Older demographics currently control more than half of India's household wealth despite accounting for only a small fraction of the total population. Ganesh Mohan of Bajaj Asset Management Limited projects that heirs aged 25 to 30 will inherit substantial capital over the next five to ten years. These younger investors prefer equities, long-term growth, and portfolio flexibility over traditional physical holdings like property. With an estimated 60% of household wealth locked in physical assets, even a modest reallocation could shift up to $1.5 trillion into modern financial markets.
Key points
A projected shift of just 10% of household assets would unleash a $1.5 trillion capital p…: A projected shift of just 10% of household assets would unleash a $1.5 trillion capital pool that easily surpasses foreign portfolio holdings.
The coming five to ten years will see substantial assets transfer to digital-first invest…: The coming five to ten years will see substantial assets transfer to digital-first investors aged 25 to 30 who prioritize growth and diversification.
India's vast investment base is positioned to migrate away from physical assets toward eq…: India's vast investment base is positioned to migrate away from physical assets toward equities and modern financial instruments.
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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.
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.
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