High interest rates, a strong dollar and stretched valuations amid economic uncertainties are prompting Indian family offices to diversify their investments beyond the US.

Amit Jain, co-founder of Ashika Global Family Office Services, said that besides India, GCC (Gulf Cooperation Council) countries, China, Vietnam, the Philippines, and Europe are among some of the countries on the investment radar of family offices, which are essentially wealth management providers for high-net-worth families.

These markets are offering opportunities across private equity, venture capital, infrastructure and public markets, Jain told The Telegraph.

“Despite moderating inflation, US interest rates remain high (4-5 per cent in early 2025), increasing borrowing costs but making fixed income assets more attractive. A strong dollar further raises the entry cost for Indian investors,” he said.

The Nasdaq 100 index, with a 12-month trailing price-to-earnings ratio of 29.27, has been on a declining trend since January, falling by over 8 per cent as of March 28, 2025. The yield on 10-year treasury bonds, meanwhile, has increased from 3.7 per cent as of September 8, 2024, to 4.25 per cent at present.

“Nearly 45 per cent of the companies in the Russell 2000 index continue to remain unprofitable, carrying an outstanding debt burden of $832 billion, and the market cap to GDP ratio has soared 203 per cent, raising concerns about overvaluation and potential corrections. In real estate, commercial mortgage delinquency rates have climbed to 5.15 per cent, making selectivity crucial for investors,” said Jain.

While India’s relative price-to-earnings ratio remains higher than that of its global peers, Jain said that the Indian economy has delivered consistent growth. “The sustained economic momentum supports India’s valuation premium and presents a compelling long-term investment opportunity, even after recent market corrections,” Jain said.

“China’s PE ratios have compressed significantly due to weak investor sentiments and policy shifts, making selective investments in sectors such as advanced manufacturing, AI and technology potentially attractive for long-term investors. However, geopolitical risks and capital controls require careful navigation,” he said.

Growing assets

The number of family offices in India has grown over the recent years, with an estimated 300 family offices managing around $30 billion in assets under management in 2024. Back in 2018, the number was around 45.

“This growth highlights a rising trend in India towards specialised wealth management, driven by rising wealth among high-net-worth individuals and families,” Jain said.

Gold strategy

Jain said that market uncertainties have resulted in a shift in asset allocation in favour of gold through a combination of physical holdings, ETFs or mining stocks.

“Gold has gained prominence as a strategic asset, particularly considering persistent inflation, geopolitical tensions and central bank policies. For family offices, gold’s role has evolved beyond a traditional safe haven. It is now being seen as an integral part of a diversified portfolio, complementing equity and fixed income holdings while providing downside protection during market volatility,” Jain said.