There is a quiet shift happening—not in the streets, but in bank accounts and family WhatsApp groups. Across the globe, and now in India, a massive transfer of wealth is underway. It’s being called the “Great Wealth Transfer,” and it’s all about trillions of dollars moving from one generation to the next.

Research by Cerulli Associates puts the global number at $84 trillion by 2045. Others, like Forbes and RBC, say it could be over $124 trillion by 2048—with most of it going directly to heirs.

We don’t have exact figures yet, but one thing is clear: this isn’t a small change. In India, experts believe anywhere between $1.5 to $2.5 trillion will pass from older generations to Millennials and Gen Z over the next 15 years. That’s not just money changing hands—it’s a new era of financial thinking, values, and choices.

Gen Z: The New face of finance

India’s GenZ is now more than 27% of the country’s population. They are technology-lovers and economically aware. According to BCG India’s 2024 report, they already influence more than ₹70 lakh crore in spending—nearly 43% of all household consumption. By 2035, their spending power is expected to reach $ 2 trillion, with direct GenZ discretionary expenses expected to touch $ 1.8 trillion.

The rise of young, self-directed investors is re-shaping India’s investment scenario. Platforms such as Zerodha reports that 15% of their user base are under 25 years of age – a clear indication of GenZ’s growing interest in financial markets. These young investors are not  looking for suit-and-tie advisors. They prefer finance explainers on YouTube, clean app interfaces, and figuring things out on their own. Zerodha saw this coming and waived account-opening fees for users under 25. Smart move, making the next generation more powerful to take charge of their financial future.

Changing Investment Habits

GenZ is not just inheriting wealth—they’re redefining how it’s invested. Here’s how:

1.More Market-Linked Investments: The Association of Mutual Funds in India (AMFI) reported that SIP contributions hit a record of INR 26,688 crore in May 2025, and over 59 lakh new SIP accounts were opened in the month alone. 

While older generations liked fixed deposits and gold, Gen Z prefers mutual funds, ETFs, REITs, and even global stocks. According to a 2024 FinOne-Nielsen survey, 39% of Gen Z and millennials now invest in mutual funds, compared to just 11% a decade ago.

2.Values-Driven Investing: This generation wants their investments to reflect their beliefs. They are choosing themes like climate change, gender equality, and renewable energy. A 2023 Morgan Stanley survey found that 80% of Gen Z investors care about ESG (Environmental, Social, and Governance) factors. In India, too, ESG funds and global theme-based ETFs are gaining popularity.

3.Growing Interest Beyond Metro Cities: From April to August 2024, more than 2.3 crore new mutual fund accounts were added. Over 50% came from cities outside India’s top 30 metros. But these areas still represent only 19% of the total assets under management, showing huge untapped potential, mostly driven by young, digital-savvy investors.

The Role of Digital Tools & Fintech

In today’s digital-first world, Gen Z is turning to apps, influential people and fintech platforms to manage their money-sidestepping traditional financial advisors. A 2023 Bain report found that more than 75% of young Indian investors rely on mobile apps than advisory firms.

Key tools helping this shift: 

• Goal-based planning apps
• AI tools for risk analysis
• Micro-investing (start with INR 100)
• Robo-advisors for easy planning

While these tools make investing easier, they also bring challenges like misinformation. This is where wealth management firms must step up; offering clear, ethical, and balanced advice.

What India’s Financial Firms Should Do

This change is a big opportunity, but only for those who adapt. Here’s what firms need to do:

• Make onboarding and advice fully digital
• Offer hybrid advice: technology + human touch
• Design new products: ESG, theme-based, and fractional investments
• Create mobile-first education content
• Build trust through simplicity and honesty
• Firms that fail to speak Gen Z’s language risk being left behind.

 Conclusion: A New Age of Money

The Great wealth transfer is not only a case of heritage – it is a reinforcement of financial preferences, equipment and responsibilities. GenZ does not have material with capital – they want clarity, control and discretion. They give importance to development, but not at the cost of the planet or purpose. They give importance to advice, but demand authenticity and access.

For India’s financial ecosystem, this is not just a demographic tendency – it is a cultural development. And as in the coming decade shakes trillions, people who empower GenZ to invest with confidence, purpose and personalization, they will emerge as true stewards of the new money era.

Authored Article by Ajay Kumar Yadav, CFPCM, CEO and CIO of Wise Finserv

Disclaimer: The views expressed in this article are solely those of the author and do not necessarily reflect the opinions or policies of ObserveNow Media. The author is solely responsible for ensuring the accuracy, completeness, and validity of the information presented, encouraging readers to independently verify and seek professional advice if needed.