Women in India are set to be a major beneficiary from the landmark transfer of riches, marking a generational opportunity for the wealth management industry, according to a report by Barclays Private Bank, citing a shift in the segment towards growth-led investing.
Over the next decade, an estimated INR73 trillion (USD760 billion) is expected to transfer into the hands of females in India, according to a report by Barclays Private Bank entitled The Ownership Shift: Perspectives from India’s women pioneers.
Contrary to traditional perceptions about the segment’s focus on wealth preservation, the report surveyed female leaders from the South Asian nation and noted that 86% said they prioritise wealth creation and capital growth, with 72% reviewing their portfolios at least quarterly which signals a more active, institutional-style approach to investing. 40% are prioritising alternatives, such as private equity and venture capital, for new capital deployment in the next three to five years.
Execution and preparedness gap
Despite the intentions, the report underlines two key gaps. First, there is a gap in execution capability with 29% being familiar but not yet invested in alternatives, and 29% having limited understanding in the asset class. Just 13% claim they are highly familiar and actively invested in alternatives. Second, there is lack of preparedness for the wealth transition, with only 23% of women having a fully structured plans in place, while 77% are still refining their plans or have yet to begin.
Balancing time and attention (50%), and finding trusted advice (30%) were named as the two top challenges in managing wealth. 85% of respondents said trust and transparency was the most valued in a wealth manager relationship.
Seeking a strategic partner
For the industry, the report calls the female segment in India a “generational opportunity” as 57% of respondents said they want their wealth manger to be a strategic partner in shaping long-term wealth vision as well as an investment expert focused on returns and opportunities.
“Increasingly, women are not only asking how wealth should be managed, but also how decisions should be made, how families should prepare for succession, how businesses should endure and how wealth can reflect both ambition and responsibility,” commented Annabelle Bryde, head of Barclays Private Bank International.
