India faces $1.5 trillion wealth transfer mega trend, says Ganesh Mohan
Intergenerational wealth transfer could shift domestic capital flows towards financial assets and equities, according to Bajaj Asset Management Limited's Ganesh Mohan.
Ganesh Mohan, Managing Director of Bajaj Asset Management Limited, said India could see nearly $1.5 trillion of household wealth changing hands over the coming years. Speaking at the ET Wealth Expo 2026 in Mumbai, Mohan identified intergenerational wealth transfer as a major socio-cultural mega trend, according to the Economic Times.
Mohan estimated that India's total household wealth is approximately Rs 1,400 lakh crore, or around $15 trillion. He suggested that if 10 per cent of this wealth changes its investment allocation, the potential pool could be around $1.5 trillion, which is larger than the estimated $800 billion in foreign portfolio investor (FPI) investments.
The shift may move capital from physical assets to financial instruments. Mohan noted that nearly 60 per cent of India's household wealth, or about Rs 850 lakh crore, is currently held in physical assets like real estate and gold, while only 33 per cent is in financial instruments.
Citing a Ministry of Statistics study, Mohan highlighted that while people above 50 account for 13 per cent of the population, they control nearly 52 per cent of the wealth. Conversely, those below 25 make up nearly 50 per cent of the population but control only 4 per cent of the wealth.
Mohan observed that younger investors show different preferences, with 40 per cent investing in equities, 34 per cent in mutual funds, and 19 per cent having exposure to cryptocurrencies. He stated that the movement of wealth could accelerate the financialisation of household savings in India.