India’s Ultra-Rich Prefer Equities, Bonds Over Real estate: Knight Frank’s Wealth Report 2019

India’s “ultra-high net worth individuals” (UHNWI) seem to be no more interested in Indian real estate. As per a recent report, UHNWIs are seen shifting preference for investing in equities and bonds rather than real estate and gold.

Knight Frank recently came out with the Wealth Report 2019 which highlights that wealthy Indians are getting more inclined towards equities and bonds while the interest in real estate and luxury investments remain largely stable. Click here for the complete report.

As per the data, around 30 percent of investments by Indian UHNWIs went to equities and 28 percent to bonds, followed by 24 percent into properties. Investment in gold has been just 4 percent.

For the year ahead, the Wealth Report 2019 projects further rise in the inclination towards equities and bonds among Indian investors. There is a strong bend towards equities (34 percent) and private equities (37 percent). Clearly, private equity, which saw only about 4 percent of wealth allocation in 2018, is set to see a significant rise in 2019.

Indian UHNWIs are showing the least preference for liquid assets. On the other hand, global investors are likely to go for investments into the property and the most liquid asset of cash.

“While globally UHNWIs are showing affinity towards more liquid investments as it is the most risk-averse asset, Indian counterparts, on the other hand, are increasing their exposure in the equity and bonds,” Shishir Baijal, Chairman and Managing Director, Knight Frank India, New Indian Express quoted Shishir Baijal, Chairman and Managing Director, Knight Frank India, as saying. “There is a sense of confidence amongst Indian UHNWIs on the strength of the country’s economic growth, which is pushing them to invest in higher-risk assets for shorter periods of time.”

The report also predicts that India would have the highest growth in the number of ultra-high net worth individuals with a likely 39 percent growth during 2018-2023, followed by the Philippines (38 percent) and China (35 percent).


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