More than half or 55% of HNIs in India seek advice on managing their family wealth, shows a latest survey called ‘World Wealth Report-2013’ published by Capgemini and Royal Bank of Canada (RBC). The demand for advice is strongest among people with wealth of $5 million to $10 million (63.6%) and $10 million to $20 million (71.4%), says the report.
The report has some interesting highlights on the financial behaviour of Indian HNIs:
· 51.2% of HNIs prefer to interact with multiple experts
· 51.5% of HNIs have a strong willingness to pay fee for customized services
· 47.8% of HNIs still want to manage their own assets
· HNIs place more importance on digital contacts and prefer tailored services
HNIs population and wealth recorded growth
India has witnessed a 22.2% and 23.4% increase in its HNI population and wealth respectively in 2012. The report has attributed this growth to positive trends in equity market, gross national income, consumption and real estate.
India: HNI report
|
Year |
HNI Population |
HNI wealth in $ billion |
|
2008 |
84 |
310 |
|
2009 |
127 |
477 |
|
2010 |
153 |
582 |
|
2011 |
126 |
477 |
|
2012 |
153 |
589 |
Source- Capgemini and RBC
The report shows that population of Indian HNIs increased to 1, 53,000 in 2012 compared to 1, 25,000 in 2011 and wealth to $589 billion in 2012 from $477 billion in 2011.
India comes second in terms of growth in HNI population and wealth after Hong Kong which grew by 35.7 % in population and 37.2% in wealth. In 2011, both the countries had lost 17.4% (Hong Kong) and 18% (India) HNIs due to stalled projects and deteriorating business sentiments.
One of the interesting findings in the report shows that 46.1% of HNIs in India are less than 40 years of age. Also, 95.7% of Indian HNIs, highest among other Asia-Pacific nations, exhibit their confidence in ability to generate wealth over the next year. The trend was followed by China with 95.2%, Singapore 85%, Australia 81.9% and Hong Kong 77%.
Asset allocation of Indian HNIs in the first quarter of 2013
HNIs had invested more of their assets in real estate (26.5%) followed by other avenues like cash deposits (22.7%), equities (17.4%), fixed deposits (17.7%) and alternative investments (15%).
Indian HNIs have the highest appetite for jewelry, gems and watches than any other nation in the Asia-Pacific region. Of the alternative investments, 44.39% was invested in jewelry, gems and watches by Indian HNIs. The survey shows that India is in nascent stage in terms of art buying as barely 13.2% of HNIs had invested their wealth in art which is comparatively less than other emerging markets.
In terms of geographical diversification, Indian HNIs had invested 31.7% of assets in the overseas market.
