Custodians of change: Next generation of Indian wealth
How Indian families are approaching wealth preservation, growth, governance and succession
India is entering a decisive period of intergenerational transition. As family enterprises and wealth pass between generations, custodians are reassessing how to preserve and grow capital. They are also asking how to carry family values, governance structures and long-term purpose forward.
Custodians of change draws on conversations with family business leaders and wealth custodians across India. The families represented manage wealth ranging from approximately INR 100 crore to INR 10,000 crore.
It examines how these families approach investment, risk, decision-making, succession, next-generation involvement and the evolving role of the family office.
Five shifts shaping family wealth management and stewardship
Wealth preservation remains central, but priorities are expanding
Protecting family wealth, values and continuity remains the most widely shared priority, cited by 78% of the custodians interviewed. However, preservation increasingly sits alongside wider ambitions:
prioritise growing or diversifying income beyond the primary business
are focused on building a legacy beyond financial returns
prioritise institutionalising the family office
are seeking global exposure and cross-border opportunities
Among first-generation respondents, preservation is the leading concern, while fewer than 20% prioritise diversification beyond the core business. By the third generation, protecting the family’s legacy and finding new avenues for growth are pursued together.
Families favour calculated, long-term growth
The families interviewed generally favour measured risk over either high-stakes investment or excessive caution. Their decisions are most commonly led by the merits of an opportunity, with long-term strategic or thematic investments and a preference for stability and predictability tied as the next most common considerations. When asked which investment outcome matters most:
selected long-term capital appreciation and compounding
prioritised exposure to innovation, emerging sectors and new-economy themes
selected impact, sustainability or purpose-linked outcomes alongside returns
How is family governance shaping decision-making?
Responsibility for major decisions is gradually being shared across family members, professional management and external advisers. The most common model identified in the report is a joint process involving both the family and professional management. However, close to 20% said their approach varies with the size and type of the decision, and almost as many — including several third-generation families — said the head of the family still makes the final call after taking inputs, suggesting that older instincts still run strong.
Approaches to family enterprise governance differ by generation:
Founders tend to favour family-led decision-making supported by external advisers
Second-generation custodians show the strongest preference for professional management with family oversight
Third-generation custodians are more likely to prefer a hybrid model that combines family involvement with a dedicated investment office
Family values also shape how strategic decisions are made. 30% of families apply their values through informal family consensus, while 27% use clearly defined governance frameworks for strategic decision-making. A further 14% primarily reflect family values in leadership and succession decisions.
Succession is being approached as an ongoing process
Most families have some direction on succession, although the level of formalisation varies:
have broad family alignment but no formal documentation
have a clear, documented succession plan
are holding ongoing discussions but lack clarity
do not currently consider succession a priority
Next-generation involvement varies across generations. Among first-generation families, 36% report that the next generation has meaningful influence or co-leads decisions. This falls to 18% among second-generation families before reaching 54% among third-generation families.
Looking four to five years ahead, 46% of third-generation leaders expect to be actively running and scaling the business. By contrast, 46% of second-generation leaders anticipate moving into a strategic or board-level role.
The family office is becoming an institution of governance
Family offices are often established in response to increasing complexity. The most common trigger, cited by 24% of families, is a shift from the operating business towards diversified financial investments. Major liquidity events and investments spanning multiple asset classes, entities or jurisdictions are each cited by 21%.
For families, the meaningful impact of a family office is largely operational and practical. Professionalising investment management, talent and processes ranks first, closely followed by portfolio diversification across geographies and asset classes. Integrating succession planning into long-term capital allocation and strengthening governance and decision-making frameworks are also seen as critical. Purpose-led and impact-oriented priorities matter to some families but remain further down the list.
When considering what they would design differently, families most frequently identify:
Four approaches to wealth custodianship
Focused on protecting continuity, relationships and shared values
Combining family leadership with professional discipline and established governance
Building decision-making and wealth-management structures before successors take the lead
Giving the next generation an active leadership role while formal structures continue to develop
Every family’s wealth journey is different
Speak with our leaders about the priorities shaping yours.
Custodians of change
Next generation of Indian wealth
