Economic Times17.06.2026Business5 dk okumaIndia

Indian Investors Advised to Adopt Long-Term Global Strategy for Wealth Protection

wealth management investment strategy global equities

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Experts urge Indian high-net-worth investors to look beyond short-term market fluctuations for wealth protection.
A long-term strategy focusing on global diversification, risk reduction (inflation, taxes, concentration), and business fundamentals is recommended for multi-generational wealth preservation.

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Indian high-net-worth investors are advised to adopt a long-term wealth protection strategy, moving beyond short-term market volatility. Experts emphasize global diversification and risk mitigation.

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Indian wealthy investors must look beyond this year's market ups and downs for wealth protection. Experts advise a long-term strategy for lasting wealth. This involves reducing risks like inflation and taxes. Diversifying investments globally is crucial. Investors should increase their international equity exposure now. Focusing on business fundamentals, not just themes, builds enduring wealth across generations.

Indian high-net-worth investors looking to protect their wealth need to think far beyond this year's market swings, according to Rajeev Thakkar, Chief Investment Officer and Director at PPFAS Asset Management, who argued that most affluent investors remain significantly underexposed to global equities even after the recent rally in international markets.

Speaking at the ET Alpha Wealth Summit panel discussion on the topic 'Global or Local? The New Allocation Reality' , Thakkar made the case for a strategic, multi-generational approach to wealth preservation rather than a tactical, year-to-year one. He pointed to "Fortune's Children," the book chronicling how the Vanderbilt family, once among the richest in the world, lost their fortune within two generations, as a cautionary tale for families focused on building lasting wealth.

Other than Thakkar, Nilesh Shah, Group President & Managing Director, Kotak Mahindra Asset Management Company (KMAMC) and Rajesh Saluja, Co-Founder, CEO & MD, ASK Private Wealth were also part of the panel discussion.

Inflation, taxes and concentration risk

For India's wealthy, Thakkar identified two core threats to long-term capital. The first is the slow erosion caused by inflation and taxes, which he called especially relevant in the high-net-worth context. The second is concentration risk, putting too much wealth into a single business or sector.

He illustrated this with historical examples: buggy-whip manufacturers wiped out by the arrival of automobiles, and Mumbai's once-dominant textile mill owners who lost their position as the industry shifted elsewhere. The lesson, he said, is that even dominant industries can become obsolete, making diversification essential for anyone trying to protect wealth across generations.

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In the mid-1990s, the opening up of domestic aviation to private carriers was a clear growth theme, yet none of the airlines from that era survive today. Cellular telephony was equally compelling at the time, but only one company from that generation still exists and has created shareholder value; the rest went bankrupt or destroyed capital. Renewable energy told a similar story during the 2003–2007 bull market, when a leading windmill manufacturer was a market darling before running into serious trouble.

The takeaway, Thakkar said, is that a strong theme is not sufficient on its own. Lasting wealth creation requires combining the theme with quality promoters and management, proven execution capability, and a robust balance sheet, while favouring companies with genuine pricing power over those competing in commoditised, intensely competitive segments. Applied to today's power and energy infrastructure boom, he suggested some companies will create lasting value while others, despite strong volume growth, ultimately will not.

The bigger picture

The panel, which also featured Nilesh Shah of Kotak Mahindra Asset Management and Rajesh Saluja of ASK Private Wealth, reflected a broader debate playing out across India's wealth management industry: how investors should balance tactical, near-term opportunities such as REITs and InvITs against the longer-term imperative of global diversification and disciplined stock selection.

For India's growing base of high-net-worth investors, the message from the panel was consistent — preserving wealth across generations requires guarding against concentration risk, building genuine global exposure rather than token allocations, and resisting the temptation to chase narratives without scrutinising the underlying business fundamentals.