Kotak Mahindra Bank's TOP Report: Live Better, Live Longer; 81% Ultra-HNIs reported increase in spending on health and wellness
FinTech BizNews Service
Mumbai, May 16, 2025: Post-pandemic Ultra-HNIs are placing a greater emphasis on their comprehensive well-being –both physical and mental. Over 90% of the Ultra-HNIs surveyed classify it as essential spending, underscoring its importance today. There has been an increase in spending on a range of wellness services and products by Indians over the previous year. The Ultra-HNIs surveyed in the Kotak Private TOP survey allocate 10% of their total spending towards health and wellness. 81% state that their spending for health and wellness has increased, as preventive healthcare and lifestyle modifications become key approaches to achieve their health goals.
There has been an acceleration of health and wellness travel plans, as affluent travellers across the globe increasingly seek to rejuvenate both mentally and physically. Ultra HNIs are prioritising wellness within their leisure trips by planning wellness breaks and selecting hotels offering wellness facilities. Domestic destinations in Uttarakhand and Kerala that are known for their therapeutic environments and are highly sought by Ultra-HNIs.
These destinations offer specialised programmes in Ayurveda, detoxification and rejuvenation. However, Indian Ultra-HNIs do not limit themselves to domestic destinations alone, travelling across the globe for a variety of treatments — from South Korean beauty procedures to European anti-ageing wellness retreats, among others. Indian Ultra-HNIs are also investing in home fitness solutions to maintain their fitness routines, contributing to the increased demand for high-end gym equipment.
Organically grown foods and custom diets crafted by nutritionists are appealing due to their promise of environmental sustainability and health benefits. Mental well-being, too, has come into focus. The shift towards a wellness-centric lifestyle underscores a broader trend to not only live longer but also to live better, healthier lives.
Kotak Private’s Top of the Pyramid Report is a comprehensive study that explores the evolving lifestyles, spending habits, and priorities of India’s Ultra High Net-Worth Individuals (Ultra-HNIs). Commissioned to Ernst & Young LLP (EY), the report is based on a survey of 150 affluent individuals across India and uncovers emerging trends in their investment preferences, growing global outlook, and increasing interest in luxury, wellness, and digital innovations.
With a growing population and a burgeoning middle class with increased
personal wealth and disposable income, India’s household consumption has
been on an upward trajectory, growing at a CAGR of 7% since the pandemic.
Generational shifts redefine priorities as growing affluence, coupled with evolving
personal values, blur the line between luxury and necessity. Infrastructure
developments and technological breakthroughs, such as luxury online stores,
sophisticated logistics networks and cutting-edge secure payment systems, have
improved access to goods and services, further bolstering consumer spending.
The upswing in consumer spending is not confined to the masses alone; it is
mirrored in the lives of Ultra-HNIs, signalling a sweeping transformation in the
way wealth is being used.
The year 2024 saw a series of
pivotal events that further shaped
the country’s economic landscape.
The most prominent was the general
elections, which brought with it political
uncertainty as the nation started hitting
the polls. This uncertainty spilled over
into the capital markets. The India VIX,
a volatility index, climbed relentlessly
as polling began and hit a two-year
high the day the election results were
announced. The return of the Bhartiya
Janata Party (BJP) for a third time
finally allayed market uncertainty.
In May 2024, a global rating agency upgraded
India’s sovereign rating outlook to ‘positive’ from
‘stable,’ citing robust economic growth and
improved credit metrics.
The agency projected 6.5 - 7% annual growth
over the next three years, expecting continuity in
economic reforms and fiscal policies.[2] The ratings
upgrade and the return of the Modi 3.0 boosted
investor confidence and positively impacted market
sentiments. These developments collectively shape
India’s economic landscape this year and beyond,
influencing growth trajectories, investor sentiments
and wealth creation. In FY25, India’s GDP growth is
likely to moderate to 6.4% from 8.2% in FY24,
but it remains the fastest-growing economy.
We estimate that there were 2,83,000 Ultra-HNIs
in India in 2023, with an estimated total wealth
of Rs232 trillion. With high demographic dividend,
a stable political environment and investor
confidence, India Ultra-HNI numbers and wealth
is expected to grow to reach 4,30,000 with a total
wealth of ₹359 trillion by 2028.
We take immense pleasure in introducing the
transformative edition of the Kotak Private ‘Top of
the Pyramid’ Report, which delves into the world of
the ultra-wealthy. This latest rendition is a tribute to
the intricate layers of luxury and business acumen,
offering an in-depth exploration of the behaviours
that define India’s Ultra-HNIs. With a commitment
to curating content that is as rich and rare as the
audience it serves, the report is key to understanding
the Indian Ultra-HNI – their spending habits,
investing habits and more.
The report throws light on where Ultra-HNIs spend,
what is considered essential or non-essential and
how much they spend. Ultra-HNIs spend the most
on their primary business and other essential areas
like household expenses and children’s education.
Spending on health and wellness has become
pivotal, with a majority of Ultra-HNIs surveyed
having increased healthcare spending. Apart from
the essentials, a significant amount of Ultra-HNI
spending goes into foreign travel.
Most Ultra-HNIs perceived their approach towards
investment to be aggressive. This is reflected in
their portfolio allocations that seem to prioritise
equity markets – both domestic and global.
Further, Ultra-HNIs have diversified their portfolios
beyond the conventional assets and are increasing
the allocation to alternative assets as well. All of this
is indicative of a maturing capital market with an
evolving investor mindset.
In addition to Ultra-HNI spending and investment
behaviour, the report covers three focus areas –
The Global Investor, Estate and Succession Planning
and Emerging Digital Trends in Private Banking.
The Ultra-HNIs of India are now looking beyond
national borders for astute and practical investment
opportunities. The motivations that drive them to
invest globally range from favourable business
environments to taxation to portfolio diversification.
As Ultra-HNI wealth grows and they spend in dollars,
it becomes essential to invest in dollars too.
While global investment strategies reflect the
immediate financial goals of Ultra-HNIs, their
long-term vision extends to preserving wealth and
transferring it to future generations. For Ultra-HNIs,
the approach to succession typically encompasses
moulding the next generation, nurturing their
development, and inspiring them to adopt a broader,
long-term perspective. In this manner, Ultra-HNIs
sustain their legacy.
Emerging digital technologies like Gen AI,
Blockchain, and others are rapidly reshaping private
banking, revolutionising traditional methods, and
introducing a new era characterised by increased
efficiency, accuracy, and personalised services for
Ultra-HNIs. These technologies are changing the way
Ultra-HNIs approach investments and engage with
wealth managers. Each of these technologies offers
the potential for wealth management to become
more accessible, efficient, and in tune with the
evolving demands of the digital age.
The true essence of wealth and wealth management
lies not merely in the abundance and growth of
assets but in the richness of life’s experiences and
the fulfilment of one’s deeper purpose. The report
throws light on what drives Ultra-HNIs and elevates
their gaze beyond the horizon of financial prosperity.
Kotak Private’s comprehensive solutions are
meticulously crafted to journey alongside the Indian
Ultra-HNI so that they can take their mind off their
finances, enabling them to focus on what truly
matters – living their purpose.
