Buoy­ant stock mar­ket, realty made In­dian HNIs wealth grow fastest in 2017: re­port

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE - Swaraj Singh Dhan­jal sawaraj.d@htlive.com

MUM­BAI : Healthy gross do­mes­tic prod­uct (GDP) growth, surg­ing stock mar­kets and pos­i­tive real es­tate prices helped In­dian high net-worth in­di­vid­u­als (HNIs) re­port the strong­est growth in wealth in the year 2017, ac­cord­ing to the World Wealth Re­port 2018 by Capgem­ini.

Ac­cord­ing to the re­port, In­dia was the fastest grow­ing mar­ket in 2017, with a 20.4% HNI pop­u­la­tion ex­pan­sion and a 21.6% HNI wealth growth.

HNI pop­u­la­tion in In­dia ex­panded to 263,300 in 2017 from 218,600 in the pre­vi­ous year, while HNI wealth grew to $1.06 tril­lion from $877.4 bil­lion in the pre­vi­ous year, the re­port said.

In­dia edged out Nether­lands to take the 11th spot on the peck­ing or­der of coun­tries with the largest HNI pop­u­la­tion.

Glob­ally, too, HNIs wit­nessed a healthy growth in their wealth in 2017, with to­tal wealth sur­pass­ing the $70 tril­lion mark. Global HNI wealth grew for the sixth con­sec­u­tive year, the re­port said.

In­dian HNIs owed a lot to vi­brant stock mar­kets in 2017, which was one of the ma­jor fac­tors for the strong per­for­mance of wealth growth.

“Mar­ket cap­i­tal­iza­tion surged sharply by 51.3% in 2017, af­ter a weak growth of 3.1% in 2016. The mar­ket grew sharply on ac­count of strong sup­port from lo­cal and for­eign in­sti­tu­tional in­vestors, which helped pump liq­uid­ity into the mar­ket cou­pled with hopes of an im­prove­ment in eco­nomic growth and cor­po­rate earn­ings ” the re­port said

A con­tin­ued up­ward move­ment in real es­tate prices too played a part in In­dian HNIs see­ing their wealth grow in 2017.

“In­dian prop­erty prices con- tin­ued the mo­men­tum by grow­ing at 4.8% in 2017 as com­pared to 2.7% in 2016. Ma­jor reg­u­la­tory re­forms such as the Real Es­tate Reg­u­la­tory Author­ity (RERA) and Goods and Ser­vices Tax (GST), sta­ble de­mand gen­er­ated through rapid de­vel­op­ment and ris­ing house­hold in­comes are some of the im­por­tant driv­ers of growth for real es­tate sec­tor ” the Capgem­ini re­port pointed out.

The fact that In­dia con­tin­ues to re­main the fastest grow­ing large econ­omy in the world, also added wind to the sails of HNI wealth.

“Real GDP stood at $1.914 tril­lion, rep­re­sent­ing a rise of 6.7% in 2017 as com­pared to 7.1% in 2016. The ma­jor driv­ing fac­tor for growth was in­creased con­sump­tion which re­cov­ered af­ter the liq­uid­ity crunch as­so­ci­ated with de­mon­e­ti­za­tion,” the re­port said.

Cryp­tocur­rency in­vest­ment and en­try of big tech­nol­ogy firms in wealth man­age­ment emerged as strong trends de­vel­op­ing in the global wealth man­age­ment in­dus­try, Capgem­ini said.

“While not yet a ma­jor part of HNI port­fo­lios, there is grow­ing in­ter­est inc ry p to cur­ren­cies as an in­vest­ment tool and store of value.HN Is are cau­tiously in­ter­ested in hold­ing cryp­tocur­ren­cies, with 29% glob­ally hav­ing a high de­gree of in­ter­est, and 26.9% say­ing they are some­what in­ter­ested,” the re­port said.

Wealth man­agers, glob­ally, are in­vest­ing big bucks into tech­nolo­gies such as in­tel­li­gent au­to­ma­tion and ar­ti­fi­cial in­tel­li­gence, as they pre­pare for big tech­nol­ogy com­pa­nies to play a larger role in the in­dus­try the re­port added

HNI POP­U­LA­TION IN IN­DIA EX­PANDED TO 263,300 IN 2017 FROM 218,600 IN 2016


In­dian HNIs owed a lot to vi­brant stock mar­kets in 2017

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