In the last three years, a remarkable 84% of affluent investors in India have seen a significant uptick in their net worth, according to the findings of the Global Wealth Blueprint survey released on Monday. This surge in wealth coincides with the robust performance of the Indian stock market.
The survey also revealed the sentiment among affluent Indian investors regarding the impact of economic volatility. Only 39% of those surveyed believe that the current economic challenges will not adversely affect their long-term wealth creation. In contrast, 35% view the present economic situation as an opportunity to enhance their long-term wealth.
The study underscored a noticeable shift in the investment preferences of India’s affluent investors. Many are now gravitating toward diversified investment avenues, with digital assets, private equity, and hedge funds becoming increasingly attractive to the wealthy.
Digital assets, including cryptocurrencies, NFTs, and stablecoins, have gained significant traction among affluent Indian investors. A staggering 86% of them reported ownership of digital assets, marking a clear trend in the Indian market. These investors also express optimism about the potential of digital assets, with 59% believing in their substantial growth potential and advocating for aggressive investments in this domain.
In contrast to skepticism in other sectors, the Indian stock market is embracing the potential of AI. Approximately 75% of affluent investors surveyed believe that AI-driven advisory services can swiftly adapt their investment portfolios to market trends, leading to optimized outcomes. Moreover, nearly two-thirds of respondents see AI as an effective tool for monitoring their portfolios and issuing alerts as needed.
Despite the growing appetite for diversifying investments into unconventional assets, mutual funds remain a trusted choice. The survey revealed that 72% of investors have invested in mutual funds, and 60% have allocated funds to exchange-traded funds (ETFs). Additionally, a substantial 70% of respondents hold direct equity shares in the market, surpassing the average for sampled markets, which stands at 55%. The survey also indicated that approximately two-thirds of affluent Indian investors have private equity assets, and more than half (53%) have invested in hedge funds.
In terms of environmental, social, and governance (ESG) investments, India stands out in the Asia-Pacific region. A striking 61% of affluent Indian investors have ESG investments in their portfolios, well above the average for surveyed markets, which is 44%. On the other hand, the survey noted a waning interest in the real estate market, with only 40% of affluent Indian investors holding real estate investments.
Ms. Lynn, a spokesperson for the survey, commented, “Modern, affluent Indian investors are looking to maximize their portfolio growth and are moving away from traditional asset classes like real estate. They’re thinking about a wide range of investments and increasingly open to the concept of AI-enabled tools to enhance their portfolio’s productivity.”
The Global Wealth Blueprint survey collected responses from 600 affluent investors, primarily from the Asia-Pacific region, including over 100 participants from India.