ET Wealth Expo 2026 | From HNIs to family offices, why 2026 is teaching investors the importance of de-risking: Dheeraj Gaur

As market volatility tests portfolios, investors across the wealth spectrum—from HNIs to family offices—are increasingly focusing on diversification, liquidity and asset allocation to protect the wealth they have already created.

Making wealth and preserving it require two very different approaches, according to Dheeraj Gaur, Chief Investment Strategy Officer at Choice Wealth.

Speaking on the sidelines of ET Wealth Expo 2026 in Mumbai, Gaur said the experience of 2026 has reinforced the importance of de-risking portfolios, particularly for high-net-worth investors and family offices that have built significant investable wealth over the years.


“Portfolio growth versus preservation—they are two very different engines,” Gaur said during the panel, ‘Making Wealth Is Easy. Keeping It Is Hard’.

While building wealth requires conviction, patience and the ability to ride through market volatility, preserving it requires investors to think differently about risk, diversification and the amount they can afford to lose.

Diversification is more than owning multiple funds

One of the biggest mistakes investors make is confusing multiple investments with genuine diversification, Gaur said.

An investor may own five different largecap mutual funds and believe the portfolio is diversified. However, significant overlap in holdings could mean that the investor is effectively exposed to the same set of stocks and risks.

The same applies to portfolios spread across multiple categories or products without examining the underlying exposures.

“Putting all your eggs” across different funds does not necessarily protect a portfolio if the investments are highly correlated, he said, underlining the need to diversify across asset classes, return streams and, where appropriate, geographies.

For investors who have already accumulated substantial wealth, the focus should shift from simply maximising returns to ensuring that the portfolio can withstand unexpected shocks.

Why liquidity is becoming a key part of wealth preservation

For Gaur, one of the most important lessons from volatile markets is the need to maintain adequate liquidity.

A portfolio can suffer when an investor is forced to sell public market investments during a downturn to meet other financial commitments. If markets are down significantly, such sales can crystallise losses and deny the portfolio the time it needs to recover.

This becomes particularly relevant for entrepreneurs and business owners, whose operating businesses and investment portfolios could face pressure at the same time.

“Liquidity is the biggest diversification that one can have and should have in the portfolio,” Gaur said.

However, maintaining liquidity does not mean putting an entire portfolio into liquid or overnight funds. Instead, investors need to construct portfolios with layers that can absorb shocks and help them meet financial commitments without having to exit long-term investments at an unfavourable time.

Read more: ET Wealth Expo| Wealth creation is exciting; wealth preservation can be boring—but it works, says Manish Kathuria of Kotak Neo

A core growth engine is still essential

De-risking, however, does not mean abandoning growth.

Gaur said every portfolio needs a solid growth engine to beat inflation and taxes over the long term. The size of this allocation can vary depending on an investor's age, risk profile, financial requirements and dependants.

The core portfolio, he suggested, should remain diversified, cost-efficient and growth-oriented. Around this core, investors can build other layers, including fixed income and global investments.

Interest in fixed-income products such as bonds and NCDs has increased as investors look for ways to diversify their return streams amid volatile equity markets.

Global diversification is also becoming more relevant, particularly for investors with children studying overseas or expenses in foreign currencies. Having some investments or income streams linked to those currencies can help manage financial risks arising from currency movements.

HNIs are adopting a more retail-like investing mindset

The change in approach is also visible among wealthy investors.

Gaur said HNIs and ultra-HNIs, who may earlier have resisted investment strategies such as SIPs and STPs, are increasingly adopting systematic approaches to investing.

The continued flow of money through SIPs, despite market volatility, demonstrates the importance of discipline and a long-term mindset in wealth creation, he said.

For wealth managers, the challenge is often behavioural—helping investors stay patient and avoid making impulsive decisions during periods of market stress.

Technology and robo-advisory tools may play an increasing role in portfolio management, but Gaur believes the human element remains important when investors need reassurance and guidance during volatile periods.

Family offices are going global and looking beyond equities

The shift towards de-risking is perhaps most visible in India's growing family office ecosystem.

According to Gaur, family offices are becoming more diversified—not only within India but also globally. There is growing interest in overseas structures and global investments, with Dubai emerging as a preferred destination for some Indian families.

At the same time, family offices that were traditionally heavily focused on equities are increasingly allocating a portion of their portfolios to fixed income and debt instruments.

The approach to startup investing is also evolving. Rather than focusing primarily on very early-stage or seed investments, some wealthy investors are moving towards later-stage companies where businesses have more established revenues, a clearer path to profitability and better visibility on potential exits.

This shift reflects a broader attempt to reduce risk while continuing to participate in growth opportunities.

Read more: Beyond tech: Kotak MF’s Shibani Kurian on India’s next innovation-led winners

The big lesson from 2026

For investors, the key takeaway from the panel was clear: wealth preservation requires as much planning as wealth creation.

A portfolio built solely around chasing the highest returns may struggle when markets, businesses and personal cash-flow needs come under pressure at the same time.

The answer is not a one-size-fits-all allocation. Every investor has different income streams, financial commitments, risk tolerance and liquidity requirements.

But the principles remain relevant across wealth levels—build a diversified core, retain a growth engine, protect against shocks and ensure sufficient liquidity.

As 2026 tests investors across asset classes, the focus appears to be shifting from simply asking “How much can I make?” to a more important question for those who have already created wealth: “How much can I afford to lose?”

That, according to Gaur, is where the real work of preserving wealth begins.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)