Wealth in India: HNW Investors 2016; Understanding HNW individuals and wealth management strategies on the sub-continent.

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

$3450

While the Indian wealth management market retains many of its traditional characteristics, such as the importance of family business, it is undergoing big changes. Investors are increasingly open to sophisticated investments and are opting for more planning and professional management. Wealth managers need to adapt to the changes while respecting traditions.

Scope

• Family business is the most important source of wealth, followed by inheritance.

• Discretionary mandates are by far the preferred means for investing among Indian HNW individuals.

• Equities and sophisticated alternative investments have come to dominate HNW portfolios.

• Indian investors are open to adding leverage to their portfolio, but not to fund property investments.

Reasons to Buy

Develop and enhance your client targeting strategies using our data on HNW profiles and sources of wealth.

Give your marketing strategies the edge required and capture new clients using insights from our data on HNW investors’ drivers for seeking investment advice vs. self-directing.

Tailor your investment product portfolio to match current and future demand for different asset classes among HNW individuals.

Develop your service proposition to match the product and service demand expressed by Indian HNW investors and react proactively to the forecasted change in demand.

Karvy Private wealth
HDFC
Kotak Mahindra Wealth Management
Waterfield Advisors
ICICI

Table of Contents

EXECUTIVE SUMMARY

Rising levels of affluence have seen Indian HNW investors diversify

Key findings

Critical success factors

PROFILING THE INDIAN HNW INVESTOR

Inheritance and family businesses in manufacturing and construction are major sources of wealth in India

Over half of Indian HNW wealth is held in the family, reflecting a strong traditional trend within the market

Indian HNW families have built their fortunes through property and manufacturing

Private banks are likely to see strong competition from family office boutiques

Expats remain a tiny proportion of the resident HNW population

Few HNW individuals in the Indian market are drawn from abroad

The expat market is mostly made up of nationals from the Indian diaspora

INDIAN HNW INVESTMENT STYLE PREFERENCES

Indian HNW investors expect their wealth managers to outperform, making periods of volatility a challenge

Wealth managers need to be able to demonstrate superior returns and provide access to sophisticated investments

The bulk of HNW wealth is kept in discretionary mandates, well above regional norms

Demand is high for discretionary mandates, an enduring market preference

Advisory and discretionary mandates should be the core offering in India

While not currently widespread, execution-only mandates appeal to sophisticated investors as well as the tech savvy

UNDERSTANDING ASSET ALLOCATION TRENDS AMONG INDIAN HNW INVESTORS

Portfolios are mostly allocated in equities and alternatives

Property has reduced significantly as a share of the portfolio in favor of equities

Equities dominate HNW investors’ managed wealth, making the portfolio vulnerable to market swings

Indian investors are more comfortable with bond funds than holding securities directly

Cash and near-cash investments are well below the regional average in India

Property is a significant but declining element of Indian HNW portfolios

Commodity investments are currently out of favor with HNW investors

Alternative investments are now a major element of the Indian HNW portfolio

INDIAN HNW PRODUCT AND SERVICE DEMAND

Demand for planning services is strong and growing

Indian HNW individuals expect wealth managers to advise on all aspects of their finances

All planning services will rise in importance among Indian HNW individuals

HNW Indian investors will help expand the earning asset base

Demand for loans remains high among Indian HNW individuals

Indian investors remain open to using leverage to build their wealth in securities and property

APPENDIX

Abbreviations and acronyms

Definitions

Affluent

HNW

Liquid assets

Mass affluent

Methodology

Verdict Financial’s 2015 Global Wealth Managers Survey

Verdict Financial’s 2014 Global Wealth Managers Survey

Bibliography

Further reading

About Verdict Financial

Disclaimer

Table

N/A

Figures

Figure 1: Family business remains the top source of HNW wealth, followed by inheritance

Figure 2: Manufacturing has been edged out by property as the leading source of wealth

Figure 3: Expats account for a tiny proportion of India’s HNW wealth story

Figure 4: The Indian diaspora is responsible for most of the expats in India

Figure 5: Control issues dominate the expatriation of wealth

Figure 6: Indian HNW investors expect their advisors to more than pay for their fees in returns

Figure 7: Discretionary mandates rule the market in India, in stark contrast to the rest of Asia

Figure 8: Discretionary is the most sought after asset management mandate

Figure 9: Demand for advisory and discretionary services will increase significantly

Figure 10: Advances in technology are giving Indian HNW investors the confidence to increase direct control over their investments

Figure 11: Equity is forecast to surge ahead of most other asset classes

Figure 12: Funds are the preferred method for gaining equity exposure in India

Figure 13: Capital growth has been driving the growing demand for equities in India

Figure 14: Funds are the main channel for fixed income investments

Figure 15: Bond holdings will rise modestly compared to the rest of Asia Pacific

Figure 16: Cash holdings in India are primarily rupee deposits

Figure 17: Indian HNW investors are split on the need for more deposits

Figure 18: Despite a strengthening local market, Indian HNW investors are only marginally above average in property exposure

Figure 19: A mixture of capital growth and income will fuel the growth in property holdings

Figure 20: The poor performance of commodities means their share of the HNW portfolio remains low

Figure 21: In contrast to the wider region, commodities demand will not increase in India

Figure 22: Alternatives help investors diversify away from unsatisfactory financial markets

Figure 23: Alternatives will rise in India as investors seek out investments uncorrelated with financial markets

Figure 24: Strong demand exists for most planning services

Figure 25: All planning services will experience an increase in demand over the coming years

Figure 26: Indian HNW investors are keen on leveraging up their investments in securities and property

Figure 27: Demand for credit will not flag over the next two years

Frequently asked questions

Wealth in India: HNW Investors 2016; Understanding HNW individuals and wealth management strategies on the sub-continent. standard reports
Currency USD
$3,450

Can be used by individual purchaser only

$10,350

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company


Undecided about purchasing this report?

Enquire Before Buying

Get in touch to find out about multi-purchase discounts

reportstore@globaldata.com
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

See what our customers are saying

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at Wealth in India: HNW Investors 2016; Understanding HNW individuals and wealth management strategies on the sub-continent. in real time.

  • Access a live Wealth in India: HNW Investors 2016; Understanding HNW individuals and wealth management strategies on the sub-continent. dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.