India's wealthy shift to real assets as stock returns slow down

Wealthy investors in India are redirecting their portfolios toward high-yielding alternatives such as real estate, logistics, and private credit following a prolonged slowdown in equity market momentum. While international high-net-worth individuals continue to focus on artificial intelligence stocks, domestic investors are increasingly seeking steadier cash flows.

Data indicates that alternative investment funds raised from local sources in the country nearly doubled from March 2024 to June 2026, reaching $64.5 billion. Family offices and asset managers are steering capital into infrastructure, energy, and property vehicles, contrasting with global trends highlighted by Citi where family offices lean more heavily on public equities.

PAG-backed Nuvama Wealth Management Ltd. raised approximately $420 million for a commercial real estate fund alongside Cushman & Wakefield Management, and plans to introduce additional products focused on income-generating assets. Ashish Kehair, chief executive officer at Nuvama, noted a distinct market shift toward private credit and cash-flow generating investments, including real estate investment trusts.

Historically, these asset classes were largely restricted to institutional players due to substantial ticket sizes and lengthy investment cycles. However, specialized fund structures now enable family offices to participate in major transactions. For instance, Neo Wealth secured about 110 million dollars for its Real Asset Yield Fund and raised over $500 million across tranches for an infrastructure income fund.

Local real asset funds often target annual returns between 12% and 15%, outpacing yields offered by typical corporate bonds. Unlisted funds focusing on completed properties remain particularly attractive as they can provide supplementary gains if the underlying assets are eventually listed or sold.

Wealthy investors in India are pivoting to real assets as stock market returns slow down.

Why it matters

At least six new vehicles launched this year are seeking to raise more than $1.25 billion for real estate and infrastructure assets, marking a resurgence after previously growing slowly. This trend broadens access to sophisticated financial instruments for affluent participants in South Asia's largest economy.