Ultra HNIs prefer equity over realty

Mumbai: India’s wealthy prefer equity and bonds, while Asian ultra high net worth individuals (UHNWIs) prefer real estate, cash and gold, says the Knight Frank Wealth Report for 2019.

Also private equity investment is on the rise among Indian UHNWIs.

In India, where the volume of wealth is rising the fastest globally, UHNWIs in the country are expected to decrease cash exposure and increase their allocation to private equity in 2019 as local investors grow in sophistication, the report said.

For the year 2018, Indian respondents gave a thumbs-up to equities (30 per cent) and bonds (28 per cent) where respondents to the survey said that their clients preferred these high return investment assets. Realty with 23 per cent was the third most invested asset class by Indian UHNWIs.

“In the Indian market, there is a strong bend towards Equities (34 per cent) and Private Equities (37 per cent). Private Equity, which saw only about 4 per cent of wealth allocation in 2018, is set to see a significant rise in 2019. Indian UHNWI showed least preference for the most liquid of all assets, i.e. cash, which registered a negative sentiment of -15 per cent,” the report said.