Half of India's super-rich are under 40 and getting richer
Synopsis
Ultra high networth household (UHNH) is one that has an investible surplus of ₹25 crore India has 1.46 lakh ultra high networth households Kotak sees the number of UHNH doubling by FY21
Half of India's super rich are under forty years and the number of ultra high networth households (UHNH) in India increased by 7 per cent in FY16 to 1.46 lakh and their total networth rose 5 per cent said a Kotak Wealth Management’s (KWM) report titled Top of the Pyramid 2016 quoted in a news report by the Hindu Business Line.
According to KWM, an UHNH is one having investible surplus of minimum ₹25 crore. The number of UHNH and their networth has witnessed compounded annual growth rates of 16 per cent and 18 per cent in the last five years, which is surprising given economic growth being stuck in a band during this period.
Kotak sees the number of UHNH doubling to 2.94 lakh and their networth more than doubling to ₹319 lakh crore by FY21. Interestingly, the average age of an ultra high networth individual is reducing and a substantial proportion of UHNH is based out of emerging cities and small towns.
“Nearly half of the ultra HNIs are below 40 years of age. Forty five per cent of the UHNHs are from cities such as Bengaluru, Ahmedabad, Pune, Hyderabad, Nagpur, Ludhiana, Chandigarh and Aurangabad, among others,” the report said.
Top of the Pyramid 2016 has been prepared through interactions with over 225 ultra HNIs across 12 Indian cities.
Equity leads
Among various asset classes, equity had the largest share at 39 per cent in the total investments made by ultra HNIs.
Wearables (smart watches, fitness bands, virtual reality headsets,etc), jewellery and apparel continue to remain top-spending categories.