Economy and Business

The individual wealth in India has swelled by 10% in the last fiscal backed by strong growth in financial assets. The individual wealth in India has swelled by 10% in the last fiscal backed by strong growth in financial assets, a report said on Wednesday. However, compared to financial assets which grew by 10.96%, physical assets growth was at a slower pace of 7.59% and individual investors are making more investments in financial assets, Karvy Private Wealth, the wealth management arm of financial-services conglomerate Karvy Group said. Direct Equity, mutual funds, pension funds, alternative investments and international assets saw the most favorable return rate. “Direct Equity continues to hold the fort in terms of investment preference in India. This shows the belief of investors in the Indian equity markets notwithstanding the volatility it has been through,” Abhijit Bhave, Chief Executive Officer, Karvy Private Wealth, said in a statement.  Further, Prime Minister ...

Major part of this growth came from financial assets: study Even as global wealth saw a decline in 2018-19, individual wealth in India rose almost 10% to ₹430 lakh crore primarily on account of higher domestic participation in capital markets, mutual funds and a rise in gold prices. According to a study by Karvy Private Wealth, individual investors continued moving their wealth from physical assets to financial assets as the proportion of financial assets rose from 57.25% to almost 61% in last five years with direct equity maintaining the top position among financial assets. “Taking forward the acceleration of wealth growth over the last few years, individual wealth in India grew by 9.62% to reach ₹430 lakh crore in FY19,” Karvy said. “A majority of this growth was achieved by an impressive 10.96% wealth growth in financial assets as compared to physical assets which grew by 7.59%. Direct equity continued to act as a major proponent of investor wealth as it moved up by 6.39%...

In an exclusive interview with BW Businessworld, Abhijit Bhave, CEO, Karvy Private Wealth talks about UHNI investors and more Over the years, have you observed any discernible behavioural differences in the way UHNI’s approach their investments/portfolios?  UHNIs are more diligent in allocating funds and are more informed. Transparency in fees and charges is expected and Investors are more cost-conscious. The investment decision-making process for UHNI investors has become more sophisticated, and asset allocation is of prime importance.  How would you describe the attitude of the majority of UHNI’s towards risk-taking?  Trends indicate a shift of portfolio exposure towards alternative investments. Direct venture capital investments and absolute return strategies among the most popular investments in UHNIs and Family Offices. Calculated risk-taking and tactical allocations can be seen in portfolios.  How inclined/disinclined are UHNI’s towards plain vanil...

The benchmark equity index, Sensex, recorded gains of 17.08% in FY19, leading investors to raise their investments in Indian stocks. According to the Karvy report, individual wealth in India is estimated to grow at a compounded annual growth rate of 13.19% over the next five years to reach a total of Rs 799 lakh crore. Individual investors investing in the Indian markets continue to move their wealth from physical assets such as gold and real estate to financial assets like equities and mutual funds. The annual India Wealth Report done by Karvy Private Wealth shows that the proportion of investments in financial assets expanded to 61% in FY19, against 57.25% five years ago. The share of physical assets came down from 42.75% to 39.05% in the same period. According to the report, individual wealth in India is estimated to grow at a compounded annual growth rate of 13.19% over the next five years to reach a total of Rs 799 lakh crore. Direct equity, mutual funds and alternative f...

The rise in wealth has marked higher domestic participation in the capital markets, mutual funds, making the trend a sustainable one, according to India Wealth Report 2019, published by Karvy Private Wealth. Financialisation of household savings, a key to nation building, gathered pace in FY19 with individual wealth in financial assets rising double digit. The rise in wealth has marked higher domestic participation in the capital markets, mutual funds, making the trend a sustainable one, according to India Wealth Report 2019, published by Karvy Private Wealth. Individual wealth in India grew by 9.62% in FY19 to Rs 430 lakh crore. The major growth rate of 10.96% was seen in financial assets as compared to physical assets, which grew by 7.59%, the report said. “There has been a talk of increased financialisation of savings in the recent past. Evidence of this has been clearly seen in the last five years,” Karvy said. “The proportion of financial savings has gone up to 60.95%...