Daybreak India’s millionaire households grew by 90%. Wealth managers are scrambling to catch up
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Sep 18, 2025 India has witnessed a staggering 90% increase in millionaire households in just four years, sparking a competitive frenzy among wealth managers. Established firms are racing to attract high-net-worth clients by offering enticing deals and nurturing relationships. However, today's affluent individuals are more discerning, favoring advisory services and even establishing their own family offices. This shift is forcing traditional firms to adapt their revenue models and rethink their strategies in the face of new, cost-cutting challengers.
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Advice Replaces Distribution For Many Firms
- Wealth managers now see advisory as the product when firms lack in-house investment products.
- Clients and family offices increasingly demand advisory-first relationships rather than distribution-led selling.
Fee Pressure And Regulatory Tension
- Family offices are shifting to advisory and shopping for lower fees, cutting into wealth managers' earnings.
- SEBI rules separate advisors from distributors, but firms often use separate entities to skirt restrictions.
Client Wallet Mining Example
- A family office executive recalled a wealth manager pushing space-tech shares at a 30–35% premium over grey market prices.
- Industry insiders call this practice 'client wallet mining' to extract extra revenue after onboarding clients.