The population of ultra HNIs in the country is expected to grow by 73% over the next five years, says the Knight Frank 2020 report.
In the list of 180 countries with individual worth US$30 million wealth, India ranks 12th with 5,986 UHNI population. This number is expected to double to 10,354 by 2024. Meanwhile, HNIs with US$1 million wealth is expected to grow to 5 lakh by 2024 from 2.9 lakh in 2019.
The report suggests that by 2024 Asia will be the world’s second-largest wealth hub outpacing Europe with five-year growth of 44%.
Worldwide the ultra-wealthy population will grow by 27% over the next five years taking the total count of UHNIs to 6.49 lakh from 5.13 lakh in 2019. Similarly, HNI population is expected to grow by 28% to 6.3 crore from 4.6 crore.
The report, however, mentions that even after a significant growth the ultra-wealthy in Asia will still be half the size of North America’s UHNIs population, which is predicted to grow by 22% by 2024.
On an average, 23% of investment portfolios of UHNIs is invested in equities, which means the performance of the equity market plays an important role in increasing their wealth.
Apart from equities, the residential property also accounts for a large proportion of total wealth, almost a third. Bond/fixed income secured 17% of investment in their portfolio followed by private equity (8%), and gold (3%).