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Wealth in India: Sizing the Market Opportunity

Wealth in India: Sizing the Market Opportunity

Summary

This report analyzes India's wealth and retail savings and investments markets, with a particular focus on the HNW segment. Analysis is based upon our 2014 Global Wealth Managers Survey, our Global Wealth Markets Analytics, and our Global Retail Investments Analytics.

Synopsis

  • Size your potential client base using our proprietary data, presenting the number of affluent individuals by liquid asset band to 2019.
  • Understand the drivers behind the growth of the affluent market, such as the wider macroeconomic environment and investment preferences.
  • Quantify HNW asset allocations into non-liquid assets such as property. Find out how much of their investible assets are held offshore.
Reasons To Buy
  • How large is the HNW market in India?
  • What is the penetration of affluent individuals in India?
  • What is the current and future mix of asset class balances in India?
  • How much of their wealth do India HNW individuals invest offshore?
  • Which booking centers are used by HNW individuals to invest offshore?
Key Highlights

Driven by a very strong economy, over the past few years the Indian wealth market has impressed with growth rates only just below China. Looking forward, although growth is expected to remain robust it is not expected to maintain the stellar performances of the past decade.

The overall Indian retail savings and investment market will continue to exhibit strong growth through 2015-19, recording a compound annual growth rate of 8.3%. The total market will reach $2,226.8bn by the end of 2019.

One of the main drivers for offshoring wealth by Indian HNW individuals is to access a superior range of investment options (cited by 24% of respondents to our 2014 Global Wealth Managers Survey). This is coupled with the desire to globalize and diversify their assets (30%).


  • Sizing and Forecasting the Indian Wealth Market
    • Affluent individuals account for 0.7% of the total adult population
      • Just 1.3% of India's affluent population can be considered HNW
    • Affluent individuals account for 0.7% of the adult population but hold 88.7% of liquid assets
      • HNW individuals held $404bn in liquid assets in 2014
      • NRIs hold a sizable proportion of onshore liquid assets
  • Drivers of Growth in the Indian Wealth Market
    • India's total retail savings and investment market will continue to grow strongly
      • Total retail savings and investments will hit $2,245bn in 2019
      • Direct equity investment accounts for over 28% of the Indian retail savings and investment market
      • The Indian retail savings and investment market will grow at over 8% per annum between 2015 and 2019
    • Deposits will continue to drive the overall retail savings and investment market
    • The Indian stock market is fueling investment in both equities and mutual funds
      • Fixed income funds dominate the mutual fund market
    • Bonds investments are set to follow GDP rates, albeit at a lower level
  • HNW Investment Preferences
    • Indian HNW individuals allocate 38% of their portfolios outside of traditional liquid asset classes
    • Offshore investment is of secondary importance to Indian HNW individuals
      • Indian HNW individuals use offshore centers in order to globalize their portfolios and access a superior range of investment options
      • Taxation is relatively moderate in India, and is thus a limited driver for offshore holdings
        • Table India: tax rates by income band, 2014-15
      • Singapore and Hong Kong account for 64% of offshore bookings in India
  • Appendix
    • Abbreviations and acronyms
    • Supplementary data
      • Table Onshore liquid assets by asset band ($bn), 2010-14
      • Table Onshore liquid assets by asset band ($bn), 2015f-19f
      • Table Total Indian adult population by asset band (000s), 2010-14
      • Table Total Indian adult population by asset band (000s), 2015f-19f
    • Definitions
      • Affluent
      • Crore
      • Demat accounts
      • Domicile
      • DTA
      • HNW
      • Liquid assets
      • Mass affluent
      • Onshore
      • Residency
      • TIEAs
    • Methodology
      • Verdict Financial's 2014 Global Wealth Managers Survey
      • Verdict Financial's 2013 Global Wealth Managers Survey
      • Global Wealth Model methodology
      • Global Retail Investments Analytics methodology
        • Table Indian rupee-US dollar exchange rate, December 31, 2012-December 31, 2014
    • Bibliography
    • Further reading

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