Bulging HNIs in India
Source: The Economic Times
Link: India makes its way into world's top 20 wealth club
India made its way into the top 20 wealth markets in the world. India and Russia, first time entrants, ranked 19 and 20 respectively. China and Brazil were there since the report was first published in 2000. The BRIc countries, namely Brazil, Russia, India and China grow at an average rate of 10.6% and India tops the growth chart which may touch 13.30% by 2010, according to the report. Still, India's share in the global wealth market is at a meagre 0.08%. This is the Sixth Edition of Global Wealth, an annual research conducted by the Boston Consulting Group. The common thread in the BRIC countries is high GDP growth combined with booming stick markets.
Indian are traditionally known for putting their savings in cash or fixed deposits (50-60%), rather than in other financial instruments like equity, mutual funds etc. But, there is demographic shift in the asset mix in recent times. The report brought by Mrill Lynch suggested that high net worth individuals (HNIs) in India have more than 31% of their assets in equities, just above the global average of 30%. HNIs in China have the lowest allocation to equities at 14%. Further, the number of HNIs in India are growing at an average rate of 19.30%, highest among BRIC nations. The last year's estimate of millionnaires in India was 84,000. But, I can say with authority that the above number of millionaires are in Hyderabad itself, taking their assets at current market value.
Beacuse of low interest rates, Indian investors, across the board, are titlting towards equity market either directly or indirectly through mutual funds.
The above scenario brings in many opporunities, along with many more jobs in consultancy. I hope this will further raise the stature of ISB, whose placements are the best in financial consultancy.
High Networth Individual is the one whose assets exceed US$ 1 million.
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