How young Indian millionaires are diversifying their investment portfolio to grow wealth.

In the ever-changing field of wealth management, young billionaires are blazing their own, separate path to increasing their wealth. They are looking to invest in alternative areas that cover a wide range of options, including real estate, startups, and hobby projects. They don't prefer the usual equity and fixed deposit options. These individuals diversify their investment portfolios across a full range of sectors and explore opportunities that transcend traditional products and even national boundaries. Alok Saigal, president and head of wealth management firm Nuvama Private, sees this change at the forefront. He says that young ultra high net worth individuals (HNWIs), whose wealth is estimated to be over $30 million, have a very different approach to investing compared to their ancestors. "They are looking for investment opportunities beyond the usual wealth management products such as investment funds, CMOs (portfolio management services), bonds and equities. They are also interested in opportunities beyond national borders, and effectively manage currency and geographic risk because they see themselves as global citizens," he says.

One of the promising areas of investment seems to be the realm of startups.

Young startup founders who have become billionaires are "paying tribute" to the ecosystem that brought them wealth, increasingly channeling their capital and expertise into other startups. Entrepreneurs understand the value of diversifying their portfolios. They often look for opportunities that match their knowledge of the industry, allowing them to leverage their ideas and connections. Kunal Shah, the 40-year-old founder and CEO of fintech company Cred, is one such example. He said at a recent event that he has invested in about 80 fintech startups, typically investing $50,000 each. "I don't own any investment funds or stocks; my investments are entirely focused on startups as a way to give back. The main motivation is not financial returns, but contribution to the ecosystem," he said during a CNBC-TV18 discussion at Global Fintech Fest 2023.

A growing number of young billionaires are turning to unfamiliar "passion" investments.

These investments include collectible assets such as fine art, rare cars, yachts and wine. These investments, in addition to aesthetic and emotional satisfaction, can also yield impressive returns. Collecting art, although not the main mode of consumption, is of interest to a part of young particularly wealthy people. Nikhil Kamath, the 37-year-old co-founder of discount brokerage Zerodha and wealth management company True Beacon, believes Indian art will go up in value significantly in the coming years. He actively explores the field as an active class and is particularly optimistic about the potential for acquiring works by recognized artists such as F.N. Souza, Tayeb Mehta or S.H. Raza, who he believes has significant growth. "Young billionaires love art, and many of them buy art for its enjoyment, while some look at it as an investment avenue. But it turns out to be a great investment option and the prices of artworks by Indian artists are going up as there is a huge demand," says Himanshu Kohli, co-founder of Gurgaon-based private wealth management firm Client Associates.