Why India’s ultra-rich are betting big on growth assets in tier 1 and tier 2 cities — Know where they are investing

India’s ultra-high net worth individuals (UHNIs) are moving beyond capital preservation and aggressively backing growth assets, with a clear tilt towards tier 1 and tier 2 cities. A new report shows that more than half of these wealthy investors are deploying the bulk of their money into opportunities that promise higher long-term returns, signalling a shift in how India’s richest families are building wealth for the next generation.

Together, India’s UHNIs command a cumulative net worth of over Rs 2 lakh crore. But it is not just the size of their wealth that stands out. It is the way they are choosing to grow it — through equities, alternatives and businesses linked to India’s expanding urban centres.

According to the first edition of The Exceptionals report by Nuvama Private, 54 per cent of UHNIs in tier 1 and tier 2 cities allocate more than 80 per cent of their portfolios to growth capital. In comparison, only 23 per cent of those based in metros follow a similar strategy.

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This shows a strong belief that the next phase of wealth creation will come from fast-growing regional hubs, where new businesses, infrastructure and consumption are picking up pace. Among first-generation wealth creators, the figure stands at 33 per cent.

Younger inheritors appear more willing to take calculated risks and back new-age opportunities, reflecting confidence in India’s long-term growth story. The findings suggest that many families are still navigating how to structure intergenerational wealth transfer, even as their assets expand rapidly.

Ashish Kehair, MD and CEO of Nuvama, said India’s wealth story is entering a new phase. “India’s wealth story continues to evolve, shifting from preservation to purpose-driven deployment. Equity participation, alternatives and curated investment solutions are shaping a mature ecosystem capable of amplifying capital for generations,” he said.

The report notes that today’s wealth creators are investing with clarity and conviction, focusing on assets that can compound over time rather than merely protect capital. Beyond financial assets, lifestyle investments are also on the rise.

The report documents personal journeys of India’s UHNIs, highlighting how many built their businesses through resilience, emotional strength and a long-term vision. Alok Saigal, President and Head at Nuvama Private, said the study captures the deeper side of India’s wealthy.

“The Exceptionals delves into the layered facets of India’s wealthy individuals, who have built enduring value for their families, ecosystems and the nation,” he said.

Taken together, the findings point to a decisive trend: India’s ultra-rich are no longer content with safe bets alone. They are placing big, long-term wagers on growth assets, especially in emerging urban centres, while also embracing alternative and passion-led investments.