Super rich Indians spent more on leisure in 2017, says Kotak report

MUMBAI: Majority of ultra-high networth individuals (UHNIS) in India increased their spending on leisure in 2017 on the back of higher consumer confidence and buoyant equity markets, a Kotak Wealth Management report said on Tuesday.

Ultra high networth households (UHNHS) are those which have a minimum net-worth of ₹25 crore, the report said.

UHNIS allocated 16% of their income to leisure and ad-hoc expenditure. At least 65% of respondents said they had increased their allocation to this category.

Professionals allocated a higher proportion of their income to leisure when compared to inheritors and entrepreneurs reflecting rising pay packages and a desire to upgrade their lifestyles, said the report.

While spending on luxury was buoyant, ultra HNIS were not completely immune to inflation with allocation of income towards household expenses at a sizeable 22% this year. Three out of four respondents attributed this to higher cost of living. The report said that the average age of Indian ultra HNIS continued to fall. About 60% of the super rich surveyed this year were below 40 years compared to 47% in 2016.

“These younger ultra HNIS are at the vanguard of changes in consumption patterns. A robust economy, soaring markets, and strong consumption have contributed to rising disposable incomes, reflected in higher allocation towards leisure and allied activities,” the report said.

Rise in the cost of commodities, such as fuel, have contributed to mounting expenses, largely due to the cascading impact, the report pointed. UHNHS are expected to double to 330,400 by 2022.