NRIs expand investment horizons beyond property.
Dubai: Global equities, private markets, fixed income and select digital assets are emerging as preferred investment avenues for Non-Resident Indians, who are increasingly looking to diversify wealth traditionally concentrated in real estate and businesses.
Younger Gulf-based Indian investors are seeking flexible, liquid assets that provide cross-border access and currency diversification.
NRI clients are increasingly moving beyond traditional real estate holdings and allocating more capital to financial assets. We are seeing rising demand for global equities, private equity, venture capital, structured solutions and private credit as clients seek to build more diversified portfolios,” said Kunal Sumaya, Market Head for Global NRI and Ad Interim Country Head for India at Julius Baer.
Where NRI wealth is being deployed
Global equities are giving investors access to companies and sectors beyond their domestic markets, while private equity and venture capital offer opportunities to invest in businesses at earlier stages of growth before they enter public markets.
Private credit and structured investments are also finding their way into more NRI portfolios as affluent families look to diversify returns across a broader range of asset classes.
Fixed income has regained prominence among investors seeking steady income, capital preservation and lower volatility to complement their equity and private market exposures.
“We are also seeing selective allocations to digital assets, although these typically represent a small component of a broader investment portfolio. Clients are increasingly using fixed income to generate income, preserve capital and enhance diversification,” said Kunal Sumaya, Market Head for Global NRI and Ad Interim Country Head for India at Julius Baer.
Digital assets remain a limited allocation for most clients and are generally viewed as a complementary investment alongside established asset classes rather than a core portfolio holding.
India remains a key investment destination
Despite growing interest in global markets, India continues to account for a significant share of NRI wealth allocations. NRIs are estimated to hold around ₹15 trillion in the Indian economy, including approximately ₹10 trillion in deposits, ₹3 trillion in mutual funds and ₹2 trillion in alternative investments.
Remittances to India reached a record $135.46 billion in the 2024–25 financial year, creating a substantial pool of capital that can be deployed across deposits, equities, funds, real estate and private investments.
Greater international diversification has not diminished NRIs’ appetite for Indian assets, with many Global Indian families maintaining a strong connection to the domestic market.
“While Global Indian families are increasingly diversifying internationally, they continue to have a strong home bias. India remains a prominent part of their portfolios, supported by its long-term growth potential, entrepreneurial ecosystem and deep equity markets,” said Kunal Sumaya, Market Head for Global NRI and Ad Interim Country Head for India at Julius Baer.
Expanding investment avenues for NRIs
Investment choices available to NRIs have grown well beyond traditional assets such as bank deposits, real estate and listed equities. Alternative Investment Funds (AIFs), private market opportunities and customised investment strategies are providing access to a wider range of sectors and growth opportunities within the Indian economy.
Meanwhile, GIFT City is broadening the range of investment structures available to overseas Indians seeking exposure to India through a globally connected international financial centre.
Gulf families embrace global portfolios
Much of the wealth accumulated by NRIs in the Gulf has traditionally been built through family businesses and real estate. However, a growing proportion is now being allocated to financial investments that offer greater flexibility, global access and the ability to manage wealth across markets.
“The focus is increasingly moving from fixed assets to liquid investments, and from domestic portfolios to global ones. This shift is accelerating the transition towards more diversified, internationally aligned portfolios,” Sumaya said.
Dubai and the wider UAE continue to serve as important hubs for Global Indian wealth, supported by the presence of entrepreneurs, senior professionals and family offices based in the region.While recent geopolitical uncertainty has intensified discussions around portfolio construction and risk management, Sumaya said the trend towards global diversification had been building over a longer period.
“This is a structural change in the way Global Indian families approach wealth management, rather than a short-term response to market developments,” he said.
Wealth planning extends beyond investments
For families with assets spread across the UAE, India and other jurisdictions, the focus is increasingly shifting beyond investment returns towards how wealth is structured, managed and transferred across generations.
Succession planning, trusts, family governance and cross-border ownership structures are becoming integral parts of wealth discussions as first-generation entrepreneurs prepare to pass on assets and decision-making responsibilities to the next generation.
“Increasingly, our conversations extend beyond portfolio management to areas such as succession planning, trusts, family governance, multi-jurisdictional wealth structuring and access to private market opportunities,” Sumaya said.
For established NRI families, the priority is increasingly to balance long-term wealth creation with robust ownership structures that help preserve assets and enable a smooth transition between generations.
