Boom period: India sees a large rise in millionaires

The amount of Indians with investible assets more than a million dollars rose 51% on the trunk of a good recovery in asset prices in ’09 2009, on Wednesday by Capgemini and Merrill Lynch Global Wealth Management Ltd based on the 2010 World Wealth Report released.


The amount of high net worth individuals (HNIs) was 126,700 in 2009 2009, or one for every 9,471 Indians.
“The strong rebound in HNWI (high net worth individuals) numbers is highly correlated to the strong recovery in stock market prices and strong outlook for India’s underlying economy”, said Pradeep Dokania, chairman at Merrill Lynch’s local wealth management unit.
Indeed, after losing over half its value in 2008, the Bombay Stock Exchange’s Sensex, the benchmark index on Asia’s oldest bourse, bounced back by 81% in 2009 2009.
Values of other major assets such as real estate and gold also increased in India with prices returning to pre-crisis levels, and in some cases higher than that.
Additionally, wealth managers find the outlook for India optimistic with economic output projected to grow at least 8.5% this year.
“Traders and savers positively are considering India, it being among the greener pastures among emerging marketplaces,” said Atul Singh, mind of wealth management in Merrill Lynch India.
He listed India’s solid fundamentals when it comes to economical growth and commercial recovery along with the demographic dividend, as India’s large young population may also be described.
These factors shall travel inflows, said Singh.
India is among several Asia-Pacific countries and emerging economies that may lead the development in the amount of wealthy people in the approaching years, the report added. In a testimony to the changing balance of wealth across the globe after the financial crisis, the size of the HNI population in Asia-Pacific at three million is as large as that of Europe.
More importantly, their collective wealth stood at $9.7 trillion (Rs449.1 trillion today) by the end of 2009, higher by 30.9%, and marginally a lot more than the $9.5 trillion held by Europe’s well-heeled set.
The global population of HNIs at 10 million also returned to pre-crisis levels regardless of the contraction in the world’s gross household product over the entire year.
Ultra-HNI’s, or people that have investable assets of $30 million or even more, increased their wealth by 21.5%, greater than the 17% upsurge in wealth by HNIs overall.
Globally, fixed income instruments retained their position simply because the investment of preference among HNIs with a share of 31%, followed by equities.
Although the US, Japan and Germany still accounted for 53.5% of the world’s HNI population at the end of 2009, China remained in fourth place with 477,000 after clocking 31% growth, while Australia dislodged Brazil from 10th place.
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