Total individual wealth in India up 6.7% amid global challenges says Karvy

The total wealth in India held by individuals was Rs. 92.26 lakh crore at the end of financial year 2012, an increase of 6.7% over the previous financial year amid challenges in the global and the Indian Economy.

"Direct Equity and Fixed Deposits & Bonds contributed 25.4% and 25.1% respectively to the total individual wealth for FY12. Insurance is the third largest investment class contributing 19.7% of the individual wealth," Karvy's India Wealth Report stated.

Karvy's India Wealth Report expects Indian equity to remain the biggest asset class in 2017. Nearly 28.7% of individual wealth is expected to be invested in equities. The report expects about 22% of the wealth to be held in each of Insurance and Fixed Deposits. Alternate assets are expected to grow by more than 3 times by FY17.

Other asset classes such as Savings Deposits, Provident Funds, Mutual Funds and Alternate Assets contributed around 30% of the total individual wealth in India. The India Wealth Report does not include government and institutional holdings and only "financial assets" are considered and not physical assets such as real estate and gold.

Among financial assets, Insurance as an investment product constitutes 20% of Indian wealth, after Direct Equity and Fixed Deposits, the report stated.

On the back of monetary easing, global flows and some proactive policy making, Karvy's India Wealth Report expects FY13 to be a good year for Indian equities. The report expects the long term India growth story to be intact with the Indian economy growing at an average rate of 7- 8% over the next decade.

The amount of wealth in India held by individuals or the total individual wealth has been calculated after taking the sum of all asset classes and sub-class in which investments are made by individuals. ETE