KARVY Private Wealth the wealth management arm of the KARVY Group, a leading financial-services conglomerate, has released the 2nd edition of its India Wealth Report. Download the full report here.
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India Wealth Report gives an overall perspective of individual wealth of Indians and the expected pattern of future investments. The Report, based on extensive research, offers comparative asset class-wise break-ups between Indian and global wealth held by individuals, thereby providing insights for Indian investors on where they have under-invested or over-invested.
Driven by government support and industry enterprise, India’s growth has emerged to become one of the great success stories of the last decade. In fact, despite formidable headwinds in recent years, including the 2008 global financial crisis, the subsequent Euro-zone debt impact, and the persistently high inflation, India continues to be one of the fastest-growing nations in the world.
The nation’s spectacular economic growth has led to significant job creation, higher disposable incomes and enviable savings rates. Accordingly, there has been a major improvement in people’s standard of living, both rural and urban. As savings get multiplied and people become more educated about their finances, there will be a greater inclination to manage one’s finances effectively through long-term wealth management relationships.
This Report closely studies patterns of individual investments across financial asset classes (excluding physical assets like gold and real estate) and finds that India’s individual wealth is expected to nearly triple from the existing Rs. 86.5 lac crore to Rs.249 lac crore by FY16. In fact, the wealth of India’s HNIs has grown by over 18% compared to a mere 9.7% for global HNIs in the last one year.
The Report also presents a break-up of wealth allocated across asset classes and a comprehensive analysis of the investment trend expected in the coming years. With current annual household savings of about 34%, and expected to grow 8% on average, India is well poised to lead wealth creation in the global arena.
Interestingly, the Report shows that fixed deposits & bonds has become the top contributor to overall wealth held by individuals in India, displacing last year’s topper, direct equity, primarily due to the uncertainty in the financial markets. In terms of growth, alternative assets topped the list with a rise of 59%, followed by provident fund and insurance, both around 46%. The performance of mutual funds, small savings and savings bank deposits were quite dismal, rising 4%, 1% and –9%, respectively.
Mr. Hrishikesh Parandekar, CEO & Group Head – Broking, Wealth Management & Asset Management – KARVY Group commented, “Karvy Group and its Private Wealth business are proud to release the 2nd edition of the India Wealth Report and continue our efforts of providing thought leadership to our industry and to the investing community at large.
Through this effort, we aim to share detailed information on trends in Indian wealth and various asset classes, and help investors to evaluate their own asset allocations against that of the overall community. We are also happy to report in such times of gloom that the underlying trends in individual wealth in India continue to look robust and we see Indians continue to get richer.â€
Mr. Sunil Mishra, CEO – KARVY Private Wealth, said, “The combination of continuous reforms and favourable demographics have, in the long run, placed India’s GDP firmly on the high-growth path. Add to this the nation’s middle-class values of high savings, and we are clearly poised at an inflection point in terms of wealth accumulation. To put it differently, we have added as much wealth in the last five years as we have done in the first 50 years post-Independence.â€
Download link : https://bimabazaar.com/Contents/Bimabazaar-India Wealth Report.pdf
