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MF News ‘60% of ultra HNIs are below 40’

‘60% of ultra HNIs are below 40’

Of the 1.61 lakh ultra HNIs, 96,000 are not yet 40.
Team Cafemutual Feb 27, 2018

Indian HNI demographic is getting younger. The latest report by Kotak Wealth, titled ‘The top of the pyramid 2017’, finds that in 2017, six out of 10 ultra HNIs were below the age of 40. In 2016, 47% of ultra HNIs were below 40 years.

Of the total ultra HNI population of 1.61 lakh, close to 96,400 are not 40 yet.

The report has estimated that the total HNI population will increase to 3.30 lakh by FY 2022. These HNIs will have net worth of Rs.352 lakh crore.

As the population of young ultra HNIs is increasing, we spoke to a few financial advisors with ultra HNI clients, to understand how you can deal with the young-and-wealthy.

Nisreen Mamaji, MoneyWorks Financial Advisors

Young generation clients, be it retail or HNIs, are tech-savvy. They do most of the research online and like to take financial decisions on their own. However, while most young retail clients do not evaluate the rationale behind fund selection, young ultra HNIs like to dig deep in the process of fund selection.

Advisors need to be well-informed about the markets, various financial products and should have strong fundamental knowledge. Such clients also appreciate your views on various reports published by different research houses.

Young ultra HNIs also like to meet fund managers and get information from the horse’s mouth. Occasionally, you will have to set up conference calls and meetings with fund managers.

You will also have to be patient with ultra HNI clients because they take longer to arrive at a decision.

To gain access to the young-and-wealthy, it is important to have strong social media presence on platforms like LinkedIn and Twitter. In addition, testimonials of wealthy clients on the website also help in acquiring ultra HNI clients because they value experience.

Vishal Dhawan, Plan Ahead Wealth Advisors

Advisors will have to ensure they bring value to the table. For instance, if an HNI client is planning to send his kid abroad for education, you can help him with global trends in education and the best universities overseas.

Second, ultra HNIs prefer a combination of technology and human interaction. Also, young ultra HNIs prefer investing in new avenues. Advisors need to have a good grip of various asset classes such as private equity funds, overseas funds and cryptocurrencies. You will have to give them a holistic picture of the different financial assets.

Shifali Satsangee, Funds Ve’daa

We get most of our clients through referrals. Unlike typical millennial clients, the young ultra HNIs will not Google to find financial advisors. They will appoint one only on reference.

Media visibility helps. Young ultra HNIs like to see their advisors appearing on TV channels and newspapers.




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