Individual wealth in India grew by 9.62 per cent to Rs
430 lakh crore in the fiscal year 2019 taking forward the acceleration of
wealth growth over the last few years, a study showed.
A majority of this growth was achieved by 10.96 per cent rise in wealth creation by financial assets as compared to physical assets which grew by 7.59 per cent, Karvy Private Wealth said in its India Wealth Report 2019.
Individual investors continued moving their wealth from physical assets to financial assets with the proportion of financial assets having inched up to 60.95 per cent from 57.25 per cent in last 5 years, the report said.
Direct equity route was the major proponent of investor wealth as it moved up by 6.39 per cent, retaining the top spot.
A majority of this growth was achieved by 10.96 per cent rise in wealth creation by financial assets as compared to physical assets which grew by 7.59 per cent, Karvy Private Wealth said in its India Wealth Report 2019.
Individual investors continued moving their wealth from physical assets to financial assets with the proportion of financial assets having inched up to 60.95 per cent from 57.25 per cent in last 5 years, the report said.
Direct equity route was the major proponent of investor wealth as it moved up by 6.39 per cent, retaining the top spot.
“Direct equity continues to hold the fort in terms of investment preference in India. This shows the belief of investors in the Indian equity markets notwithstanding the volatility it has been through,” said Abhijit Bhave, Chief Executive Officer, Karvy Private Wealth.
The top five destinations for investment allocation were direct equity, fixed deposits, insurance, saving accounts and cash with a total of 72.33 per cent contribution in overall financial assets.
In the fiscal year 2019, the individual wealth in physical assets increased by 7.59 per cent with gold and real estate together covering 92.57 per cent of this space. The total wealth held by individuals in physical form stood at Rs 167 lakh crore.
By the fiscal year 2024, total individual wealth in India is estimated to have a healthy growth rate at a CAGR (compound annual growth rate) of 13.19 per cent to reach nearly Rs 799 lakh crore from the current wealth of Rs 430 lakh crore.
The allocation to financial assets is estimated to be
at 66.11 per cent while the allocation to physical assets will likely be 33.89
per cent.
“Massive investment in infrastructure and green energy, backed with a regulatory boost with tax reforms, aided by a huge young workforce, will accelerate the Indian economy towards the $5 trillion target once there is a pickup in consumption,” the report said.
“Massive investment in infrastructure and green energy, backed with a regulatory boost with tax reforms, aided by a huge young workforce, will accelerate the Indian economy towards the $5 trillion target once there is a pickup in consumption,” the report said.
“Urban India will go hand in hand with the semi-urban
and rural Bharat to achieve this feat,” it added.
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