India has close to 1.47 lakh ultra high net worth households (UHNHs) as on March 2016.
In fact, the total number of UHNHs has increased by 7% in FY 2015-16 from around 1.35 lakh last year, states the Kotak Wealth Management’s report called ‘The Top of the Pyramid 2016’ prepared by EY.
The report shows that the population of ultra HNHs has been growing by a healthy CAGR of 16% for the last five years.
Ultra-high net worth household are defined those with a minimum net worth of Rs. 25 crore.
The report estimates that the number of UHNH will increase to 2.94 lakh by FY 2020-21, driven by new ultra HNHs from e-commerce industry and new avenues of investments which fetch higher returns.
Currently, the combined net worth of ultra HNHs stands at Rs.135 lakh crore, a growth of 5% compared to Rs. 128 lakh crore in FY 2014-15. Further, the net worth of ultra HNHs is projected to grow at a CAGR of 26% from an estimated Rs.135 lakh crore in FY16 to Rs.319 lakh crore by FY 2020-21.
The report further said that the business and investor-friendly approach of the government will help nurture and sustain a start-up ecosystem in the country which will help propel the growth of ultra HNHs.
