Stories
Booming Trend of Family Offices in India: Who Needs One and How to Save Money Without It
- •The number of family offices in India has surged dramatically from 45 in 2018 to 300 in 2024, driven by business sales and inherited wealth.
- •A family office is a private setup that manages wealth, minimizes risks, handles taxes, and plans future asset division.
- •Families with assets between 5 crore and 50 crore rupees may find independent family offices too costly, making multi-family offices a viable alternative.
- •Smaller investors can save lakhs of rupees by adopting family office practices such as setting investment rules, monitoring expenses, and organizing tax documents.
Key Questions Answered
A family office is a private setup that manages a wealthy family's wealth and investments, minimizing risks, monitoring taxes, and planning future asset division. According to a study by Iconic Wealth, the number of family offices in India surged from 45 in 2018 to 300 by 2024.
Setting up an independent family office involves high expenses on staff and experts, making it prohibitive for smaller assets. Instead, families with assets between ₹5 crore and ₹50 crore can consider a multi-family office, where multiple families share professional services and costs through a single setup.
Smaller investors can adopt family office practices by establishing investment rules based on risk appetite and goals, and monitoring expenses using low-cost index funds. They should also organize tax documents, maintain a secure digital record of all investments, and periodically review total assets to avoid cash crunches.
