The number of millionaire investors in India surged by 19.3 per cent to 87,000 in 2005, the second-fastest growth in the world, and their total assets are likely to cross $500-billion mark by 2010 from $290 billion, according to a study.
The number of millionaire investors in South Korea grew by 21.3 per cent in 2005, followed by Indonesia and Hong Kong with 14.7 per cent and 14.4 per cent respectively.
“The total wealth of Indian high networth individuals (HNIs), with over US$ 1 million of assets, is expected to touch $500 billion by 2010. Young millionaires, who are joining the club, of late, and growth in overall numbers keeping pace in the next few years, will make it possible,” Keenan Pereira, an official in Capgemini North America, told Hindustan Times after releasing the ‘Asia-Pacific Wealth Report’.
“Asia-Pacific contains 27.1 per cent of the millionaire investor population and cornered 22.9 per cent of total HNWI wealth,” Pradeep Dokania, Managing Director, Global Private Client of DSP Merrill Lynch said, while releasing the report, carved out of the 10th Annual World Wealth Report, a joint initiative of Merrill Lynch and Capgemini Consulting.
However, India is lagging far behind the leaders in the number of HNIs, and occupies the fourth position in the region. Japan is leading the pack with 14,06,000 millionaire investors, followed by China and South Korea with 320,000 and 87,000 millionaires respectively. Even in terms of wealth distribution in the region, India comes fourth with a meagre share of 3.8 per cent of the total of $7.6 trillion, with Japan (46 per cent) and China (20.9 per cent), cornering more than 65 per cent of the region’s HNI wealth. Hong Kong comes third with a 5.4 per cent share.
Though India posted a huge growth in HNIs in 2005, the Indian equity market is still at the bottom of the maturity index, given the lack of depth in the market. This also denoted strict licensing requirements, currency inconvertibility, capital markets in a developing stage and capital controls, Pereira said.