Individual investors are taking a shine to financial assets. The total individual wealth in financial assets has increased from Rs. 134 lakh crore in 2014 to Rs.160 lakh crore in 2015, shows Karvy Wealth Report 2015.
In fact, there has been a significant growth in individual financial assets in the last five years. Individual wealth in financial assets have grown from Rs. 73 lakh crore in 2010 to Rs.160 lakh crore in 2015.
Karvy predicts that this wealth will double from the current Rs. 160 lakh crore to Rs. 326 lakh crore in the next five years.
The study shows that financial assets, which had a share of only around 35% of the new money invested in the last year; now have as much as 54% share of the allocation of incremental savings and investments.
Individual wealth asset allocation
|
Asset Type |
Amount (Cr.) |
Proportion |
|
Financial Assets |
1,60,55,686 |
57.25% |
|
Physical Assets |
1,19,89,287 |
42.75% |
Classification of individual wealth
Financial assets
Among the different financial assets, direct equity is the most preferred way for individual investors to participate in markets.
Apart from direct equity, individual assets in mutual funds also saw a healthy growth in 2015. Individual wealth in mutual funds stood at Rs. 5.52 lakh crore in 2015, an increase of 40% over the last year. The report states that mutual funds have seen the maximum growth of allocation of new money from individual investors.
Individual assets in debt and equity mutual fund
|
Asset Class |
FY15 (Cr.) |
FY14 (Cr.) |
YoY growth (%) |
|
Equity |
3,15,987 |
1,83,748 |
71.97 |
|
Debt |
2,36,338 |
2,09,392 |
12.87 |
Individual wealth in financial assets as on FY15
|
Assets |
Amount (Cr.) |
YoY Change % |
Proportion |
|
Direct Equity |
34,39,861 |
29.02 |
21.4% |
|
FDs and bonds |
33,26,429 |
13.10 |
20.7% |
|
Insurance |
23,59,790 |
16.85 |
14.7% |
|
Savings Deposits |
19,90,249 |
22.20 |
12.4% |
|
Cash |
14,48,320 |
11.33 |
9.0% |
|
Provident Fund |
9,24,026 |
25.53 |
5.8% |
|
NRI Deposits |
7,20,997 |
15.85 |
4.5% |
|
Small Savings |
5,78,990 |
0.02 |
3.6% |
|
Mutual Fund |
5,52,325 |
40.49 |
3.4% |
|
Current Deposits |
3,42,785 |
11.25 |
2.1% |
|
Pension Fund |
3,15,915 |
30.96 |
2.0% |
|
Alternate Assets |
41,960 |
76.85 |
0.3% |
|
International Assets |
14,040 |
10.91 |
0.1% |
Physical assets
Individual wealth in physical assets stood at Rs.119 lakh crore as on FY15. “The wealth held in physical assets by Indian individuals de-grew by 2% in FY15 as compared to FY14. This is primarily on account of softening of prices of gold, silver and platinum globally. The individual wealth in gold stands at Rs.57.1 crore,” shows the report.
Individual wealth in physical assets
|
Assets |
Amount (Cr.) |
YoY Change (%) |
Proportion |
|
Gold |
57,15,605 |
-8.60 |
47.67% |
|
Real Estate |
52,85,577 |
4.89 |
44.09% |
|
Diamond |
7,98,934 |
2.81 |
6.66% |
|
Silver |
1,84,472 |
-6.04 |
1.54% |
|
Platinum |
4,698 |
-17.25 |
0.04% |
As compared to financial assets, Karvy predicts that physical assets are expected to grow at a slower rate of 4.4% CAGR for the next five years.
