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Wealth in India: Sizing the Market Opportunity 2016

Summary

Driven by economic performance, over the past few years the Indian wealth market has impressed with strong growth rates, which are expected to continue to 2020. India currently holds the crown as the world’s fastest growing major economy and, as such, it is beginning to positively distance itself from Brazil, Russia, and China. This, aligned with the substantial Indian population, underlines the huge potential of the market for wealth managers.

Key Findings

- Affluent individuals represent just 0.8% of the adult population, holding 93.5% of liquid assets. This reflects the high levels of wealth inequality in the country. Both the number of affluent individuals and their assets are forecast to grow strongly to 2020.

- Driven by a strong economic performance, the Indian retail savings and investments market will continue to exhibit rapid growth from 2016–20, with a compound annual growth rate (CAGR) of 11.8%. Assets will reach $2,361.7bn by the end of 2020.

- Deposits and equities will be the major drivers of growth in the market to 2020 as a result of robust economic and stock market performance. The drive for greater financial inclusion will also increase the share of the market held by deposits.

- Indian HNW individuals allocate 40.6% of their portfolios outside of traditional liquid asset classes, significantly above the global average. Direct property remains a key area of interest (38% of non-traditional assets), but private equity investment – particularly in start-ups and mid-stage companies – is gaining importance.

- Indian HNW offshore allocation is broadly in line with the global average (19.2% vs 18.7%). This is primarily driven by the desire for geographic diversification, and concerns about local currency volatility.


Synopsis

Verdict Financial’s “Wealth in India: Sizing the Market Opportunity 2016” report analyzes the Indian wealth and retail savings and investments markets, with a focus on the HNW segment. The report is based on our proprietary datasets.

Specifically the report:

- Sizes the affluent market (both by number of individuals and the value of their liquid assets) using our proprietary datasets.

- Analyzes which asset classes are favored by Indian investors and how their preferences impact the growth of the total savings and investments market.

- Examines HNW clients’ attitudes towards non-liquid investments such as property and commodities.

- Identifies key drivers and booking centers for offshore investments.


Reasons To Buy

- Benchmark your share of the Indian wealth market against the current market size.

- Forecast your future growth prospects using our projections for the market to 2020.

- Identify your most promising client segment by analyzing the penetration of affluent individuals in India.

- Evaluate your HNW proposition by understanding how the Indian tax system will impact HNW clients.

- Review your offshore strategy by learning about HNW motivations for offshore investments and their preferred booking centers.