Custodians of change

Custodians of Change: The Next Generation of Indian Wealth is a study by Grant Thornton Bharat and Entrust Family Office. It draws on conversations with family business leaders and wealth custodians across generations, representing wealth from approximately INR 100 crore to INR 10,000 crore, on values, governance, succession, risk and purpose.

Preserving family wealth, values and continuity is the top priority, cited by 78% of the custodians we spoke with, regardless of generation or net worth. Preservation is no longer the whole story: almost half also want to grow and diversify income beyond the primary business, and nearly 40% are building a legacy beyond financial returns.

Involvement follows a cycle rather than a steady decline. In third-generation families, 54% say the next generation already has meaningful influence over decisions or co-leads parts of the business, compared with 18% in second-generation families, where families tend to hold the reins most tightly before loosening their grip by the third.

About a third. In the study, 36% of families have a clear, documented succession plan, while the most common position, at 42%, is broad family alignment that has not yet been formalised. Informality largely disappears at the highest wealth levels, and leaders over 50 are far more likely to have formalised their plans.

Families favour calculated risk over high-stakes bets or avoiding risk altogether. Long-term capital appreciation and compounding is the investment outcome that matters most for 56% of respondents, a preference that holds across generations and age groups, while thematic and purpose-led investments are generally seen as complementary rather than core.

Indian families favour financial markets over physical assets abroad. Global public equities, private markets and listed funds lead, cited by 44%, followed by international fixed income and capital-preservation strategies at 19% and direct stakes in overseas businesses at 17%. Interest in international real estate, lifestyle assets and collectibles is lower.

The most common trigger, cited by 24% of families, is a deliberate shift from running the operating business to managing a diversified portfolio. Other catalysts include managing diversified interests after a major liquidity event and investments expanding across asset classes, entities or jurisdictions, each cited by 21%.

It depends on the generation. Founders favour a family-led model with external advisors, second-generation leaders lean towards professional management with family oversight, and third-generation custodians settle on a hybrid. Across families, the most common way big decisions get made is a joint process, while close to 20% say their approach varies by decision.

Strengthening the use of technology and reporting systems tops the list, at 17%, followed by a greater role for independent professionals at 13%. Governance structure and decision rights, and ownership and holding structures, follow closely at 12% each, while capital allocation and liquidity planning feature further down.

The study is based on conversations and interviews with a select group of Indian family business leaders and wealth custodians across generations, representing wealth of approximately INR 100 crore to INR 10,000 crore. Its findings and archetypes are illustrative and are not derived from a statistically validated survey.