Individual wealth in India grew 14% to Rs 392 lakh crore in FY18: Karvy Report
The individual wealth in India grew by 14.02 percent to touch Rs 392 lakh crore in FY18, according to the 9th edition of ‘India Wealth Report 2018’ by Karvy Private Wealth.
Karvy Private Wealth is the wealth management arm of Karvy Group.
The report launched in Mumbai on December 6 gives a holistic view of all the asset classes that have contributed to wealth creation in the last one year.
The growth was achieved by 17.42 percent growth in financial assets and 9.24 percent growth in physical assets.
Interestingly, investors preferred investing in the equity market in FY18 overtaking the traditional fixed deposits. Individual wealth in direct equity rose 30.32 percent to Rs 48.97 lakh crore in FY18.
Some of the other notable assets which saw good growth include mutual funds and alternative investments.
“Direct equity has emerged as the preferred asset class in FY18. The volatility in world markets and the Indian market has been noteworthy of late, but India still stands tall and has reclaimed the world’s fastest growth large-developing economy’ tag from China,” said Abhijit Bhave, Chief Executive Officer at Karvy Private.
Bhave feels coming five to seven years will be the time for equity as an asset class and investors can treble their wealth.
In FY18, positive performance of the equity market made it the most preferred asset class for the ultra high networth individuals (UHNIs) and High Networth Individuals (HNIs). Direct equity now forms 20.7 percent of the total wealth pie of individual financial wealth in India.
Mutual funds remained one of the biggest growth drivers of wealth in FY18 with a growth rate of 34.50 percent through both an increase in regular systematic investment plans (SIPs) and lump sum investments.
Given the positive performance of equities, the traditional bank deposits grew at much lesser single-digit growth rate.
The recent emerging market currency depreciation saw a renewed interest in the international investments which saw a jump of 25.83 percent in FY18.
Real estate was the best performing asset class growing at 10.35 percent over the previous year.