A recent report by Hurun India titled ‘India Luxury Consumer Survey Report’ shows that HNIs preferred physical assets such as real estate and gold to financial assets like stocks and mutual funds.
The report shows that real estate was the most preferred asset class among wealthy Indians. In fact, real estate accounted for 28.6% of their personal wealth. The report said, “Real estate is the most preferred investment asset class for HNIs. Almost 31.07% of respondents believe that their investment allocation towards real estate sector will grow in the next two years.”
Gold followed real estate with a contribution 19.1% in HNIs’ personal investments. As a result, real estate and gold combined were nearly half of their personal wealth.
On the other hand, stocks were the third most preferable asset class for HNIs with an allocation of 17.1%. Mutual funds was the fifth preferable investment option for HNIs with just 6.7% weightage. Fixed income and bank deposits were ahead of MFs in terms of HNIs’ allocation.
The report also captured future trends of personal investment of HNIs. According to the report, HNIs will continue to grow their exposure to real estate. However, stocks would replace gold for the second most preferable asset class. Interestingly, crypo currency like bitcoins and art would overtake mutual funds and insurance in terms of their investment preference in just three years.
The report said, “Around 31% of the survey respondents chose to increase investment allocation to real estate in the next 3 years. In line with IMF’s prediction of economic growth, equity markets followed by fixed income is the second and third respectively in the category.”
