India currently has the fourth-largest number of HNWIs totaling to over 250,000 in the Asia-Pacific region, after Japan, China and Australia. The Indian HNWIs cumulatively owned assets that valued over US$1 trillion in 2011, the report stated.
The volume of HNWIs in India increased at a compound annual growth rate (CAGR) of 7.20% during the review period of 2007-2011, while the total HNWI wealth increased in value at 2.47% CAGR.
The report lists that a very large and young affluent customer base, an improving wealth situation among global Indians, a goal to more tightly regulate financial services by the Indian government, and an increasing share of organized companies have contributed to this growth.
HNWIs in India are expected to increase their number of equity asset allocations over the forecast period of 2012-16, while reducing their number of fixed-income and cash assets.
Sophisticated wealth alternatives, such as hedge funds, private equity and venture capital, will see a significant increase in investment by Indian HNWIs, as the wealth management market in the country matures.
Established wealth managers will be able to grab opportunities and expand their product service offerings, as the regulatory environment in the Indian wealth management market is evolving, the report said.
The organized service providers in the Indian wealth market, such as commercial banks and wealth management companies, have not focussed on an underexplored customer base of approximately one-fifth, whereas they focussed mainly on the urban population so far, it added.
The full report, ‘Emerging Opportunities in the Indian Wealth Management Industry: Market Size, Strategies, Products and Competitive Landscape’, is available from BRICDATA. Click here for more details.
