Indian wealthy allocate 60% of their assets to financial assets

Indian ultra HNIs invest over 60% of their investible corpus in financial assets, shows a study done by Knight Frank, a global property consultancy firm.

The study reveals that ultra HNIs prefer equity with the highest exposure of 34% of the total assets across all assets. Other financial holdings include bonds and private equity/venture funds with 16% and 10% allocation, respectively.

Commercial properties and gold constitute allocation of 25% and 6%, respectively. Interestingly, Indian wealthy do not have any exposure to crypto.

The report said, “Equities, at 34%, constituted the highest proposition of the investable wealth in 2022. A significant proportion of 25% was allotted to commercial properties (directly through ownership or indirectly through funds). The rise of commercial asset as an investment category with high allocation is a sign of improved confidence among investors towards India’s growth story.”

Another interesting finding is exposure towards ‘passion investing’ like art, classic cars, wine and rare whiskey. The study shows that ultra HNIs invested 4% of their wealth in passion investing. “Within this, art, watches, and luxury handbags remain the most sought-after investment of passion in 2023 with 53% of ultra HNIs likely to make a purchase in them. Classic cars, wine and furniture are the second most sought passion led investments for 2023,” said the report.

Overall, 2022 ended on a good note for the ultra HNIs. The report reveals that 88% or nearly 9 out of 10 Indian wealthy witnessed an increase in wealth in 2022. Around 35% of Indian wealthy saw total wealth change by above 10%.