The Indian wealth management landscape is undergoing a profound transformation, with a growing emphasis on global diversification and a shift in the mindset of wealthy families. This article delves into the evolving strategies and considerations for Indian investors looking to take their wealth global, exploring the key themes and insights from the Hubbis India Wealth Management Forum 2026 panel discussion.
A Structural Shift in Diversification
The panel debate centered on the idea that global diversification is no longer just a tactical response to currency fluctuations or market performance, but a structural component of Indian family portfolios. This shift is driven by the increasing global footprint of Indian families, with education, careers, businesses, and family relationships extending across borders. As a result, the distinction between domestic and offshore portfolios is blurring.
Anuj Kapoor, MD & CEO - Private Wealth and Alternatives at JM Financial, highlighted the changing dynamics: "Market performance may accelerate the conversation, but it is no longer the reason for the conversation. Families increasingly see global diversification as something that should exist regardless of which market happens to be leading today."
This structural change is reflected in the growing interest in international allocation among family offices, with global diversification becoming a standard portfolio question. The attraction lies in the breadth of investments available globally, including sectors and themes that may have limited representation in India, such as artificial intelligence and semiconductors.
The Global Indian Phenomenon
The rise of the global Indian is a significant driver of this shift. As children of wealthy families are increasingly educated overseas, establish businesses in foreign countries, and engage in international travel and consumption, their portfolios are mirroring their global lives. This trend is particularly relevant for the next generation, who may study abroad, start businesses internationally, or eventually become residents in another jurisdiction.
Moin Ladha, Partner at Khaitan & Co, emphasized the impact on family structures: "The family’s world has already become global. The portfolio is now starting to catch up with the way the family actually lives."
Distinguishing Between Capital Movement and Investment Strategy
A critical distinction in the discussion was between moving capital and designing an international investment strategy. While the Liberalised Remittance Scheme (LRS) provides a well-established route for resident individuals to remit capital overseas, it is essential to understand that sending money abroad does not constitute an investment strategy.
Nirav Dinesh Kumar Shah, Founder and Managing Director at FAME Advisory DMCC, stressed the importance of purpose: "You have to distinguish the route from the objective. Getting money from one country to another is not the same thing as deciding what that capital is supposed to do once it gets there."
As wealth increases, the distinction becomes more significant, as regulatory frameworks around LRS, Overseas Direct Investment (ODI), and Overseas Portfolio Investment (OPI) have specific requirements. Advisers must first determine the purpose of the international allocation before identifying the appropriate route.
Expanding Offshore Product Offerings
The investment proposition available to global Indian families is becoming more diverse. Traditional feeder funds and cross-listed products remain part of the landscape, but global asset managers are increasingly offering Exchange-Traded Funds (ETFs), customized mandates, and targeted investment solutions.
Clarence Chan, Singapore CEO and Head of Investment Oversight and Client Solutions at BNY Investments, noted the evolution: "The evolution is from saying, 'Here is our global fund,' to asking, 'What exposure or outcome are you actually trying to create?'"
This shift allows for more tailored investment solutions, providing advisers with flexibility when integrating international investments into the wider family portfolio. The geographic opportunity set can also change over time, with a focus on sectors like US technology and AI-related businesses, but also potential future opportunities in markets like Japan, Korea, and Europe.
Institutional-Style Solutions for Private Clients
Technology and product innovation are breaking down barriers, making institutional-style investment structures more accessible to private clients. Separately Managed Accounts (SMAs), once associated with ultra-high net worth (UHNW) investors, are now being offered in smaller denominations, making them relevant to a broader segment of private wealth.
Vikas Satija, Managing Director and CEO at Shriram Wealth, highlighted the trend: "Solutions that once required tens of millions of dollars can increasingly be delivered in smaller pieces. That begins to change what private clients can realistically access."
This shift is significant for global asset managers, who can now work with banks, wealth firms, and intermediaries to design and operate investment solutions while the client-facing institution retains the primary relationship.
Externalisation vs. Portfolio Diversification
The panel carefully distinguished between portfolio diversification and genuine externalisation of family wealth. A resident Indian investing overseas through approved routes is different from a family with an international business footprint or non-resident family members.
Manish Kathuria, Chief Business Officer at Kotak Neo, explained the distinction: "Global investment, dollarisation and externalisation are three different conversations. The right solution depends on which of those the family is actually trying to achieve."
This distinction is crucial for regulatory compliance, tax considerations, and planning objectives. Families with international businesses may use ODI structures, while other investors may access overseas securities through portfolio routes, but neither should be seen as an unrestricted mechanism for transferring private family wealth outside India.
GIFT City: A Bridge, Not a Substitute
GIFT City, or the GIFT International Financial Services Centre (GIFT IFSC), has expanded as a platform for international investments and inbound capital. However, the panel emphasized that it should not be treated as equivalent to permanently externalising family wealth.
The regulatory architecture, with the IFSCA regulating GIFT IFSC and the RBI and foreign-exchange rules still applying to resident remittances, reflects this distinction. As the framework matures and longer operating track records emerge, GIFT City's potential as a bridge to international investments will become more apparent.
The Role of Retail Participation
The next stage of GIFT City's development may involve extending its reach beyond family offices and high-net-worth (HNW) investors. Retail participation is seen as a potential catalyst, particularly as infrastructure develops for access to international securities.
The regulatory framework for Global Access Providers is crucial in this context, allowing them to facilitate access to foreign-listed products within the IFSCA framework. If this ecosystem develops successfully, international investing could become more accessible to a larger pool of Indian investors.
The New Offshore Playbook: Starting with the Objective
The panel concluded that the new offshore playbook is less about sending money abroad and more about deciding which part of a family's wealth should become global, why it should do so, and which route can achieve that objective effectively.
The adviser's role is to establish the purpose first, understand the regulatory boundaries, and then build the investment or structural solution around them. Global diversification may have been accelerated by recent market and currency conditions, but the underlying change is deeper, reflecting the global expansion of Indian families and the evolving investment universe.
