Indian economy may be facing a downturn, but all is not doom and gloom. A global wealth and investment report says India has recorded the second highest increase in the number of high net worth individuals (HNWI) – those having investable assets worth over $1 million.
India saw a steep decline in the number of HNWIs in 2011, but in 2012, it saw an increase by 22.2% and their wealth by 23.4%. As against 84,000 HNWIs in 2008 and 1,25000 in 2011, India was home to 1,53,000 such individuals in 2012. Altogether, these Indians were worth $589 billion. However, it was Hong Kong that experienced the most significant gains as its HNWI population grew by 35.7% and their wealth by 37.2%.
A further look at how they were investing will bring cheer to the real estate sector. In line with the investing behaviour in the Asia-Pacific region, excluding Japan, Indian HNWIs invested most in real estate (26.5%). The balance of portfolios was allocated to cash and deposits (22.7%), fixed income (17.7%), equities (17.4%) and alternative investments (15.8%). Allocation to alternative investments at 15.8% was the highest in Asia-Pacific.
Capgemini and RBC Wealth Management’s 2013 World Wealth Report (WWR) said the Global MSCI Benchmark Index increased 13.2%, with robust performances by Germany (27.2%), Mexico (27.1%) and India (23.9%). It said in India, reform measures and monetary easing helped equity markets gain by 23.9%.
Read more: TOI