Where are the wealthy investing their money?

The global ultra high-net-worth individuals (UHNWI) population has increased, according to Knight Frank’s latest Wealth Report, but they aren’t immune from market volatility.

The estate agency and consultancy brand’s research shows the number of UHNWIs - those worth more than $30million, has increased from 551,435 to 713,626 between 2021 and 2026

India’s wealth base is expanding rapidly, recording 63% UHNWI growth, with a further 27% expansion forecast by 2031.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

In contrast, the number of UK UHNWIs is up just 11% between 2021 and 2026 – with the low levels blamed on rising taxes – while the US has recorded a 36.3% boost to 251,352.

The global billionaire population reached 3,110 in 2026, Knight Frank said, with Asia-Pacific home to the largest share.

The UHNWI cohort can afford to back more luxurious investments such as collectibles including art, cars and whisky. But the Knight Frank Luxury Investment Index (KFLII) – which tracks the value of luxury investments – closed 2025 down 0.4%.

While values remained under pressure, the pace of annual decline slowed from a 5.3% decline the first quarter to a 0.4% drop by the final three months of the year.

The longer-term picture is more positive, with the KFLII up 38.6% over the past decade.

It comes as HNWIs are becoming more selective and discerning about luxury investments, rather than focusing on the traditional classic cars and fine wine.

Where are the wealthy investing?

The luxury investment that saw the biggest rise in value last year was impressionist art, up 13.6%.

Knight Frank said this was driven by major single-owner sales and standout results including Gustav Klimt’s Portrait of Elisabeth Lederer, which sold for $236.4 million – the highest-ever price for a modern artwork sold at auction.

Post war and modern art values are also up 5.1% and 7.1% respectively.

Meanwhile, luxury watch values rose 5.1%, led by strong demand for Patek Philippe’s Aquanaut and Nautilus models and continued resilience from Rolex.

Not all luxuries had a good year though.

Classic car values fell 3.7% blamed on “tariff uncertainty,” Knight Frank said, while whisky fell 10.9%.

Interest in fractional ownership is also growing, the report reveals, as younger wealthy people seek partial ownership of luxury products.

For example, in 2025, a rare 66 million-year-old Edmontosaurus skull delivered a 22.4% return in just eight and a half months’ holding time on online trading platform Timeless Investments. The Berlin-based start-up sells fractions from as little as US$60 each in collectibles ranging from cars to wine to trainers.

Liam Bailey, global head of research at Knight Frank, said: “After a cycle defined by extraordinary highs followed by rapid readjustment, the luxury investment market is now entering a more rational and more discerning phase.

“Collectors are increasingly prioritising rarity, provenance and cultural resonance – and younger generations are reshaping ownership models through digital and fractional platforms.”

Luxury property is also performing well, in contrast to slower house price growth in the mainstream residential property markets.

Global luxury house prices rose 3.2% last year, the report said, led by Tokyo (+58.5%) and Dubai (+25.1%). This was helped by the global scarcity of ready-made homes, which is driving premiums.

The Middle East was the best-performing region, with prices up 9.4%, while values in Europe rose 3.3%.

Luxury property in North America saw a 0.9%, driven by price falls in Canada. Meanwhile, London luxury property prices are down 4.7%.

Future hotspots include Mumbai, Brisbane, Miami and Hong Kong, the report said.

Bailey added: “In many markets, prime residential property has pulled away from the broader housing sector, underpinned by the strength of wealth creation. While mainstream markets remain exposed to wider economic pressures, the pace at which wealth is being generated is helping to keep demand for luxury property more resilient, even against recent volatility in debt costs.

“UHNWIs are increasingly organising their lives across multiple jurisdictions, with family offices actively managing tax, lifestyle and political risk. As a result, established hubs such as London are shifting towards a ‘dip-in, dip-out’ model: places to spend time for business, culture and connectivity rather than permanent residence.”

Investments for the wealthy

Here are some of the best investments that are worth wealthier individuals considering:

Venture Capital Trusts

Venture capital trusts (VCTs) are a form of investment trust and a popular investment among wealthier individuals, largely because they tap into otherwise inaccessible assets and carry significant tax benefits.

Specifically, they offer 20% income tax relief on purchases of new VCT shares, as long as these are held for five years, on up to £200,000 every year. Investing the maximum amount would allow you to deduce £60,000 from your income tax calculation.

VCT shares also qualify for tax-free dividends, and any sold at a profit won’t incur capital gains tax (CGT).

They can typically only invest in companies worth less than £15 million, so these are generally a risky investment that is best approached with a long term perspective in mind.

EIS

Besides VCTs, another government scheme to encourage investment into smaller businesses is the Enterprise Investment Scheme (EIS).

The EIS is similar to VCTs in that investments are CGT-exempt and dividends do not incur tax. Shares purchased through the EIS also incur 30% income tax relief, though they only have to be held for three years rather than five for this to apply.

Shares bought through an EIS are held by you directly, though, rather than via an investment trust. As such, they aren’t as liquid; you’ll only be able to sell shares when any given company reaches a liquidity event, such as a sale or an IPO.

EIS portfolios are typically fairly small, around 10 companies, and managed on your behalf by a specialist.

Gold bullion

Physical gold in the form of bullion is one of the oldest means of storing and, indeed, expressing wealth in history. Buying gold bullion through a broker or a registered custodian is one way of crystallising wealth into physical form.

Gold prices typically rise during periods of uncertainty. However, bear in mind that gold prices can be volatile; while gold has been on a strong run of late, it frequently changes course, and the fact that it pays no income means you could be left with little to show for your investment besides a shiny gold bar.