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| https://www.thehindu.com/business/individual-wealth-in-india-rises-10-to-430-lakh-crore-in-fy19/article29728360.ece [ https://www.thehindu.com/business/individual-wealth-in-india-rises-10-to-430-lakh-crore-in-fy19/article29728360.ece ] Major part of this growth came from financial assets: study Even as global wealth saw a decline in 2018-19, individual wealth in India rose almost 10% to ₹430 lakh crore primarily on account of higher domestic participation in capital markets, mutual funds and a rise in gold prices. According to a study by Karvy Private Wealth, individual investors continued moving their wealth from physical assets to financial assets as the proportion of financial assets rose from 57.25% to almost 61% in last five years with direct equity maintaining the top position among financial assets. “Taking forward the acceleration of wealth growth over the last few years, individual wealth in India grew by 9.62% to reach ₹430 lakh crore in FY19,” Karvy said. “A majority of this growth was achieved by an impressive 10.96% wealth growth in financial assets as compared to physical assets which grew by 7.59%. Direct equity continued to act as a major proponent of investor wealth as it moved up by 6.39%, retaining the top spot. Other notable assets which saw good growth include mutual funds, pension funds, alternative investments and international assets,” it added. While the individual wealth in financial assets witnessed an increase of 10.96% and grew to ₹262 lakh crore in FY19, compared with ₹236 lakh crore in FY18, the top five destinations for investment allocation were direct equity, fixed deposits, insurance, saving accounts and cash with a total of 72.33% contribution in overall financial assets. Meanwhile, the individual wealth in physical assets rose 7.59% in FY18 with gold and real estate together covering 92.57% of this segment. Total wealth held by individuals in physical form stood at ₹167 lakh crore in FY19. Interestingly, the total individual wealth in India is estimated to have a healthy growth rate at a CAGR of 13.19% to reach almost ₹799 lakh crore by FY24. While allocation to financial assets is estimated to be 66.11%, allocation to physical assets will be 33.89%, as per the study. “Massive investment in infrastructure and green energy, backed with a regulatory boost with tax reforms, aided by a huge young workforce, will accelerate the Indian economy towards the $5 trillion target once there is a pick-up in consumption. Urban India will go hand in hand with the semi-urban and rural Bharat to achieve this feat,” Karvy said. Visit - https://www.thehindu.com/business/individual-wealth-in-india-rises-10-to-430-lakh-crore-in-fy19/article29728360.ece »» Details for https://www.thehindu.com/business/individual-wealth-in-india-rises-10-to-430-lakh-crore-in-fy19/article29728360.ece |
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