As much as 40%-50% of wealth in Indian business families continues to be invested in own businesses, a trend that is unlikely to change, but there is a change in allocation with the rich preferring financial assets over physical assets, according to two recent first-of-their-kind wealth reports on high net worth and ultra high net worth individuals (HNIs and UHNIs).
While one report, The Family Wealth Report 2018, by Edelweiss Wealth Management and Campden Research, focused on ultra-rich, family business owners, the other one, IIFL Wealth Index 2018, by IIFL Wealth Management in partnership with Wealth X, focused on the growth of HNIs and UHNIs in India along with their investment patterns. Their sample sets were different but they had a few common outcomes. Both reports found the rich are increasingly leaning away from physical assets towards financial assets. Also, both said one of the big concerns for the ultra rich is having a good succession plan.
