Equity and bonds are the first choice of investments for India’s most wealthy people, a study reveals. While 30% of the respondents nodded for equity, 28% said that bonds were the preferred choice for their clients in 2018. For 23%, investing in real estate is the most preferred asset class making it the third most liked investment option, Knight Frank Wealth Report 2019 said.
India’s ultra-rich seem to have lost some love for cash, with the ultra high networth individuals’ sentiment for cash falling 15% in 2018, possibly reaffirming demonetisation’s dread among the wealthy. India’s ultra-rich also stayed averse to liquidity, with only 9% of the total investments in liquid assets.
The bend towards equity rose 30% during 2018, while that for private equity rose 37%. The study also predicts that private equities wealth allocation will see an upward trend in 2019 after a meagre 4% share in 2018. The report also mentioned that an overall 20% increase was observed in sentiment for equities.
Global ultra-high-net-worth individual (UHNWI) share their affinity for equities, bond and properties with their Indian counterparts. However, they also showed a good trust in cash as well unlike Indian UHNWI.
“While globally UHNWIs are showing an affinity towards more liquid investments as it is the most risk-averse asset, Indian counterparts, on the other hand, are increasing their exposure in the equity and bonds.” Shishir Baijal, Chairman & Managing Director, Knight Frank India, said. He also pointed out that backed by their trust in the countries economic growth, Indian UHNWI are investing in higher-risk assets for shorter periods of time.
Over 15% of the ultra-rich population globally registered a decrease in their wealth in 2018. 63% of the respondents said that the wealth of their clients have soared. One-fifth of them maintained a constant wealth.
Meanwhile, Forbes released its Billionaire list of 2019. While RIL’s Mukesh Ambani leapt six spots to become the 13th richest man on the globe, he also maintained his position as the richest Indian man. Also in the list are Azim Premji, Uday Kotak, Savitri Jindal and Acharya Balkrishna.