Alternative Investment Exposures Would Grow Significantly In Coming Years

Over the years, have you observed any discernible behavioural differences in the way UHNI’s approach their investments/portfolios? 

UHNIs are more diligent in allocating funds and are more informed. Transparency in fees and charges is expected and Investors are more cost-conscious. The investment decision-making process for UHNI investors has become more sophisticated, and asset allocation is of prime importance. 

How would you describe the attitude of the majority of UHNI’s towards risk-taking? 

Trends indicate a shift of portfolio exposure towards alternative investments. Direct venture capital investments and absolute return strategies among the most popular investments in UHNIs and Family Offices. Calculated risk-taking and tactical allocations can be seen in portfolios. 

How inclined/disinclined are UHNI’s towards plain vanilla products such as Mutual Funds? Are they more inclined towards investing directly into stocks? 

Core portfolio allocations consist of both Mutual Funds and Direct Stock and Bond Investments. Both approaches go hand in hand and are equally focussed in UHNI portfolios. 

Broadly speaking, how do UHNI’s approach their real estate investment portfolios? Do they prefer to buy land or to invest through vehicles such as REITs? 

Commercial properties and commercial asset funds are popular. Direct investment depends on the ticket size of the property. Land purchases are still done directly as it has a heavy home city bias. 

In your observation, how inclined as UHNI’s towards making angel investments/growth capital investments in start-ups/ VC investments? Do they generally prefer to do these directly or through a fund? 

Initially, these investments were done via VC funds as direct access to such deals was limited. Over the last two years, we have seen a surge in direct deals by Family Offices and UHNI investors. This indicates that the Indian VC industry is maturing at a fast pace. The reason behind this is first, investors do not want to shell out fund management expenses and profit-sharing, secondly, they wish to be a part of the management and decision making in these start-ups providing their network and expertise, and thirdly, they might have synergies with the investee companies for their running business and are looking at these companies as probable takeovers in the future. 

How would you describe the attitude of most of your UHNI clients to philanthropic endeavours? Do you believe that a specific vehicle to this effect, would be of interest to UHNI’s? 

UHNIs usually make philanthropic contributions through their own charitable trust or foundations. They usually dedicate efforts to a cause which may be personal in nature or related to their profession/business which gives them a deep understanding of the issue and makes them better equipped to tackle it. 

What product gaps need to be filled in the Indian market for UHNI’s, compared to more evolved global markets such as the U.S & Europe? 

Venture Capital/Private Equity investments still a minuscule part of the overall portfolio. More sophisticated products on the fixed income side are yet to enter India. Alternative investment exposures would grow significantly in the coming years. 

Do you find resistance within the “old money” UHNI’s towards more complex investment products such as structures? Are they generally more inclined towards traditional avenues such as Bank Deposits? 

The old money has also evolved with changing trends and we see these investors opting for better tax-effective avenues for investments. Though we still see higher exposure to bank fixed deposits and bonds than structured products. 

http://www.businessworld.in/article/Alternative-Investment-Exposures-Would-Grow-Significantly-In-Coming-Years-Abhijit-Bhave/23-10-2019-178032/   

Alternative Investment Exposures Would Grow Significantly In Coming Years: Abhijit Bhave

Over the years, have you observed any discernible behavioural differences in the way UHNI’s approach their investments/portfolios? 

UHNIs are more diligent in allocating funds and are more informed. Transparency in fees and charges is expected and Investors are more cost-conscious. The investment decision-making process for UHNI investors has become more sophisticated, and asset allocation is of prime importance. 

How would you describe the attitude of the majority of UHNI’s towards risk-taking? 

Trends indicate a shift of portfolio exposure towards alternative investments. Direct venture capital investments and absolute return strategies among the most popular investments in UHNIs and Family Offices. Calculated risk-taking and tactical allocations can be seen in portfolios. 

How inclined/disinclined are UHNI’s towards plain vanilla products such as Mutual Funds? Are they more inclined towards investing directly into stocks? 

Core portfolio allocations consist of both Mutual Funds and Direct Stock and Bond Investments. Both approaches go hand in hand and are equally focussed in UHNI portfolios. 

Broadly speaking, how do UHNI’s approach their real estate investment portfolios? Do they prefer to buy land or to invest through vehicles such as REITs? 

Commercial properties and commercial asset funds are popular. Direct investment depends on the ticket size of the property. Land purchases are still done directly as it has a heavy home city bias. 

In your observation, how inclined as UHNI’s towards making angel investments/growth capital investments in start-ups/ VC investments? Do they generally prefer to do these directly or through a fund? 

Initially, these investments were done via VC funds as direct access to such deals was limited. Over the last two years, we have seen a surge in direct deals by Family Offices and UHNI investors. This indicates that the Indian VC industry is maturing at a fast pace. The reason behind this is first, investors do not want to shell out fund management expenses and profit-sharing, secondly, they wish to be a part of the management and decision making in these start-ups providing their network and expertise, and thirdly, they might have synergies with the investee companies for their running business and are looking at these companies as probable takeovers in the future. 

How would you describe the attitude of most of your UHNI clients to philanthropic endeavours? Do you believe that a specific vehicle to this effect, would be of interest to UHNI’s? 

UHNIs usually make philanthropic contributions through their own charitable trust or foundations. They usually dedicate efforts to a cause which may be personal in nature or related to their profession/business which gives them a deep understanding of the issue and makes them better equipped to tackle it. 

What product gaps need to be filled in the Indian market for UHNI’s, compared to more evolved global markets such as the U.S & Europe? 

Venture Capital/Private Equity investments still a minuscule part of the overall portfolio. More sophisticated products on the fixed income side are yet to enter India. Alternative investment exposures would grow significantly in the coming years. 

Do you find resistance within the “old money” UHNI’s towards more complex investment products such as structures? Are they generally more inclined towards traditional avenues such as Bank Deposits? 

The old money has also evolved with changing trends and we see these investors opting for better tax-effective avenues for investments. Though we still see higher exposure to bank fixed deposits and bonds than structured products. 

http://www.businessworld.in/article/Alternative-Investment-Exposures-Would-Grow-Significantly-In-Coming-Years-Abhijit-Bhave/23-10-2019-178032/   

HNIs return to realty

Over the past 12-18 months, HNI investors have been slowly returning to real estate as an investment option, according to private wealth managers. However, given how they burnt their fingers back in 2008, this time around, the investors are more interested in lending to developers rather than buying equity.

More structured debt now

Abhijit Bhave, CEO, Karvy Private Wealth, said he’s observing a selective return of rich individual and institutional investors to this asset class. “But now, the investment is increasingly coming in through rental yield funds. Earlier, around 2007 for instance, investors bought pure equity in real estate projects or created a special purpose vehicle for these investments. Now, it’s more structured debt with an equity kicker involved,” he added.

“To put it in layman’s language,” Bhave explained, “a private equity fund may lend money to a builder at say 18-20 per cent interest. That’s the debt component.

“Then, if the plan was to sell, say 100 apartments at ₹20,000 a sq. ft. and he ends up selling them at ₹30,000 a sq. ft., the fund earns a part of this profit as well — that’s the equity kicker.”

A recent report by global real estate consultancy Cushman & Wakefield found that inflows in the sector increased 40 per cent in the first quarter of 2016 at ₹3,840 crore, with both the total number of deals and average deal sizes rising year-on-year.

Karvy’s India Wealth Report 2015 said total assets under real estate funds were estimated to be ₹10,976 crore in FY15. Of this, individual contribution was expected to be ₹3,622 crore, about 8 per cent on a rich individual investor’s investible surplus.

In the new arrangement, Bhave added, even when real estate is doing badly, the lender makes money, since “a rental yield fund is more an indirect financial investment in real estate.

“Though the asset class is primarily real estate, it’s debt exposure. The true blue real estate funds of the past are not back yet.”

Ashish Bhalla, Senior Vice-President and Business Head, Arthveda Fund Management, which focuses on affordable housing for middle- and low-income groups, said real estate is increasingly becoming an HNI game, with the minimum investment at ₹1 crore.

“We’ve been able to deliver 30 per cent CAGR in the last three years. We see the market picking up further as the first REITs are introduced.” Real Estate Investment Trusts are structured as capital market instruments, where an investor can buy a unit in a listed real estate project the same way he buys a share on a stock exchange.

Finding tenants, a big issue

“The biggest risk with a rental yield fund is that the asset might not find tenants,” Bhave concluded.

“But real estate investors say the market bottom is behind us, and in three to four years, we will see an upturn in the market again. With a rental yield fund, investors get a return of anywhere between 8 and 12 per cent, but that depends on location and your luck.”

https://www.thehindubusinessline.com/markets/stock-markets/hnis-return-to-realty-this-time-via-new-route/article8581359.ece 

HNIs return to realty, this time via new route

Over the past 12-18 months, HNI investors have been slowly returning to real estate as an investment option, according to private wealth managers. However, given how they burnt their fingers back in 2008, this time around, the investors are more interested in lending to developers rather than buying equity.

More structured debt now

Abhijit Bhave, CEO, Karvy Private Wealth, said he’s observing a selective return of rich individual and institutional investors to this asset class. “But now, the investment is increasingly coming in through rental yield funds. Earlier, around 2007 for instance, investors bought pure equity in real estate projects or created a special purpose vehicle for these investments. Now, it’s more structured debt with an equity kicker involved,” he added.

“To put it in layman’s language,” Bhave explained, “a private equity fund may lend money to a builder at say 18-20 per cent interest. That’s the debt component.

“Then, if the plan was to sell, say 100 apartments at ₹20,000 a sq. ft. and he ends up selling them at ₹30,000 a sq. ft., the fund earns a part of this profit as well — that’s the equity kicker.”

A recent report by global real estate consultancy Cushman & Wakefield found that inflows in the sector increased 40 per cent in the first quarter of 2016 at ₹3,840 crore, with both the total number of deals and average deal sizes rising year-on-year.

Karvy’s India Wealth Report 2015 said total assets under real estate funds were estimated to be ₹10,976 crore in FY15. Of this, individual contribution was expected to be ₹3,622 crore, about 8 per cent on a rich individual investor’s investible surplus.

In the new arrangement, Bhave added, even when real estate is doing badly, the lender makes money, since “a rental yield fund is more an indirect financial investment in real estate.

“Though the asset class is primarily real estate, it’s debt exposure. The true blue real estate funds of the past are not back yet.”

Ashish Bhalla, Senior Vice-President and Business Head, Arthveda Fund Management, which focuses on affordable housing for middle- and low-income groups, said real estate is increasingly becoming an HNI game, with the minimum investment at ₹1 crore.

“We’ve been able to deliver 30 per cent CAGR in the last three years. We see the market picking up further as the first REITs are introduced.” Real Estate Investment Trusts are structured as capital market instruments, where an investor can buy a unit in a listed real estate project the same way he buys a share on a stock exchange.

Finding tenants, a big issue

“The biggest risk with a rental yield fund is that the asset might not find tenants,” Bhave concluded.

“But real estate investors say the market bottom is behind us, and in three to four years, we will see an upturn in the market again. With a rental yield fund, investors get a return of anywhere between 8 and 12 per cent, but that depends on location and your luck.”

https://www.thehindubusinessline.com/markets/stock-markets/hnis-return-to-realty-this-time-via-new-route/article8581359.ece 

Individual wealth in financial assets to touch Rs 528 trillion

Indian households’ appetite for equities is set to increase manifold in the next five years. According to Karvy Wealth Report 2019, individual wealth in financial assets is projected to more than double to reach Rs 528 trillion in FY 24 from the current Rs 262 trillion. Of this, direct equity will constitute the highest share at 26%.

Currently, individuals hold Rs 52 trillion in direct equity, which is expected to reach Rs 136 trillion in FY24. India has 5,000 listed companies, second only to US, in terms of investment universe, which could provide immense opportunity for investors to participate in the wealth creation story.

After direct equity, fixed deposits and bonds will occupy the second position at 15% share or Rs 79 trillion of the total individual wealth pie (Rs 528 trillion) in FY24. Insurance assets will constitute the third largest slice of the pie at Rs 72.49 trillion. Currently, individuals hold Rs 13.77 trillion in mutual funds, which is expected to increase at a CAGR of 18% to reach Rs 31.92 crore in FY24. Less than 2% of 1.3 billion Indians currently invest in mutual funds, providing a huge opportunity for advisers.

Financial assets now constitute 61% of total individual wealth in India. By FY24, the report estimates that the share of financial assets in total individual wealth will increase to 66.11% while that of physical assets will be at 33.89%. Total individual wealth (financial and physical) is expected to increase from the current Rs 430 trillion to 798 trillion in FY24.

https://www.morningstar.in/posts/55379/individual-wealth-financial-assets-touch-rs-528-trillion-fy24.aspx 

Individual wealth in financial assets to touch Rs 528 trillion by FY24

Indian households’ appetite for equities is set to increase manifold in the next five years. According to Karvy Wealth Report 2019, individual wealth in financial assets is projected to more than double to reach Rs 528 trillion in FY 24 from the current Rs 262 trillion. Of this, direct equity will constitute the highest share at 26%.

Currently, individuals hold Rs 52 trillion in direct equity, which is expected to reach Rs 136 trillion in FY24. India has 5,000 listed companies, second only to US, in terms of investment universe, which could provide immense opportunity for investors to participate in the wealth creation story.

After direct equity, fixed deposits and bonds will occupy the second position at 15% share or Rs 79 trillion of the total individual wealth pie (Rs 528 trillion) in FY24. Insurance assets will constitute the third largest slice of the pie at Rs 72.49 trillion. Currently, individuals hold Rs 13.77 trillion in mutual funds, which is expected to increase at a CAGR of 18% to reach Rs 31.92 crore in FY24. Less than 2% of 1.3 billion Indians currently invest in mutual funds, providing a huge opportunity for advisers.

Financial assets now constitute 61% of total individual wealth in India. By FY24, the report estimates that the share of financial assets in total individual wealth will increase to 66.11% while that of physical assets will be at 33.89%. Total individual wealth (financial and physical) is expected to increase from the current Rs 430 trillion to 798 trillion in FY24.

https://www.morningstar.in/posts/55379/individual-wealth-financial-assets-touch-rs-528-trillion-fy24.aspx 

Individual investor wealth up 10% at ₹430-lakh cr

Individual investor wealth across various investment avenues registered an impressive growth of 10 per cent to ₹430-lakh crore last fiscal compared to ₹392-lakh crore logged in the financial year ended March 2018.

According to 10th Karvy Private Wealth report released here on Wednesday, individual investors’ wealth in financial asset increased 11 per cent to ₹262-lakh crore (₹236-lakh crore) with direct investment in equity, fixed deposit and insurance topping the chart.

Investments in physical assets such as real estate and gold increased eight per cent to ₹167-lakh crore (₹156-lakh crore) in FY19. The proportionate of financial assets has moved up to 61 per cent from 57 per cent in the last five years.

Interestingly, investments in gold exchange traded fund (ETF) fell five per cent to ₹2,661 crore against ₹2,798 crore in FY18 largely due to emergence of sovereign gold bond which attracted an investment of ₹7,960 crore (₹6,960 crore).

Karvy Private Wealth estimates individual wealth in India to touch ₹799-lakh crore in the next five years with allocation to financial assets accounting for 66 per cent and that of physical assets touching 34 per cent.

Abhijit Bhave, Chief Executive Officer, Karvy Private Wealth, said notwithstanding the volatility, direct equity continues to hold the fort in terms of investment preference, reflecting investors belief equity markets.

“We believe India’s drive towards a $5-trillion economy will have a cascading positive effect on the individual wealth by 2024. We expect the HNI population to touch one million over the next five year,” he added.

Direct investment in equity is set to register the highest growth rate of 21 per cent to touch ₹136-lakh crore in five years from ₹52-lakh crore currently. Fixed deposit and bonds will grow at 12 per cent CAGR to hit ₹80-lakh crore (₹46-lakh crore), according to Karvy report.

https://www.thehindubusinessline.com/markets/stock-markets/individual-investor-wealth-up-10-pc-at-430-lakh-crore/article29708647.ece  

Individual investor wealth up 10% at ₹430-lakh cr in FY19

Individual investor wealth across various investment avenues registered an impressive growth of 10 per cent to ₹430-lakh crore last fiscal compared to ₹392-lakh crore logged in the financial year ended March 2018.

According to 10th Karvy Private Wealth report released here on Wednesday, individual investors’ wealth in financial asset increased 11 per cent to ₹262-lakh crore (₹236-lakh crore) with direct investment in equity, fixed deposit and insurance topping the chart.

Investments in physical assets such as real estate and gold increased eight per cent to ₹167-lakh crore (₹156-lakh crore) in FY19. The proportionate of financial assets has moved up to 61 per cent from 57 per cent in the last five years.

Interestingly, investments in gold exchange traded fund (ETF) fell five per cent to ₹2,661 crore against ₹2,798 crore in FY18 largely due to emergence of sovereign gold bond which attracted an investment of ₹7,960 crore (₹6,960 crore).

Karvy Private Wealth estimates individual wealth in India to touch ₹799-lakh crore in the next five years with allocation to financial assets accounting for 66 per cent and that of physical assets touching 34 per cent.

Abhijit Bhave, Chief Executive Officer, Karvy Private Wealth, said notwithstanding the volatility, direct equity continues to hold the fort in terms of investment preference, reflecting investors belief equity markets.

“We believe India’s drive towards a $5-trillion economy will have a cascading positive effect on the individual wealth by 2024. We expect the HNI population to touch one million over the next five year,” he added.

Direct investment in equity is set to register the highest growth rate of 21 per cent to touch ₹136-lakh crore in five years from ₹52-lakh crore currently. Fixed deposit and bonds will grow at 12 per cent CAGR to hit ₹80-lakh crore (₹46-lakh crore), according to Karvy report.

https://www.thehindubusinessline.com/markets/stock-markets/individual-investor-wealth-up-10-pc-at-430-lakh-crore/article29708647.ece  

Growth Of Wealth Of Ultra Rich Slows Down

High networth individuals have seen their wealth growth slowing down in 2018 to 9.62 per cent from 13.45 per cent a year ago, while their number has de-grown, says a report.

High networth individuals are those with an investible surplus of over $1 million, and their number has crimped to 2.56 lakh in 2018 from 2.63 lakh in 2017, according to the data collated by Karvy Wealth Management.

According to the Karvy report, these 2.63 lakh ultra rich are worth Rs 430 lakh crore in 2018, up from Rs 392 lakh crore in 2017.

The report comes even as more eye brows are being raised repeatedly over the rising inequality in the country, where the rich are getting richer and the poor, becoming poorer and at a faster clip.

As much as Rs 262 lakh crore of the wealth possessed by the high networth individuals are in the form of financial assets, while the rest are parked in physical assets, it said, adding the ratio has remained broadly the same at 60:40.

Among financial assets, direct equity exposure is the largest at Rs 52 lakh crore, but growth in this segment plunged to 6.39 percent from a high 30.32 percent in 2017.

In line with broader trends, growth in fixed deposits and bonds rose 8.85 percent to Rs 45 lakh crore in 2018 from 4.86 percent growth in the previous year.

Insurance is the third biggest component among financial assets at Rs 36 lakh crore, while bank deposits is worth Rs 34 lakh crore.

Much to the chagrin of the policymakers, gold is the most preferred asset class among physical assets for the rich as well, with nearly Rs 80 lakh crore of their wealth parked in the yellow metal.

In line with market trends, growth in value of real estate holdings, second biggest asset class worth Rs 74 lakh crore, slipped to 7.13 percent from 10.35 percent in 2017.

The agency estimates individual wealth to grow at 13.19 percent every year till FY24 to touch Rs 798 lakh crore and a gradual rise in financial assets. 

https://menafn.com/1099146199/Growth-Of-Wealth-Of-Ultra-Rich-Slows-Down-In-2018

Growth Of Wealth Of Ultra Rich Slows Down In 2018

High networth individuals have seen their wealth growth slowing down in 2018 to 9.62 per cent from 13.45 per cent a year ago, while their number has de-grown, says a report.

High networth individuals are those with an investible surplus of over $1 million, and their number has crimped to 2.56 lakh in 2018 from 2.63 lakh in 2017, according to the data collated by Karvy Wealth Management.

According to the Karvy report, these 2.63 lakh ultra rich are worth Rs 430 lakh crore in 2018, up from Rs 392 lakh crore in 2017.

The report comes even as more eye brows are being raised repeatedly over the rising inequality in the country, where the rich are getting richer and the poor, becoming poorer and at a faster clip.

As much as Rs 262 lakh crore of the wealth possessed by the high networth individuals are in the form of financial assets, while the rest are parked in physical assets, it said, adding the ratio has remained broadly the same at 60:40.

Among financial assets, direct equity exposure is the largest at Rs 52 lakh crore, but growth in this segment plunged to 6.39 percent from a high 30.32 percent in 2017.

In line with broader trends, growth in fixed deposits and bonds rose 8.85 percent to Rs 45 lakh crore in 2018 from 4.86 percent growth in the previous year.

Insurance is the third biggest component among financial assets at Rs 36 lakh crore, while bank deposits is worth Rs 34 lakh crore.

Much to the chagrin of the policymakers, gold is the most preferred asset class among physical assets for the rich as well, with nearly Rs 80 lakh crore of their wealth parked in the yellow metal.

In line with market trends, growth in value of real estate holdings, second biggest asset class worth Rs 74 lakh crore, slipped to 7.13 percent from 10.35 percent in 2017.

The agency estimates individual wealth to grow at 13.19 percent every year till FY24 to touch Rs 798 lakh crore and a gradual rise in financial assets. 

https://menafn.com/1099146199/Growth-Of-Wealth-Of-Ultra-Rich-Slows-Down-In-2018

India's household wealth growth crawls, debt jumps

Wealth creation in India slowed to a crawl in the year ended 30 June even as household debt jumped, a Credit Suisse study found.

India’s total household wealth grew by 5.2% in dollar terms in the period, the Credit Suisse Global Wealth Report released on Monday said. Net wealth per adult grew at 3.3%, sharply slower than the average 11% growth rate reported in the 20 years to 2019, the report said.

India, however, remains one of the fastest wealth creators in the world, with household wealth in dollar terms growing faster than any other region.

The slowdown in wealth creation coincides with a downturn in the Indian economy, which grew at the slowest pace in six years in the three months ended 30 June. Growth in private consumption expenditure also slumped to an 18-quarter low of 3.1% in the June quarter, indicating a negative wealth effect.

Overall, the Credit Suisse report found that non-financial assets of Indian households grew by 6.9% in 2018-19, outpacing the 1.4% growth in financial assets.

The last time household wealth grew at a slower pace was in 2017-18, when it expanded 2.6%. But that was largely due to the sharp weakening of the rupee in that year — a 7-8% rise in asset values was offset by an almost 5% currency depreciation.

In 2018-19, Indian asset prices grew at a slower pace of nearly 6% but foreign exchange fluctuations were more favourable.

The report estimates wealth per Indian adult at $14,569 ( ₹10.31 lakh as on 21 October). However, the average number is skewed heavily by a few wealthy individuals.

The report estimates that 78% of India’s adult population has wealth below $10,000, while 1.8% of India’s population has more than $100,000.

At the other extreme, 1,790 adults have wealth over $100 million. India accounts for 2% of the world’s millionaires.

Indians hold an average of about $13,000 in physical assets and roughly $3,000 in financial assets. There is also a debt of $1,345 per adult.

The Credit Suisse report also found that the increase in household wealth in India in 2018-19 was mostly driven by rising home prices.

“The returns from real estate have come down in the past few years, and this is a major factor that has contributed to the slowdown in the growth of household wealth," said Gaurav Awasthi, senior partner, IIFL Wealth Management Ltd.

https://www.livemint.com/money/personal-finance/indians-wealth-grew-5-2-in-2018-19-credit-suisse-report-11571660803961.html  

                                                

India's household wealth growth crawls, debt jumps: Credit Suisse study

Wealth creation in India slowed to a crawl in the year ended 30 June even as household debt jumped, a Credit Suisse study found.

India’s total household wealth grew by 5.2% in dollar terms in the period, the Credit Suisse Global Wealth Report released on Monday said. Net wealth per adult grew at 3.3%, sharply slower than the average 11% growth rate reported in the 20 years to 2019, the report said.

India, however, remains one of the fastest wealth creators in the world, with household wealth in dollar terms growing faster than any other region.

The slowdown in wealth creation coincides with a downturn in the Indian economy, which grew at the slowest pace in six years in the three months ended 30 June. Growth in private consumption expenditure also slumped to an 18-quarter low of 3.1% in the June quarter, indicating a negative wealth effect.

Overall, the Credit Suisse report found that non-financial assets of Indian households grew by 6.9% in 2018-19, outpacing the 1.4% growth in financial assets.

The last time household wealth grew at a slower pace was in 2017-18, when it expanded 2.6%. But that was largely due to the sharp weakening of the rupee in that year — a 7-8% rise in asset values was offset by an almost 5% currency depreciation.

In 2018-19, Indian asset prices grew at a slower pace of nearly 6% but foreign exchange fluctuations were more favourable.

The report estimates wealth per Indian adult at $14,569 ( ₹10.31 lakh as on 21 October). However, the average number is skewed heavily by a few wealthy individuals.

The report estimates that 78% of India’s adult population has wealth below $10,000, while 1.8% of India’s population has more than $100,000.

At the other extreme, 1,790 adults have wealth over $100 million. India accounts for 2% of the world’s millionaires.

Indians hold an average of about $13,000 in physical assets and roughly $3,000 in financial assets. There is also a debt of $1,345 per adult.

The Credit Suisse report also found that the increase in household wealth in India in 2018-19 was mostly driven by rising home prices.

“The returns from real estate have come down in the past few years, and this is a major factor that has contributed to the slowdown in the growth of household wealth," said Gaurav Awasthi, senior partner, IIFL Wealth Management Ltd.

https://www.livemint.com/money/personal-finance/indians-wealth-grew-5-2-in-2018-19-credit-suisse-report-11571660803961.html