HNIs' wealth to double to Rs 144 lakh cr: Karvy report

MUMBAI: Wealth held by individuals in the country is likely to double from the present Rs 73-lakh-crore to Rs 144 lakh crore over the next three years, according to a report.

Besides, the individual wealth, which is growing at a 26 per cent compounded rate, is also expected to grow at over four times the world growth rate, a report by Karvy Private Wealth said here on Thursday.

"We expect that wealth held by individuals in the country will almost double over the next three years and we are looking at it to grow from the present Rs 73-lakh crore to Rs 144 lakh crore by 2013," Karvy Private Wealth Chief Executive Officer Hrishikesh Parandekar said while releasing the India Wealth Report said.

According to the report by the wealth management services provider, the wealth of the high newtrorth individuals' (HNIs) across the globe is estimated to grow from USD 39 trillion in 2009 to USD 48.5 trillion by 2013, clipping at 5.6 per cent.

"Therefore, it may be observed that the individual wealth in the country, which is growing at 26 per cent compounded rate, will grow at more than four times the world rate," it said.

The report further observes that the equity-based asset classes will form 42.9 per cent of individual wealth by 2013, while investments in debts will increase by 20 per cent in volume on year-on-year basis.

However, the overall proportion will come down from the present 65.8 per cent of individual wealth in the country to 56.1 per cent by 2013, the said, and added that "alternative asset instruments will become hugely popular in the next decade."

Of the Rs 73-lakh-crore wealth held by the individuals currently, Rs 22.73 lakh crore or 31.1 per cent of the total is in the form of direct equity while Rs 22.16 lakh crore (30.3 per cent) are in the fixed deposits and bonds, the Karvy report said.

Key assets classes-wise, wealth in the form of debt assets accounts for over 65 per cent of the total wealth at Rs 48.12 lakh crore followed by equities at Rs 24.76 lakh crore (33.9 per cent).

However, alternative assets accounts for only 0.3 per cent at Rs 18,575 crore, the report said.

"With this report, we are giving our clients key insights into specific trends in the country and emerging asset classes which will see huge growth over the next three years," Parandekar said.