Managing a portfolio worth ₹21 crore may sound like an exclusive privilege, but the principles behind it apply to investors at every level. Whether you’re starting with ₹1 lakh or aiming for seven figures, understanding how high‑net‑worth individuals (HNIs) structure and manage their wealth can offer valuable lessons. In this blog, I’ll walk you through my own ₹21 crore portfolio—how it’s allocated, why I chose each asset class, and the key strategies I use to protect and grow my wealth.
Overview of My ₹21 Crore Portfolio
To begin, here’s a snapshot of how I’ve spread my ₹21 crore across different asset classes:
- Equities (Public & Private): 50% (₹10.5 Cr)
- Real Estate: 18% (₹3.78 Cr)
- Debt & Fixed Income: 12% (₹2.52 Cr)
- Alternative Investments (AIFs, PE, Hedge Funds): 10% (₹2.1 Cr)
- Gold & Commodities: 5% (₹1.05 Cr)
- Cash & Cash Equivalents: 5% (₹1.05 Cr)
This mix balances growth potential with stability, and reflects current trends among HNIs in India. In 2025, the average HNI allocation was roughly 47% in public equities, 15% in private companies, 17% in real estate, 8% in alternatives, 8% in cash and bonds, and 5% in other products. My portfolio aligns closely with these benchmarks while being tweaked for my risk appetite and goals.
Why This Allocation? The Guiding Principles
- Diversification: Spreading capital across uncorrelated assets reduces overall risk. Equities and private investments offer growth, while debt and real estate provide stability and income. Alternative assets add another layer of diversification.
- Long‑Term Growth vs. Safety: Half of my portfolio targets high‑growth opportunities (equities and private deals), balanced by safer assets like debt, cash, and gold.
- Inflation Protection: Real estate and commodities act as natural hedges against inflation, preserving purchasing power.
- Liquidity Needs: Keeping 5% in cash ensures I can seize opportunities quickly or manage emergencies without forced selling of other assets.
Equity Strategy: Riding the Growth Wave
Public Equities (35% of Total)
- Large‑Caps (20%): Stable companies with strong balance sheets. Examples include HDFC Bank, Reliance Industries, and TCS. These stocks form the backbone for steady growth and dividends.
- Mid & Small Caps (10%): Companies with higher growth potential but greater volatility. I focus on sectors poised to benefit from long‑term themes—technology, renewable energy, and consumer goods.
- Sectoral Bets (5%): Targeted allocations in high‑momentum areas, such as electric vehicles (EVs) and fintech startups listed on public markets.
Why this mix? HNIs often allocate around 39% of their wealth to equities as their top choice, balancing between stability and growth. By diversifying within equities—across large, mid, and niche sectors—I aim to capture broad market upside while managing risk.
Private Equity & Pre‑IPO Deals (15% of Total)
- Venture Capital Funds (8%): Through established VC firms, I invest in early‑stage startups with disruptive business models.
- Pre‑IPO Shares (7%): Shares of companies gearing up to list. They offer the potential for significant gains at IPO, though they carry higher risk.
Private investments can yield double‑digit annual returns but lock up capital for 5–7 years. I keep this allocation moderate to maintain liquidity elsewhere.
Debt & Fixed Income: The Stability Anchor (12%)
Debt instruments deliver predictable returns and reduce portfolio volatility. My debt allocation includes:
- High‑Quality Corporate Bonds (5%): AAA/AA‑rated bonds yielding 7–8% annually.
- Government Bonds & G‑Sec Funds (3%): Sovereign security with minimal credit risk.
- Debt Mutual Funds (4%): Short‑to‑medium duration funds for slightly higher yields and professional management.
In HNI portfolios, debt typically makes up around 20% of assets, offering income and a buffer when equities dip. My slightly lower allocation reflects a willing tolerance for equity swings, balanced by other safe assets.
Real Estate: Tangible Assets & Inflation Hedge (18%)
Real estate remains a favourite for HNIs—over 50% allocate more than 20% of their wealth to property excluding primary residence. My ₹3.78 crore real estate allocation splits into:
- Residential Rental Properties (10%): Multi‑unit apartments in growth corridors of tier‑1 cities. These generate steady monthly rental income (~3–4% yield) and appreciate over time.
- Commercial Spaces (5%): Small office units in commercial districts, offering higher yields (~6–7%) and long leases.
- Land Bank (3%): Undeveloped plots in emerging suburbs, held as a long‑term play on urban expansion.
Why real estate? It offers rental income, capital appreciation, and inflation protection. But it’s illiquid—so I keep this allocation under 20% to retain portfolio flexibility.
Alternative Investments: The X‑Factor (10%)
Alternative investments—such as Alternative Investment Funds (AIFs), hedge funds, and structured products—allow access to asset classes not available in public markets. They can boost returns and further diversify risk.
- Category I & II AIFs (6%): These include credit funds and long‑only equity funds. AIF commitments in India reached ₹13.5 lakh crore by March 2025, highlighting their growing popularity among HNIs .
- Hedge Funds & Arbitrage Strategies (2%): Targeted strategies that profit in both rising and falling markets, aiming for 8–10% annual returns with low correlation to markets.
- Commodities & Structured Products (2%): Gold ETFs and structured notes offering principal protection with equity‑linked returns.
Alternatives typically comprise around 8% of HNI portfolios, but I lean slightly higher to tap into specialized opportunities.
Gold & Commodities: Traditional Safety Net (5%)
Gold has long been a part of Indian portfolios as a store of value and hedge. My allocation:
- Physical Gold & Sovereign Gold Bonds (3%): SGBs provide interest and no storage hassle.
- Gold ETFs (2%): For easy trading and liquidity.
HNIs often keep 10–12% in precious metals; I prefer a leaner position (5%) given the broader diversification elsewhere. This keeps inflation protection without overweighting a single commodity.
Cash & Cash Equivalents: Ready for Opportunity (5%)
Holding 5% (₹1.05 Cr) in cash or equivalents (liquid funds, overnight deposits) serves two key purposes:
- Emergency Fund: Covers unexpected expenses without touching long‑term investments.
- Opportunity Fund: Enables quick capital deployment when attractive deals or market dips arise.
Keeping liquidity even in a large portfolio ensures you’re not forced into unwanted selling during market stress.
Rebalancing & Risk Management
A ₹21 crore portfolio demands ongoing oversight:
- Quarterly Reviews: I check asset weights every three months. If equities surge and push allocation above 55%, I trim gains and redeploy into debt or alternatives. Conversely, if equities lag under 45%, I add fresh capital or reallocate from other classes.
- Risk Limits: Each asset class has a maximum cap (e.g., equities 60%, real estate 20%) to prevent concentration risk.
- Scenario Planning: Stress tests for extreme market scenarios (−20% equity crash, interest rate spikes) help assess potential drawdowns and guide hedge strategies (like options or defensive funds).
Regular rebalancing locks in gains and enforces discipline, preventing emotional, ill‑timed moves.
Tax Efficiency & Estate Planning
Large portfolios can trigger significant taxes:
- Long‑Term Capital Gains (LTCG): Equity gains above ₹1 lakh taxed at 10%. I hold stocks for over a year to qualify.
- Debt Fund Gains: These incur 20% with indexation benefits for holdings over three years.
- Real Estate Gains: Property sold after two years attracts lower rates with indexation.
I also use tax‑efficient structures:
- Family Trust: Shifts income to lower‑tax bracket family members.
- Charitable Trust Deductions: Donating capital gains to registered charities reduces taxable income.
Consulting a chartered accountant ensures compliance and optimization.
Lessons Learned & Mistakes to Avoid
- Overconcentration: Earlier, I had 30% in one sector—IT services. A downturn wiped out gains until I diversified.
- Chasing High Returns: A debt fund promising 12% looked attractive, but it turned out to be an illiquid credit product with hidden risks. I revert to high‑quality, transparent instruments now.
- Ignoring Costs: High management fees on some private funds ate into net returns. I benchmark fees against performance and negotiate waivers whenever possible.
Every misstep teaches a lesson—document yours and adjust your strategy.
Actionable Steps for Your Portfolio
- Assess Your Risk Appetite: Use online questionnaires or advisor consultations to gauge your comfort with volatility.
- Set Target Allocations: Base them on your age, goals (retirement, children’s education), and time horizon.
- Automate Investment Plans: SIPs for mutual funds and direct debits for debt instruments enforce discipline.
- Review Quarterly: Schedule a calendar invite—no excuses.
- Build an Emergency Fund: Aim for 6–12 months of expenses before allocating heavily to illiquid assets.
- Monitor Costs & Taxes: Annual review with your CA to optimize structures and avoid surprises.
Conclusion
A ₹21 crore portfolio isn’t about having more money—it’s about using proven strategies: diversification, disciplined rebalancing, tax efficiency, and risk management. Whether you’re starting small or already well on your way, these principles apply. Take inspiration from HNI benchmarks—like the average 47% equity, 17% real estate, and 8% alternatives allocation—but customize for your goals and constraints. Start building your strategic roadmap today, and watch your wealth work smarter for you.
Source : thepumumedia.com