The increasing risk appetite among Indian high net worth individuals will drive the reallocation of assets over the next 2 years, latest research fromDatamonitor reveals.

"HNWs in India and the wider Asia Pacific region are gradually regaining confidence in the market, and thus have a higher appetite for risk. This has implications for the kind of products and services that are demanded by Indian HNWs, with higher risk/return products becoming more popular and cash becoming less popular," saidPetter Ingemarsson, senior financial services analyst at Datamonitor, in a statement.

Most HNW portfolios are presently involved in equities, with alternative investments and derivatives trailing behind. Datamonitor says that funds will move further to equities and alternatives in the next two years, while many will reduce their allocation to real estate investments.

The majority of India's HNWs are aged 31 to 50 years old, thus opening doors for medium and long term investment products and services as they prepare for retirement.

"There is a need for good financial planning and asset management advice," Ingemarsson said.