In the ever-evolving landscape of global wealth management, the recent Hubbis India Wealth Management Forum 2026 shed light on a fascinating shift in the mindset of Indian investors. The discussion, led by Brett Kennedy, delved into the growing interest in diversifying wealth beyond the domestic market, prompting a reevaluation of traditional investment strategies. This article explores the key insights and personal reflections from the panel, offering a unique perspective on the evolving offshore playbook for Indian investors.
The Structural Shift Towards Global Diversification
One of the most intriguing aspects of the forum was the recognition that the current enthusiasm for offshore investing is not merely a reaction to short-term market fluctuations. The panel, including experts like Anuj Kapoor and Moin Ladha, emphasized that global diversification is becoming a structural component of Indian family portfolios. This shift is not just about the performance of one market over another; it's about the breadth of opportunities available globally.
Personally, I find it fascinating that families are increasingly viewing global diversification as a standard portfolio question, rather than a tactical response to market conditions. This perspective shift is particularly intriguing, as it suggests a more permanent change in how wealthy families approach their investments. What makes this even more interesting is the role of the 'global Indian' in driving this trend. As children of wealthy families study and work abroad, and as families' interests and relationships become more international, the distinction between domestic and offshore portfolios becomes less meaningful.
The Global Indian and the Offshore Portfolio
The rise of the 'global Indian' is a significant factor in this shift. With education, careers, and businesses extending across borders, the traditional boundaries of a domestic life are blurring. This is especially relevant for the next generation, who may study abroad, establish businesses overseas, or eventually become residents in another jurisdiction. As a result, the portfolio is starting to catch up with the way the family actually lives.
This trend has profound implications for wealth management. Families with surplus capital generated through business exits, listings, or private-equity transactions are now considering how to diversify their wealth internationally. The panel emphasized that Indian equities represent only part of the global investment universe, and for families with sufficient scale and sophistication, international exposure can be viewed as an expansion of opportunities rather than a rejection of India's growth story.
Distinguishing Between Moving Capital and Investing Globally
A critical distinction in the discussion was between moving capital and designing an international investment strategy. The Liberalised Remittance Scheme (LRS) provides a well-established route for resident individuals to remit capital overseas, but it's essential to understand that sending money abroad does not constitute an investment strategy in itself.
In my opinion, the key is to establish the objective first. Whether it's geographic diversification, currency exposure, access to specific sectors, or the creation of an international family wealth structure, the purpose of the international allocation must be clear. As a wealth manager, my role is to guide clients in determining the appropriate route, be it LRS, GIFT City, global funds, ETFs, SMAs, ODI, OPI, or offshore structures, based on their specific needs and objectives.
Expanding the Offshore Product Set
The investment proposition for global Indian families is becoming increasingly diverse. Traditional feeder funds and cross-listed products are still part of the landscape, but global asset managers are offering more innovative solutions. Active ETFs, for instance, allow established investment strategies to be packaged in formats accessible through international exchanges.
What makes this particularly fascinating is the shift from generic exposure to US or global equities to more targeted investment solutions. Portfolios can now target specific sectors, geographies, risk profiles, or return objectives. This provides advisers with greater flexibility in integrating international investments into the wider family portfolio. The geographic opportunity set is dynamic, with the conversation evolving from US technology to AI-related businesses, and potentially shifting to Japan, Korea, Europe, or other markets in the future.
Institutional-Style Solutions for Private Clients
Technology and product innovation are breaking down barriers, making institutional-style investment structures more accessible to private clients. Separately managed accounts (SMAs), for example, are no longer limited to ultra-high net worth (UHNW) investors. With technological advancements and operational scale, customized or separately managed solutions can be offered in smaller denominations, making them relevant to a broader segment of private wealth.
This development is significant, as it allows for more tailored investment solutions without the need for tens of millions of dollars. It also alters the partnership model, with global asset managers working with banks, wealth firms, and intermediaries to design and operate investment solutions while the client-facing institution retains the primary relationship. This combination of global manufacturing and local advice could become increasingly important as Indian investors demand more sophisticated offshore exposure.
Externalisation and the Role of GIFT City
The panel was careful to distinguish between portfolio diversification and genuine externalisation of family wealth. While GIFT City can provide international exposure and access to dollar-denominated assets, it should not be treated as synonymous with permanently externalising family wealth. The regulatory architecture, with the International Financial Services Centres Authority (IFSCA) and the Reserve Bank of India (RBI) and foreign-exchange rules, plays a crucial role in this distinction.
GIFT City, as a financial center, has the potential to mature and develop, particularly with the introduction of retail participation. The regulatory framework for Global Access Providers can facilitate access to foreign-listed products, but resident participation remains subject to foreign-exchange and LRS requirements. As the ecosystem develops, international investing could become more accessible to a larger pool of Indian investors, but the transition will take time and gradual market opening.
The New Offshore Playbook: Starting with the Objective
The panel ultimately rejected the idea of a binary choice between India and offshore markets. The new offshore playbook is about understanding the client's objective first and then determining the appropriate jurisdiction, route, structure, and investment solution. Whether it's geographic diversification, access to specific sectors, foreign-currency exposure, or preparing for international family structures, each objective can lead to a different route.
In my perspective, the shift towards global diversification is not just about sending money abroad; it's about deciding which part of a family's wealth should become global, why it should do so, and which route can effectively achieve that objective. The panel's conclusion that Indian families are becoming global, the investment universe is already global, and product access is becoming progressively more sophisticated, highlights the depth of this transformation. The offshore playbook is evolving, and it's up to wealth managers to guide clients through this complex and exciting journey.
