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Karvy Private Wealth: Wealth Held by Individuals in India Held in Financial Assets Has Grown by 84% in the Last 5 Years; Now Expected to Double in the Next 4 Years

Dec 16, 2014   17:31 IST 
Mumbai, Maharashtra, India

Key Highlights

~ The total Indian Individual Wealth in FY14 is estimated to be at ` 257.4 Lakh Crore, an increase of 27.5% over FY13.

 

~ The Wealth Held by individuals in Financial Assets has grown by 84% over the last 5 years.

 

~ Indian individual wealth is expected to grow at a CAGR of 14.9% and double over the next 5 years. Wealth held by individuals in financial assets is expected to double in next 4 years at a CAGR of 18.3%. Wealth in physical assets is expected to grow at a CAGR of 10% in the next five years.

 

~ The new government has undertaken a lot of initiatives to revive the Indian economy and make it among the fastest growing economies in the world. The economy is expected to reach a GDP growth rate of 7.5% by 2018.

 

~ Direct Equity will become the single largest asset class contributing to individual wealth in India in FY15 overtaking fixed deposits and is likely to remain there. We expect a 25% CAGR on the equity markets and look at the Sensex touching 1,00,000 level by 2020!

 

KARVY Private Wealth, the wealth management arm of the KARVY Group, a leading financial-services conglomerate, launched its 5th edition of India Wealth Report today. The report provides an overall perspective on wealth held by individuals in India across financial assets and physical assets (Real Estate, Gold, Diamond, Silver and Platinum).

 

As on end of FY14, total individual wealth in India stands at `257.4 Lakh Crore an increase of 27.5% over FY13. The total wealth held by Indian individuals in financial assets stands at `134.7 Lakh Crore (52.3%) and in physical assets stands at `122.7 Lakh Crore (47.7%).

 

The wealth held by individuals in financial assets has grown by 84% in the last 5 years at a CAGR of 13%. Considering the fact that the economy (Indian and Global) had not shown healthy growth in this period, this gives an indication of how wealth will grow when the Indian economy does well in the next 5 years.

 

The Indian economy is expected to reach a GDP growth rate of 7.5% by 2018. Due to macro- economic revival, we are seeing possibly the beginning of biggest bull runs in India. Direct Equity will become the single largest asset class contributing to individual wealth in India in year ending March 2015 overtaking Fixed Deposits and is likely to remain there. We expect a 25% CAGR on the equity markets and look at the Sensex touching 1,00,000 level by 2020!

 

Overall Indian individual wealth is expected to grow at a CAGR of 14.9% and double over the next 5 years. Wealth held by individual in financial assets is expected to double in next 4 years at a CAGR of 18.3%. Wealth in physical asset is also expected to grow at a CAGR of 10% in the five years.

 

Classification of Individual Wealth in India based on Financial Assets:

Asset Type

Amount (` Cr.)

FY14 Proportion (%)

Fixed Deposits and Bonds

29,39,702

21.82

Direct Equity

26,66,202

19.79

Insurance

22,12,654

16.43

Savings Deposits

16,28,628

12.09

Cash

13,00,900

9.66

Provident Fund

7,36,096

5.46

NRI Deposits

6,22,337

4.62

Small Savings

5,78,851

4.30

Mutual Funds

3,93,140

2.92

Current Deposits

3,08,125

2.29

Pension Funds

48,136

0.36

Alternative Assets

23,727

0.18

International Financial Assets

12,659

0.09

Total

134,71,160

100%

 

Classification of Individual Wealth in India based on Physical Assets:

Asset Type

Amount (` Cr.)

FY14 Proportion (%)

Gold

62,53,263

50.96

Real Estate

50,38,978

41.07

Diamond

7,77,084

6.33

Silver

1,95,498

1.59

Platinum

5,678

0.05

Total

122,70,501

100%

 

Commenting on the occasion, Mr. Sunil Mishra, CEO – KARVY Private Wealth, said, Wealth with individual investors is expected to grow more rapidly in the next five years, riding on faster growth of the economy. The new government has undertaken a lot of initiatives to revive the Indian economy and make it among the fastest growing economies in the world. Several new policy measures like Make in India, Development of 100 Smart Cities, opening of FDI in several sectors, Swachh Bharat Abhiyan, Free pricing of auto fuels, financial inclusion by banking the unbanked etc. will also go a long way in making India more competitive and productive.

 

We are standing at an interesting juncture where we are going to see a trend reversal between share of HH savings going into Financial Assets vs Physical Assets. This will change from 69:31 in favour of physical assets to 50:50, over the next five years.”

 

About Karvy Private Wealth:

Karvy Private Wealth is the specialized wealth management division of the KARVY Group set up to cater to the high net worth individuals and business families keeping in mind their requirement for a different kind of investment management that will augment not just existing finances but ensure long term wealth creation. Karvy Private Wealth prides itself in delivering best in class investment solutions coupled with the soft touch of dedicated customer care and personalized attention. Karvy Private Wealth is a world-class wealth management business achieved through high quality, incisive research, breadth of product suite and product neutrality. This is delivered keeping in mind the specific aspirations of each individual client.

 

Karvy Private Wealth offers a wide array of products, providing clients a variety of options through a single point contact. They also help invest in various Domestic and International Products such as Structured Products, Private Equity, Portfolio Management Services, Equities, Debt Instruments, Commodities, Mutual Funds, and Real Estate. For details, please visit www.karvywealth.com.

 

About Karvy Group:

The Karvy Group is a premier and leading integrated financial services company. Karvy services over 67 million investors in various capacities, and provides investor services to over 400 corporates. It has a network of 400+ branch offices across India, Dubai, New York, Singapore and over 500 franchisees across India.

 

The Karvy Group also covers the entire spectrum of financial services such as Stock broking, Depository Participants, distribution of financial products (mutual funds, bonds, fixed deposit, and equities), Insurance Repository, Commodities Broking, Personal Finance Advisory Services, Merchant Banking & Corporate Finance, Wealth Management, NBFC, and Placement of equity, IPOs, apart from Registry business. Such diversified offerings allows for scale, stability, and agile solutions for the financial markets. Karvy is focused on understanding its customer needs which helps in customizing/offering solutions which are best suited for clients.

 

Karvy’s proven research capabilities and intelligence are the backbone for its various business divisions. This enables the design of new solutions & services, provides new insights to markets, predicts trends and arms the clients to make informed decisions. To know more about our businesses/services offerings please visit www.karvy.com

 

For further details, please contact:

Delna Irani / Ujjawal Punmiya

Adfactors PR

98206 60467 / 96191 30947


 
 
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