Pune: The 10th edition of India Wealth Report 2019, released by Karvy Private Wealth (KPW) suggests that individual wealth in India has grown by 9.62 per cent to reach Rs 430 lakh crore in the Financial Year (FY) 19.
A majority of this growth was achieved by 10.96 per cent wealth growth in financial assets.
Compared to this, physical assets grew by 7.59 per cent, as per the report.
The total value of financial assets increased to Rs 262 lakh crore as compared to Rs 236 lakh crore in FY18. The direct equity has continued to act as a major proponent of investor wealth as it moved up by 6.39 per cent retaining the top spot. Other notable assets which saw good growth include mutual funds, pension funds, alternative investments and international assets.
Abhijit Bhave, Chief Executive Officer of KPW, during the conference said, “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. We believe that India’s drive towards a USD 5 trillion economy will have a cascading positive effect on the individual wealth by 2024. We expect the high net-worth individual (HNI) population to touch one million over the next five years.”
Like last year, the top five destinations for investment allocation were direct equity, fixed deposits, insurance, saving accounts and cash with a total of 72.33% contribution in overall financial assets. In FY19 the individual wealth in physical assets increased by 7.59 per cent with gold and real estate together covering 92.57 per cent of this space. This fiscal year, the total wealth held by individuals in physical form stood at Rs 167 lakh crore.
By FY24, the total individual wealth in India is estimated to have a healthy growth rate at a CAGR of 13.19% to reach nearly Rs 799 lakh crores from the current wealth of Rs 430 lakh crore. The allocation to financial assets is estimated to be 66.11 per cent while the allocation to physical assets would be 33.89 per cent.
