India's super-rich set to triple in 5 years: study | business | Hindustan Times
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India's super-rich set to triple in 5 years: study

The number of India's ultra high net worth households (UHNHs) is set to triple over five years, and their total worth will grow five-fold, says a report by research firm Crisil and Kotak Wealth Management, part of the Kotak Mahindra Bank.

business Updated: Jun 07, 2011 22:40 IST
HT Correspondent

The number of India's ultra high net worth households (UHNHs) is set to triple over five years, and their total worth will grow five-fold, says a report by research firm Crisil and Kotak Wealth Management, part of the Kotak Mahindra Bank.

A UHNH is defined as one with a minimum net worth of Rs 25crore as of 2010-11. India had 62,000 of them in 2010-11. This is expected to hit 2,19,000 in five years, and their net worth will be R235 trillion (Rs 235,00,000 crore) by 2015-16, says the report 'Top of the Pyramid', which analyses the earnings, investment and spending patterns of ultra high net worth individuals (UHNIs).

According to the report, UHNIs prefer to spend more on products meant for the family, and a significant portion of overall expenditure goes into customised holiday packages, luxury watches and cars, jewellery, and household electronics.

The size of Indian luxury market will also grow with rise in number of UHNIs, said the report, which observed that "They are finding new ways to splurge, such as on buying art and artefacts, yachts, and islands, underwater weddings, chartering aircraft to go on holidays or watch sports, entertainment events, and partying."http://www.hindustantimes.com/Images/HTEditImages/Images/08_06_11-buss-23.jpg

The report says Ultra HNIs invest one-fifth of their income for growing their wealth but put a greater proportion back into their business to fuel wealth creation and retain control. Most ultra HNIs would rather invest in their own business than in instruments in which they have no control.

In terms of asset class they prefer real estate the most, followed by equity and debt.