BackEquities, bonds, real estate, gold: Where India's rich put their money?
84% of the investable wealth of Indian ultra-high-net-worth individuals is allocated between equities, real estate and bonds, as per the Knight Frank report
PremiumAccording to Knight Frank’s latest report - The Wealth Report: Outlook 2023, 88% or nearly 9 out of 10 Indian ultra-high-net-worth individuals (UHNWIs) witnessed an increase in wealth in 2022. Around 35% of Indian UHNWIs saw total wealth change by above 10%.
84% of the investable wealth of Indian UHNWIs is allocated between equities, real estate and bonds. Investments in commercial real estate, either directly or through funds and Real Estate Investment Trusts (REITS), make up 25% of portfolio of Indian UHNWIs, as per the report.
Proportion of investable wealth allocated to various asset classes by Indian ultra-rich individuals:
Equities, at 34%, constituted the highest proposition of the investable wealth in 2022. A significant proportion of 25% was allotted to commercial properties. Global and APAC region respondents have exposures of 33% and 35% respectively in commercial real estate through direct owners, funds, and REITs. 16% of investable wealth of UHNWIs found allocation in bonds.
According to the latest edition of the annual Attitudes Survey, 88% of the respondents saw a rise in UHNWI’s wealth in 2022 of which 35% respondents said that Indian UHNWIs saw an increase in their wealth in excess of 10% in 2022.
Globally, respondents opined that an estimated 40% of UHNWI saw a rise in their wealth in 2022 and approximately 15% respondents noted no change in wealth status in 2022 against the previous year. "While the prolonged economic and geopolitical crisis continued to weigh down most of the prominent economies, India’s resilient economic performance allowed the country to beat global trends in the year of permacrisis," said the report.
Going forward, the Indian respondents expect wealth of the ultra-wealthy to continue to increase in 2023. While 47% expect wealth to increase by more than 10%, 53% expect wealth to rise by at least 10% over the previous year. Globally, only 69% of respondents expect a rise in wealth and about 14% also responded to say that wealth will decline, the report further stated.
According to Knight Frank’s Attitude survey, around 37% of the total wealth’s allocation is towards primary and secondary homes by Indian UHNWIs of which 15% allocation towards residential property is held outside India.
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