How Indian wealth managers are overtaking banks in cross-border planning for Ultra HNIs

For India’s ultra-high-net-worth individuals (UHNWIs), wealth creation is no longer the challenge. However, the real question is: how do you preserve and grow capital across generations without taking significant risk?

And that’s why families are looking at global diversification to diversify their returns, reduce geopolitical risks, and hedge currency risks.

In the past few years, we have witnessed many families seeking to diversify their portfolios into international markets, as they present numerous opportunities, such as investing in artificial intelligence, semiconductor innovation, global infrastructure, or private equity and venture capital deals not available locally.

And executing these varied needs of families might not be easy for traditional banks. This is where Indian wealth managers with experience in managing the needs of wealthy families come into the picture.

Why global access needs more than a bank

Global banks may offer prestige and reach, but for UHNW investors, that’s not enough. 

Typically, banks tend to be driven by products. At the same time, wealth managers take a 360-degree view of their clients’ needs and requirements, including building intergenerational legacies, setting up global trusts, investing in second residences, and accessing alternative investment options. 

Families need customised, jurisdiction-sensitive strategies. Banks, on the other hand, often offer templated products or generic services that may fail to address their specific needs. 

Moving beyond the LRS constraints

Most individual investors use the Reserve Bank of India’s Liberalised Remittance Scheme (LRS) to send up to $250,000 abroad annually. However, this route can be both limiting and inefficient, especially after the 20% TCS was imposed on LRS-based investments exceeding Rs 10 lakh. Though refundable, this tax creates friction, especially for larger allocations.

Rather than relying solely on LRS, wealth managers are now guiding clients in setting up family investment vehicles in compliant offshore jurisdictions, exploring GIFT City-based entities, or using multi-generational structures that integrate legal, tax, and legacy planning.

The shift to integrated global planning

Ultra-HNIs today don’t just want market access; they want end-to-end clarity. That includes:

• Currency risk management through multi-denomination portfolios
• Estate planning across borders, especially where children or assets are in multiple countries
• Succession strategies that ensure seamless wealth transfer with minimal tax leakage
• Consolidated reporting and compliance aligned with Indian and international regulatory norms
• Access to alternatives like private equity, VC, hedge funds, and global real assets through institutional platforms

Banks often struggle to deliver this level of integration. Wealth managers have teams of experts with expertise in various areas, such as lawyers and tax experts with domain knowledge of different jurisdictions, providing a seamless experience without the need to meet and consult with multiple experts.  

Cost and control

Another key reason why families are seeking more than standard bank offerings is the need for cost transparency and decision control. Global investment products from banks can often be layered with hidden fees or markups that are not shared with clients.

Independent advisors, on the other hand, are transparent about their pricing and performance as they generally sit on the client’s side of the table.  

Citizenship and residency

For ultra-wealthy families, purchasing overseas property is increasingly about more than just diversification and risk mitigation; it is about flexibility. Citizenship-by-investment or golden visa programmes in countries such as the US, Portugal, the UAE, or Caribbean states offer legal flexibility and mobility.

Wealth managers can help their clients invest in real estate or make the necessary investments while retaining Indian citizenship and having multiple residency options. This layer of planning is often missing from traditional bank offerings.

Global, but rooted in India

What makes local advisors particularly valuable is their understanding of Indian tax law, FEMA guidelines, and domestic family dynamics. For example, while a bank’s RM might offer an offshore fund, the advisor can evaluate whether that investment vehicle fits into your family trust structure, or if investing through GIFT City funds makes more sense. It is because they have a better understanding of the overall financial scenario and needs of the family.  

They can also help you to reduce TCS exposure, manage double taxation risks, and coordinate with domestic CA and legal teams. 

Conclusion

For India’s ultra-rich, global investments are more than returns; it is about control, continuity, and cross-border clarity. Building a global portfolio isn’t just about investing in international stocks. It’s about aligning every financial decision with the family’s long-term goals, whether it’s legacy, migration, philanthropy, or the institutionalisation of wealth. 

And this is what your wealth manager can do much more effectively than your banker.  

Mukesh Jindal is the CEO of Alpha Capital