India is a home to 1.20 lakh ultra-high net worth individuals (UHNIs). In fact, India has the world’s fastest growing ultra HNIs population, shows ‘Winds of Change – wealth management reimagined’, a report jointly released today by Cafemutual - EY at the Cafemutual Confluence: Wealth Management 2016 (CCWM 2016) event held today in Mumbai.
A person with a minimum net worth of Rs. 25 crore is considered to be an ultra HNI.
The report shows that these ultra HNIs have a combined wealth of close to Rs. 100 trillion or (Rs.1 crore billion) with investible surplus of Rs. 20 trillion.
Further, the report reveals that 512 relationship managers are managing Rs. 2.8 trillion of 20,000 ultra HNIs. A rough calculation indicates that each relationship manager manages 40 ultra HNI clients. The silver lining of this insight is that only 3% of the total net worth of ultra HNIs across India is currently managed by advisors, implying a huge untapped opportunity for wealth managers.
On this occasion, Prem Khatri, Founder and CEO, Cafemutual said, “ Over the next five to seven years, India is expected to stand-out as a growth story in terms of increasing wealth and will continue to drive increase in new wealth across the globe. According to industry estimates, the combined net worth of wealthy Indians is expected to rise to US$6t over the next five years. The rise in HNI population has been partly driven by e-commerce start-ups and rising income levels. First generation e-commerce entrepreneurs have also made a significant impact on the ultra-HNI (UHNI) landscape, which is a fast growing segment as well. In this context, this report is a goldmine of insights and knowledge, making it essential reading for wealth managers and all those who seek a better understanding of wealth management. Its coverage and articulation of the important developments in technology which are shaping the wealth management business gives us great clarity on the shape of things to come. In particular, its perspective on the hot topic of the day - robo-advisors is deeply insightful.”
Abizer Diwanji, Partner and National Leader – Financial Services, EY said, “India has tremendous opportunity for wealth management. With the current shortage of financial advisors in India, digitization will lend a much needed boost to this space. New digital entrants will offer customers a better experience with greater transparency and lower fees, making wealth advice economically feasible for the mass market.”
