SUBSCRIBE NEWSLETTER
  • Change Language
  • English
  • Hindi
  • Marathi
  • Gujarati
  • Punjabi
  • Tamil
  • Telugu
  • Bengali
  • MF News Mutual funds: Most preferable asset class for Indian HNIs

    Mutual funds: Most preferable asset class for Indian HNIs

    Investment funds, which include mutual funds and ETFs account for one third of the total assets held by the super wealthy.
    Team Cafemutual Jan 2, 2019

    It is not just retail investors who put their hard earned money in mutual funds, HNIs too prefer investment funds which include mutual funds and ETFs over direct equities, AIFs, property and primary business.

    The recent IIFL Wealth-Wealth X report says that HNIs reckon the best place to book returns right now is investment funds, followed by equities and fixed income. Investment funds make up one third of the total assets held by the super wealthy and 84% of HNIs hold at least some of their fortune in these funds. Interestingly, one in five HNIs holds over half their wealth in investment funds.

    In addition, 48% of HNIs want to increase their exposure to mutual funds over the next one year, says the report.

    However, investment funds may not be very popular among ultra HNIs. “These pooled investments tend to be more popular with HNIs than very HNIs and Ultra HNIs who are more likely hold at least half of their wealth in their own business. One in five of ultra HNIs holds over 50% of their wealth in their own business. That may be because they are still in the process of building their companies.”

    The report defines HNIs individuals as those  with a net worth between Rs.65 million and Rs. 650million, Very HNIs with a net worth between Rs.650 million and Rs. 2billion and ultra HNIs with a net worth of Rs.2 billion and above.

    Direct equity, cash and fixed income followed investment funds and primary businesses. In terms of wealth allocation, the report shows as 16% of wealth is held in equities and 13% in fixed income. Cash deposits account for 6%.

    The report found that gold has lost its sheen with just 2% of assets invested in gold.

    Until recently, property has been the investment of choice with half of the wealthy putting their money in real estate. Investment properties represent 10% of their asset base. However, this might be excessive and needs o rebalancing. “Twenty-eight percent of India’s richest individuals see property as over-represented in their portfolios. Until now they have viewed property as beneficial on two fronts: diversification and solid returns. But as these wealthy investors seek better returns, equities and direct investment in businesses other than their own appear to offer better opportunities,” said the report.

    Have a query or a doubt?
    Need a clarification or more information on an issue?
    Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

    Click to clap
    Disclaimer: Cafemutual is an industry platform of mutual fund professionals. Our visitors are requested to maintain the decorum of the platform when expressing their thoughts and commenting on articles. Viewers are advised to refrain from making defamatory allegations against individuals. Those making abusive language or defamatory allegations will be blocked from accessing the web site.
    0 Comment
    Be the first to comment.
    Login or Sign up to post comments.
    More than 2,07,000 of your industry peers are staying on top of their game by receiving daily tips, ideas and articles on growth strategies. Join them and stay updated by subscribing to Cafemutual newsletters.

    Fill in the below details or write to newsdesk@cafemutual.com and subscribe to Cafemutual Newsletter now.