Four out of every 10 ultra-High Networth Individuals (HNIs) are based out of non-metro cities. In fact, half of such population belong to B-15 cities, shows ‘Top of the Pyramid 2015’, a report published by Kotak Wealth Management.
Ultra HNIs is one which has a minimum net worth of Rs. 25 crore.
Of the total 1.37 lakh ultra HNIs as on March 2015, over 60,000 ultra HNIs are based out of non-metro cities. The report found that 56% of ultra HNIs are from five metros – Delhi, Mumbai, Chennai, Kolkata and Bangalore while the next top 6 cities comprise 17% of ultra HNIs. Surprisingly, 7% of ultra HNIs belong to top 11-20 cities and the rest i.e. 20% are based in cities beyond the top 20.
Beyond top 5 cities, Chandigarh is the wealthiest town with highest per capita income. It has a booming manufacturing sector apart from many IT and biotechnology companies. Ahmedabad, the textile capital of India has contributed numerous entrepreneurs in textiles and pharmaceuticals and chemicals, points out the report.
These non-metro cities particularly small cities like Indore are gradually becoming centres of wealth and prosperity and leading brands are rapidly walking up to their immense potential, said the report. Cafemutual spoke to a few advisers who cater to ultra HNI clients to suggest ideas that might help you acquire wealthy clients.
Vishal Dhawan of Plan Ahead Wealth Advisors suggests that advisors should take memberships of affluent clubs and spend few hours a week to widen their social circle. “Advisers should try to get access to wealthy clients through associations and friend circles. For instance, Surat is well known for textile industry, advisors should try to get access to an association which has textile industrialists as its members. Secondly, a lot of ultra HNIs in such locations consult CAs and banks for financial advice. Instead of competing with them, IFAs could collaborate with such professionals to cater to wealthy clients.”
Agra based financial advisor, Shifali Satsangee of Fundsveda believes that IFAs should build process driven model to cater to HNIs. She said, “Be process-oriented like big brands. Try to institutionalize your practice and corporatize your processes to give a corporate feed and connect to your clients. Have a gradual step by step, structured advisory approach while advising which is more prescriptive in nature than an off the shelf guidance. Being process-driven is the key to format ourselves for success, gain positive traction and beef up our expansion muscle.”
The report has estimated that the number of UHNI will increase to 3.48 lakh with a combined net worth of Rs. 415 lakh crore by 2020.
