India’s Wealth Management Industry Poised for Transformation, AUM to Double by 2029 Amid Rising Demand and AI Adoption

By Naval Kagalwala, COO and Head of Products, Shriram Wealth Ltd. 

2026 Outlook: Growth, Complexity, and the Tech Imperative

The wealth management industry in India is at the cusp of a transformational change. An increase in per capita income, growth in affluent households, financialization of savings, stake sales, and the transfer of wealth from first-generation business owners to the next generation are driving demand across the country. The industry’s AUM is expected to more than double over the next five years, by 2029.

Mutual fund AUM at an all-time high, record monthly SIP contributions, rising investments in PMS and AIF products, increasing interest in REITs and InvITs, and strong fund flows via GIFT City all testify to this growth. Over the last few years, regulators in India and IFSCA (GIFT City) have strengthened their efforts to ensure that our financial markets rank among the best globally.

This surge, however, has brought its own challenges—primarily the shortage of trained professionals who can act as trusted partners in investors’ financial journeys. Rising operating and other costs, coupled with a reduction in fees, have been a double blow for industry players and this trend is expected to be continued in 2026.

To offset this and meet the growing need for personalization and evolving investor expectations, technology will play an even more critical role. Experiments exploring different AI use cases have already begun, and the coming year will determine whether the current hype is justified.

Another emerging trend is the growing importance of active research and guidance. As financial products in India become more complex, and global opportunities allow investors to diversify across geographies and currencies, the need for informed guidance and deeper insights will only intensify.