Over the last 10 years, investment in a financial assets like stocks, MF and fixed deposits have grown at a slower rate than non-financial assets such as gold and real estate, said Credit Suisse Global Wealth Report 2019.
The trend will continue in the future, predicts the report.
In fact, the study states that HNIs have increased their investment in physical assets in the recent past. “Non-financial assets have provided the main stimulus to overall growth in recent years. Over the 12 months to mid-2019, they grew faster than financial assets in every region. Non-financial wealth accounted for the bulk of new wealth in China, Europe, and Latin America, and almost all new wealth in Africa and India,”
The report said that personal wealth in India is dominated by property and other real assets, which make up the bulk of household assets.
Household non-financial assets in India rose highest by 6.9% in FY19 while financial assets rose moderately by 1.4%. Meanwhile, global household non-financial assets grew 3.7% while financial assets rose 2% during the period.
Besides, emerging markets like India have become increasingly important to the world economy and this is reflected in their contribution to the evolution of global household wealth, said the report.