The Next Generation of Wealth Is Being Reimagined
Have you heard of the “Great Wealth Transfer”? In India, close to $1.5 trillion1 is poised to be transferred across generations, underscoring a shift that is reshaping how families perceive wealth, legacy, and responsibility.
This isn’t simply handing down assets; it’s transferring vision. As wealth transitions from one generation to the next, many affluent families are shifting their focus from simply growing capital to instilling values, financial literacy, and long-term stewardship.
This reimagining of wealth management is especially critical today, as the present generation of young successors views money through a different lens.
Why the Next Generation Thinks Differently About Wealth
Today’s inheritors are coming of age in a completely different environment. And that shapes their relationship with money.
A study by HSBC found that, on average, Millennials in India start investing when they are 28 years old 2, and Gen Z begins at just 25 years3 of age. Not only are they starting earlier, but their financial literacy and aggressiveness are further evidenced by the fact that they are allocating roughly 27%4 of their income towards investing.
A One-Size-Fits-All Strategy Simply Doesn’t Work Anymore
While impressive, these figures also carry a hidden warning: without a framework and foresight, the wealth may diminish or evaporate in time. Moreover, the handover of assets without shared intent often leads to fragmentation, disputes, and stagnation.
For families looking to hand over wealth responsibly, these generational differences can’t be ignored. Experts suggest following these six foundational principles for effective money management.
Start Conversations Early, and Keep Them Ongoing
Nearly 45%5 of Indian entrepreneurs don’t expect their children to take over the family business, reflecting a shift in succession trends. According to HSBC Private Bank, this includes 55%6 of first-generation business owners and 35%7 from multi-generational families.
That’s why wealth transfer today begins with thoughtful dialogue, which is early, open, and inclusive. It might start over coffee with simple questions:
- “What does wealth mean to you?”
- “If you had access to our resources, how would you use them?”
The aim isn’t just to hand over control. It’s to help young family members understand the ‘why’ behind the wealth – the discipline, the decision-making, the long-term thinking that got it there in the first place. When families foster this culture of curiosity and open dialogue, they build the underlying trust that sustains wealth beyond rupees.
Custom Wealth Strategies for Each Successor
Affluent families today invest across a far wider spectrum than just mutual funds or fixed deposits. Their portfolios are often multi-layered, including real estate, global equities, sovereign debt, hedge funds, private equity, and even strategic gold holdings.
Increasingly, they’re using professionalised vehicles like Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs) to bring structure, strategy, and scale to their investments. These platforms offer curated access to high-conviction themes, from long-short equity strategies to venture capital, structured credit, and pre-IPO opportunities.
What’s changing is not just what they invest in, but how they prepare the next generation to understand, manage, and evolve these portfolios. Many families now document investment rationale, market views, and exit plans, giving heirs not just visibility but tools to simulate rebalancing and liquidity scenarios. They don’t just inherit assets; they inherit a framework for making informed decisions.
This approach is reflected in the growing influence of family offices in India. Many of them now involve heirs and next-gen leaders as part of investment committees or impact portfolios.
This trend underscores a truth that families are fast recognising: succession isn’t just about distributing wealth, it’s about distributing wisdom, and allowing the next generation to reinterpret it with purpose and accountability.
Learning Through Doing
Many families are realising that financial education without a real-life context can only go so far. That’s why they’re increasingly involving their children in economic decision-making, not as a formality, but as a meaningful form of participation.
For example:
- Mock investment portfolios with real advisors give heirs real stakes in performance.
- Inviting them to pitch investment ideas or attend board meetings encourages responsibility in a managed context.
- Letting younger stakeholders contribute to strategy meetings, rather than just listening, reinforces stewardship, not entitlement.
This hands-on immersion builds not just financial competence, but foundational confidence within a controlled, low-risk environment for starters.
Tailoring Financial Education
Each generation learns differently. And so does each individual.
Millennials may appreciate structured planning, detailed reporting, and discussions about long-term investment strategies. They often balance personal goals, such as homeownership, children’s education, or entrepreneurship, alongside family wealth planning. They may also already be working with their financial advisors.
For Gen Z, the engagement needs to feel more relevant and hands-on. Many in this group are digital natives who prefer apps over spreadsheets and value experiences over formalities.
They might respond better to
- Gamified financial tools
- Podcasts or digital content on wealth management
- ESG or purpose-led investment options
- Entrepreneurial funds or passion project grants within the family structure
Consider custom learning frameworks, mix podcasts with interactive dashboards, introduce ESG pilot funds, or launch entrepreneurial grants. Make finance exciting, not dry.
Neutral Mentors and External Advisory
Sometimes, the most effective teachers aren’t parents, and that’s okay. Many affluent families are turning to qualified mentors, wealth managers, and estate advisors who offer neutral guidance for heirs.
Furthermore, future heirs benefit from structured learning programs, covering tax strategies, investment roles, or digital tools which provide safe, professional channels for questions.
These sessions build competence, independence, and trust, reducing familial friction. Because neutrality often builds clarity, enabling heirs to step in with confidence. It’s also a way to separate emotion from education and to foster independent thinking.
Real-World Accounts with Real-World Responsibility
One practical step many families are taking is to open wealth management accounts for their children as they reach adulthood, not just for access, but for experience. This step is more than symbolic; it’s empowering.
Financial institutions like HSBC India offer diverse solutions for young investors, including easy access to a wide selection of mutual funds, online dashboards to track investments in real time, and more.
These accounts are more than tools. They’re stepping stones that teach discipline, transparency, and accountability. It’s an opportunity for heirs to experience financial reality and judgment, rather than just see capital passively.
Legacy Is More Than Money
This reimagined approach to generational wealth isn’t transactional; it’s transformational. It shifts focus from assets to agency, from inheritance to intention. It prepares heirs not only for legacy, but for leadership.
Families that invest in open conversation, experiential learning, tailored engagement, and structured frameworks stand the best chance of banking not just their wealth, but their values across generations.
For those ready to pioneer this shift, high-calibre platforms are available with global investment choices to ensure your wealth and values remain intact.
This article is brought to you by The Hongkong and Shanghai Banking Corporation Limited, India (HSBC India). All information provided is for informational purposes only and is not intended to be construed as advice or an offer for any product or service. HSBC India is not liable for any informational errors, incompleteness, delays, or for any actions taken in reliance on information contained herein. All products are subject to suitability and availability.
HSBC India is an AMFI-registered Mutual Fund Distributor of select mutual funds and a referrer of other 3rd party investment products.
