Skip to main content

No of ultra rich falls to 2.56 L in 2018 from 2.63L: Report


High networth individuals have seen their wealth growth slowing down in 2018 to 9.62 percent from 13.45 percent a year ago, while their number has de- grown, says a report. High networht individuals are those with an investible surplus of over USD 1 million, and their number has crimped to 2.56 lakh in 2018 from 2.63 lakh in 2017, according to the data collated by Karvy Wealth Management.
According to the Karvy report, these 2.63 lakh ultr rich are worth Rs 430 lakh crore in 2018, up from Rs 392 lakh crore in 2017. The report comes even as more eye brows are being raised repeatedly over the rising inequality in the country, where the rich are getting richer and the poor, becoming poorer and at a faster clip.
As much as Rs 262 lakh crore of the wealth possessed by the high networth individuals are in the form of financial assets, while the rest are parked in physical assets, it said, adding the ratio has remained broadly the same at 60:40. Among financial assets, direct equity exposure is the largest at Rs 52 lakh crore, but growth in this segment plunged to 6.39 percent from a high 30.32 percent in 2017.
In line with broader trends, growth in fixed deposits and bonds rose 8.85 percent to Rs 45 lakh crore in 2018 from 4.86 percent growth in the previous year. Insurance is the third biggest component among financial assets at Rs 36 lakh crore, while bank deposits is worth Rs 34 lakh crore.
Much to the chagrin of the policymakers, gold is the most preferred asset class among physical assets for the rich as well, with nearly Rs 80 lakh crore of their wealth parked in the yellow metal. In line with market trends, growth in value of real estate holdings, second biggest asset class worth Rs 74 lakh crore, slipped to 7.13 percent from 10.35 percent in 2017.
The agency estimates individual wealth to grow at 13.19 percent every year till FY24 to touch Rs 798 lakh crore and a gradual rise in financial assets.

Labels:
Location: Mumbai, Maharashtra, India

Comments

Post a Comment

Popular posts from this blog

MUTUAL FUND SNAPSHOT - OCTOBER 2020

  ·      The mutual fund industry witnessed net outflows to the tune of ~52,091 cr in September 2020 as against net outflows of ~INR 14,553 cr in August 2020. The equity category witnessed net outflow of Rs ~1009 cr in September 2020 as against net outflow of Rs ~ INR 4028 cr in the previous month. ·          AUMs of debt, equity and hybrid schemes in August 2020 accounted for 49.9%, 29.5% and 11.0% respectively of the overall AUMs; the balance ~9.6% was contributed by solution oriented and other schemes. ·          AUM of the mutual fund industry declined by 2.3% MoM (INR63,407 Cr) to INR26.86 Lakh Cr in Sept 2020. On QoQ basis, the total AUM of Mutual Fund increased by 5.4% and 9.6% YoY.   ·          Domestic mutual funds were net equity sellers in last 4 months. Mutual Funds v were net equity sellers to an amount of INR 904.69 Cr...
Post a Comment
Read more

The World This Week – 7th – 15th Nov 2020.

Indian Equity Summary- ·          Optimism had rubbed its positive impact on the domestic market over the initial performance of Pfizer's Covid vaccine and the outcome of the US presidential election. Nifty and Sensex ended on a WoW basis in green and increased by ~4 percent. The government announced a series of stimulus initiatives, including credit support for stressed sectors, employment creation incentives and multiple measures for construction and housing, as boosters for the Covid hit economy under Aatmanirbhar Bharat 3.0, which boosted the market sentiment. ·          Going forward, with the uncertainty due to US elections moving out of the way volatility will reduce substantially leading to money moving towards the riskier assets; domestic factors like ongoing Q2 corporate earnings season, and FII/DII inflows and USD/INR rates ; will continue to dictate the trend of the domestic equity market. We...
Post a Comment
Read more

Punjab investors prefer to invest in equity: Karvy wealth

Individual investors in Punjab have placed their trust in equity the most, Karvy Private Wealth said on Wednesday. "Individual investors in Punjab have opted for a higher allocation to equity products in their mutual fund portfolio at 68.11 percent, as compared to the national average of 64 percent," the wealth management arm of Karvy Group said in a statement while quoting its India wealth report 2019. Chandigarh, Ludhiana, Amritsar and Jalandhar have all recorded a higher equity share in total assets under management than the national average, the statement said. "Keeping in mind the volatility in the markets, term deposits continue to remain a safe bet for investors. The overall growth rate in deposits is close to the national growth rate. Amongst the cities in Punjab, Chandigarh recorded the highest year on year growth at 12.12 percent, followed by Amritsar at 11.39 percent," it further said. Karvy Private Wealth CEO Abhijit Bhave said direct equ...
Post a Comment
Read more