The total wealth held by individuals in the country is expected to double in the next five years to Rs 639 lakh crore, growing at a CAGR of 13% over the next five years, according to Karvy group’s India Wealth Report 2017. The total wealth held by Indians has grew by 11% to Rs 344 lakh crore in 2016-17. Financial assets and real estate would become the preferred choice as opposed to gold assets. Individual wealth in financial assets grew by 14.63% to reach Rs 204 lakh crore. This growth was driven by direct equity (26.8% growth), mutual funds (39.2%), savings deposits (27.85% growth) and current account deposits (39.72%), the report pointed out.
“Equity has emerged as the favoured asset class in FY17 with individual investors cashing in on the current bull run of the equity markets. Apart from outperformance of equities, a host of structural reforms implemented by the government are encouraging Indian individuals to hold wealth in financial assets,” Abhijit Bhave, CEO, Karvy Private Wealth, said.a