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Budget 2026: Vikas Satija, MD and CEO of Shriram Wealth, expects the Union Budget 2026 to focus on growth. He believes the gross central fiscal deficit is likely to be set at around 4.2-4.3% of the GDP for FY27. In an interview with Mint, he said he expects measures that support infrastructure, manufacturing, exports, or employment growth. Meanwhile, he also pointed out that HNIs are not making changes to their portfolio in anticipation of any specific Budget announcements. Edited excerpts:

When we look at this fiscal year, the government’s focus on capital expenditure, especially in roads and railways, really stands out.

We expect the pace of fiscal consolidation in FY27 to be limited, with the gross central fiscal deficit likely to be set at around 4.2-4.3% of GDP.

We expect measures that support growth in sectors related to infrastructure, manufacturing, exports, or employment, along with stable policies related to direct tax.

We are not seeing HNIs making changes to their portfolio in anticipation of any specific Budget announcements.

Over the years, investors have been more focused on constructing portfolios to suit their financial goals.

High‑net‑worth individuals are increasingly thinking beyond traditional savings and looking for strategic diversification across asset classes.

We are seeing growing interest in alternative investments such as private credit, unlisted equity, AIFs, and international exposures through regulated hubs like GIFT City as HNIs seek better risk‑adjusted returns and global diversification.

There could be some tactical allocation to sectors which are key focus areas for the country.

Investors have evolved over the years and are evaluating every opportunity from the perspective of risk and returns.

Any investment where the post-tax returns are not commensurate with the underlying risks will not be included in the portfolio.

Global emerging markets have been attractive and have given great returns last year.

In CY25, returns from Emerging markets (MSCI EM index) were nearly 4.3 times returns from Nifty 500 (33.57% versus 7.76%).

However, most HNIs have missed this investment and hence have not been able to benefit from it.

High-net-worth individuals are increasing their allocations to real estate through AIFs or directly, driven by their need for larger, more luxurious homes.

Also, HNIs are showing greater interest in allocations to REITs and InvITs, which generate regular income over long time periods and have potential for capital appreciation in a tax-efficient manner.

These investments are typically not visible in the equity indices.

Yes, emerging technologies, particularly artificial intelligence and space tech, are attracting substantial investor interest and are likely to remain a focus for wealthy investors over the next few years.

Funding into AI startups has accelerated sharply, with deal activity and capital flows into areas like generative AI and enterprise AI increasing significantly in 2025 compared with prior years, reflecting confidence in both innovation and long-term value creation.

Beyond domestic tech, HNIs are also tapping global opportunities in AI and related deep tech as they seek diversified exposure across high-growth sectors.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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