The number of ultra high net worth households in India has grown 30% to 81,000 in 2011/12, and is expected to triple to around 286,000 over the next five years
Date: July 13, 2012
The number of ultra high net worth households (ultra HNHs) in India has grown 30% to 81,000 in 2011/12, and is expected to triple to around 286,000 over the next five years, according to the recently-published second edition of the “Top of the Pyramid” report by Kotak Wealth Management and CRISIL Research.
The report reveals key facts and trends about spending, investing and income patterns of India’s ultra HNHs amidst global uncertainty and the slowdown in the domestic economy.
According to the report, that slowdown has not affected the spending patterns of the country’s ultra wealthy, with many of them stating that maintaining their lifestyle is an extremely important facet of their social life. Throwing lavish parties for ad-hoc events such as business success or new launches has become a new area of spending.
The report further highlighted exclusivity as a major driving force behind luxury car purchases, and often even established brands/models are not considered because they lack exclusivity or are seen as mass luxury cars.
In terms of investments, however, the economic slowdown has led to the ultra wealthy adopting a more cautious approach.
The focus is now on capital protection and low-risk instruments such as debt. Investments into real estate have dipped compared with last year – although its share among asset classes remains relatively high.
Said C Jayaram, joint managing director, Kotak Mahindra Bank Limited: “While, overall, this segment seems to be relatively unaffected by the slowdown in the Indian economy, their patterns in spending, investing and savings present huge opportunities to seek professional advice.”