers, this could mean developing products that reflect changing preferences around diversification, global exposure and long-term wealth creation.

For distributors and wealth managers, the challenge will be to understand the next generation's expectations and build relationships across families rather than focusing only on the existing wealth creators.

Ultimately, India's intergenerational wealth transfer could represent more than a change in ownership. It could lead to a significant reallocation of domestic capital, changing the direction of household savings and investment flows.

As Mohan highlighted at ET Wealth Expo 2026, the potential movement of $1.5 trillion could become a major structural force for India's financial services industry, influencing asset management, distribution and wealth management over the coming years.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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