A research report by Crisil and Kotak Wealth Management predicts that 2.19 lac Indians will have a net worth of Rs. 25 crore by 2015-16
Mumbai: A study by Crisil and Kotak Wealth Management analyzing the earning, spending and investment patterns of ultra high net worth individuals (UHNIs) in India reveal that the number of UHNIs would increase by three folds to 2,19,000 in the next five years while their net worth is expected to raise to Rs.2,35,00,000 crore.
A person with a minimum net worth of Rs. 25 crore is considered to be UHNH as of 2010-2011.
“In a bid to diversify their portfolio, largely comprising traditional assets like realty and equity, UHNIs have begun investing in emerging, alternate assets such as private equity, hedge funds, structured products and derivatives. However, the growing interest in alternate assets is not backed by an adequate understanding of these asset classes, thus requiring UHNIs to seek professional advice,” said C Jayaram, Executive Director, Kotak Mahindra Bank.
The report says Ultra HNIs invest one-fifth of their income for growing their wealth but put a greater proportion back into their business to fuel wealth creation and retain control. Most ultra HNIs would rather invest in their own business than in instruments in which they have no control.
