With 928 Ultra High Net worth (UHNW) households, India has the fourth largest population of super-rich individuals in the world in 2014, shows a ‘Global Wealth 2015: Winning the Growth Game’ study published by Boston Consulting Group (BCG).
India is behind UK which has 1,019 such billionaires. USA has the highest number of UHNW at 5,201 followed by China (1,037).
The report says that these UHNWs own 20% of overall private wealth in India. Similarly, UHNWs having private wealth of $20-100 million and $1-20 million have 5% and 11% of overall financial wealth respectively. As a result, UHNWs having over $1million own 36% of overall private wealth. It is estimated that such figure may grow up to 38% by 2019.
A person with a minimum private wealth of over $100 million is considered to be UHNW. The private wealth includes cash & deposits, money market funds, listed securities and other onshore and offshore assets. It excludes investors own businesses, residences and luxury goods.
The report said that the population of UHNWs in India will grow at 21.5% till 2019, the highest projected growth rate in the world.
The report has estimated that the Asia Pacific region excluding Japan is likely to overtake North America (which has highest number of UHNW population) by 2016. India and China will play a key role in this growth, says the report.
In a press release, Anna Zakrzewski, BCG partner and a co-author of the report said, “Clients are still willing to pay a premium for benefits such as political and financial stability, regional diversification, high-quality service, discretion, and broad expertise across products and asset classes. Top offshore performers are transforming their businesses to make them viable for the future.”
Overall, the private financial wealth grew by nearly 12% in 2014 to reach a total of $164 trillion. Almost 73% of this wealth has come from capital appreciation from existing financial investments. The report has estimated that the total private wealth is set to grow at 6.2% to reach at $ 222 trillion by 2019.
