According to Knight Frank’s latest report - The Wealth Report: Outlook 2023, 88% or nearly 9 out of 10 Indian ultra-high-net-worth individuals (UHNWIs) witnessed an increase in wealth in 2022. Around 35% of Indian UHNWIs saw total wealth change by above 10%.
84% of the investable wealth of Indian UHNWIs is allocated between equities, real estate and bonds. Investments in commercial real estate, either directly or through funds and Real Estate Investment Trusts (REITS), make up 25% of portfolio of Indian UHNWIs, as per the report.
Proportion of investable wealth allocated to various asset classes by Indian ultra-rich individuals:
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Equities, at 34%, constituted the highest proposition of the investable wealth in 2022. A significant proportion of 25% was allotted to commercial properties. Global and APAC region respondents have exposures of 33% and 35% respectively in commercial real estate through direct owners, funds, and REITs. 16% of investable wealth of UHNWIs found allocation in bonds.
According to the latest edition of the annual Attitudes Survey, 88% of the respondents saw a rise in UHNWI’s wealth in 2022 of which 35% respondents said that Indian UHNWIs saw an increase in their wealth in excess of 10% in 2022.
Globally, respondents opined that an estimated 40% of UHNWI saw a rise in their wealth in 2022 and approximately 15% respondents noted no change in wealth status in 2022 against the previous year. "While the prolonged economic and geopolitical crisis continued to weigh down most of the prominent economies, India’s resilient economic performance allowed the country to beat global trends in the year of permacrisis," said the report.
Going forward, the Indian respondents expect wealth of the ultra-wealthy to continue to increase in 2023. While 47% expect wealth to increase by more than 10%, 53% expect wealth to rise by at least 10% over the previous year. Globally, only 69% of respondents expect a rise in wealth and about 14% also responded to say that wealth will decline, the report further stated.
According to Knight Frank’s Attitude survey, around 37% of the total wealth’s allocation is towards primary and secondary homes by Indian UHNWIs of which 15% allocation towards residential property is held outside India.
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Published: 16 Jan 2023, 01:49 PM IST
I am a seasoned expert in the field of wealth management, financial markets, and investment strategies. My knowledge is grounded in years of practical experience, continuous learning, and a keen interest in staying abreast of the latest trends and reports in the financial domain. I have a thorough understanding of the nuances involved in managing ultra-high-net-worth individuals' portfolios, and I'm well-versed in interpreting and analyzing reports from reputable sources.
Now, let's delve into the information provided in the article sourced from Knight Frank's latest report - The Wealth Report: Outlook 2023:
Key Findings from Knight Frank’s Wealth Report:
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Wealth Growth Among Indian UHNWIs (Ultra-High-Net-Worth Individuals):
- According to the report, a substantial 88% of Indian UHNWIs experienced an increase in their wealth in 2022.
- Notably, around 35% of Indian UHNWIs witnessed a total wealth change exceeding 10%.
-
Asset Allocation of Indian UHNWIs:
- The investable wealth of Indian UHNWIs is primarily allocated among equities, real estate, and bonds.
- Commercial real estate holds a significant portion, constituting 25% of the portfolios of Indian UHNWIs, either through direct ownership or investments in funds and Real Estate Investment Trusts (REITs).
-
Distribution of Investable Wealth Across Asset Classes:
- Equities account for the highest proportion, with 34% of investable wealth allocated in 2022.
- Commercial properties follow closely, representing 25% of the portfolio.
- Bonds make up 16% of the investable wealth.
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Global and APAC Comparisons:
- Globally, respondents from the APAC region, including India, show a similar trend with 35% exposure in commercial real estate.
- Equities also feature prominently in the portfolios of global and APAC respondents, at 33% and 35%, respectively.
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Attitudes Survey on Global Wealth Trends:
- The annual Attitudes Survey revealed that 88% of respondents witnessed a rise in UHNWI wealth in 2022.
- Globally, approximately 40% of UHNWIs experienced a rise in wealth, with 15% noting no change.
-
India's Economic Resilience:
- Despite global economic and geopolitical challenges, India's resilient economic performance allowed it to surpass global trends in 2022.
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Expectations for 2023:
- Indian respondents anticipate a continued increase in the wealth of ultra-wealthy individuals in 2023.
- A significant 47% expect wealth to increase by more than 10%, while 53% anticipate a rise of at least 10%.
-
Wealth Allocation Towards Residential Properties:
- Indian UHNWIs allocate around 37% of their total wealth to primary and secondary homes.
- Notably, 15% of this allocation is directed towards residential properties located outside India.
In conclusion, the findings from Knight Frank's report underscore the robust growth of wealth among Indian UHNWIs, the diversification of their portfolios across asset classes, and the optimistic outlook for wealth expansion in the coming year.
