About 28% global family offices to increase India exposure: UBS Report

India stands out prominently as the most favored emerging market, with over a quarter of family offices looking to increase exposure, especially from the Middle East. 

As family offices reassess strategies amidst geopolitical and economic shifts, India’s financial services, technology innovation, and broader Asia-Pacific role position it as a vital investment destination in the years ahead.

India Tops Emerging Market Allocations

Among the top findings, India has emerged as the brightest spot in emerging markets. Twenty-eight per cent of global family offices plan to increase exposure to India over the next 12 months, the highest among all emerging markets. 

Middle Eastern family offices are particularly bullish, with 43 per cent looking to increase allocations. In contrast, only 18 per cent plan to raise exposure to Mainland China. As one senior advisor from a Singapore-based family office put it, “We see compelling opportunities in markets with more attractive valuations, such as India and Southeast Asia.”

Shift Toward Developed Market Equities & Private Debt

While allocations to developed market equities climbed to 26 per cent in 2024, up from 24 per cent in 2023, family offices are also eyeing private debt more aggressively. 

Allocations to private debt doubled from 2 per cent to 4 per cent year-on-year, and many plan to increase this to 5 per cent in 2025. A European CIO noted, “Private debt is fashionable, and everyone wants a piece of it to chase yield and lock in higher fixed returns.”

Trade Wars Top the Risk Charts

The top investment risk for 2025 is a potential global trade war, flagged by 70 per cent of family offices. Over the next five years, concerns shift toward major geopolitical conflict (61 per cent), a global recession (53 per cent), and a debt crisis (50 per cent). 

In response, many family offices are leaning on active management, hedge funds, and precious metals to diversify portfolios and hedge risks.

AI, Healthcare & Electrification Lead Tech Bets

Family offices are also increasingly turning to technology themes. Healthcare, electrification, and AI emerged as the top focus areas. More than 35 per cent of family offices say they have a clear investment strategy for healthcare and medicine, while 29 per cent say the same for electrification. 

Generative AI is gaining traction, especially in sectors like banking, financial services, and pharmaceuticals, where family offices see the highest potential impact.

Asia-Pacific, Including India, Is a Future Growth Hub

Looking ahead, Asia-Pacific (excluding Greater China) is the region where most family offices plan to raise investments over the next five years, with 35 per cent expressing intent to do so. 

This is higher than North America at 32 per cent and Greater China at 19 per cent, signaling a strong long-term capital shift toward India and the broader Southeast Asian region.