While 25 per cent of Indian family offices set up by business houses continue to prioritize wealth preservation, many are now actively diversifying beyond traditional assets into global equities, real estate, private equity, venture capital, and alternative investments, says a report on family offices/

Allocations are increasingly moving into global equities, real estate, private equity, venture capital, and other alternatives, says the EY-Julius Baer report. While preserving wealth remains foundational, families are actively diversifying beyond traditional assets.

With over 300 family offices now operating in India, up from just 45 in 2018, the ecosystem is becoming more structured, globally focused, and purpose-driven, it said. Family offices are going global as ultra-high-net-worth individuals (UHNIs) expand across borders, with Liberalised Remittance Scheme (LRS) remittances rising from $18.8 billion in 2019–20 to $31.7 billion in 2023–24.

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A family office is a private wealth management advisory firm established to manage the financial, investment, and personal affairs of an UHNI family. It acts like a full-service financial command centre for the family, offering customized solutions that go far beyond what traditional banks or wealth managers provide.

There is a growing focus on formalising governance and succession planning among family offices, it said. “While 59 per cent of families have put wills or constitutions in place, and 19 per cent have adopted structures like trusts or LLPs, a significant number still lack a comprehensive succession plan – highlighting the need for greater preparedness,” it said.

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It said private markets are yet to see wider adoption among family offices. As many as 57 per cent of family offices allocate less than 10 per cent of their portfolios to private equity or venture capital, often citing limited access or as a cautious approach.

“Regulatory matters are gaining attention among family offices,” the report further said. Changing tax laws were flagged by 48 per cent of respondents, while 37 per cent cited cross-border complexities, the report said.

As Indian families expand globally, they are adopting stronger governance, leveraging digital tools, and focusing on long-term impact. “Key trends include rising cross-border investments, growing use of GIFT City, increased interest in ESG, and hybrid family office models that blend in-house teams with external experts for greater agility,” it said.

“The Indian family office ecosystem is at an inflection point where wealth preservation alone is no longer enough. Families now seek efficiency, transparency, and global access, all of which require a more structured approach. At the same time, navigating tax and cross-border regulatory frameworks is becoming central to how these offices function and plan ahead,” said Surabhi Marwah, Co-leader, Private Tax and Partner, EY India.