1. Indias Next Wealth Creation Landscape
Executive Summary
India stands at a defining moment in its economic and financial evolution. Amid a global environment characterised by uneven growth, shifting capital flows, and recurring geopolitical uncertainty, India continues to distinguish itself through resilience, policy credibility, and structural growth momentum. Supported by robust domestic demand, accelerating formalisation, expanding digital infrastructure, and rising financial participation, the country is entering a sustained phase of wealth creation and capital market deepening.
This macroeconomic strength is increasingly translating into a broader and more diversified wealth landscape.
Wealth creation in India is no longer concentrated within a narrow set of traditional segments or geographies. It is becoming more entrepreneurial, more geographically dispersed, and more closely linked to financial markets, new-economy sectors, and rising professional incomes. The expansion of high-net-worth, ultra-high-net-worth, and affluent segments is creating one of the most attractive long-term opportunities globally for organised wealth management.
At the same time, investor behaviour is evolving meaningfully. Portfolios are becoming more sophisticated, diversified, and outcome-oriented. Earnings growth and domestic participation remain key drivers of positive performance within equities. Alternatives such as private equity, private credit, real estate and infrastructure are increasingly finding a large allocation in investor portfolios. Demand for global diversification, bespoke solutions, and integrated wealth management services is also increasing. This represents an evolving dynamic within the wealth management space. While the opportunity set continues to expand, with increasing investment assets and formalisation of savings, competitive intensity across the industry is rapidly intensifying. The sector is becoming increasingly shaped by technology-enabled platforms and evolving advisory needs. The future of wealth management lies in the ability to combine technology with trusted relationships, differentiated product access and best-in-class advisory solutions.
AI driven technology is proving to be a key driving force behind these developments. Firms that successfully integrate technology with human judgement and personalised engagement are likely to strengthen their competitive advantage in the years ahead.
Given this context, 360 ONE is well-placed to partake in the next stage of Indias wealth journey. The Company has already developed a distinctive business model built on trust, advice, product range, and execution capabilities. The Company has built an integrated platform spanning wealth management, alternative investments, asset management, lending, investment banking, institutional equities, estate planning, and global access - designed to evolve in step with the growing sophistication of its clients needs.
Through its strategy of focusing on recurring income streams, premium clientele, a leading alternatives portfolio, and leveraging technology for scale, 360 ONE is well-positioned amid an accelerating market environment. Despite near-term market uncertainty, the broader trend remains clear. India is transitioning from being a savings-oriented economy towards becoming a more wealth-focused one. Within this transition lies a significant multi-year opportunity for investors, institutions, and full-stack players such as 360 ONE that are helping shape the future architecture of wealth management in India.
2. Global Macro and Wealth Context
2.1 Global Economic Backdrop
The Dichotomy at Hand
The global economy is settling into a new macroeconomic regime characterised by moderate growth, evolving interest rate dynamics, and increased dispersion across economies. The sharp inflationary surge witnessed in the aftermath of the pandemic has moderated and monetary tightening has largely run its course; however, the emerging environment does not represent a return to the pre-pandemic norm.
Global growth has remained steady despite tighter financial conditions. According to IMF estimates, the global economy is expected to grow by 3.1% and 3.2% in 2026 and 2027, respectively. 1 This headline, however, masks a widening divergence: advanced economies, constrained by high interest rates, ageing populations, and fiscal pressures, are expected to grow at approximately 1.8% in 2026 and 1.7% in 2027,² while emerging and developing economies are expected to grow by more than 4% annually, supported by domestic demand, urbanisation, and ongoing reforms. The contribution of developing nations to incremental global
GDP growth is becoming increasingly significant.
1 https://www.imf.org/en/publications/weo/issues/2026/04/14/world-economic-outlook-april-2026 2 https://www.imf.org/-/media/files/publications/weo/2026/april/english/text.pdf
On inflation, the disinflation process has been meaningful but uneven. Globally, headline inflation is projected at 4.4% in 2026 before declining to 3.7% in 2027, from 4.1% in 2025. 3 Goods and energy prices have seen relief, but services inflation remains persistent due to tight labour markets and rising wages, making the path of monetary policy less predictable.
Monetary policy across leading economies has entered a more calibrated phase. After an extraordinarily forceful tightening cycle, central banks have begun easing cautiously, though the pace and extent of rate reductions remain data-dependent. Real interest rates remain positive across most developed markets and financial conditions, while loosening, remain tighter relative to the previous decade - placing greater emphasis on the quality of capital allocation.
Geopolitical fragmentation adds another layer of complexity. Trade tensions, friend-shoring of supply chains, and regional conflicts continue to reshape global economic relationships and have been identified as the principal downside risk to growth.
Adding a layer of urgency to the geopolitical landscape is the conflict in the Middle East, which has had a material impact on global energy markets.
Disruptions to shipping through the Strait of Hormuz which handles approximately 35% of global seaborne crude oil trade - triggered the largest oil supply shock in recent years, with Brent crude rising sharply from approximately $69 per barrel in 2025 to near $100 per barrel recently (World Bank, Commodity Markets
Outlook, April 2026). The World Bank estimates that energy prices are projected to surge 24% in 2026, driving overall commodity prices up 16% - the highest levels since the Russia-Ukraine disruption in 2022. The ripple effects extend beyond energy: higher oil prices are feeding through into inflation expectations, complicating the rate-cut calculus for central banks globally, and adding fiscal strain to oil-importing economies.
For investors, the net effect is a world of greater return dispersion, where asset allocation discipline and diversification matter more than they have in over a decade.
This reflects an ongoing transition from the traditional global growth model to a new one.
2.2 Global Wealth Creation Trends
Growth Trajectory and Wealth Shifts
Global wealth creation has proved resilient despite macroeconomic volatility, supported by financial market recovery, entrepreneurial activity, and a shift in global economic leadership. Following the correction in 2022, total global wealth regained its pre-correction peak in 2023 and continued to rise through 2024. The number of individuals with net worth exceeding $30 Mn rose from 5,51,435 in 2021 to 7,13,626 in 2026, reflecting a sharp acceleration in ultra-high-net-worth wealth creation globally. 4 A notable feature of the current cycle is the emergence of a more multipolar wealth ecosystem. While North America continues to dominate in absolute terms, incremental wealth creation is increasingly driven by a broader set of regions.
Beyond the ultra-wealthy, wealth creation is broadening across a wider spectrum - the rise of everyday millionaires with investable assets in the $1 Mn range reflects growing depth across both developed and emerging markets, tied more closely to financial market participation than to inherited capital.
Intergenerational Wealth Transfer
Perhaps the most defining structural trend shaping the future of global wealth is the ongoing intergenerational transfer of assets. Over the next two decades, a substantial volume of wealth is expected to transition from older generations to younger cohorts.
Global wealth transfer is estimated at approximately $83 Trn over the next 20 25 years, 5 representing one of the largest reallocations of capital in modern history.
This generational transition is expected to reshape investor preferences - from capital preservation towards growth and purpose-driven investing, from relationship-led advisory towards hybrid digital engagement, and from standardised portfolios towards customised, solution-oriented strategies.
These shifts are already visible in investor behaviour.
Nearly 44% of family offices globally are looking to increase their exposure to real estate, 6 while a rising proportion of wealth holders - particularly younger investors - are seeking alignment between their portfolios and broader environmental and social objectives. For wealth managers, the capacity to navigate cross-border wealth dynamics, accommodate generational differences, and deliver increasingly customised solutions will be critical in capturing the next wave of wealth creation.
2.3 Global Asset Management
Industry
AUM Recovery amid Structural Shifts
Global AUM reached a record $147 Trn by mid-2025, driven by surging equity markets and renewed client inflows. 7 The prior year was a breakout - AUM hit $135 Trn, up $15 Trn, the sharpest annual increase in over ten years, with nearly 70% of the increase coming from market appreciation.
North America led with 13% y-o-y growth, accounting for $88.2 Trn or ~63% of total AUM managed by the worlds top 500 managers. Looking ahead, Asia-Pacific is projected to grow the fastest at a CAGR of 6.8% through 2030, ahead of North America (6.2%) and Europe (5.6%). 8
4 https://i.emlfiles4.com/cmpdoc/0/4/8/5/2/1/files/146680_the-wealth-report-2026.pdf
5 https://www.ubs.com/global/en/wealthmanagement/insights/global-wealth-report.html
6https://apac.knightfrank.com/hubfs/Research%20Reports/Residential/Report%20PDFs/Knight%20Frank_The%20Wealth%20 Report%202025.pdf
7https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/our%20insights/asset%20management%20 2025%20the%20great%20convergence/asset-management-2025-the-great-convergence.pdf?shouldIndex=false
8 https://www.pwchk.com/en/industries/financial-services/asset-and-wealth-management/asset-and-wealth-management- revolution-asia-pacific-jul2026.html
Rise of Passive and Alternative Investments
Investor preferences are creating a structural divergence. Passive strategies now account for 39% of total AUM, up 6.1% y-o-y, while actively managed assets have declined to 61%. Global ETF AUM reached a record $19.9 Trn at the end of 2025, with annual inflows reaching an all-time high of $2.4 Trn. 9 Private markets have emerged as a core component of modern portfolio construction, generating roughly four times more profit per Bn AUM than traditional managers and expected to account for over half of industry revenues by 2030. 10 Private equity, private debt, infrastructure, and real estate are increasingly viewed as essential components of diversified portfolios driven by the search for yield in a moderate-growth environment, lower correlation with public markets, and a growing pipeline of institutional-grade deals. Private debt has been particularly prominent as bank-based lending has tightened. Global alternatives AUM is expected to exceed $30 Trn by 2030 11 .
AI, Technology and Operating Model Evolution
AI, data analytics, and digital platforms are transforming investment selection, portfolio construction, and client servicing - though the pace of implementation remains uneven, creating a growing divide between early adopters and laggards. 12 Alongside technology, the traditional product-centric model is giving way to integrated, advisory-led platforms. The need for scale is becoming more pronounced as fee compression and technology investment costs rise, driving consolidation, partnerships, and geographic expansion across the industry.
Closing Perspective
The global macroeconomic and wealth landscape is undergoing a fundamental transition. Growth remains resilient but increasingly uneven, wealth continues to expand but is becoming more distributed, and investment strategies are evolving in response to a more complex environment.
What is emerging is a new investment paradigm, one where:
Capital is more disciplined
Wealth is more global and dynamic
Portfolio construction is more nuanced
Technology is central to competitive advantage In this evolving environment, the role of wealth and asset managers is also being redefined. Success will increasingly depend on the ability to navigate complexity, anticipate structural shifts, and deliver differentiated, client-centric solutions in a rapidly changing world.
9 https://www.investmentexecutive.com/news/products/global-etf-industry-recorded-highest-ever-annual-inflows-in-2025/ 10 https://www.pwc.com/gx/en/news-room/press-releases/2025/pwc-2025-global-asset-wealth-management-report.html 11 https://www.theasset.com/article/52452/alternatives-aum-tipped-to-cross-us30-trillion-by-2030 12 https://web-assets.bcg.com/cc/0a/25876ea740168e908a8652e147d7/2025-gam-report-april-2025.pdf
3. Indias Macroeconomic and Wealth Landscape
3.1 Structural Strength of Indias Growth Story
Indias growth trajectory continues to distinguish itself from an increasingly fragmented global environment through a combination of structural resilience, domestic demand strength, and accelerating financialisation, positioning the country for a sustained and broad-based expansion in wealth creation.
GDP, Consumption and Capex
The country is expected to achieve GDP growth of approximately 6.6% during FY27,13 placing it firmly among the worlds fastest-growing major economies. Importantly, unlike earlier cycles that were largely dependent on external drivers, the current expansion is anchored in domestic demand, fuelled by rising incomes, increasing urbanisation, and growing formalisation of the economy.
Total government expenditure has risen, with the FY27 (2026-27) budget estimate at 53.47 lakh Cr, up from 49.6 lakh Cr (revised estimate) in FY26, 14 focused on transportation, logistics, and digital infrastructure. This public investment is complementing private capex growth and creating a more balanced, self-sustaining growth model. Alongside, India is benefitting from global supply chain diversification, with policy initiatives such as the PLI scheme enhancing its manufacturing competitiveness. Macroeconomic stability continues to underpin the growth story. Headline inflation has been maintained below the
4% (+/-2%) target during FY26 (up to February 2026), supported by subdued food prices and benign underlying inflation. 15 Fiscal consolidation remains on track. However, theres a significant risk that is testing the macros.
Notes:
1. Decomposition of CPI inflation indicates deviation from deterministic trend
2. *04:2025-26 is average of January and February 2026 based on the new CPI series (2024-100), while data up to Q3:2025-26 is based on the old CPI series (2012-100) Sources: NSO, RBI, PPAC, BSE, Labour Bureau, and RBI staff estimates
13 https://www.worldbank.org/en/news/press-release/2026/04/09/india-remains-among-the-fastest-growing-economies
14 https://www.indiabudget.gov.in/doc/eb/vol1.pdf
15 https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/MPRAPRIL080426F22A3C8019DF4BDE889912B6209E8B7B.PDF
The conflict in the Middle East has introduced near-term headwinds that warrant monitoring. India imports approximately 85% of its crude oil requirements, making the economy acutely sensitive to energy price shocks. Brent crude, which was trading near $71 per barrel in late February 2026, surged past $117 in April before easing to approximately $100 per barrel in late May - still around 50% above pre-conflict levels.
The transmission effects have been visible: the rupee has depreciated to the 95-96 range against the US dollar from approximately 90 at the start of the calendar year; the RBI, in its latest policy review, paused the rate-easing cycle, holding the repo rate at 5.25% and flagging the conflict risk to both inflation and growth.
A prolonged disruption could widen the current account deficit, increase the governments subsidy burden, and delay monetary easing, though Indias foreign exchange reserves and fiscal consolidation trajectory provide meaningful buffers.
Demographics remain a structural advantage, with a growing workforce driving consumption and productivity. Digital public infrastructure - particularly in payments and identity systems - has contributed meaningfully to financial inclusion and formalisation.
Shifting Income Pyramid
These macro tailwinds are contributing to a transformation of Indias income and wealth structure, with a rising share of the population moving into higher income brackets.
The mass affluent segment, in particular, is likely to drive consumption and investment over the coming decade.
India is now among the top five global economies and is expected to surpass Germany by 2028, 16 with its contribution to incremental global GDP steadily increasing.
3.2 Acceleration of Wealth Creation
Indias economic expansion is translating into a broad-based acceleration in wealth, which is distinguished not merely by pace, but by its scale, dispersion, and structural depth. Wealth creation is expanding across geographies, sectors, and demographic cohorts.
Rise in the Top Cohort
a
At the upper end of the spectrum, India continues to witness a rapid expansion in high-net-worth and ultra-high-net-worth individuals, reflecting both entrepreneurial success and capital market participation. According to a 2026 report, India had 19,877 UHNWIs ($30 Mn+) in FY26, forecast to rise to 25,217 by 2031. 17 Indias UHNWI population rose 63% between 2021 and 2026, one of the strongest expansions globally.
The billionaire segment has also expanded meaningfully, reflecting the strength of Indias entrepreneurial ecosystem and capital markets. The billionaire population stands at 207 in 2026 and is projected to reach 313 by 2031. 18
Beyond the ultra-wealthy, the broader HNI and affluent segments are expanding rapidly, supported by growth in entrepreneurship, increased equity market participation, and expansion of professional income segments.
This broadening base of wealth holders indicates that wealth creation is becoming more structural than episodic.
16 https://www.ibef.org/economy/indian-economy-overview
17 https://i.emlfiles4.com/cmpdoc/0/4/8/5/2/1/files/146680_the-wealth-report-2026.pdf
18 https://i.emlfiles4.com/cmpdoc/0/4/8/5/2/1/files/146680_the-wealth-report-2026.pdf
Entrepreneurial Wealth: A Defining Driver
The Indian startup ecosystem is among the worlds largest, with over 2,00,000 DPIIT-recognised startups as of
December 2025. Notably, nearly 50% originate from Tier II and Tier III cities, reflecting the growing democratisation of entrepreneurship. 19 This has enabled accelerated wealth creation cycles, producing a new generation of wealth creators with diverse investment inclinations and risk profiles.
Exhibit 2: Indias Startup Ecosystem
Decentralisation of Wealth beyond Metros
Wealth creation is increasingly spreading beyond metro cities. Tier II and III cities account for over 51% of Indias registered MSMEs, 20 supported by regional entrepreneurship, improved digital connectivity, and expanding financial services infrastructure. This decentralisation is reshaping the opportunity landscape for wealth management as new client segments emerge across a wider geographic footprint.
Financialisation of Savings
One of the most significant structural shifts supporting wealth accumulation is the movement of household savings from physical assets towards financial instruments
The total AUM of the mutual fund industry stood at 73.73 Trn as of March 31 st , 2026 - a sixfold increase from 12.33 Trn in 2016 21 - with the total folios at 273.9 Mn. Monthly SIP inflows have risen steadily, reaching 320.87 Bn 22 as of March 2026.
A Generational Shift in Wealth Ownership
The industry is also being shaped by intergenerational wealth transfer. An estimated $1.5 Trn is expected to be transferred from older generations to Gen X and millennials during the current decade. 23 Newer generations of wealth holders tend to exhibit higher risk tolerance, greater allocation to equities and alternatives, and a stronger preference for global diversification and sustainability-aligned investing influencing how portfolios are constructed and advisory services . are delivered.
19 https://www.pib.gov.in/PressReleasePage.aspx?PRID=2214872r=3&lang=2
20 https://www.investindia.gov.in/team-india-blogs/rise-indias-tier-2-and-3-cities-investment-hubs 21 https://www.amfiindia.com/articles/indian-mutual 22 https://www.amfiindia.com/articles/mutual-fund
23 https://www.ey.com/content/dam/ey-unified-site/ey-com/en-in/insights/family-office/ey-the-indian-office-playbook-digital.pdf
Exhibit 3: SIP Flow Pattern
| Month | SIP Contribution | Cr | ||||||||
| FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | |
| Total during FY | 3,49,589 | 2,89,352 | 1,99,219 | 1,55,972 | 1,24,566 | 96,080 | 1,00,084 | 92,693 | 67,190 | 43,921 |
| March | 32,087 | 25,926 | 19,271 | 14,276 | 12,328 | 9,182 | 8,641 | 8,055 | 7,119 | 4,335 |
| February | 29,845 | 25,999 | 19,187 | 13,686 | 11,438 | 7,528 | 8,513 | 8,095 | 6,425 | 4,050 |
| January | 31,002 | 26,400 | 18,838 | 13,856 | 11,517 | 8,023 | 8,532 | 8,064 | 6,644 | 4,095 |
| December | 31,002 | 26,459 | 17,610 | 13,573 | 11,305 | 8,418 | 8,518 | 8,022 | 6,222 | 3,073 |
| November | 29,445 | 25,320 | 17,073 | 13,306 | 11,005 | 7,302 | 8,273 | 7,985 | 5,893 | 3,884 |
| October | 29,529 | 25,323 | 16,928 | 13,041 | 10,519 | 7,800 | 8,246 | 7,985 | 5,621 | 3,434 |
| September | 29,361 | 24,509 | 16,042 | 12,976 | 10,351 | 7,788 | 8,263 | 7,727 | 5,516 | 3,698 |
| August | 28,265 | 23,547 | 15,814 | 12,693 | 9,923 | 7,792 | 8,231 | 7,658 | 5,206 | 3,497 |
| July | 28,464 | 23,332 | 15,245 | 12,140 | 9,609 | 7,831 | 8,324 | 7,554 | 4,947 | 3,334 |
| June | 27,269 | 21,262 | 14,734 | 12,276 | 9,156 | 7,917 | 8,122 | 7,554 | 4,744 | 3,310 |
| May | 26,688 | 20,904 | 14,749 | 12,286 | 8,819 | 8,123 | 8,183 | 7,304 | 4,584 | 3,189 |
| April | 26,632 | 20,371 | 13,728 | 11,863 | 8,596 | 8,376 | 8,238 | 6,690 | 4,269 | 3,122 |
Source: Association of Mutual Funds in India (AMFI)
3.3 Rise of the Affluent Segment
While UHNI and HNI segments define the upper end of
Indias wealth spectrum, the most consequential long-term transformation is unfolding within the affluent and mass affluent cohorts. This segment is emerging as a powerful driver of both wealth creation and financial participation, fuelled by sustained income growth, professionalisation of the workforce, and increasing financial literacy. The shift in financial behaviour is already visible. Unlike previous generations that favoured physical assets, this cohort is engaging actively with formal financial systems. total of 235 lakh demat accounts were added during FY26, taking the total beyond 21.6 Cr 24 reflecting the depth of retail participation in capital markets, supported by digital platforms and improved accessibility.
Another defining characteristic of this segment is its aspirational and forward-looking orientation. The affluent investor today is not merely focused on wealth preservation but also on wealth creation, diversification, and long-term financial planning.
This is reflected in evolving portfolio preferences:
Increased allocation towards equities as a primary growth driver
Gradual adoption of diversified investment strategies
Growing openness to global investing and alternative assets At the same time, this cohort demonstrates a higher degree of engagement with financial information, supported by digital access and greater transparency across investment products.
Digital Enablement as a Catalyst
The expansion of digital infrastructure - online investment platforms, mobile-based trading, and fintech solutions has significantly reduced barriers to entry, transforming the investment journey from fragmented and intermediated to accessible and integrated. Indias digital public infrastructure in payments and identity has further strengthened this ecosystem.
Evolving Expectations from Wealth A Management
Alongside this growth, investor expectations are maturing - from transactional investing towards advisory-led engagement centred on structured financial planning, performance-driven solutions, and balanced risk management. Wealth managers who can integrate distribution, products, and advice into a cohesive proposition are best positioned to serve this expanding segment.
Closing Perspective
The global macroeconomic and wealth landscape is in transition - growth resilient but uneven, wealth expanding but more distributed, and investment strategies evolving in response to greater complexity. What is emerging is an environment where capital is more disciplined, portfolio construction more nuanced, and technology increasingly central to competitive advantage. For wealth and asset managers, success will depend on the ability to navigate this complexity and deliver differentiated, client-centric solutions.
4. Asset Allocation and Investor Behaviour
4.1 Where is the Wealth Flowing?
Indias capital allocation patterns are becoming increasingly dynamic and diversified, reflecting the shift from physical financial assets, the maturation of capital markets, and the broadening of investor participation.
Equity vs. Fixed Income vs. Real Assets
One of the most significant changes has been the growing preference for financial assets over physical assets. In the past, Indians have always had a strong inclination towards real estate and gold investments. Although these forms of investments are still relevant, their importance is slowly declining as investors seek higher liquidity and transparency in their investments.
This can be seen through the growing share of financial assets in the savings of households. As per data from the Reserve Bank of India, household net financial assets increased to 15.94 lakh Cr in FY24 from 13.31 lakh Cr in FY23 and further strengthened to approximately 19.94 lakh Cr in FY25 (preliminary estimates), with the ratio to GDP improving from 4.9% to 5.3% and further to ~6.0%. 25 Flows into market-linked instruments increased meaningfully to 3.01 lakh Cr in FY24 and strengthened further in FY25, with mutual fund investments alone contributing approximately 4.65 lakh Cr (annualised), underscoring the growing shift towards equities and market-linked products. 26 Retail investor participation has continued to increase steadily, supported by improved financial awareness, digital access markets, and long-term equity performance.
Alongside equities, fixed income preferences are evolving investors are exploring a wider range of instruments including corporate bonds, structured credit products, and target maturity funds. Accordingly, Indias corporate bond market has expanded significantly, with outstanding issuances rising from 17.5 Trn in FY15 to 53.6 Trn in FY25, reflecting ~12% annual growth. 27 FY25 saw record fresh issuances of
9.9 Trn, and as of March 2025 the market accounts for 15
16% of GDP. In FY26, debt instruments contributed over 63% of primary market resource mobilisation (April-December 2025). Regulatory initiatives - including SEBIs RFQ platform, improved governance for credit rating agencies, and simplified issuance norms have enhanced transparency and market efficiency.
Regulatory initiatives, including SEBIs RFQ platform, improved governance for credit rating agencies, and simplified issuance norms, have enhanced transparency, access, and overall market efficiency.
to Growing Allocation to Alternatives
Indias alternative investment landscape has expanded rapidly, with total AUM estimated at ~$400 Bn, including $156 Bn in SEBI-registered AIFs. 28 The segment is expected to scale to over $2 Trn by 2034, driven by increasing HNI participation, supportive regulatory frameworks, and demand for diversified, higher-yielding opportunities.
Alternatives are moving from opportunistic allocations to core components of portfolio construction - spanning private equity, private credit, real estate, and infrastructure driven by the search for higher returns, diversification benefits, and lower correlation with public markets.
Global Diversification Gains Traction
Indian investors are steadily increasing overseas exposure, with outward remittances under the LRS reaching $29.6 Bn in FY25 29 . Investments in equity and debt alone accounted for ~$1.7 Bn, while overseas deposits (~$0.7 Bn) and property (~$0.3 Bn) also witnessed traction 30 - indicating diversification across both geographies and asset classes.
4.2 Behavioural Shifts in Investors
Alongside these allocation shifts, investor behaviour is maturing. The transition from purely return-driven investing towards risk-aware, goal-based portfolio construction is becoming increasingly evident. Investors are structuring portfolios around specific objectives retirement planning, wealth preservation, intergenerational transfer - rather than investing in isolated products. This is driving rising demand for professional advisory, customised solutions, and strategic asset allocation guidance. At the same time, digital platforms have raised expectations around real-time portfolio access, seamless execution, and transparent reporting, creating a more informed and participative investor base.
Closing Perspective
These shifts in asset allocation and investor behaviour reflect the maturing of Indias financial ecosystem. Catering to an increasingly sophisticated investor base will require advanced portfoliomanagementcapabilities,differentiated product access, and advisory-led engagement.
25 https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/50AT_BUL28082025C459E5FE597241EA9BBB5BD5FB5B0BAF.PDF 26 https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/50AT_BUL28082025C459E5FE597241EA9BBB5BD5FB5B0BAF.PDF 27 https://www.freepressjournal.in/amp/business/indias-corporate-bond-market-has-potential-to-exceed-120-trillion-by-2030- report 28 https://www.aima.org/article/beyond-equities-why-indian-alternatives-are-the-next-frontier-of-opportunity.html 29 https://www.rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=24018 30 https://www.rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=24018
5. Rise of Alternatives - A Structural Shift
Indias evolving wealth landscape is increasingly reflected in portfolio construction. As investors mature and traditional asset classes prove insufficient to meet return expectations, the shift towards alternatives is accelerating Globally, managed assets in alternatives are projected to reach $32 Trn by 2030 31 .
From Allocation to Integration
Alternatives are gaining increased prominence in portfolio allocation, particularly among HNI and UHNI investors. On average, allocations towards alternatives account for approximately 44% of global family office portfolios. 32 The reasoning behind this allocation approach includes:
Traditional equity and fixed-income allocations may fully take advantage of the opportunities present
Diversification across asset classes is becoming increasingly important for managing risks Thus, modern portfolios are becoming more multi-faceted, with more diverse exposure, both within public markets and beyond them.
Growth of the alternatives ecosystem in India
Over the past few years, the Indian alternatives space has seen substantial growth. This can be attributed to regulatory changes and involvement of institutional players, as well as increased investor understanding of alternatives. Over this time, there has been considerable growth in the AIF industry, with total AUMs crossing 16.9 Trn and funds raised crossing H 7.0 Trn.33
Exhibit 4: AIF Fundraising
Cumulative net figures as at the end of December 31 st , 2025
AIF Fund Raised
( in Cr)
31 -release/preqin- releases-private-markets-in-2030-report 32 https://www.ubs.com/global/en/wealthmanagement/ family-office-uhnw/reports/global-family-office-html 33 https://www.sebi.gov.in/statistics/1392982252002.html
Private Markets as a Core Allocation
Within alternatives, private markets form a crucial allocation strategy. Private equity and venture capital continue to attract investments due to the Indian entrepreneurial environment and rapid digital growth. India has continued to rank amongst the largest start-up ecosystems in the world, with over 2 lakh DPIIT-recognised start-ups at present. 34 In addition, private credit has emerged as an important asset class. With banks adopting a selective approach to lending funds to companies, private credit has become relevant and lucrative for businesses as well as investors, providing opportunities for steady yields.
Real assets like real estate and infrastructure also continue to hold appeal with respect to their income-generating potential and ability to serve as inflation hedges.
Why Alternatives are Gaining Prominence
The increasing allocation toward alternatives is being driven by a combination of structural and cyclical factors. Investors are seeking solutions that can enhance portfolio resilience while also improving return potential. In India, listed equities have seen periods of elevated valuations, while bond markets remain comparatively shallow relative to developed economies, increasing the appeal of differentiated return pools. Indias corporate bond market remains approximately 16% of GDP, materially below many developed markets. 35
In particular, alternatives offer:
Access to differentiated return streams that are less correlated with public markets
The ability to capture long-term value creation in private ecosystems
Opportunities for income generation, particularly in credit and real assets These attributes are especially relevant in the current environment, where market volatility and valuation dispersion are more pronounced.
Access and Institutionalisation
Another critical factor behind the growth of alternatives is the improved accessibility to invest in alternative assets. In parallel, the industry is becoming more institutionalised, resulting in:
Better governance and transparency
More standardisation of vehicles
Higher participation from domestic and foreign LPs Foreign LP interest in India has risen, with India emerging as one of the preferred locations for private capital allocation in the future. 36 These trends have increased trust in the asset class, leading to its sustainable growth.
34 https://www.startupindia.gov.in/
35 https://www.niti.gov.in/sites/default/files/2026-01/Deepening_the_Corporate_Bond_Market_in_India.pdf
36 https://www.mckinsey.com/industries/private-capital/our-insights/indias-private-markets-the-global-limited-partner-view
Implications for Portfolio Construction
Alternatives are fundamentally reshaping portfolio construction approaches. Investors are shifting from using traditional allocation methods to adopting an outcomes-based approach.
Portfolios are built to:
Deliver growth while ensuring stability
Generate returns from multiple sources
Manage risks throughout various market cycles
This shift reflects a more sophisticated approach to investing, where asset allocation is tailored to individual objectives, rather than driven by conventional benchmarks.
5.2 Key Alternative Segments
Private Equity and Venture Capital
Private equity and venture capital continue to dominate alternative investments in India, owing to the entrepreneurial dynamism and increasing opportunity pool. Over the past decade, India has become one of the favourite destinations for private equity and venture capital, driven by demographic advantages, technological adoption and rising consumption.
Indias alternative investing ecosystem is significantly evolved, with robust investments across early-stage, growth-stage, and later-stage investment cycles. Capital inflows have been strong, especially in areas such as technology, financial services, health care, and consumer businesses, which reflect Indias structural growth drivers
In 2025, Indias PE/VC ecosystem demonstrated resilience and renewed momentum, with investments rising to $60.7 Bn across 1,475 deals, an 8% increase in value and 9% growth in volume. 37 This marked the second-highest annual deployment on record. Financial services regained the top sector position, while technology, food and agriculture, industrial products, and automotive also recorded strong YoY growth.
Indias share of Asia-Pacific PE/VC deployment has risen from approximately 12% during 2015-2019 to about 21% between 2020-2024 38 with Indias share of global GDP projected to increase from 3.7% in 2025 to 7.0% by 2050. The development of Indian capital markets is also improving exit opportunities through the IPO route and secondary trading, positioning PE/VC as a strategic long-term allocation rather than a purely opportunistic one.
Private Credit
Private credit has become a highly promising alternative investment segment, gaining popularity because of fundamental shifts in financing behaviour and the changing needs of investors.
There are various cases for private credit, which include growth finance, acquisition finance, and special situations, among others. Investors can benefit from investments in the segment since private credit offers predictable cash flow through structured instruments.
Private credit investments in India reached an all-time high of $14 Bn, compared with $10.8 Bn in 2024, 39 reflecting growth of 30%. While deal volumes declined from 311 to 239 deals, larger transaction sizes drove overall growth, with private credit accounting for 23% of total PE/VC investments in 2025, up from 19% in 2024. The segment saw 28 deals above $100 Mn totalling $10.2 Bn (versus 20 such deals worth $5 Bn in 2024), including two mega deals above $1 Bn contributing $3.2 Bn.
The rise of private credit is also driven by the evolving corporate landscape, where businesses increasingly require customised financing solutions beyond traditional bank lending.
Real Estate
The nature of real estate investing in India has evolved significantly, with growing investor interest in commercial properties, offices, warehouses, and logistics facilities alongside traditional residential assets. Regulatory reforms and the introduction of REITs have institutionalised real estate investing, enabling access to high-quality properties through structured vehicles. Indias listed REIT market has expanded from 271 Bn in FY20 to 1,726 Bn in the first nine months of FY26 a more than six-fold increase. 40 Five REITs are now listed, with the latest entrant, Knowledge Realty Trust REIT, debuting in August 2025. The other four listed REITs recorded over 20% YoY unit price growth between Q3 FY25 and Q3 FY26. Global investors continue to maintain a strong preference for real estate, with a significant proportion indicating plans to increase allocations. 41
37 https://www.ey.com/content/dam/ey-unified-site/ey-com/en-in/insights/private-equity/documents/ey-private-equity-and- venture-capital-trendbook-2026.pdf 38 https://www.mckinsey.com/industries/private-capital/our-insights/indias-private-markets-the-global-limited-partner-view 39 https://www.ey.com/content/dam/ey-unified-site/ey-com/en-in/insights/private-equity/documents/ey-private-equity-and- venture-capital-trendbook-2026.pdf 40 https://www.cbre.co.in/press-releases/indias-listed-reit-market 41 https://apac.knightfrank.com/hubfs/Research%20Reports/Residential/Report%20PDFs/Knight%20Frank_The%20Wealth%20 Report%202025.pdf
The real estate asset class continues to provide the advantage of being a hedge against inflation, protecting portfolio from increasing costs while generating regular cash flows. Therefore, it continues to be an integral part of the diversified investment portfolio.
Infrastructure
Infrastructure has become one of the fastest-growing alternative asset classes, reflecting Indias strategic emphasis on transport, energy transition, urban development, and digital infrastructure. Real assets - comprising infrastructure and real estate - together accounted for more than one-third of total PE/VC investments during 2025. 42 Real asset investments rose 2% in 2025 after an 8% contraction the previous year, signaling renewed momentum.
Within infrastructure, deal activity remained concentrated in sectors offering stable cash flows and scalability roads, renewable energy, transmission assets, logistics parks, and data centres.
Real assets rebounded in 2025, with infrastructure and real estate investments rising 2% after an 8% contraction in the previous year, signalling renewed momentum after a softer phase in 2024. Looking ahead, declining interest rates, supportive policy frameworks, and expanding domestic demand are expected to further improve project viability and financing conditions. In addition, institutional investors are likely to continue favouring infrastructure for its inflation-linked returns, visibility of earnings and portfolio diversification benefits. As India scales manufacturing capacity and modernises logistics networks, the infrastructure segment is well placed to remain a major engine of private capital deployment.
Closing Perspective
The development of alternative investments in India reflects a transition towards more advanced portfolio construction. As investor awareness deepens and access improves, alternatives are no longer viewed as a single category but as a set of differentiated strategies, each contributing to more resilient and outcome-oriented portfolios.
6. Industry Structure and Competitive Landscape
The Indian wealth management industry is entering a phase of structural expansion alongside intensifying competitive pressures a dual dynamic that is redefining what it takes to succeed.
A Structurally Attractive Growth
Landscape
The fundamentals remain compelling. Indias UHNWI population ($30 Mn+) is projected to rise from 19,877 in 2026 to 25,217 by 2031 - approximately 27% growth - following a 63% expansion between 2021 and 2026. 43
The proportion of financial assets in household savings has also been rising, with household net financial savings climbing to approximately 6.0% of GDP in FY25 (preliminary), up from 5.3% in FY24. 44 Importantly, the addressable market is no longer limited to the ultra-high-net-worth segment - it now encompasses a wider spectrum of affluent and emerging investors.
Increasing Formalisation
The industry is moving away from unorganised, relationship-based models towards more structured approaches - enabled by improved regulatory supervision, enhanced product transparency, and disclosure standardisation. Indian mutual fund folios breached the 27 Cr mark in FY26, 45 underscoring the pace at which formal investment behaviour is gaining ground.
Rising Competition and Margin Pressures
Competition is increasing across the spectrum - banks, independent wealth managers, digital platforms, and foreign firms are all actively vying for market share. Fee compression, a trend visible globally, has begun to take hold in India as well, with average asset management fees declining over the past decade. 46 This places greater emphasis on scale and advisory-led business models. Simultaneously, investment requirements in technology, talent, and compliance continue to rise.
Talent as a Differentiator
The ability to attract and retain relationship managers, investment specialists, and advisory professionals is increasingly critical. The financial services industry remains one of Indias largest employers of white-collar professionals, 47 but high demand, increased mobility across firms, and growing compensation pressures are making talent strategy a core competitive variable.
Technology and Platformisation
AI, digitisation of platforms, data analytics, and automation are becoming indispensable in wealth management. With demat accounts in India exceeding 22.45 Cr as of March 2026 48 , digital engagement with capital markets is at an unprecedented scale. At the same time, the rise of fintech platforms presents new competitive challenges, particularly in the mass affluent and retail segments reshaping access and pricing and compelling traditional players to adapt their propositions.
Evolving Business Models
The sector is gradually shifting from product distribution towards advisory-oriented, open-architecture platforms. Clients increasingly demand integrated propositions - spanning investment management, credit, and estate planning - rather than standalone products. Globally, recurring fee-based advisory models are gaining share over commission-led structures, with estimates suggesting that 77.6% of the industry will operate on fee-based models by 2026. 49 As Indian investors become more sophisticated, demand for global investment capabilities is also rising - outward remittances under the LRS stood at approximately $29.6 Bn in FY2550, reflecting sustained interest in geographic and asset class diversification.
Closing Perspective
The Indian wealth management industry is at an inflection point. Structural growth drivers remain strong, but the industry is simultaneously becoming more competitive, more regulated, and more demanding in terms of capabilities. Success will depend on the ability to combine scale with agility, technology with advisory, and product breadth with client-centricity.
43 https://i.emlfiles4.com/cmpdoc/0/4/8/5/2/1/files/146680_the-wealth-report-2026.pdf
44 https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/50AT_BUL28082025C459E5FE597241EA9BBB5BD5FB5B0BAF.PDF
45 https://www.amfiindia.com/articles/indian-mutual
46 https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/our%20insights/asset%20management%20 2025%20the%20great%20convergence/asset-management-2025-the-great-convergence.pdf?shouldIndex=false
47 https://hunar.ai/bfsi-report
48 https://www.pib.gov.in/PressReleasePage.aspx?PRID=2219998r=48&lang=2
49 https://www.cerulli.com/press-releases/more-than-72-of-financial-advisors-are-compensated-by-fee-based-models
50 https://www.rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=24018
7. Technology, AI & Data
The wealth management industry is entering a phase where technology is no longer an enabler at the margins, but a defining force shaping how services are delivered, how decisions are made, and how client relationships are managed. As the scale and complexity of wealth increase, the ability to leverage data, digital platforms, and emerging technologies is becoming central to building sustainable competitive advantage.
Indias Digital Foundation
Indias digital infrastructure provides a powerful foundation for scalable financial services delivery. The country now has over 950 Mn internet subscribers 51 and UPI processed over 241 Bn transactions in FY26 52 , highlighting the rapid mainstreaming of digital financial behaviour. This has significantly lowered entry barriers for investors while raising expectations around speed, transparency, and user experience.
From Digitisation to Intelligence
The industrys technology journey is evolving from basic digitisation towards data-driven, intelligent systems. Wealth managers are increasingly integrating data across multiple touchpoints to build a more comprehensive view of the client - enabling more informed portfolio construction, better risk assessment, and more personalised engagement. The ability to convert data into actionable insight is becoming a key differentiator.
AI and Personalisation
Artificial intelligence is beginning to play a more visible role - across portfolio analytics and risk monitoring, investment research and idea generation, and client engagement. While a majority of firms recognise AIs transformative potential, a smaller proportion have fully integrated it into their operating models, highlighting a gap between intent and execution that presents an opportunity for early movers.
As client expectations evolve, standardised solutions are giving way to customised portfolios and tailored advisory.
Data-driven systems are enabling firms to align portfolios more closely with individual risk profiles, provide timely insights, and enhance engagement through more relevant communication - delivering personalisation at scale across an increasingly diverse client base.
Client Experience and the Role of Technology
Digital platforms are reshaping client interactions - from faster onboarding and seamless execution to consolidated portfolio views and transparent reporting. Rather than replacing human interaction, technology is augmenting the relationship managers role, allowing advisors to focus on strategic guidance while routine processes are automated. At the same time, balancing innovation with trust requires robust cybersecurity frameworks, strong data governance, and transparency in how technology is deployed in client interactions.
Closing Perspective
Technology, data, and AI are reshaping wealth management - not as a digital replacement of traditional models, but as an integrated approach where technology enhances human insight and advisory delivery. Firms that can combine data-driven intelligence with personalised advisory will be best positioned to navigate the increasing scale and complexity of wealth management.
8. Sustainability & ESG (Environmental, Social, and Governance) in Wealth
Sustainability considerations have become an important dimension of global investment frameworks, signifying a shift in how capital is allocated and risks are evaluated. ESG investing has evolved from an alternative strategy to an increasingly mainstream approach, particularly among institutional and high-net-worth investors.
Global sustainable mutual funds and ETFs ended 2025 with assets of over $3.9 Trn, reflecting a 4% quarterly increase driven largely by market appreciation. 53 Since the end of 2018, sustainable fund assets have grown more than sixfold from roughly $600 Bn, underlining the structural expansion of ESG-linked investing globally.
From Exclusion to Integration
ESG investment approaches have evolved significantly.
The earlier tendency towards exclusionary screening has given way to a more integrated approach, where environmental impact, governance quality, and societal factors are evaluated as part of mainstream investment analysis. ESG considerations are increasingly associated with operational resilience, regulatory compliance, and long-term value creation. A recent report indicates that private investors are adopting a more sophisticated approach, with emphasis on operations, value-add strategies, and asset resilience.
54
Growing Significance among Global
Investors
Investor interest in sustainability continues to increase, especially among institutional investors and younger generations. Survey data indicates that 88% of global individual investors express interest in sustainable investing, while 86% of asset owners expect to increase allocations towards sustainable investments over the next two years. 55 An international survey found that over 90% of family offices have allocated some portion of their portfolios to sustainable investments, while 57% allocate at least 10% of assets to such themes. 56
Generational factors play an important role in this trend. The next generation of investors is more inclined towards products and businesses evaluated on their sustainability practices, and the emergence of a transformation economy where affluent consumers prioritise health, purpose, and experiential value - is driving demand for sustainability-aligned investments and businesses.
India: A Developing, but Rapidly
Accelerating Environment
In India, ESG investing has developed later compared to other markets but is now on a path of rapid growth, driven by regulatory interventions, increased disclosure requirements, and rising awareness. Indian businesses have started aligning with global sustainability standards, especially in sectors such as energy, manufacturing, and finance. As Indias capital base grows, demand for investments grounded in strong governance and sustainability criteria is expected to rise correspondingly.
Increasing Capital Flows to ESG Themes
Although ESG-based allocations remain a relatively small proportion of portfolios in India, thematic and sustainability-related investments are gaining attention - including renewable energy and clean technologies, infrastructure development, and governance-oriented enterprises. Mutual funds targeting ESG-related themes are gradually gaining traction.
Opportunity vs. Complexity
Despite growing interest, ESG investing continues to face challenges - including a lack of uniform metrics, disparities in disclosure standards, and evolving regulations. As a result, investors are paying more attention to data quality and analysis than to ESG classifications alone.
The year 2025 also highlighted this complexity. Global sustainable funds recorded $84 Bn in net outflows during 2025, marking the first year of annual redemptions since tracking began in 2018. 57 This reflected geopolitical uncertainty, regulatory recalibration, and selective reallocation by institutional investors, rather than a structural reversal of sustainability themes.
53 https://www.morningstar.com/sustainable-investing/esg-funds-2025-closes-with-continued-outflows-amid-persistent- headwinds
54 https://i.emlfiles4.com/cmpdoc/0/4/8/5/2/1/files/146680_the-wealth-report-2026.pdf
55 https://www.morningstar.com/sustainable-investing/esg-funds-2025-closes-with-continued-outflows-amid-persistent- headwinds offices-navigate-sustainable-finance-opportunities-in-a-shifting-
56 https://www.prnewswire.com/apac/news-releases/family- global-landscape-302544683.html
57 https://www.morningstar.com/sustainable-investing/esg-funds-2025-closes-with-continued-outflows-amid-persistent- headwinds
Implications for Portfolio Construction
The integration of ESG considerations is influencing portfolio construction in a more nuanced manner. Rather than being treated as a standalone allocation, sustainability is increasingly incorporated within broader investment strategies - evaluating long-term risks and opportunities, aligning portfolios with structural themes such as energy transition, integrating non-financial factors into decision-making, and seeking resilient real assets and future-ready sectors.
Closing Perspective
Sustainability is gradually becoming an integral dimension of wealth management, shaped by global trends, regulatory developments, and evolving investor preferences. While the Indian ESG ecosystem is still developing, its direction of travel is clear - towards greater transparency, deeper integration, and broader adoption.
For investors, the relevance of ESG lies not only in aligning values but in understanding how sustainability factors can influence long-term outcomes. As the landscape matures, the ability to incorporate these considerations thoughtfully and selectively will become an important component of portfolio construction.
9. Capital Markets Outlook
9.1 India Equity Markets
The Indian equity markets are approaching a stage of maturity where, despite ongoing impacts of global liquidity, interest rate policies, and geopolitical developments, the underlying fundamentals remain favourable. India is set to outperform other major economies in FY26 with GDP growth forecasted at 6.6%, providing a strong macro backdrop for earnings growth. 58 Earnings are likely to be a key driver of market performance, supported by consumer demand recovery, capex and manufacturing growth, and improved productivity levels. Forecasts point towards indices, particularly the Sensex, witnessing compounded annual growth of approximately 13% in 2026 59 . Several structural factors underpin this trajectory financial sector deepening continues to support credit growth, manufacturing is benefitting from supply-chain diversification and policy incentives, while premiumisation trends support consumption-oriented sectors.
Indias equity markets are increasingly underpinned by strong domestic liquidity. Retail participation has deepened materially, with monthly SIP contributions and demat accounts experiencing robust growth, reflecting broadening retail ownership of financial assets. Institutional flows in the domestic market have been acting as structural stabilisers, often compensating for foreign portfolio flow volatility a significant development as domestic flows and valuations play an increasingly important role in market structure.
Global factors will remain relevant in the near term. Indian markets will respond to US interest rates, energy prices, geopolitical events, and investor risk appetite. Periodic pullbacks will continue to be part of the market process, especially as valuations in certain segments become elevated.
The conflict in the Middle East was the most significant test of market resilience during FY26. Indian equities saw a sharp sell-off in early March 2026 as Brent crude surged past $100 per barrel, with the Sensex declining over 9% during the month and touching its lowest level since March 2025. Foreign investors withdrew approximately $11 Bn from Indian equities in March alone, driven by risk-off sentiment and concerns over Indias oil import vulnerability. However, the correction was substantially absorbed by domestic institutional flows record SIP contributions, EPFO allocations, and sustained mutual fund inflows acted as structural stabilisers. By mid-April, BSE market capitalisation had largely recovered to pre-conflict levels, underscoring the depth and maturity of domestic participation. The episode reinforced a key structural shift: Indian markets are increasingly anchored by domestic capital, reducing dependence on foreign portfolio flows and improving resilience to external shocks.
Notwithstanding near-term uncertainties, the prevailing investor sentiment towards Indian equities remains constructive with market participants increasingly looking through near-term volatility towards Indias structural growth drivers. Sectoral preferences reflect this shift - market activity and institutional interest have been visibly stronger in B2B and infrastructure-linked segments, including the power ecosystem, data centres, semiconductor supply chains, CDMOs, and engineering-led manufacturing, while consumer-facing sectors and NBFCs have seen relatively muted interest amid near-term demand and regulatory uncertainties.
Looking ahead across three time horizons: in the near term, markets are likely to remain range-bound with periodic volatility driven by global uncertainty, interest rates, and commodity prices. In the medium-term, earnings growth, domestic flows, and broadening market participation are likely to drive returns. Over the longer term, structural factors financialisation, digitalisation, industrialisation, and rising household incomes - will keep India well positioned as a premium destination for equity investment. From a sectoral perspective, market breadth has been led by financials, industrials, capital goods, power and energy infrastructure, healthcare, and select technology and manufacturing segments benefitting from supply-chain diversification. As market efficiency increases and sectoral divergence becomes more pronounced, return dispersion will continue to expand, making allocation and selection decisions even more important.
9.2 Fixed Income Markets
Indias fixed-income markets have evolved into more stable, liquid, and strategically relevant components of global investor portfolios. With inflation moderating, a sound monetary policy framework, improved fiscal discipline, and the inclusion of Indian bonds in global indices, the outlook for debt markets continues to improve.
Indias inflation trajectory has become markedly more stable. Despite global energy price volatility and periodic supply-side disruptions, consumer price inflation has averaged around 5.5% over the past three years, while recent readings have remained near the lower end of the RBIs 2%-6% tolerance band. 60 The Government of India in March 2026 extended the inflation-targeting mandate for another five years through March 2031, retaining the medium-term CPI target of 4% with a tolerance band of +/-2% 61 .
This creates a relatively positive backdrop for interest rates. Following a prolonged tightening period, there is growing expectation of a measured rate-cut cycle going forward, provided inflation remains contained. The 10-year benchmark government bond yield is expected to trade mostly in the 6.7 7.0% range over the near term, offering favourable real returns compared to most developed nations. 62 A key structural catalyst is Indias inclusion in major global bond indices. The inclusion of Indias sovereign bonds in the JPMorgan GBI-EM Index 63 , and subsequently into other global bond benchmarks, is expected to drive increased foreign participation.
In terms of domestic asset allocation, appetite for bonds is increasingly moving towards diversified fixed-income strategies. While sovereign bonds remain a core component, there is rising demand for corporate bonds with yield enhancement, target maturity funds, rate-cycle bond funds, and structured credit and private debt as alternative fixed-income options. Indias corporate bond market, although growing, remains under-penetrated at approximately 15-16% of GDP as of March 2025 64 .
Global factors such as oil prices, currency fluctuations, and geopolitics will continue to influence near-term returns. Nevertheless, the medium-term outlook for
Indian fixed income is expected to be positive, supported by attractive real yields, macroeconomic stability, and improved market infrastructure.
9.3 Alternatives Outlook
The outlook for alternative asset classes remains positive, driven by long-term structural demand, expanding opportunities, and increasing strategic allocations by institutional investors.
Globally, alternative AUM is expected to cross $32 Trn by 2030 65 . India remains favourably positioned on account of strong economic growth, entrepreneurial strength, rising capital needs, and increasing investor sophistication. The AUM of Indias AIF industry has crossed 16.94 lakh Cr as on March 2026. 66
60 https://www.pib.gov.in/PressReleasePage.aspx?PRID=2220004r=3&lang=2#:~:text=Inflationary%20expectations%20are%20 better%20anchored,supportive%20environment%20for%20monetary%20settings.%E2%80%9D 61 https://www.thehindu.com/business/Economy/govt-asks-rbi-to-maintain-retail-inflation-at-4-till-mar-2031/article70785251. ece 62 https://www.reuters.com/world/india/india-bond-traders-seek-buybacks-yields-climb-despite-switch-2026-02-13/ 63 https://www.jpmorgan.com/content/dam/jpm/cib/complex/content/markets/composition-docs/gbi-em-gd-10-cap-1-flr.pdf 64 https://www.niti.gov.in/sites/default/files/2026-01/Deepening_the_Corporate_Bond_Market_in_India.pdf 65 https://www.preqin.com/about/press-release/preqin-releases-private-markets-in-2030-report 66 https://www.sebi.gov.in/statistics/1392982252002.html
Private equity and venture capital are poised to continue driving growth, supported by investment opportunities across technology, manufacturing, finance, healthcare, and consumer segments. With improved IPO market dynamics and secondary exit options, liquidity avenues are becoming more viable.
Private credit is anticipated to grow further as companies explore alternative lending models. In an environment where interest rates are moderating but still elevated, private credit offers attractive returns, risk mitigation, and lower exposure to valuation swings.
Infrastructure and real asset investment is projected to be an increasingly important factor. Investments in logistics, transportation, renewable energy, urban infrastructure, and digital connectivity will continue to provide a multi-year runway for long-term capital. At the same time, platforms such as GIFT City are facilitating global capital participation and creating a more internationally connected investment ecosystem.
From a portfolio perspective, alternatives are expected to contribute across three dimensions: enhancing diversification beyond public market beta, providing access to long-duration growth in private ecosystems, and generating stable income through credit and real assets. As investor portfolios mature, alternatives are likely to move from tactical allocations towards strategic core holdings.
Closing Perspective
Indias capital markets are evolving in tandem with the countrys broader economic transformation. Equities are supported by earnings growth, domestic liquidity, and rising global relevance. Fixed income offers improving yield visibility, attractive real returns, and structural support from index inclusion. Alternatives are emerging as an increasingly important pillar of sophisticated portfolio construction.
While short-term volatility remains inevitable, the medium-to long-term outlook is underpinned by structural drivers that are broad-based and durable. Successful portfolio construction will increasingly depend on dynamic asset allocation, disciplined risk management, and the ability to integrate public and private market opportunities within a long-term strategic framework.
10. Industry and 360 ONE Outlook
10.1 Industry Outlook
The Indian wealth management industry is entering a phase of sustained expansion, driven by structural shifts that extend well beyond cyclical growth. The convergence of rising incomes, expanding financial markets, and increasing investor participation is creating a long-term environment conducive to compounding wealth at scale. At the core of this outlook is the continued expansion of Indias wealth base. The number of high-net-worth and affluent individuals is expected to grow steadily, supported by entrepreneurial activity, capital market participation, and intergenerational wealth transfer. Wealth creation is increasingly broad-based - spanning sectors and geographies - contributing to a deeper and more resilient financial ecosystem.
This expanding base is reinforced by the structural shift towards financial assets. Household savings are progressively moving from physical assets towards financial instruments, a trend expected to accelerate further with increasing capital market penetration, growth in mutual funds and managed products, and rising participation from Tier 2 and Tier 3 markets. Over the medium-term, these factors are likely to translate into sustained growth in assets under management across the industry.
At the same time, the nature of wealth management is evolving. Clients are increasingly seeking integrated advisory across asset classes, customised portfolio solutions, and access to both domestic and global opportunities - driving a shift from product-led distribution to holistic, advisory-led engagement where long-term relationships and outcomes take precedence over transactions.
The industry outlook is characterised by two reinforcing themes: wealth compounding at scale, driven by sustained economic growth and expanding participation; and acceleration of financialisation, leading to deeper and more structured engagement with capital markets. These trends are expected to define the next phase of growth, creating a significantly larger and more sophisticated opportunity set for wealth management platforms.
10.2 360 ONE Outlook
As India enters a structurally favourable phase of wealth creation, financialisation, and rising demand for sophisticated advisory solutions, 360 ONE appears well positioned to participate in, and help shape, the next chapter of the countrys wealth management evolution.
Over the past eighteen years, the firm has built one of Indias most differentiated wealth and asset management franchises, combining scale, trust, advisory depth, product innovation, and disciplined execution.
What distinguishes 360 ONE is that it has evolved beyond a conventional wealth management platform into an integrated financial ecosystem spanning wealth management, asset management, alternatives, lending solutions, treasury services, and capital markets. This multi-engine model enables the firm to address the increasingly complex requirements of wealthy individuals, entrepreneurs, family offices, institutions, and emerging affluent investors through a unified and future- ready platform.
A Franchise Built on Scale, Trust and Consistency
As of March 2026, 360 ONE managed overall assets under management of approximately 6,74,492 Cr 67 , making it one of Indias largest wealth and alternates-focused financial platforms. The firm serves more than 8,500 client families and corporates across geographies, supported by a growing national footprint, strong advisory teams, and long-standing client relationships.
The scale of the franchise is particularly significant because it has been built alongside strong profitability, high retention, and recurring revenue growth. In FY26: Total revenue rose 18.6% y-o-y to 3,144 Cr Consolidated PAT rose 20.7% to 1,225 Cr ARR AUM rose 26.4% to 3,11,940 Cr ARR net flows stood at 55,875 Cr Tangible Return on Equity stood at 19.3% These metrics underscore a business model that is not only scaling, but doing so with quality, discipline, and resilience.
Premium Brand Equity and Industry Recognition Beyond position is reinforced by a premium brand franchise built over years of execution excellence. The Company has consistently earned recognition across leading domestic and international industry forums, reflecting both client trust and market leadership.
Recent accolades include 68 : Indias Best Independent Wealth Manager -
Euromoney Private Banking Awards 2026 Best Private Bank - India - Asian Private Banker Awards for Distinction 2025 Indias Best for Family Office Services -
Euromoney Private Banking Awards 2026 Indias Best for Succession Planning -
Euromoney Private Banking Awards 2026 Indias Best for Discretionary Portfolio Management - Euromoney Private Banking Awards 2026 Best Digital Wealth Management Experience India - The Asset Triple A Digital Finance Awards 2026
Most Active Investor of the Year (PE) - VCCircle Awards 2026
Best Private Credit Deal - 360 ONE Asset (APAC) - FinanceAsia Achievement Awards 2025
Great Place to WorkR Certification - India (May 2025 - May 2026)
Indias Best WorkplacesT in Investments 2026
Indias Top 75 Best Workplaces in BFSI 2026T
Best Pure Play Private Bank - India - Global Private Banking Innovation Awards 2025 Such recognition is meaningful in a relationship-driven industry where trust, reputation, and execution capability are critical differentiators.
Positioned to Capture Indias Expanding Wealth Opportunity
Indias next phase of wealth creation is expected to be broader, younger, more entrepreneurial, and more geographically distributed. The growth of founders, professionals, family businesses, and affluent households is expanding the addressable market for organised wealth platforms.
360 ONE is strongly positioned across this opportunity spectrum. Its core franchise remains deeply embedded in the UHNI and HNI segments, where bespoke advisory, estate planning, succession structuring, and sophisticated portfolio construction are increasingly valued. Simultaneously, the Company is building future growth channels through HNI, affluent and digitally enabled segments, thereby creating a wider and more durable client funnel.
This multi-segment strategy offers a powerful long-term advantage: leadership in premium wealth, with optionality in mass affluent expansion.
High-quality Recurring Revenue Model
A defining strength of the business is the increasing share of recurring, annuity-like revenues. Annual recurring revenue grew 34.5% YoY to 2,289 Cr in FY26, significantly ahead of overall revenue growth.
This evolution towards advisory-led and managed mandates enhances:
Earnings visibility
Revenue resilience across cycles
Higher lifetime client value
Stronger operating leverage
Premium valuation characteristics
67 https://s3.ap-south-1.amazonaws.com/x-web-s3.360.one/360_ONE_FY_26_Results_Update_13c30e11eb.pdf
68 https://s3.ap-south-1.amazonaws.com/x-web-s3.360.one/360_ONE_Q4_FY_26_Investor_Presentation_Final_51e2034f7b.pdf
Globally, wealth platforms with recurring revenues tend to command stronger long-term economics. 360 ONEs trajectory appears increasingly aligned with this model.
Alternatives as a Structural
Growth Engine
One of the most compelling growth vectors for the firm lies in alternatives. As Indian investors increasingly seek diversification, differentiated returns, and access to private markets, alternatives are becoming central to portfolio construction.
360 ONE has established a strong presence across private equity, private credit, real assets, and hybrid strategies. During FY26, Asset Management ARR AUM rose to
95,206 Cr, supported by growth across segments.69
This breadth positions the Company advantageously in one of the fastest-growing and highest-value segments of the investment industry.
Strategic Execution Track Record
Another important differentiator is managements demonstrated ability to execute strategically and scale intelligently. Over time, the firm has successfully expanded capabilities through both organic growth and selective strategic initiatives.
Recent examples include 70 :
Strategic collaboration with UBS to enhance global wealth solutions and international reach
Acquisition of B&K Securities to deepen capital markets capabilities
Acquisition of ET Money to strengthen digital wealth capabilities
These moves indicate a management approach focused not merely on size, but on capability-building and future relevance.
Governance Strength and Institutional
Confidence
The Company also benefits from a strong ownership and governance profile, supported by substantial institutional shareholding and an experienced Board. This combination enhances strategic credibility, governance standards, and long-term market confidence.
In an increasingly discerning investment environment, governance quality is emerging as a material differentiator for financial institutions.
Margin Outlook and Operating Leverage
While the broader industry may face fee compression, talent costs, and technology spending requirements, scaled platforms with diversified revenue streams are structurally better placed.
For 360 ONE, future profitability can be supported by:
Rising recurring revenue mix
Growth in higher-margin alternatives
Cross-selling across adjacent businesses
Technology-enabled productivity gains
Operating leverage from scale expansion
Accordingly, margin trajectory appears stable to improving over the medium-term, subject to market conditions.
Strategic Imperatives for the Next Phase
Looking ahead, the next phase of growth is likely to be anchored around five priorities:
Deepen leadership in premium wealth management through stronger wallet share, family-office solutions, and intergenerational advisory
Scale alternatives and proprietary investment solutions as private market demand accelerates
Expand affluent and digital channels through technology-led distribution and advisory models
Strengthen global capabilities through partnerships, cross-border solutions, and international asset access
Drive productivity and operating efficiency while preserving premium client experience standards
Closing Perspective
360 ONE enters the next stage of Indias wealth evolution from a position of considerable strength. It combines scale with trust, advisory depth with product breadth, profitability with growth optionality, and brand prestige with execution capability.
As Indias savings pool continues to migrate towards organised financial assets, and as investors demand more sophisticated solutions, institutions that can deliver credibility, performance, and integrated advice are likely to emerge as long-term winners.
In that context, 360 ONE appears well placed not only to participate in industry growth, but to remain one of the defining architects of modern wealth management in India.
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Business and Operational Review
For the financial year ended March 31 st , 2026 (FY26), the Company reported its highest ever annual Profit After
Tax (PAT), at 1,225 Cr. Considering the business and financial numbers, total Assets Under Management (AUM) increased to 6,74,492 Cr as on March 31 st , 2026, up 16.0%
YoY (YoY). This growth was aided by strong ARR net at 55,875 Cr during the year under review.
Further, the overall ARR AUM stood at 3,11,940 Cr, while ARR AUM of our wealth management (Wealth) stood at 2,16,734 Cr, up 33.4% YoY, even as the ARR AUM of asset management (AMC) business stood at 95,206 Cr, up 12.8% YoY.
The ARR Revenues for the full year grew by 34.5% YoY at 2,289 Cr, led by growth in assets across business segments and healthy retentions on ARR AUM. Our ARR Revenues, as a percentage of total revenues from operations, stood at 75%.
The year also witnessed higher transactional/brokerage income, mainly driven by strong capital market activity for most of the year. Our large UHNI client base enabled us to capitalise on such opportunities, creating value for the clients and the firm. Consequently, the total Revenue
Operations was up 25.4% YoY, at 3,066 Cr, for FY26. In FY26, our Total Revenues were up 18.6% YoY at 3,144 Cr. Separately, our Total Costs were up 28.7% YoY, at 1,568 Cr, as we continued to invest in our new initiatives. Our employee costs rose by 23.1% YoY to 1,123 Cr.
We expect the employee Costs-to-Income ratio to gradually settle down over in the near future as the new business initiatives and incoming teams begin to turn productive. Our overall Cost-to-Income ratio stood at
49.9% in FY26 as against 45.9% in the financial year ended
March 31 st , 2025 (FY25).
Our tangible Return on Equity (RoE) was at 19.3% in FY26, vis-à-vis 24.3% in FY25. The reduction in tangible RoE was on account of the capital raised by way of the
Qualified Institutional Placement (QIP) in October 2024 and dilution as a result of the strategic initiatives undertaken during the year.
Segment-wise, our wealth management division witnessed a rise in Revenue from Operations to 2,284 Cr in FY26, from 1,845 Cr in FY25, with the ARR revenue rising to 1,507 Cr in FY26 from 1,101 Cr in FY25. Further, the transaction based revenue (TBR) for this segment stood at 777 Cr in FY26, from 744 Cr in FY25 mainly driven by macro-opportunities and steady capital market activity. Other income saw a decrease to 61 Cr in FY26 from
177 Cr in FY25, while the cost increased from 950 Cr to 1,240 Cr mainly due to investments in new initiatives.
Accordingly, our Profit Before Tax stood at 1,105 Cr, for FY26, as against 1,073 Cr in FY25, for the wealth management business.
The growth in our wealth management client base has been very healthy for FY26. During the year, 360 ONE Wealth successfully onboarded 450+ clients (with more than 10 Cr AUM). As on March 31 st , 2026, clients, having total AUM of 10 Cr, stood at 3,777 and accounted for 96% of Wealth AUM (excl. custody). Overall, the segment manages assets for 8,500+ relevant clients.
Moving to the Asset management vertical, our Revenue from Operations rose to 781 Cr in FY26, as against
600 Cr in FY25, and other income decreased to 18 Cr, from 29 Cr. Our cost increased to 328 Cr in FY26, from 268 Cr in
FY25. Accordingly, the Profit Before Tax, for the Asset
Management segment, stood at 472 Cr in FY26 vis-à-vis
361 Cr in FY25.
Similar to our wealth management business, our asset management segment also witnessed healthy growth in number of client folios which rose from 229k in FY25 to 252k in FY26.
In FY26, in recognition of its premier positioning, business impact and leadership excellence, 360 ONE received 23 awards, including Indias Best Independent Wealth Manager and three other awards across capabilities at Euromoney Private Banking Awards 2026, Best Private Bank - India at Asian Private Bankers 2025 Awards for Distinction, and Best Private Credit Deal at FinanceAsia Achievement Awards 2025.
Lastly, 360 ONE Foundation reinforces 360 ONEs commitment to leveraging its core competencies to maximise both financial and social returns. The Foundation has pioneered a more catalytic approach powered by blended finance and outcome-based financing to deliver measured outcomes and exponential impact for underserved communities.
Defining the Next Phase of Growth
The operating environment is being reshaped by the structural deepening of Indias wealth pool, the need for differentiated solutions, and the globalisation of Indian capital. To capture disproportionate value from these shifts, 360 ONE should remain focused on the following set of strategic priorities that reinforce its core identity as a client-centric, full-stack financial services institution, built on alignment, powered by advisory, scaled through integration, and designed for long-term compounding across generations:
Deepen the UHNI Core: Reinforce 360 ONEs leadership in the UHNI segment through a goals-based, open-architecture advisory model by scaling the 360 ONE Open proposition, expanding RM-led coverage, and sustaining ARR-led wallet-share expansion across the 8,500+ families and corporates on the platform.
Cement Alternates as a Strategic Pillar: Consolidate and extend our early-mover leadership in the private space (spanning multiple strategies including private equity, private credit, real assets and renewable energy) with continued category-defining product innovation and disciplined institutionalisation of the platform.
Operationalise 360 ONE Capital as the Integrated Capital-markets Engine: Translate the B&K integration into compounding revenue by combining institutional research, broking, ECM and corporate-access capabilities into a single proposition serving UHNI, HNI, institutional and family-office clients and creating seamless bridge between wealth, asset management and capital markets.
Build Investment Banking as the Next Growth Vector:
Develop an end-to-end IB platform, focused on capital markets, M&A advisory and private placements, by leveraging our deep relationships with entrepreneurs, promoters and institutional investors, and the research strength of 360 ONE Capital, with a clear path to meaningful revenue contribution.
Accelerate the Listed AMC Franchise and Lead on SIF Readiness: Scale the mutual fund business as a long-duration compounding engine through sharper product positioning and deeper retail penetration, while proactively building capabilities around the SEBI Specialised Investment Fund (SIF) framework - a product category that sits naturally at the intersection of 360 ONEs PMS and mutual fund strengths and can unlock a differentiated offering for sophisticated investors.
Scale the HNI and Affluent Franchise as the Next Growth Frontier: Accelerate the build-out of the HNI segment - through the phygital, RM-led model serving the 10-50 Cr client segment - as a natural extension of the UHNI franchise and a powerful feeder pipeline into the core wealth proposition, while leveraging ET Moneys digitally native platform and data-intelligence depth to capture the mass-affluent opportunity, driving cross-sell into 360 ONEs broader shelf, and converting digital reach and HNI relationships into durable, annuity-style AUM across the client lifecycle.
Activate the Global Flywheel via the UBS
Collaboration: Operationalise the global collaboration framework to enable seamless onshore and offshore access (bringing the world to India and India to the world) and establish two-way global expressways for the diaspora, NRI and international institutional capital pools, with collaborative opportunities extending into other areas of business.
Compound the Lending Franchise: Grow the structured-credit and wealth-linked lending book as an integrated pillar of the client proposition, while preserving underwriting discipline, capital efficiency and balance-sheet quality.
Drive Operating Leverage through ARR-led Compounding: Sustain strong ARR net flows with stable yields, allowing maturing team productivity and acquisition-led cost synergies across technology, operations and shared services to progressively strengthen cost-to-income outcomes.
Invest in Talent and Culture as the Structural Moat:
Continue building right-sized, vertical-aligned teams with disciplined headcount, competitive compensation and an institutionalised ownership culture through equity-linked alignment, preserving the talent depth that anchors the franchise.
Embed a Digital-first Operating Model: Continue platform investments across wealth and asset a management segments to enhance onboarding, advisory, reporting, engagement and personalisation, translating digital capability into both productivity gains and improved client experience.
Harness AI as a Platform-wide Capability Multiplier:
Deploy artificial intelligence across the advisory, investment, and operations stack - powering portfolio analytics and personalised reporting for relationship managers, accelerating research and idea generation for fund managers, and automating monitoring workflows and document processing to drive productivity, sharpen decision-making, and deliver real-time, insight-led client engagement at scale.
Stay Agile to Global Macro and Policy Shifts:
Maintain a vigilant watch on global growth, trade-tariff dynamics, rate cycles and regulatory developments, and proactively recalibrate product construction and advisory positioning to protect client portfolios and preserve flow momentum.
Reinforce Governance, Risk and Compliance: Maintain a robust enterprise risk framework and proactive regulatory engagement, ensuring the integrity and long-term sustainability of an increasingly multi-discipline, multi-jurisdiction platform.
Risks and Governance
We believe that the following factors have significantly affected our results of operations and financial condition during the period under review and may continue to do so in the future.
Assets Under Management
Our results of operations are materially affected by our Assets Under Management (AUM). Accordingly, our growth and success depend on the appropriateness of the investment options we provide and on the performance of our client portfolios and funds. Good investment performance increases the appeal of our products to clients, driving higher inflows and, in turn, higher revenues. Therefore, events that impact investment performance, whether related to stocks, bonds, commodities, or real estate, may adversely affect our business.
To mitigate these risks, we have a product team that shortlists the products offered to clients on our platform.
Additionally, a Product Approval Committee reviews complex/structured products. A detailed Risk Appetite assessment is also conducted for each client, based on which suitable products are recommended and sold. We have a Risk Management function and a Risk Management Committee (RMC) at the 360 ONE WAM Limited level that monitors risks across the Group and its subsidiaries. Additionally, we have a separate RMC for assets we manage internally within the Group. This includes Mutual Funds, Portfolio Management Services, and Alternative Investment Funds. A dedicated Risk Management team, along with the Investment and Valuation Committees, ensures that investments are undertaken in accordance with approved mandates and within permissible risk parameters, are regularly monitored, and are valued fairly. We also have dedicated risk management teams overseeing Broking and NBFC-related risks.
General Economic and Financial Services Industry Conditions in India
Our Company is in the business of providing wealth and asset management services and with a majority of our operations based in India, our results of operations are highly dependent on the overall economic conditions of the domestic market, including the GDP growth rate, inflation rate, change in demographic profile, wealth levels, the economic cycle, prevalent interest rate regime, securities markets performance, and the increased usage of technology-based channels.
The Indian economy has grown rapidly over the past decade and is expected to continue to grow at a healthy rate. This, along with the increasing financialisation of savings, may drive the underlying demand for investment products and services.
However, if general economic conditions in India deteriorate, fall short of our expectations, or if unforeseen events - both domestic and international - negatively impact our clients investment portfolios, the demand for investment services may be impacted. Consequently, our financial condition and operational results may be significantly and unfavourably affected.
Competition and Market
We face significant competition from other established Indian and multinational companies. Some of these firms have greater resources and/or a more widely recognised brand than us, which may give them an advantage. Mergers and acquisitions involving our competitors may create entities with even greater competitive advantages.
We also face competition from several players offering financial advisory services solely on technology platforms, in a highly cost-competitive manner (robo-advisors), especially in the High Net Worth Individual (HNI)/ mid-market segment.
To address this, 360 ONE has launched the HNI app, which is a largely technology-driven distribution platform, that retains a human touch through the support of a dedicated Relationship Manager.
There is also a fundamental shift occurring in the distribution of financial products, with the industry gradually transitioning from a commission-based model to a fee-based model. This affects the revenues of asset allocators like our Company. The 360 ONE Open product platform, together with our Advisory platform seeks to address this change by attracting clients who prefer the fee-based model.
We believe our wide product offerings, strong client relationships, industry and product knowledge, and brand image position us well to meet such competition. We have a dedicated technology team comprising both domain and technology experts, enabling us to leverage technology to deliver insights and interact with clients through different platforms.
Regulatory Supervision
We operate in sectors that are regulated in India, and our activities are subject to supervision and regulation by multiple statutory and regulatory authorities, including SEBI, RBI, IRDAI, and the various stock/currency/ commodity exchanges and depositories.
In recent years, existing rules and regulations have been amended, new regulations enacted, and reforms implemented, with the aim of enhancing control and transparency across policies. Such changes in government and regulatory policies may demand changes to our business operations, products and pricing, and technological processes, resulting in additional costs and management focus.
While certain regulatory changes may have a favourable impact on some aspects of our business, there remains a risk that they could adversely affect our financial condition and results of operations.
We have a dedicated Compliance team to interpret regulations, submit regulatory returns and interface with regulators. We have also established Anti-Money Laundering (AML) Policies and AML Committees for our various businesses to deliberate on client onboarding.
Personnel and Operating Costs
We are part of a highly competitive industry, and accordingly, our ability to manage our expenses directly affects our business and results of operations. These expenses may be impacted by macroeconomic conditions, including increases in inflation, changes in laws and regulations, increased competition, personnel expenses and other factors.
Personnel-related expenses form a significant proportion of our total expenses since we endeavour to attract and retain talented and experienced employees.
In addition, we also strive to ensure the effective utilisation of our human resources and may need to adapt to the dynamic business environment as we increase our scope of operations and expand into new business products. As our business grows, we will require additional human resources, including relationship managers, investment professionals, dealers and operational, management and technology staff. Changes affecting our expenses may impact our financial condition and results of operations.
Operations and Technology
Any complex set of operations carries the risk of fraud and errors. To mitigate these risks, we have written procedures, maker-checker controls, and approval of all exception requests by Control functions such as Risk Management and Compliance. Our Internal Audit team checks the efficacy of these controls. Our business operations heavily rely on Information Technology (IT) systems, which play a vital role in enhancing our productivity. However, these systems also pose significant risks, including potential system failures, information security breaches, and vulnerability to cyberattacks. Our Technology team has deployed multiple defences to mitigate the risk of cyberattacks and prevent unauthorised access to, and leakage of, sensitive information. We have network security in the form of a firewall and Intrusion
Prevention Systems. There is a strict perimeter device security policy that blocks access to personal email, social networking, and data-sharing websites, USB and local drives and encourages users to save working files on a Company-administered OneDrive. Users can access emails on mobile phones, but they cannot save files or attachments on these devices. A Chief Information Security
Officer (CISO) is responsible for information security.
Additionally, we have a comprehensive Business Continuity and Disaster Recovery plan that includes storing data on cloud servers as far as possible. We have also moved to a cloud-based virtual private network (VPN) system so that employees can directly connect to backup servers from their homes if the need arises and we are not dependent on any single location. This plan has been thoroughly tested to ensure its effectiveness.
Inflation Risk
Inflation affects interest rates, and higher inflationary expectations lead to a rise in borrowing costs and a slowdown in credit off-take, which may affect our profitability. Adverse changes in credit offtake and savings caused by inflation also impact the overall economy and business environment, as do sectors that depend on leveraged purchases like real estate and automobiles. This may, in turn, have an impact on our business.
Development and Implementation of Risk
Management System
The Board-level Risk Management Committee (RMC) of 360 ONE WAM is responsible for laying down the overall framework for identification, monitoring and reporting of internal and external risks faced by 360 ONE WAM and its subsidiaries. The RMC meets on a quarterly basis and monitors risks through key Group-wide risk parameters. This enables the Committee to ensure that risks are being managed within acceptable levels and to prompt the Management to take corrective action whenever deviations arise. We have a central Risk Management department that reports to the Chief Operating Officer and the Board RMC and Audit Committee of 360 ONE WAM. There are dedicated Risk Management heads for 360 ONE Prime (NBFC) and 360 ONE Asset Management focusing on risks specific to those businesses. Risk Management relies on the framework defined by the Board-approved
Risk Management Policy, internal controls built into Standard Operating Procedures, and the Product and Investment Policies relating to the various businesses, e.g., the Broking Risk Management Policy, the Mutual Fund (MF) Risk Management Policy, 360 ONE Prime Policies pertaining to Loan Against Shares and Loan Against Property and Investment Manuals and Policies that exist for our NBFC and Asset Management Companies. We also have Valuation and Provisioning Policies for our MF and Alternative Investment Fund (AIF) portfolios. There is representation from the Risk Management team on Investment, Valuation and Risk Management Committees (RMCs) of the various businesses.
Our internal processes are designed to ensure adequate checks and balances and regulatory compliance at every stage. Authority matrices have been defined, going down from the Board of Directors to provide authority to approve various transactions. We have placed all trading limits on the respective trading systems in Stock and Commodities broking, and asset management businesses. In addition, the Risk Management function conducts internal reviews, engaging external Chartered Accountants, where required, across various aspects of the business. These include documentation related to the lending business, compliance with various regulations in AIF and checking of certain regulatory returns.
Our Company has ensured that our internal audit and control systems are adequate and commensurate with the nature of business, regulatory prescriptions and the size of our operations.
The Internal Audit of our Company and non-Asset
Management subsidiaries is conducted by BBSR & Associates, an affiliate firm of KPMG; the internal audit of Asset Management subsidiaries is conducted by
Walker Chandiok & Co., LLP (a member firm of the Grant
Thornton network) as per the scope suggested by Audit Committee(s) of the Company and its subsidiaries and approved by their respective Boards. In the case of 360 ONE Prime Limited, from FY23 onwards, the Head - Internal Audit conducts the audit as per RBI guidelines, with assistance from BBSR & Associates.
The scope of internal audit covers all aspects of business, including routine front-end and back-end operations,
HR, finance, customer service, IT General Controls and checking for both regulatory and internal compliance. The internal audit team conducts risk-based audits across various processes. They also assess the state of internal financial controls and provide their opinion.
Our Internal Auditors present the internal audit reports directly to the respective Boards Audit Committees. In addition, we comply with several specific audits mandated by regulatory authorities such as SEBI, Exchanges and Depositories, and these reports are periodically submitted to the regulators.
The Board, Audit, and Risk Management Committees review the overall risk management framework and the adequacy of internal controls instituted by the management team through the monitoring of the Internal Audit and Statutory Audit reports and the detailed presentations made by the Risk Management teams. Any material instances of fraud are reported to the Risk Management and Audit Committees on a quarterly basis, and appropriate actions are taken. The focus also remains on implementing the necessary systems and controls to strengthen the internal control system and prevent any recurrence.
We have also strengthened our whistleblower mechanism, supported by a policy that ensures no retaliation against whistleblowers. Multiple reporting channels including email, website, and phone, are managed by an external service provider to maintain complete independence. Employees and other stakeholders can record complaints and grievances anonymously, if they wish. All whistleblowing complaints are tracked and investigated by a Vigilance Committee, which includes representatives from Human Resources, Risk Management, Compliance and Business.
This mechanism is meant to facilitate reporting of unethical behaviour, actual or suspected fraud, or violation of our Companys Code of Conduct and ethics. Another key aspect of governance is managing and resolving conflicts of interest, if they arise. We have a Conflict of Interest Policy under which a Conflict Resolution
Advisory Board (CRAB), comprising senior executives, has been formed. The policy provides guidance on the types of transactions covered, e.g., transactions between an employee and a group entity, or an employee and a client, or between a group entity and a firm in which the employee or his close relatives are interested, above certain thresholds. A summary of cases brought before the CRAB, beyond certain thresholds, is also submitted to the Risk Management Committee of the Board.
Internal Financial Controls and their Adequacy
The Company maintains adequate internal controls over financial statements and operations, which are operating effectively. These are encapsulated in the Risks & Controls
Matrix (RCM), which is reviewed and updated annually.
Internal Auditors have tested the design and effectiveness of key controls, and no material weaknesses were observed. Further, Statutory Auditors have verified the systems and processes and confirmed that the Internal Financial Controls system over financial reporting are adequate and operating effectively.
Review of Financial Performance
As of March 31 st , 2026, 360 ONEs AUM, including custody assets, stood at 6,74,492 Cr, reflecting a YoY growth of 16%. The Wealth Management segment continues to drive growth in overall assets, complemented by steady growth in the Asset Management and Lending businesses. The Company maintained its focus on building Annual Recurring Revenue streams, supported by strategic initiatives in bespoke wealth solutions and alternative investment products.
This section provides a detailed overview of 360 ONEs financial performance for FY26, highlighting key metrics across profitability, liquidity, and capital structure.
Assets Under Management and Profitability
The table below provides a break-up of our Assets Under Management for the periods indicated:
(All figures in Cr)
| Particulars | 2025-26 | 2024-25 | % I/(D) |
| Wealth Management | |||
| Annual Recurring Revenue Assets | 2,16,734 | 1,62,433 | 33.4% |
| 360 ONE Wealth Open* Assets | 85,039 | 62,212 | 36.7% |
| Distribution Assets Earnings Trail Fees | 1,19,666 | 91,448 | 30.9% |
| Lending Book (Net Interest Margin on Loans previously) | 12,028 | 8,773 | 37.1% |
| Transactional Assets incl. Custody | 3,62,552 | 3,34,670 | 8.3% |
| Total AUM including Custody | 5,79,286 | 4,97,104 | 16.5% |
| Asset Management | |||
| Annual Recurring Revenue Assets | 95,206 | 84,395 | 12.8% |
| Alternative Investment Fund | 52,533 | 41,613 | 26.2% |
| Discretionary PMS | 30,184 | 31,296 | -3.6% |
| Mutual Fund | 12,489 | 11,486 | 8.7% |
| Total AUM | 6,74,492 | 5,81,498 | 16.0% |
| Annual Recurring Revenue Assets | 3,11,940 | 2,46,828 | 26.4% |
| Transactional Assets incl. Custody | 3,62,552 | 3,34,670 | 8.3% |
| Total AUM including Custody | 6,74,492 | 5,81,498 | 16.0% |
*Earlier known as 360 ONE Plus
The table below is a Reclassified Consolidated Statement of Profit and Loss for the Periods Indicated:
Figuures infig (All Cr)
| Particulars | 2025-26 | 2024-25 | % I/(D) |
| Total Net Revenue * | 3,144 | 2,652 | 18.6% |
| Annual Recurring Revenues | 2,289 | 1,701 | 34.5% |
| Transactional / Brokerage Revenue | 777 | 744 | 4.4% |
| Total Net Revenues from Operations | 3,066 | 2,446 | 25.4% |
| Other Income | 79 | 206 | - |
| Costs | 1,568 | 1,218 | 28.7% |
| Employee Costs | 1,123 | 912 | 23.1% |
| Admin and Other Expenses | 445 | 306 | 45.6% |
| Profit Metrics | |||
| Operating Profit Before Tax (OPBT) | 1,498 | 1,228 | 22.0% |
| Profit Before Tax (PBT) | 1,577 | 1,317 | 19.7% |
| Profit After Tax (PAT) includingOCIand FCTR 1,225 1,015 | 20.7% | ||
| Cost to Income | 49.9% | 45.9% | - |
| ROE | 13.6% | 20.7% | - |
| ROE Ex Goodwill & Intangible | 19.3% | 24.3% | - |
*Less of Direct Costs
Reclassified Segment-wise Performance is as
The Wealth Management business witnessed sustained growth driven by an increase in ARR-generating assets and strong retention. Asset Management performance was supported by healthy focus on building a resilient, diversified portfolio helped both segments deliver steady revenue and profitability in FY26.
(All figures in Cr)
| For the Year Ended March 31, 2026 | For the Year Ended March 31, 2025 | |||||
| Wealth Management | Asset Management | Total | Wealth Management | Asset Management | Total | |
| Gross Revenue from | 3,458 | 1,016 | 4,475 | 2,914 | 769 | 3,683 |
| Operations | ||||||
| Net Operating Revenue | 2,284 | 781 | 3,066 | 1,845 | 600 | 2,446 |
| Operating Profit Before | 1,045 | 454 | 1,498 | 896 | 332 | 1,228 |
| Tax (OPBT) | ||||||
Key Factors to Consider are as Follows:
Total AUM including custody assets are 6,74,492 Cr as on March 31 st , 2026
The wealth management business has client assets of 5,79,286 Cr, including custody assets, while the Asset Management business has 95,206 Cr of assets under management as on March 31 st , 2026 of which 52,533 Cr are AIF Assets, 30,184 Cr are PMS (Portfolio Management Services) and SMA (Separately Managed Accounts) Assets and 12,489 Cr are Mutual Fund assets Continuing focus on increasing Recurring Revenues has resulted in an increase in ARR generating assets by 26% YoY to 3,11,940 Cr and an increase in Recurring Revenues by 34.5% YoY to 2,289 Cr
Total Net flows during the year were 55,875 Cr. Net Flows in Wealth Management were 46,576 Cr and 9,299 Cr in Asset Management
Total Consolidated Revenue for the year was up 18.6% YoY at 3,144 Cr, as compared to 2,652 Cr for FY25, while Revenue from Operations, was up 25.4% YoY at 3,066 Cr
Overall ARR Retention rose from 73 bps in FY25 to 78 bps. ARR Retention on Wealth Management Assets was 76 bps and ARR Retention on Asset Management Assets was 83 bps
Overall Costs for the year were up 28.7% YoY to 1,568 Cr. Employee Costs were up 23.1% YoY at 1,123 Cr, of which, Fixed Employee costs were at 786 Cr and Variable Employee costs were at 337 Cr
Admin and Other expenses increased 45.6% YoY to 445 Cr. Operating PBT (OPBT) was up 22.0% YoY to 1,498 Cr. Profit before tax (PBT) for the year was up 19.7% YoY to 1,577 Cr
Profit After Tax (PAT) for FY26 was up 20.7% at 1,225 Cr from 1,015 Cr in FY25. Average Net Worth in FY26 stood at 8,450 Cr in FY26 vs 5,257 Cr in FY25
Return on Equity (RoE) for the year was at 13.6% and
RoE Ex-Goodwill & Intangibles was 19.3%
Net profit margin in FY26 stood at 39%.
Interest coverage ratio moved from 2.53 in FY25 to 2.47 in FY26, due to an increase in finance cost during the year
The Company prepares the financial statements as per Division III of Schedule III of Companies Act, 2013 which does not require the assets and liabilities to be bifurcated into Current / Non-current assets and liabilities. Hence Current ratio is not applicable
Balance Sheet and Capital Development
Statement of Consolidated Assets and Liabilities as of March 31st, 2026
( Cr)
| Sr. No. Particulars | As of March 31, 2026 | As of March 31, 2025 |
| ASSETS | ||
| 1 Financial Assets | ||
| (a) Cash and cash equivalents | 569.24 | 740.19 |
| (b) Bank balance other than (a) above | 912.35 | 351.39 |
| (c) Derivative financial instruments | - | 1.00 |
| (d) Receivables | ||
| (i) Trade receivables | 503.56 | 443.06 |
| (ii) Other receivables | 314.09 | 99.14 |
| (e) Loans | 11,126.34 | 8411.03 |
| (f) Investments | 8,842.44 | 7,608.12 |
| (g) Other financial assets | 445.73 | 329.88 |
| 2 Non-Financial Assets | ||
| (a) Current tax assets (net) | 364.52 | 273.50 |
| (b) Deferred tax assets (net) | 1.98 | 0.47 |
| (c) Property, plant and equipment | 363.06 | 290.18 |
| (d) Capital work-in-progress | - | - |
| (e) Intangible assets under development | - | 88.22 |
| (f) Goodwill | 2,498.09 | 667.93 |
| (g) Other intangible assets | 615.42 | 263.41 |
| (h) Right of use assets | 492.88 | 59.83 |
| (i) Other non-financial assets | 151.65 | 141.35 |
| Total Assets | 27,201.35 | 19,768.70 |
| LIABILITIES AND EQUITY | ||
| 1 Financial Liabilities | ||
| (a) Derivative financial instruments | 47.69 | 148.13 |
| (b) Payables | ||
| (I) Trade Payables | ||
| (i) Total outstanding dues of micro enterprises and small enterprises | - | - |
| (ii) Total outstanding dues of creditors other than microenterprises and small enterprises | 250.63 | 202.63 |
| (II) Other Payables | ||
| (i) Total outstanding dues of micro enterprises and small enterprises | - | - |
| (ii) Total outstanding dues of creditors other than micro enterprises and small enterprises | 753.16 | 412.51 |
| (c) Lease liabilities | 479.36 | 65.46 |
| (d) Debt securities | 12,962.37 | 7,909.78 |
| (e) Borrowings (other than debt securities) | 2,357.90 | 3,050.29 |
| (f) Subordinated liabilities | 131.68 | 134.67 |
| (g) Other financial liabilities | 24.01 | 531.74 |
| 2 Non-Financial Liabilities | ||
| (a) Current tax liabilities (net) | 55.19 | 67.67 |
| (b) Provisions | 25.22 | 27.57 |
| (c) Deferred tax liabilities (net) | 197.46 | 87.91 |
| (d) Other non-financial liabilities | 81.13 | 65.22 |
| 3 EQUITY | ||
| (a) Equity share capital | 40.61 | 39.31 |
| (b) Other equity | 9,794.94 | 7,025.81 |
| (c) Non-controlling interest | - | - |
| Total Liabilities and Equity | 27,201.35 | 19,768.70 |
Key Considerations as of March 2026:
Consolidated Average Net Worth stood at 8,450 Cr in FY26 vs. 5,257 Cr in FY25. Average Net Worth Ex-Goodwill and Intangibles stood at 6,384 Cr in FY26 vs. 4,424 Cr in FY25.
ROE Ex-Goodwill & Intangibles decreased to 19.3% in FY26 from 24.3% in FY25 primarily due to dilution in equity through QIP in FY24 and strategic acquisitions.
On March 31, 2026, Debt/Equity ratio remained the same as March 31, 2025, at 1.57.
Debtors turnover ratio moved from 8.55 in FY25 to 9.22 in FY26 due to an increase in revenue from operations during the year. The inventory turnover ratio is not applicable, as the Company does not hold any inventory.
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