A growing number of affluent Indian families are joining the ranks of the Ambanis, the family behind Reliance Industries, in establishing family offices in Singapore to manage and grow their wealth. Known for its stable political and economic landscape, favorable business climate, and attractive tax regulations, Singapore has become a preferred hub for these ultra-high-net-worth individuals, including many who aim to secure their legacies for future generations.
DBS Bank reports that approximately US$4 trillion in wealth is expected to be transferred within the Indian diaspora over the next decade, emphasizing the role of Singapore in facilitating effective governance and decision-making among these families. Mr. Shee Tse Koon of DBS highlights Singapore’s appeal due to its robust regulatory and transparent environment, setting it apart as a prime choice.
Singapore now hosts nearly 60% of Asia’s family offices, and the number of Indian family offices has grown, with estimates predicting an increase from 2,800 in 2022 to 3,200 in 2023. Many affluent Indians seek structured family offices to streamline compliance and avoid governance issues, with both single-family and multi-family offices (MFOs) gaining popularity. MFOs allow families to access specialized financial advice in a cost-effective manner, pooling resources with other wealthy families.
Historically, wealthy Indian families focused on physical assets like real estate and gold. However, recent volatility in property markets has driven interest toward public and private equity markets, including alternative assets. Geographic diversification is also common, with many affluent Indians favoring the U.S. for global investments, though interest in emerging markets such as India and the Middle East is rising.
The younger generation of wealthy Indians, particularly those overseas, increasingly invest in tech start-ups, with Indian family offices having backed over 200 start-ups in the past two decades, highlighting a shift toward tech and innovation.
