Equities, Gold & Real Estate! Where are the High networth Individuals investing?

On expected lines, bulk of investments have been done in the individual’s primary business. But what may appear surprising is that the second highest investment turned out to be in real estate investments. 66% of professionals get most of their wealth from personal income and real estate investments.

The number of High Networth Individuals (HNI) continues to rise in India and the latest report by Kotak Wealth Management estimates it to have touched 137,100 in FY15. The fifth edition of ‘Top of the Pyramid’ report titled ‘Gliding on Optimism’ projects the ultra HNI networth to clock a CAGR of 26% to Rs. 415 lakh crore by FY20.

On expected lines, bulk of investments have been done in the individual’s primary business. But what may appear surprising is that the second highest investment turned out to be in real estate investments. 66% of professionals get most of their wealth from personal income and real estate investments.

In fact, over 90% of Ultra HNIs invest in real estate the report stated and little wonder that Indian billionaires own some of the most iconic British stately homes in London. How well the depressed real estate will perform in the short to medium term is anybody’s guess but HNIs seem comfortable with their investments. Moreover, jewellery too continues to attract attention among this lot.

The emergence of new entrepreneurs that are into the e-commerce section have mainly acquired wealth from their primary businesses.

There is a shift into commercial real estate because of higher rentals compared to residential market. 36% of the ultra HNIs that were surveyed showed more interest in commercial properties. 74% of HNIs prefer investment portals for tracking their investments.

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