INDIA’S HNW WEALTH GROWS FASTER THAN GLOBAL WEALTH

The amount of wealth held by high net worth individuals in India has increased faster than that held by rich people globally.

That is according to the India Wealth Report, released by Indian wealth management firm Karvy Private Wealth. It found that while the fortunes of HNW individuals internationally grew by around 9% during the year, money held by Indian rich increased by more than 11%.

This made India one of the fastest-growing HNW populations in the world, accounting for 1.2% of global wealth, said the report.

It is also likely to increase further, with the research suggesting that collective wealth held by Indian HNW individuals will triple to Rs 249 lakh crore (€3.51 trillion) by 2016, up from the current Rs 86.5 lakh crore.

Much of the wealth was thanks to the increase in investment in fixed deposits and bonds, said the report. Fixed deposits, held in banks that offer high interest rates, accounted for more than 30% of individual wealth.

Second in demand was investing in high-risk, high-return assets, including direct equity. Around 29% of money, or €422 billion, was held by the rich in direct equity, said the report.

Karvy Private Wealth also touched upon the rising demand for gold, estimating that Indians hold more than 18,000 tonnes of the metal, which at today’s price levels, is worth nearly €710 billion.

While demand for gold has risen by 13% on average over the past 10 years, said the research, it will likely increase by 30% next year.


Source: http://www.campdenfo.com (RASHMI KUMAR)
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