NRIs are looking beyond property. These investments are gaining ground

Dubai: Global equities, private markets, fixed income and selected digital assets are drawing greater interest from Non-Resident Indians who have traditionally held much of their wealth in property and operating businesses.

Younger generations of Indian families in the Gulf are seeking liquid investments that can be managed across countries and currencies.

“NRI clients are expanding beyond traditional real estate and increasing their allocation to financial assets. We are seeing growing interest in global equities, private equity, venture capital, structured solutions and private credit as clients build more diversified portfolios,” said Kunal Sumaya, Market Head for Global NRI and Ad Interim Country Head for India at Julius Baer.

Where NRI money is going

Global equities offer access to companies and sectors outside an investor’s home market, while private equity and venture capital provide exposure to businesses before they reach public markets.

Private credit and structured investments are also entering more portfolios as wealthy families seek returns from a wider range of sources.

Fixed income has regained importance among clients who want regular income and lower volatility alongside their equity and private market holdings.

Digital assets remain a limited allocation for most clients and are generally held alongside established investments, instead of forming a large part of the portfolio.

India remains a major allocation

NRIs hold an estimated ₹15 trillion in the Indian economy, including about ₹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, providing a large pool of capital that can flow into deposits, shares, funds, property and private investments.

International diversification has not reduced demand for Indian assets, with many Global Indian families retaining a strong preference for investments linked to the country.

“While Global Indian families are increasingly diversifying internationally, they continue to have a strong home bias. India continues to feature prominently in their portfolios, driven by its long-term growth opportunities, entrepreneurial ecosystem and deep equity markets,” Sumaya said.

Investment options available to NRIs have expanded beyond bank deposits, property and listed shares. Alternative Investment Funds, private market deals and customised strategies are giving investors access to a broader section of the Indian economy.

GIFT City is also increasing the number of investment structures available to overseas Indians seeking exposure to India through an international financial centre.

Gulf families seek global portfolios

Much of the wealth created by NRIs in the Gulf has come from family businesses and property, but a growing share is being placed in financial investments that can be accessed and managed internationally.

“The focus is increasingly shifting from fixed assets to liquid investments, and from local portfolios to global ones. That shift is accelerating the move towards more diversified, international portfolios,” Sumaya said.

Dubai and the wider UAE remain important centres for Global Indian wealth because of the concentration of entrepreneurs, senior professionals and family offices operating from the country.

Recent geopolitical uncertainty has increased conversations about portfolio construction, but Sumaya said the move towards global diversification had been developing over a longer period.

“This is a structural shift in how Global Indian families are thinking about wealth, not a short-term reaction to market events,” he said.

Wealth planning moves beyond investments

Families holding assets across the UAE, India and other jurisdictions are also paying closer attention to how their wealth will be managed and transferred.

Succession planning, trusts, family governance and cross-border ownership structures are becoming part of investment discussions as first-generation business owners prepare to transfer assets and control to their children.

“Increasingly, our conversations go beyond portfolio management to areas such as succession planning, trusts, family governance, multi-jurisdictional wealth structuring and access to private market opportunities,” Sumaya said.

The priority for established NRI families is increasingly to combine long-term investment returns with clear ownership structures that can protect wealth and support an orderly transfer between generations.